UGI Partners with California Bioenergy and Sevana Bioenergy to Develop RNG Dairy Digester Projects in South Dakota Through MBL Bioenergy
September 16 2021 - 9:00AM
Business Wire
MBL Bioenergy, LLC (“MBL Bioenergy”) announced today that it has
entered into definitive agreements to develop several clusters of
dairy farm digester projects to produce renewable natural gas
(“RNG”) from multiple farms in South Dakota. MBL Bioenergy is a
joint venture funded by UGI Energy Services, LLC (“UGIES”) as well
as subsidiaries of California Bioenergy LLC (“CalBio”) and Sevana
Bioenergy, LLC (“Sevana Bioenergy”). UGIES is a subsidiary of UGI
Corporation (NYSE: UGI).
MBL Bioenergy combines the experience and expertise of UGIES and
two premier dairy digester project development companies,
California Bioenergy and Sevana Bioenergy. The clusters of projects
are expected to produce 650 million cubic feet of RNG annually when
complete and on-line by the end of calendar year 2024. The RNG will
be delivered to the local natural gas pipelines serving the
regional distribution system. In totality, the projects will
represent over $100 million investment in RNG by MBL Bioenergy,
with funding by UGIES on a per project basis. UGIES, through its
wholly-owned subsidiary, GHI Energy, will be the exclusive marketer
for MBL Bioenergy.
“We are pleased with this agreement as it advances our strategy
to position UGI as a leading provider of sustainable energy
solutions,” said Robert F. Beard, Executive Vice President, Natural
Gas. “In addition to substantially reducing greenhouse gas
emissions, using dairy RNG as a vehicle fuel provides significant
air quality benefits. We look forward to making additional
investments in this area as we advance the use of RNG as an
environmentally responsible and clean energy solution.”
“This partnership with UGI is another positive step forward in
expanding our carbon negative renewable natural gas business,” said
N. Ross Buckenham, CEO of CalBio. “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. Through our subsidiary,
Midwest Bioenergy LLC, this joint venture with UGI, a new, powerful
and committed strategic partner, anchors our dairy RNG expansion
into the Midwest.”
“Sevana is excited to build upon its existing relationship with
UGI to produce renewable fuel for UGI customers. This is another
example of Sevana’s team of biogas experts deploying
state-of-the-art renewable energy technology to create strong and
value-adding partnerships in agricultural communities,” said John
McKinney, President of Sevana. “We believe that these dairy
digester projects will demonstrate how multiple farms can
participate in community projects that benefit the local economy,
environment, and stakeholders in South Dakota.”
About UGI Corporation
UGI Corporation is a distributor and marketer of energy products
and services. Through subsidiaries, UGI operates natural gas and
electric utilities in Pennsylvania, natural gas utilities in West
Virginia, distributes LPG both domestically (through AmeriGas) and
internationally (through UGI International), manages midstream
energy assets in Pennsylvania, Ohio, and West Virginia and electric
generation assets in Pennsylvania, and engages in energy marketing,
including renewable natural gas in the Mid-Atlantic region of the
United States, California, and the District of Columbia and
internationally in France, Belgium, the Netherlands and the UK.
Comprehensive information about UGI Corporation is available on
the Internet at https://www.ugicorp.com.
About CalBio
CalBio is a leading developer of dairy digesters for generating
renewable vehicle fuel and electricity. Founded in 2006, CalBio
works closely with the California Air Resources Board, California
Department of Food and Agriculture, the California Public Utility
Commission, the California Energy Commission, USDA and the dairy
industry to develop projects to help the dairy industry achieve its
methane reduction goals, protect local air and water quality,
create local jobs and generate a new revenue stream. CalBio is
currently operating and/or developing over 100 dairy digester
projects in California and now through its affiliates: Midwest Bio,
Northwest Bio, and Southwest Bio, is developing projects across the
country. For more information call CalBio or visit:
www.calbioenergy.com.
About Sevana
Sevana Bioenergy develops, designs, owns and operates
large-scale anaerobic digestion projects which produce renewable
natural gas and organic based soil amendments. Using
state-of-the-art technology, engineering, and design, we are
advancing the future of biogas energy production in the United
States. Biogas projects reduce waste, increase the use of renewable
energy and reduce long-term greenhouse gas emissions. Our mission
is to be a market leader in accelerating the production of
renewable natural gas derived from anaerobic digestion facilities
in North America. With an experienced team of national and
international experts, we build value-add partnerships in
agricultural communities by creating new markets for existing
agricultural businesses. Our goal is to ensure that communities
benefit and thrive through these partnerships while building
renewable solutions to local waste and energy challenges. More
information is available at www.sevanabioenergy.com.
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