Canada-headed organic waste treatment plant operators and technology providers Anaergia Inc. (Anaergia) has announced that it has acquired two Danish subsidiaries that will build, own, and operate (BOO) a new anaerobic digestion (AD) facility in Tønder, Denmark. This new facility will take in agricultural waste and convert it to renewable natural gas (RNG) for grid injection.
According to a statement, construction on the new facility is set to begin before the end of 2021 and is expected to be completed within two years.
RNG production in Tønder is anticipated to begin prior to December 31, 2022, in order to qualify for the Danish Energy Agency’s subsidy program that promotes the production of biogas by providing a guaranteed minimum price. Under the terms of this program, biogas that is upgraded to RNG (aka biomethane) for injection into the gas grid receives a subsidy for a period of 20 years.
Anaergia expects the Tønder facility to produce 1.4 million MMBTU per year of RNG, which would make it one of the largest such plants in the world. It would produce approximately 40 percent more RNG than that of the company’s facility in Rialto, California (CA).
The total cost of this project is expected to exceed CA$100 million. Anaergia anticipates the new venture will produce a positive internal rate of return in the low-double digits on an unleveled pre-tax basis.
Owing to the initial public offering (IPO), we were in a position to expand Anaergia’s operations into Scandinavia earlier than expected. This project dovetails with Denmark’s aspirations to become one of the most climate-friendly countries in the world. Denmark has a climate law that aims to reduce greenhouse gas (GHG) emissions by 70 percent below 1990 levels by 2030, with net-zero emissions targeted for 2050, and this project will help Denmark achieve these objectives. Our investment in this BOO project underscores our commitment to creating new large-scale facilities that will make a positive difference in the environment around the world, said Andrew Benedek, Chairman and CEO of Anaergia.
Update on potential projects in the US and UK
At a recent meeting, the Board of the Kent County Department of Public Works in Michigan (MI) formally approved starting negotiations for a US$280 million landfill waste diversion facility with Anaergia and partner Continuus Materials.
In addition, the State of Michigan allocated US$4 million to Kent County to “assist infrastructure necessary to develop” this project. The facility is expected to be a world-leading recovery facility, achieving the County’s ambitious landfill diversion targets, while supporting its visionary sustainability goals, by recovering RNG, fertilizer, and high-value products from the County’s solid waste.
The investment by Anaergia and Continuus Materials, in this venture, would also serve to improve the economy of western Michigan, creating new jobs needed to produce a range of valuable products from the materials to be diverted from the County’s landfill.
In the UK, EQTEC plc (EQTEC) announced that it secured a resolution from Flintshire Council’s Planning Committee in Flintshire County, Wales to grant planning consent for an advanced gasification facility deploying EQTEC technology at its Deeside Refuse Derived Fuel project.
EQTEQ has entered into a cooperation agreement with Anaergia to develop a proposal for the delivery of the multi-technology waste-to-energy (WtE) project at Deeside. This project would include combining a 182 000-tonne waste reception and processing plant along with anaerobic digestion and EQTEC Advanced Gasification Technology.
