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UGI Ups RNG Investment to Nearly $250M with New York Project
A joint venture of UGI Corp. and Global Common Ventures LLC (GCV) plans to develop its fourth renewable natural gas (RNG) project at an Odessa, NY, dairy farm, UGI reported Tuesday.
Cayuga RNG, owned by co-venturers UGI Energy Services LLC (UGIES) and GCV, plans to construct manure digesters and gas upgrading equipment at Bergen Farms and Glenview Dairy in Schuyler County, UGI said.
“Renewables is a platform for growth at UGI and, with this investment, we have committed nearly $250 million to RNG projects across multiple states that will further expand our geographic footprint and earnings capability,” said UGI’s Robert F. Beard, executive vice president for natural gas.
Slated for completion in the second half of 2024, the upstate New York project would produce about 150 MMcf of RNG annually, according to UGI. The RNG would be delivered to a local natural gas pipeline serving the regional distribution system, and UGIES subsidiary GHI Energy would be the exclusive marketer for Cayuga RNG, management added.
“We expect this to benefit the farm, the local community and the environment,” said Bergen Farms and Glenview Dairy’s Jim Bergen. “This project will help to reduce odors from the manure generated onsite. The anaerobic digesters that are planned will reduce the amount of methane that is emitted into the atmosphere from storing the manure as well as using the methane to replace fossil fuels.”
A UGI natural gas and electric utility recently made a deal in neighboring Pennsylvania to purchase RNG from an Archaea Energy Inc. landfill gas facility. UGI has also been active in developing RNG infrastructure.
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