A RNG (Renewable Natural Gas) project in Colorado will be developed by Canadian company Green Impact Partners Inc. The company announced this Wednesday the commencement of construction of the projects; which is also the first in its development pipeline.
Firstly, Green Impact Partners will develop the project through its subsidiary for the region GrennGass LLC; this company is in fact holding the rights for the RNG project. Specifically, the RNG facility will locate in Weld County, Colorado.
Secondly, the project will have a total construction cost of approximately CAD $76 million. Company expects that it would reach commercial operations by the second half of 2022; with forecasted annual run-rate EBITDA of CAD$20 million.
Thirdly, the facility will produce renewable natural gas through an anerobic digestion and gasification process; converting organic waste from two dairy farms nearby, into RNG; the output will be directly connected into existing gas pipeline infrastructure.
Moreover, the company expect to produce around 800 MMBtu per day of renewable natural gas. Then, Green Impact Partners will sell its credits into the California Low Carbon Fuel Standard; and the Renewable Identification Number markets through a long-term offtake agreement with a creditworthy counterparty.
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RNG will have a carbon negative score
In addition, the production of the project will have an anticipated carbon intensity score of approximately negative 200; therefore, the project would optimize the value received under the LCFS and RIN markets; fully aligning itself with GIP’s net zero impact strategy.
Furthermore, about the project’s relevance, Jesse Douglas, GIP CEO, said. “With increasing global need to transition to environmentally friendly alternatives to gas consumption; executing on our RNG projects is a key focus for us.”
He also remarked. “This is one of North America’s strongest negative carbon impact projects and we’re excited to build, own and operate it for the long term.”
Finally, GIP has a focus of pushing forward the energy transition in North America; particularly through clean energy and water distribution; it also seeks to optimize late-stage technology to repurpose by-products into clean energy and other value-added substances; such is its business model.
