Gevo begins start-up of Iowa RNG project

Gevo has started the process of bringing its dairy manure-based RNG project online.

Located in northwest Iowa, the project, known as Gevo NW Iowa RNG, is expected to produce approximately 355,000 MMBtu of RNG per year.

The project fits in with Gevo’s business model of exploring ways to use renewable carbon to make the most of energy opportunities by ‘dialling in’ sustainability and optimising renewable resources.

“We’re excited to get NW Iowa RNG online, right on schedule,” said Dr Chris Ryan, president and chief operating officer at Gevo. “Our team here has done a terrific job, creating a facility that will become an example of how renewable energy can work for years to come, and we’re excited to bring our partnership with area farmers to the next stage.”

As Gevo reported in August last year, the RNG is expected to be sold into the California market under dispensing agreements bp has in place with Clean Energy Fuels Corp, the largest fuelling infrastructure in the US for RNG.

The facility is expected to lead to $9 million (€7.9 million) to $16 million (€14.2 million) per year of distributions from the project, expected to begin late this year or early 2023, depending on the timing of the California Air Resources Board’s Low Carbon Fuel Standard (LCFS).

It is expected that NW Iowa RNG will benefit from environmental product revenues under California’s LCFS programme and the US Environmental Protection Agency’s Renewable Fuel Standard programme. RNG-fuelled vehicles are estimated to result in up to 95% lower emissions than those fuelled by petrol or diesel on a lifecycle basis, according to a US Department of Energy study.

“The farmers have demonstrated that they are willing to try something new,” said Ryan. “By creating a renewable energy source that reduces the greenhouse gas footprint of agriculture while providing meaningful renewable energy where it’s badly needed – that kind of foresight will make a difference in the long-term far beyond northwest Iowa.”

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