Global investment firm Meridiam and Sevana Bioenergy have agreed to develop an existing biodigester project in the US state of Idaho.
The project is the first of its kind in the US for Meridiam, which is a European leader in the recovery of household organics, industrial or agricultural waste to transform into renewable energy and natural fertilisers.
Sevana Bioenergy will serve as the development partner, service provider, and long-term co-investor of the project, located near Twin Falls. The companies will combine their expertise in project development and long-term asset management to focus on creating significant added value to this existing facility.
The companies purchased the plant, which has been operational since 2011. Currently, the facility produces renewable electricity through the anaerobic digestion of dairy manure that is delivered to the grid under a power purchase agreement with Idaho Power.
Phase two of the project is expected to start in the third quarter of this year – upgrading the facility to produce renewable natural gas (RNG) that will be marketed under the renewable fuel standard programmes in the federal and California market. The anticipated RNG production will be distributed as a renewable transportation fuel for commercial vehicles is estimated to displace approximately 2,000,000 gallons of diesel per year.
The project represents an approximate investment $35 million (€30.2 million) for Meridiam and benefits from its operational history and long-term manure feedstock supply agreements. The manure feedstock provider also recovers the by-products of the process, which can be used as organic fertiliser.
Meridiam is currently developing, financing and managing 18 biomethane plants in Europe, preventing approximately 50,000 tons of carbon dioxide per year from entering the atmosphere.