Bioenergy DevCo (BDC) has partnered with Chesapeake Utilities Corporation (CPK) to bring renewable natural gas (RNG) to customers on the Delmarva Peninsula on the US east coast.
BDC, a leading developer of anaerobic digestion (AD) facilities and CPK, an NYSE-listed diversified energy company, will work on a project to remove excess organics from the poultry industry and convert it into RNG. The plan is for BDC and CPK’s affiliates, Eastern Shore Natural Gas, Chesapeake Utilities and Marlin Gas Services, to collaborate on the project alongside several other project sites, where organic waste can be converted into a carbon-negative energy source.
Resources generated from organic material at BDC’s AD facilities in Delaware, known as the Bioenergy Innovation Center, will be processed by CPK, while Eastern Shore Natural gas and Marlin Gas Services will facilitate the transport and receipt of RNG for multiple suppliers. Marlin Gas will transport the fuel to Eastern Shore and Chesapeake Utilities’ interstate pipeline, where it will be introduced to CPK’s distribution system and distributed to customers.
Shawn Kreloff, CEO of BDC, said: “CPK, by working together with municipalities and the food industry, understands that digesting organics is a solution that creates a sustainable, environmentally friendly supply of RNG, while also helping to solve major waste management problems.
“Recent estimates have shown that turning agricultural waste and excess organics from the poultry industry into truly renewable natural gas could replace seven billion gallons of diesel fuel and generate 70,000 new jobs. Companies that embrace utility-scale AD, like CPK, are at the forefront of a revolution in waste and energy structure innovation.”
“We have taken steps to ensure that CPK can support the emergence of the renewable fuels market and do its part to assist in managing agricultural and other waste recovery,” commented Jeff Householder, president and CEO of CPK. “These investments and our recent tariff changes to establish gas quality standards are evidence of our efforts.
“We see this partnership with BDC as the next important step in our commitment to operating with a focus on the environment and sustainability. By utilising the RNG derived from processing excess poultry industry organics in the Delmarva region and transforming that into a carbon-negative energy source, we can help fuel homes and businesses throughout the community while supporting a more sustainable future.
“Beyond sustainability, these projects represent profitable growth investments across our value chain – natural gas transmission, natural gas distribution, and our unregulated mobile compressed natural gas business, Marlin Gas Services.”