Calgary-based TC Energy Corp. will invest $29.3 million in a renewable natural gas (RNG) production facility owned by Lynchburg Renewable Fuels LLC and developed by 3 Rivers Energy Partners LLC, a company press release announced on Oct. 17.

The production facility will be located near a Jack Daniels distillery in Lynchburg, Tenn. and intends to use a broken-down byproduct of the distilling process to generate methane gases recovered as biogas, TC Energy stated in the announcement.

The facility is scheduled to be operational in 2024, marking TC Energy's first investment in RNG production, executive vice president and president of power and energy solutions Corey Hessen said in the release. The company will market 100% of the RNG production and environmental attributes, including renewable identification numbers and low carbon fuel standards.

“The production of RNG onsite at the Jack Daniel Distillery offers TC Energy one more opportunity to meet the challenge of growing energy needs and reducing emissions while providing customers with access to an affordable, reliable source of energy,” he continued.

Contaminants from the distilling process will be removed through a biogas upgrade plant and used to produce RNG to be transported via pipeline to a local natural gas utility. In addition, the facility will also produce liquid fertilizer to be stored and distributed to meet local agriculture demand.

The carbon intensity from the facility's RNG is anticipated to be 50% lower than traditional natural gas, which will save up to 16,000 tonnes of CO2 equivalent a year.

“Our goal is to create lasting partnerships that give organizations the ability to create a sustainable future by utilizing bio-waste to reduce energy and help sustain local agriculture,” 3 Rivers CEO John Rivers said in the release. “What we are doing is a major step for Jack Daniel’s, the local agriculture and our planet’s future.”

Outside of the Jack Daniels distillery partnership, TC Energy and 3 Rivers Energy Partners will jointly develop other future RNG projects. Earlier in October, TC Energy also began pre-construction activities for its solar project, Saddlebrook, near Aldersyde, Alberta.