logo
menu

Montauk Renewables to expand dairy RNG project

news item image
Montauk Renewables is planning to expand its dairy digester RNG cluster project in Jerome, Idaho.

The planned expansion is expected to be triggered by a recent amendment to the project’s feedstock arrangement, providing for around 65,000 gallons per day (GPD) in minimum feedstock supply. The increases are to be staged over 12-36 months, as are the development fees to be paid by Montauk for the expansion.

The firm plans to pair the anticipated increase in feedstock supply with an intended increase in digestion capacity. With an expected total project cost of $18 million (€15 million), the project’s digestion capacity is expected to rise by up to 160,000 GPD of additional feedstock supply, with a corresponding potential increase in RNG production by up to 300 MMBtu per day.

Montauk expects to invest up to $5 million (€4.1 million) of these project costs this year and expects the initial stages of the expansion to be operational by the middle of next year. At current gas and attribute pricing levels, the existing project could generate additional revenue, assuming expected capacity at completion, of around $68 (€56) per MMBtu.