Cayuga RNG Holdings, a joint venture company of UGI Energy Services and Global Common Energy, announced today it has entered into an agreement to develop dairy farm digester projects for renewable natural gas in upstate New York.
Firstly, Cayuga RNG’s first project will be developed at the Spruce Haven Farm; which locates in the Finger Lakes region of Cayuga County, New York. The project will include the upgrade of an existing anaerobic digester to generate biogas.
Secondly, such upgrade would allow the digester to produce the actual renewable natural gas; according to the company’s statement, around 50 million cubic feet per year, from the on-site dairy waste feedstock.
Thirdly, the Cayuga RNG will deliver the resource to a local natural gas pipeline; to serve the regional distribution system. These upgrades will be complete by the second half of 2022. This will be the first developments, of several others, to be developed by Cayuga RNG.
Furthermore, these RNG projects intend to reduce waste and long-term greenhouse gas emissions, while also increasing the use of renewable energy. On the other hand, GHI, a wholly owned subsidiary of UGI Energy Services, will be the exclusive off-taker and marketer of RNG for Cayuga RNG.
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Cayuga RNG joint venture will help dairies to advance sustainability
On the other hand, for Global Common Energy (GCE) this is not the first project of its kind. In fact, it designs, develops; also, owns and operates renewable and fossil-fueled power plants. Also, microgrids, on-site generation projects; as well as large-scale anaerobic digestion projects that produce RNG.
Furthermore, the company has two biomass power plants; one anaerobic digester/co-generation facility; a 150,000 ton per year wood pellet plant, and ethanol plants, among others. For the Cayuga RNG joint venture, Marathon Capital acted as financial advisor for GCE.
In addition, Robert J. Foxen, President of GCE, said. “We look forward to teaming with UGI Energy Services to support the dairy industry; specially as it moves to become more environmentally sustainable by reducing fugitive methane emissions from dairy operations; while producing RNG and reducing the demand for fossil fuels.”
Finally, Doug Young, Managing Member of Spruce Haven Farm, said. “Bob Foxen has led the journey for us and has done a great job connecting us with UGIES, the ideal partner. Our shared vision of a strong economy based on renewable energy is taking a major step forward.”