TC Energy has announced a $29.3 million (€29.7m) investment in a renewable natural gas (RNG) production facility near the Jack Daniel Distillery in Tennessee, US.
The facility is owned by Lynchburg Renewable Fuels, and will produce RNG with a carbon intensity score that is 50% lower than natural gas - saving up to 16,000 tonnes of CO2e/ year. The project is being developed by 3 Rivers Energy Partners, also an owner in Lynchburg Renewable Fuels.
The plant is expected to be operational in 2024, and will mean a byproduct of the Jack Daniel's distilling process will be broken down to generate methane recovered as biogas. A biogas upgrade plant is intended to remove contaminants to produce pipeline-quality RNG that will be directly connected to a local natural gas utility. Liquid fertiliser will also be produced in the process, processed, stored and distributed to meet local agriculture demand.
“This investment is our first in the production of renewable natural gas,” said Corey Hessen, TC Energy executive vice-president and president, Power & Energy Solutions. “The production of RNG onsite at the Jack Daniel Distillery offers TC Energy one more opportunity to meet the challenge of growing energy needs and reducing emissions while providing customers with access to an affordable, reliable source of energy.”
TC Energy will market 100% of the RNG production and environmental attributes, which include renewable identification numbers and low carbon fuel standards.
“Our goal is to create lasting partnerships that give organizations the ability to create a sustainable future by utilizing bio-waste to reduce energy and help sustain local agriculture,” said John Rivers, CEO of 3 Rivers Energy Partners. “What we are doing is a major step for Jack Daniel’s, the local agriculture, and our planet’s future.”
TC Energy and 3 Rivers Energy Partners have also committed to jointly develop future RNG projects.
Since 2002, TC Energy has transported RNG with the current capacity to flow over 30 Bcf annually to market through 17 interconnects across its footprint of thousands of miles of pipelines. This investment marks the company’s first for producing RNG.
The announcement builds upon TC Energy’s ongoing development of its extensive low-carbon energy portfolio, most recently as the company commenced construction in October on an 81 MW solar facility in Alberta.
Jack Daniel Distillery to receive €29.7m for biogas facility
