UGI sets deals for more RNG in South Dakota
SUMMARY
Two new clusters will generate 525mn ft3/year of RNG.
By Dale LunanUS energy marketer UGI said January 4 it had finalised an investment of $150mn in two new dairy farm clusters in South Dakota that will produce about 525mn ft3/year of renewable natural gas (RNG) when they are completed in 2024.
MBL Bioenergy, a joint venture partnership between UGI Energy Services (UGIES), Sevana Bioenergy and a subsidiary of California Bioenergy, will develop the clusters. The Brookings Cluster, covering three farms near Estelline, South Dakota, will generate 300mn ft3/yr of RNG, while the Lakeside Cluster, covering two farms near Summit, South Dakota, will produce about 225mn ft3/year of RNG.
All of the RNG will be delivered into local natural gas distribution systems and marketed by UGIES subsidiary GHI Energy.
UGI’s first South Dakota RNG investment, the $70mn Moody Cluster of three dairy farms, is now under construction and is expected to be operational by late 2023.
