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Greater Commercial Lending closes on two landfill gas to RNG projects

In the United States (US), Greater Commercial Lending (GCL), a credit organization that brings together credit unions and community lenders from around the country to provide government-guaranteed loans to businesses and initiatives in rural and under-served markets, has announced that it has completed nearly US$73 million in financing for two facilities in North Carolina (NC) that will turn landfill gas (LFG) into renewable natural gas (RNG).

US dollars
Greater Commercial Lending (GCL) has completed nearly US$73 million in financing for two facilities in North Carolina (NC) that will turn landfill gas (LFG) into renewable natural gas (RNG).

A subsidiary of Greater Nevada Credit Union (GNCU), GCL helps finance key infrastructure services, like power, renewable energy, transportation, and fiber optic, as well as schools, hospitals, restaurants, agriculture, hotels, and manufacturers. GCL partners with the US Small Business Administration (SBA) and the US Department of Agriculture (USDA), which guarantees loans, to arrange credit at favorable terms.

We are delighted to be helping make possible landfill-gas-to-renewable-natural-gas projects that will enhance sustainability, and also bring jobs and positive economic activity to two regions in North Carolina that need the boost, said Jeremy Gilpin, EVP of GCL.

The Foothills Renewables Project in Caldwell County, NC, and the Upper Piedmont Renewables Project in Person County, NC, are both being developed by EVENSOL LLC, which develops and acquires renewable fuels-based assets in the biomass, biogas, and biofuels sectors.

EVENSOL is a highly experienced group with a track record in successful, renewable energy project development and operations. While solar and wind energy gets a lot of attention, the biogas niche is a workhorse of the renewables sector and provides a reliable and solid flow of energy, Jeremy Gilpin added.

Offtake with bp

The financing for the two LFG to RNG projects is guaranteed by the USDA, and the North Carolina facilities will sell the RNG to bp, whose ambition is to become a net-zero company by 2050 or sooner and to help the world get to net zero.

The EVENSOL principals pointed out that the availability of USDA-guaranteed credit via GCL has made an important difference for the projects, from both business and efficiency standpoints.

From a pure financing perspective, our ability to access a significant portion of the projects’ required capital at very competitive rates, from GCL is a unique benefit for these projects and our investors. From both an operational and financial perspective, the availability of this type of project financing is very important, said David Wentworth, President, and CEO at EVENSOL, which is based in Sisters, Oregon (OR).

Construction underway

Upper Piedmont and the Foothills Renewables projects each focus on capturing landfill gas (LFG), which is primarily methane, and processing it into biomethane (aka renewable natural gas – RNG).

Both projects include the development, design, permitting, construction, commissioning, and operations of a state-of-the-art landfill gas-fueled RNG facility.

Renewable natural gas is, by its nature, a variable-priced product. That often makes financing both challenging and expensive. GCL has enabled us to take advantage of a federal program at a low-interest rate that is stable. It’s an enormous benefit for us. The USDA program is an asset to the renewables sector, and GCL has helped make the process and the terms very straightforward. Importantly, this arrangement should be replicable for other projects down the road, said Benny Benson, president of ENERGYneering Solutions, which is designing and constructing the facilities, and will operate the plants upon completion.

Construction of the facilities has already begun, and plant construction is targeted for completion in Q3 2022, with commissioning and operations to follow.

Primary processing components include Air Liquide MEDAL membrane systems for CO2 separation, Vilter Compression Packages, Perennial LFG blowers and refrigeration, Guild N2 rejection systems, High Voltage Switchgear, Step-Up Transformer(s), and Industrial Grade Radiators/Silencers.

These are all housed in and around rigid frame metal buildings, designed to optimize sound attenuation, together with supporting and ancillary equipment and gas and electrical interconnection infrastructure.

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