U.S. Gain has reached an offtake agreement with DTE Biomass Energy for renewable natural gas (RNG) produced at a farm in Wisconsin.
Two digesters located at Statz Brothers Farms in Marshall, Wisconsin have been making renewable electricity since 2009 and the farm was seeking new opportunities since its power purchase agreement neared expiration.
“In the past, renewable electricity produced at dairy farms was in high demand by power companies that were willing to pay a premium for it,” said Hardy Sawall, U.S. Gain’s RNG director of business development. “Today, that is not the case, as other renewable electricity sources have emerged.
“Luckily, demand for RNG as an alternative vehicle fuel has been on the rise for the past several years, presenting farmers an opportunity to continue profitable use of digesters.
“As a leading RNG developer, we’re working with farms and energy developers to produce fuel for the transportation market. In some cases, we’ll invest capital to develop the project, but in others we’ll offtake gas produced and link to the most lucrative markets for credit generation.”
Scott Hanstedt, U.S. Gain’s director of sales, added: “There’s significant demand for dairy-based RNG, particularly in California. California’s Low Carbon Fuel Standard, in combination with the Federal Renewable Fuel Standard, offers economic incentives for alternative fuel use, spurring interest from fleets across market sectors. Leading trucking, refuse, school and transit fleets are using RNG today – benefitting environmentally and economically.”
Alongside supplying RNG, U.S. Gain is involved in developing fuelling infrastructure for fleets to use. Hanstedt added: “We operate several alternative fuel stations on the west coast and will continue to seek opportunities with fleet owners to develop more. If you want your fleet to run on RNG, we can help make that happen.”