In the United States (US), UGI Energy Services, LLC (UGIES), a subsidiary of UGI Corporation has announced an agreement with MBL Bioenergy LLC to fully fund the first set of renewable natural gas (RNG) projects currently under development in Sioux Falls, South Dakota (SD).
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In total, the project will represent over US$70 million of investment by MBL Bioenergy, of which 100 percent of the funds will be provided by UGIES.
MBL Bioenergy is a joint venture partnership between UGIES, Sevana Bioenergy LLC, and a subsidiary of California Bioenergy LLC (CalBio) with the sole purpose of developing RNG projects in South Dakota.
This project sets a new standard for UGI in terms of scope and size and represents a huge milestone in UGI’s investments in, and expected earnings contribution from, RNG projects, said Robert F. Beard, EVP – Natural Gas, Global Engineering, Construction & Procurement, UGI.
This partnership with UGI is another positive step forward in expanding our carbon negative renewable natural gas business. Our dairy methane capture and refining projects are delivering significant environmental benefits, improving economics for dairy farm partners and supplying a clean burning diesel replacement fuel, said N. Ross Buckenham, CEO of CalBio.
Sioux Falls dairy farm cluster
The first set of projects, known as a cluster, will be built at three farms located north of Sioux Falls, SD, and is expected to generate approximately 300 million cubic feet of RNG annually once completed in the calendar year 2024.
We are pleased to be partnering with industry-leading developers on this project that will substantially reduce greenhouse gas emissions, using dairy RNG as a vehicle fuel. We look forward to making additional investments in our MBL partnership as we advance the use of RNG as an environmentally responsible and clean energy solution, Robert F. Beard said.
Dairy waste from the farms will be anaerobically digested and then piped to a central upgrading facility before it is delivered into the interstate natural gas system near Dell Rapids, SD.
Sevana brought together exceptional partners to build this industry-leading RNG project. We are excited to strengthen our existing relationship with UGI to decarbonize transportation fuels through this and other projects. Sevana’s team of biogas experts is deploying state-of-the-art renewable energy technology in multiple RNG projects to form value-adding partnerships in agricultural communities, said Steve Compton, President of Sevana.
UGIES, through its wholly-owned subsidiary, GHI Energy, will be the exclusive marketer for MBL Bioenergy.
Through our subsidiary, Midwest Bioenergy LLC, this joint venture with UGIES, a new, powerful, and committed strategic partner, anchors our dairy RNG expansion into the Midwest and will significantly expand our fuel production, ended N. Ross Buckenham.
