UGI Corporation, a distributor and marketer of energy products and services, has announced that its subsidiary, UGI Energy Services, LLC, has acquired a 33 percent equity interest in a renewable energy producer with projects in the United States (US).
According to a statement, UGI Energy Services has acquired a 33 percent equity interest in Ag-Grid Energy LLC, a developer, owner, and operator of waste-to-energy facilities on dairy farms – small-scale renewable power projects that support local energy demands while lowering emissions.
We are pleased with the opportunity to increase our supply of safe, reliable, affordable, and environmentally friendly energy. This investment provides a platform for growth and additional diversification as we expand our renewables footprint into new geographies. We look forward to a long, productive relationship with Ag-Grid, said Robert F. Beard, EVP – Natural Gas, Global Engineering, Construction & Procurement, UGI.
Ag-Grid is currently engaged in the production of renewable power with four operational projects, in Connecticut (CT) and Massachusetts (MA), and two under construction with a target completion date in December 2022.
These six projects include the conversion of dairy waste and roughly 16 million gallons of food waste annually from nearby food manufacturers to renewable power.
Ag-Grid also has food waste de-packaging services at selected sites. The renewable power, currently produced annually through the use of anaerobic digesters, is sold through long-term net metering contracts to local utility and industrial customers.
Approximately 1.3 MW of power generation capacity is now in-service with the four existing projects, and an additional 1.5 MW is expected after the completion of the two projects under construction in Connecticut (CT) and New York (NY).
We are very excited to partner with UGI and look forward to creating a reliable supply of renewable energy for UGI and achieving our common goals of environmental stewardship and long-term sustainability of the communities that we serve and operate in, said Dr Rashi Akki, Founder and CEO of Ag-Grid Energy.
RNG project pipeline
Ag-Grid also has a strong pipeline of dairy and food waste digester projects that are expected to produce additional renewable power and renewable natural gas (RNG) in the U.S.
GHI Energy, LLC, a wholly-owned subsidiary of UGI, will be the exclusive off-taker and marketer of RNG for Ag-Grid.
Ag-Grid has a robust pipeline of projects in both renewable electricity and RNG and, with this partnership, we will be able to effectively execute and accelerate these projects to provide enhanced financial and environmental sustainability benefits to all stakeholders including our dairy farm partners as well as our food waste partners, ended Dr Rashi Akki.
