Energy distribution company UGI has engaged MBL Bioenergy for the development of its second and third clusters of dairy manure waste to renewable natural gas (RNG) projects in South Dakota.
The second cluster project, called Brookings, will be developed at three farms located near Estelline, while the third project, called Lakeside, will be built at two farms near Summit. UGI subsidiary UGI Energy Services (UGIES) will provide 100% of the funds for the projects, which are set to be completed in 2024.
Brookings and Lakeside are expected to generate around 300 million cubic feet and 225 million cubic feet of RNG annually, respectively. The RNG will be produced by anaerobically digesting dairy waste, and then piping biogas to a gas upgrading facility before being delivered into the local natural gas distribution system.
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GHI Energy, a wholly owned subsidiary of UGIES, will be the exclusive marketer for these projects.
“This project sets a new standard for UGI in terms of scope and size and represents a key milestone in UGI’s investments in RNG projects,” said Robert F. Beard, Chief Operations Officer, UGI. In May of 2022, UGI committed over $70 million of investment to fund the Moody cluster of three dairies. The Moody cluster is now well into construction and anticipated to be online in late 2023. We look forward to making additional investments in our MBL partnership as we advance the use of RNG as an environmentally responsible and clean energy solution.”
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MBL Bioenergy is a joint venture partnership between UGIES, Sevana Bioenergy and a subsidiary of California Bioenergy with the sole purpose of developing RNG projects in South Dakota.
Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, natural gas utilities in West Virginia, and distributes LPG both domestically (through AmeriGas) and internationally (through UGI International). It also manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania.
