In the United States (US), RNG Energy Solutions, LLC, a New Hampshire-based developer of complex energy infrastructure projects, has announced that it has completed the development phase of a large organic waste anaerobic digester (AD) project located in Linden, New Jersey (NJ).
According to a statement, the Linden Renewable Energy Project (LRE Project), has secured all the City of Linden, Union County, and New Jersey Department of Environmental Protection required permits necessary to start construction. The LRE Project will be constructed on a 21-acre site that is located in a heavily industrialized area on Tremley Point Road.
In addition, the LRE Project has received approval from the New Jersey Economic Development Authority for US$214 million in Industrial Development Revenue Bonds and is working with Citigroup Global Markets Inc., which is serving as the Bond Underwriter. The Industrial Development Revenue Bonds transaction is expected to close in Q1 of 2022.
Starwood Energy Group Global, LLC, a private investment firm that specializes in energy infrastructure investments, and RNG Energy will be committing a total of up to US$100 million in equity.
LRE is a groundbreaking project that will provide an environmentally sustainable path to solving a growing waste disposal problem in the United States. Furthermore, the renewable natural gas produced by LRE will enable decarbonization of the natural gas supply chain. Our investment in LRE reflects our commitment to the sustainable energy transition space and to ESG friendly investments, said Himanshu Saxena, CEO of Starwood Energy Group.
The LRE Project will use proven advanced anaerobic digesters to convert organic waste into biogas, which will be upgraded to pipeline quality standards biomethane.
This renewable natural gas (RNG) will then be directed via interconnection to Elizabethtown Gas, a subsidiary of the South Jersey Industries system located near the LRE Project site.
We have developed an exceptional project development and equity ownership team that will take this project to the next phase of completing the bond financing and starting construction shortly thereafter, said James Potter, President of RNG Energy and Linden Renewable Energy.
O&M agreement with SUEZ
The LRE Project design was a collaborative effort between RNG Energy, SUEZ Water Technologies & Solutions, and LRE Project’s EPC provider, Phoenix Power Group, a wholly-owned subsidiary of Quanta Services Inc.
We have worked on numerous successful engagements with Jim’s team in the past and are enthusiastic about participating as the EPC provider. Renewable fuel production is a strategic area of excellence for Phoenix and we are pleased to put forward our execution capabilities in support of the RNG project, said Darrell Jenkins, CEO of Phoenix Power Group.
The LRE Project has also executed a long-term Operations and Maintenance (O&M) services agreement with SUEZ Water Technologies & Solutions, which provides similar services for anaerobic digester projects and wastewater treatment plant (WWTP) projects throughout the world.
The LRE Project is designed to receive up to 1 400 tonnes per day of diverted organic waste which it will process into 3 300 dekatherms per day of RNG to Elizabethtown Gas, and will also produce 260 cubic yards per day of a high-value soil amendment material.
Virtually everything we receive would have gone to a landfill and, with this project, will now be converted to a high-value renewable natural gas and soil amendment. This project provides an optimized sustainable solution for managing diverted organic waste, said Ralph Daley, SVP of RNG Energy
SOFC to power digester
The project will also use 3.2 MW Bloom Energy Corporation’s solid oxide fuel cells (SOFC) to provide primary power for the facility and digester, bolster energy efficiency, reduce carbon emissions, and optimize power generation costs. RNG Energy and Bloom completed a separate 6 MW project on Long Island in 2020.
We are maximizing the application of every possible viable technology to provide optimized sustainable waste management and RNG production solutions for our partners. This is what our customers expect. The LRE Project will be one of the largest carbon reduction resources in the state of New Jersey, said Jame Potter.
Significant site work has already been completed with the elevation of the site being increased by 7 feet and construction of 1 600 feet of new bulkhead along the Arthur Kill and Rahway Rivers.
The LRE Project includes the development and construction of multiple off-site food waste preprocessing and depackaging operations to be located in New York City (NYC), New York (NY) state, and New Jersey (NJ).
The LRE Project will provide a sustainable and competitive waste management service within a 40-mile metro region with over 18 million residents.
We are not aware of any project site within this proximity to NYC that affords the superior capacity to receive barges combined with close proximity to the I-95 transportation corridor. These optimized transportation logistics make the project the preferred low carbon and low-cost provider of organic waste management services, said James Potter.
The same region has implemented aggressive organic waste diversion regulations that need a sustainable anaerobic digestion project solution.
The City of Linden has been a proud host community for the Project. This is another in a long list of renewable energy projects that the City has completed. We have supported the LRE Project throughout the development phase and we definitely appreciate the investment in our City and the hundreds of union construction jobs that come with it. This is a long-term renewable and sustainable solution to waste management and we look forward to our continued association with the Project and its sponsors, said Linden Mayor Armstead.
