UGI commits funding for South Dakota RNG project

UGI Power Companies LLC (UGIES), a subsidiary of UGI Corp., on Might 16 introduced an settlement with MBL Bioenergy to totally fund the primary set of renewable pure fuel (RNG) initiatives at present underneath improvement in South Dakota. In whole, the challenge will symbolize over $70 million of funding by MBL Bioenergy, of which 100% of the funds will probably be supplied by UGIES. MBL Bioenergy is a three way partnership partnership between UGIES, Sevana Bioenergy and a subsidiary of California Bioenergy (CalBio) with the only objective of growing RNG initiatives in South Dakota.

The primary set of initiatives, generally known as a cluster, will probably be constructed at three farms positioned north of Sioux Falls, South Dakota, and is anticipated to generate roughly 300 million cubic toes of RNG yearly as soon as accomplished in calendar yr 2024. Dairy waste from the farms will probably be anaerobically digested after which piped to a central upgrading facility earlier than it’s delivered into the interstate pure fuel system close to Dell Rapids, SD. UGIES, by its wholly-owned subsidiary, GHI Power, would be the unique marketer for MBL Bioenergy.

“This challenge units a brand new normal for UGI when it comes to scope and measurement and represents an enormous milestone in UGI’s investments in, and anticipated earnings contribution from, RNG initiatives,” stated Robert F. Beard, govt vice chairman – pure fuel, international engineering, building and procurement, UGI. “We’re happy to be partnering with industry-leading builders on this challenge that may considerably cut back greenhouse fuel emissions, utilizing dairy RNG as a automobile gas. We look ahead to making further investments in our MBL partnership as we advance the usage of RNG as an environmentally accountable and clear power answer.”

“This partnership with UGI is one other constructive step ahead in increasing our carbon destructive renewable pure fuel enterprise,” stated N. Ross Buckenham, CEO of CalBio. “Our dairy methane seize and refining initiatives are delivering important environmental advantages, bettering economics for dairy farm companions and supplying a clear burning diesel substitute gas. By way of our subsidiary, Midwest Bioenergy LLC, this three way partnership with UGIES, a brand new, highly effective and dedicated strategic companion, anchors our dairy RNG enlargement into the Midwest and can considerably develop our gas manufacturing.”

“Sevana introduced collectively distinctive companions to construct this industry-leading RNG challenge. We’re excited to strengthen our current relationship with UGI to decarbonize transportation fuels by this and different initiatives. Sevana’s crew of biogas consultants is deploying state-of-the-art renewable power know-how in a number of RNG initiatives to type value-adding partnerships in agricultural communities,” stated Steve Compton, President of Sevana. “We recognize the chance to work carefully with our companions and South Dakota farmers and communities to learn the native financial system and setting.”