UGI joint venture to develop renewable natural gas projects in S.D.

MBL Bioenergy, a joint venture of UGI Energy Services, California Bioenergy, and Sevana Bioenergy, will develop several clusters of dairy farm digester projects in South Dakota to produce renewable natural gas (RNG).

The clusters of projects are expected to produce 650 million cubic feet of RNG annually when it is up and running by the end of 2024.

“We are pleased with this agreement as it advances our strategy to position UGI as a leading provider of sustainable energy solutions,” Robert Beard, executive vice president of Natural Gas at UGI Corp., said. “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.”

The RNG will be delivered to the local natural gas pipelines serving the regional distribution system.

“This partnership with UGI is another positive step forward in expanding our carbon negative renewable natural gas business,” N. Ross Buckenham, CEO of CalBio, said. “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.”

The projects represent a more than $100 million investment in RNG by MBL Bioenergy, with funding on a per project basis by UGI Energy Services, a subsidiary of UGI Corp.

“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,” John McKinney, president of Sevana, said. “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.”