UGI, CalBio and Sevana Bioenergy partner in MBL Bioenergy RNG JV
In the United States (US), MBL Bioenergy, LLC has announced 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 (SD). MBL Bioenergy is a joint venture funded by UGI Energy Services, LLC (UGIES) a subsidiary of UGI Corporation (UGI) as well as subsidiaries of California Bioenergy LLC (CalBio) and Sevana Bioenergy, LLC.
MBL Bioenergy combines the experience and expertise of UGIES and two premier dairy digester project development companies, CalBio and Sevana Bioenergy. The clusters of projects are expected to produce 650 million cubic feet of RNG annually when complete and online by the end of the calendar year 2024.
CalBio is currently operating and/or developing over 100 dairy digester projects in California (CA) and now through its affiliates: Midwest Bio, Northwest Bio, and Southwest Bio, is developing projects across the country.
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. 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, said N. Ross Buckenham, CEO of CalBio.
The RNG will be delivered to the local natural gas pipelines serving the regional distribution system. In totality, the projects will represent over US$100 million investment in RNG by MBL Bioenergy, with funding by UGIES on a per-project basis.
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. 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, said John McKinney, President of Sevana Bioenergy.
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. 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, said Robert F. Beard, EVP Natural Gas at UGI.