MBL Bioenergy, LLC has entered into definitive agreements to develop several clusters of dairy farm digester projects to produce renewable natural gas (“RNG”) from multiple farms in South Dakota. MBL Bioenergy is a joint venture funded by UGI Energy Services, LLC (“UGIES”) as well as subsidiaries of California Bioenergy LLC (“CalBio”) and Sevana Bioenergy, LLC (“Sevana Bioenergy”). UGIES is a subsidiary of UGI Corporation.
MBL Bioenergy combines the experience and expertise of UGIES and two premier dairy digester project development companies, California Bioenergy and Sevana Bioenergy. The clusters of projects are expected to produce 650 million cubic feet of RNG annually when complete and on-line by the end of calendar year 2024. The RNG will be delivered to the local natural gas pipelines serving the regional distribution system. In totality, the projects will represent over $100 million investment in RNG by MBL Bioenergy, with funding by UGIES on a per project basis. UGIES, through its wholly-owned subsidiary, GHI Energy, will be the exclusive marketer for MBL Bioenergy.
“We are pleased with this agreement as it advances our strategy to position UGI as a leading provider of sustainable energy solutions,” said Robert F. Beard, Executive Vice President, Natural Gas. “In addition to substantially reducing greenhouse gas emissions, using dairy RNG as a vehicle fuel provides significant air quality benefits. We look forward to making additional investments in this area as we advance the use of RNG as an environmentally responsible and clean energy solution.”
“This partnership with UGI is another positive step forward in expanding our carbon negative renewable natural gas business,” said N. Ross Buckenham, CEO of CalBio. “Our dairy methane capture and refining projects are delivering significant environmental benefits, improving economics for dairy farm partners and supplying a clean burning diesel replacement fuel. Through our subsidiary, Midwest Bioenergy LLC, this joint venture with UGI, a new, powerful and committed strategic partner, anchors our dairy RNG expansion into the Midwest.”
“Sevana is excited to build upon its existing relationship with UGI to produce renewable fuel for UGI customers. This is another example of Sevana’s team of biogas experts deploying state-of-the-art renewable energy technology to create strong and value-adding partnerships in agricultural communities,” said John McKinney, President of Sevana. “We believe that these dairy digester projects will demonstrate how multiple farms can participate in community projects that benefit the local economy, environment, and stakeholders in South Dakota.”