UGI Corp.'s subsidiary, UGI Energy Services LLC, entered into definitive agreements on Nov. 20 to invest in New Energy One HoldCo LLC, which is part of the team developing a utility-scale renewable natural gas (RNG) project in Idaho.
The Idaho RNG project is being developed jointly by Sevana Bioenergy LLC, an affiliate of New Energy One HoldCo LLC, and Meridiam, a leading global independent investment Benefit Corp. and asset manager of sustainable public infrastructure. The Idaho project, currently generating renewable electricity, is expected to produce several hundred million cubic feet of RNG each year from on-site dairy waste feedstock once it is expanded to reach full production in 2022; initial RNG production is expected to commence in late 2021.
Sevana, based in Larkspur, California, develops, designs, owns and operates large-scale anaerobic digestion projects which produce RNG and organic based soil amendments. Using state-of-the-art technology, engineering, and design, they are a market leader of RNG production in the United States. Biogas projects reduce waste and long-term greenhouse gas emissions, while also increasing the use of renewable energy.
Earlier this year, UGI revealed its acquisition of GHI Energy LLC, an RNG marketing business based in Houston, Texas. As part of its announcement of that acquisition, UGI outlined how that investment would provide a platform for growth in other RNG projects. UGI’s investment in the Idaho project reinforces UGI’s commitment to the development of RNG and sustainable energy. Additionally, the investment in the Idaho project reinforces the company’s existing greenhouse gas emission reduction strategies highlighted in UGI’s recently published environmental, social and governance report titled “Today’s Energy, Tomorrow’s World” and provides a platform to further advance our efforts.
“The Idaho project advances our strategy positioning UGI as a leading provider of energy solutions that meet the environmental and social needs of our customers and our communities,” John Walsh, president and CEO of UGI, said. “We’re pleased with our progress on RNG as well as our good success with our Bio-LPG product in Europe and we look forward to expanding our portfolio of renewable offerings. UGI is committed to be a leader in this area of critical importance to our company and our environment.”
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Commitment was made to the Science Based Targets initiative.
The estimated firm total contract value is approximately $100 million, including rig upgrades and integrated services provided.