Leyline Renewable Capital will provide bridge funding for the development of two anaerobic digestion facilities in Pennsylvania and New Jersey, US. The agreement between Leyline and RNG Energy Solutions will see Leyline providing capital for the pre-construction phase of the projects, including permitting, engineering, site analysis and securing interconnection agreements.
The two RNG Energy facilities, one in Philadelphia and one in Linden, will each be able to take in up to 1,100 tonnes of organic waste per day, producing up to 3,000 dekatherms of renewable natural gas. This is equivalent to the energy value of 26,000 gallons of gasoline. According to Leyline, the production of renewable natural gas for use as vehicle fuel will result in significant greenhouse gas emissions reductions, equivalent to 135 million fewer miles driven by gas-powered cars annually.
“Leyline Renewable Capital has demonstrated a unique understanding of the anaerobic digestion space and the specific challenges that come with renewable energy development,” said James Potter, president of RNG Energy Solutions.
“RNG brings 30 years of experience to the table and we strongly value a financing partner that shares our deep understanding of the renewable energy industry and the capital needs of developers. With Leyline Renewable Capital, we have found that ideal combination and are confident that these two facilities represent the first of many opportunities to work together.”
The facilities will be among the largest carbon reduction facilities built in their respective states. The Philadelphia facility is located on a 23-acre portion of the former Philadelphia Energy Solutions refinery. It will take organic waste from the Philadelphia metro region and convert it into renewable natural gas, which will then be injected into the Interstate Pipeline and sold as transport fuel.
The Linden facility will take organic waste streams from northern New Jersey and the New York metro area. Waste processed here will be converted into biomethane, which will be refined to pipeline quality gas. As well as allowing greater northern New Jersey and New York City to reduce waste disposal costs and reduce emissions, the new facility is expected to create more than 400 direct and indirect jobs during the construction phase. Around 30 full-time staff will be employed onsite.
“We started Leyline to ensure that renewable energy projects like these RNG Energy Solutions facilities make it through the critical pre-construction phase,” said Erik Lensch, CEO of Leyline Renewable Capital. “These projects are the backbone of the next-generation clean energy infrastructure needed to meet ambitious sustainability, waste reduction and renewable energy goals to combat climate change. Our team of experienced renewable energy professionals understand development first-hand, and the important role of flexible pre-construction capital plays in ensuring projects like these meet key deadlines and are financially viable in the communities they serve.”