Village Farms Clean Energy (VFCE), a wholly-owned subsidiary of Village Farms, has renewed and extended its contract with the City of Vancouver under which VCFE receives landfill gas captured by the city’s landfill site in Delta, British Columbia.
The 20-year extension, with an option for an additional five-year extension, will begin on the start-up of the Delta RNG project commercial operations.
VFCE, which owns and operates a co-generation facility adjacent to Village Farms’ produce greenhouse and Pure Sunfarms’ cannabis greenhouses in Delta, BC, has partnered with Mas Energy for the Delta RNG project, under which Mas Energy will design, build, finance, own, and operate the Delta RNG facility.
The renewed contract enables Village Farms to transition VFCE to a more attractive long-term business model based on the conversion of landfill gas to RNG. The process will also generate food-grade liquid CO2, significantly reducing Village Farms’ and Pure Sunfarms’ reliance on natural gas to produce CO2 in its operations.
“Throughout our history, Village Farms has been committed to environmental sustainability and clean agricultural technologies,” said Michael DeGiglio, CEO of Village Farms.
“The Delta RNG project will allow Village Farms to take his commitment to the next level to meet the evolving energy needs of the region and further contribute to the reduction of greenhouse gases in the Fraser Valley, while the City of Vancouver will benefit from higher beneficial landfill gas utilisation.
“Village Farms’ and especially Pure Sunfarms’ Delta greenhouses will benefit from a reduced reliance on fossil fuel-sourced natural gas, as well as an improved earnings profile, with lower ongoing capital expenditure requirements. It’s a win-win-win for the region, our company, and our shareholders.”
The reduction in natural gas is expected to eliminate 28,000 tonnes of CO2 emitted through natural gas production, equivalent to taking more than 6,000 cars off the road annually.
“Mas Energy is proud to partner with Village Farms and the City of Vancouver on this exciting project,” said Michael Hall, principal at Mas Energy.
“We look forward to starting site activities very soon and delivering the benefits of cleaner energy and air to the citizens of the Vancouver region for a long time to come.”
The Delta RNG project is expected to be operational in the first half of 2022.