UGI subsidiary acquires stake in Ag-Grid Energy
Ag-Grid develops and operates small-scale renewable power projects that support local energy demands while lowering emissions in the US. The company currently has four operational projects in Connecticut and Massachusetts, and two projects under construction with a target completion date of December this year.
The six projects include the conversion of dairy waste and roughly 16 million gallons of food waste annually from nearby food manufacturers to renewable power. Ag-Grid also has food waste de-packaging services at selected sites.
The renewable power, produced through anaerobic digestion, is sold through long-term net metering contracts to local utility and industrial customers. Approximately 1,300 kW of power generation capacity is now in-service with the four existing projects, and an additional 1,500 kW is expected once the two projects currently under construction are complete in Connecticut and New York.
Ag-Grid also has a strong pipeline of dairy and food waste digester projects, which are expected to produce additional power and RNG in the US. GHI Energy, a wholly-owned subsidiary of UGI, will be the expected off-taker and marketer of RNG for Ag-Grid.
“We are pleased with the opportunity to increase our supply of safe, reliable, affordable and environmentally friendly energy,” said Robert Beard, executive vice-president of natural gas, global engineering, construction and procurement at UGI.
“This investment provides a platform for growth and additional diversification as we expand our renewables footprint into new geographies. We look forward to a long, productive relationship with Ag-Grid.”
Rashi Akki, founder and CEO of Ag-Grid Energy, commented: “We are very excited to partner with UGI and look forward to creating a reliable supply of renewable energy for UGI and achieving our common goals of environmental stewardship and long-term sustainability of the communities that we serve and operate in.”