In the United States (US), advanced biofuels- and biochemicals producer and process developer Gevo Inc., has announced that its renewable natural gas (RNG) project in Northwest Iowa has been producing biogas and is now upgrading and injecting RNG into the natural gas pipeline.
The RNG Project generates biogas captured from dairy cow manure which is upgraded into pipeline quality biomethane aka renewable natural gas (RNG). The manure for the RNG Project is supplied by three dairy farms located in Northwest Iowa totaling over 20 000 milking cows.
The success that Gevo is achieving in Northwest Iowa right now is the result of the team of dedicated people who are working to change the world by converting waste into useful energy, animal bedding, and soil fertilizer. These talented people have been tasked with an important, complex job, and work every day to identify issues, formulate solutions, and execute their plans to achieve our goals. As this renewable energy supply becomes reliable, the entire circular economy model can grow and prosper, said Dr Chris Ryan, President, and COO of Gevo.
When at full operational capacity, the RNG Project is expected to generate approximately 355 000 MMBtu of RNG per year, which will be transported and sold in California (CA).
RFS and LCFS driven
BP Canada Energy Marketing Corp. and BP Products North America Inc. will market the RNG in California on behalf of Gevo, and Gevo expects that the RNG Project will generate between US$16 – US$22 million of Project EBITDA per year beginning by 2023 depending on a variety of assumptions, including the value of credits under the federal Renewable Fuel Standard Program (RFS) and the Low Carbon Fuel Standard (LCFS) in California.
Gevo expects to be able to get approval for Renewable Identification Numbers (RINs) through RFS and carbon credits from LCFS later this year or next year.
Supplying value-added animal feed to dairies and to other animal feed operations, capturing the manure, then converting the manure to make RNG for use in the production of transportation fuels, more animal feed, and later, jet fuel when our Net-Zero 1 plant operates. This is an example of the circular economy in action, Dr Chris Ryan said.
In addition to being good for us, California, and the world, our dairy partners are also expected to reap benefits from the RNG Project over the long term. The manure digesters are expected to improve the farms’ sustainability and lay the groundwork for more efficient recycling of nutrients and better soil health. It’s important that they share in the value, ended Dr Chris Ryan.