UGI Energy Services (UGIES) has joined forces with California Bioenergy (CalBio) and Sevana Bioenergy to develop RNG dairy digester projects in South Dakota.
Through a new joint venture (JV), MBL Bioenergy, the companies will develop several clusters of dairy farm digester projects to produce RNG.
The projects are expected to produce 650 million cubic feet of RNG annually when complete and online by the end of 2024. The RNG will be delivered to local natural gas pipelines serving the regional distribution system.
In total, the projects will represent over $100 million (€84 million) of investment by MBL Bioenergy, with funding by UGIES on a per-project basis. UGIES, through its wholly-owned subsidiary, GHI Energy, will be the exclusive marketer for MBL Bioenergy.
“This partnership with UGI is another positive step forward in expanding our carbon-negative RNG business,” said N. Ross Buckenham, CEO of CalBio. “Our dairy methane capture and refining projects are delivering significant environmental benefits, improving economics for dairy farm partners and supplying a clean-burning diesel replacement fuel.
“Through our subsidiary, Midwest Bioenergy, this JV with UGI, a new, powerful and committed strategic partner, anchors our dairy RNG expansion into the Midwest.”
Robert Beard, executive vice-president of natural gas at UGI, commented: “We are pleased with this agreement as it advances our strategy to position UGI as a leading provider of sustainable energy solutions.
“In addition to substantially reducing greenhouse gas emissions, using dairy RNG as a vehicle fuel provides significant air quality benefits. We look forward to making additional investments in this area as we advance the use of RNG as an environmentally responsible and clean energy solution.”