WYOMISSING, Pa.--(BUSINESS WIRE)--May 4, 2021--
Cayuga RNG Holdings, LLC (“Cayuga RNG”) announced today that it has entered into definitive agreements to develop dairy farm digester projects to produce renewable natural gas (“RNG”) in upstate New York. Cayuga RNG is a joint venture owned by a subsidiary of UGI Energy Services (“UGIES”), a subsidiary of UGI Corporation (NYSE: UGI), and Global Common Energy, LLC (“GCE”).
Cayuga RNG’s first project will be developed at the Spruce Haven Farm (“Spruce Haven”), located in the Finger Lakes region of Cayuga County, New York. The project will incorporate an existing anaerobic digester that generates biogas, which is currently used to produce renewable electricity. The proposed project, which is expected to be completed in the second half of calendar year 2022, will upgrade the biogas to produce an expected 50 million cubic feet of RNG each year from on-site dairy waste feedstock. The RNG supply will be delivered to a local natural gas pipeline serving its regional distribution system. Cayuga RNG is in the process of developing other dairy digesters in Cayuga County and upstate New York. RNG projects reduce waste and long-term greenhouse gas emissions, while also increasing the use of renewable energy. GHI, a wholly owned subsidiary of UGIES, will be the exclusive off-taker and marketer of RNG for Cayuga RNG.
GCE, based in Garden City, New York, designs, develops, owns and operates renewable and fossil-fueled power plants, microgrids, on-site generation projects, and large-scale anaerobic digestion projects that produce RNG and organic based soil amendments. GCE energy projects include a 54 MW peaking power plant, two 12.5 MW biomass power plants, an anaerobic digester/co-generation facility, a 150,000 ton per year wood pellet plant, and ethanol plants, among others. Marathon Capital acted as financial advisor for GCE.
“For nearly 140 years, UGI has focused on providing safe, reliable service to its customers and to the many communities it serves,” said Robert F. Beard, UGI’s Executive Vice President – Natural Gas. “In 2020, UGI announced its acquisition of GHI Energy, LLC, a RNG marketing business based in Houston, Texas. At that time, UGI outlined how that investment would provide a platform for growth in other RNG projects. UGI’s investment in Cayuga RNG reinforces our commitment to the development of RNG and sustainable energy. Additionally, the investment in Cayuga RNG supports the company’s existing greenhouse gas emission reduction strategies that will be highlighted in UGI’s upcoming environmental, social and governance (ESG) report titled “The Foundation of a Renewable Energy Future”,” Beard concluded.
“My partner, Jim (Fitzgerald), and I have been in the environmental, sustainability, electric grid resilience and renewal fuels space for some time,” said Robert J. Foxen, President of GCE. “We look forward to teaming with UGIES to support the dairy industry 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. In addition to the environmental benefits, these projects also provide the dairies (many family-owned and operated) with financial support by monetizing a former waste stream.” Foxen concluded, “We look forward to growing Cayuga RNG with UGIES’ support.”
“Spruce Haven Farm has worked toward developing RNG for 20 years,” said Doug Young, Managing Member of Spruce Haven Farm. “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.”
About UGI Corporation
UGI Corporation is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, distributes LPG both domestically (through AmeriGas) and internationally (through UGI International), manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania, and engages in energy marketing, including renewable natural gas in the Mid-Atlantic region of the United States, California, and the District of Columbia and internationally in France, Belgium, the Netherlands and the UK.
Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.
About GCE
GCE designs, develops, owns and operates various energy projects, including utility scale power plants, renewable fuels projects, microgrids, and on-site generation projects. GCE establishes Strategic Energy Partnerships with our clients to design and implement energy projects that meet their business objectives. GCE has a broad range of experience in all aspects of energy project design, development and financing. GCE has performed innovative feasibility studies and project design; negotiated project agreements needed to enable financing, including complex power purchase agreements (PPAs); engineering, procurement, and construction (EPC) contracts; fuel supply agreements; and secured complex environmental permits in challenging regulatory environments. GCE also has extensive experience developing financial models and securing project financing.
Comprehensive information about GCE is available on the Internet at http://globalcommon.com/
About Spruce Haven Farm
Spruce Haven, a family farm founded in 1987 by Doug and Janet Young, along with Janet’s father, Dave Camp, and currently operates with nearly 2,000 cows and 1,700 heifers. Two of the Young’s sons, Luke and Dustin, are managers and members of Spruce Haven, as well as Jason and Alisha Koch. Jason Koch is dairy operations manager. Spruce Haven is thankful to have highly competent and long-term employees.
Spruce Haven works toward responsible and sustainable farming, acting as a research and development center for the dairy industry. The research at Spruce Haven Farm has contributed to products improving dairy performance globally. Currently launching Cowffee, a whole milk-based beverage high in CLA, Spruce Haven believes naturally produced CLA has the potential to reduce cancer, heart disease, obesity, diabetes, dementia while improving immunity in humans based on results in animal studies. Spruce Haven installed a lower-cost anaerobic digester to reduce climate impact. To address holistic opportunities by utilizing the plant food resulting from digestate, its nutrient boom field distributor was patented to increase crop yields while better utilizing nitrogen and phosphorus and reducing climate impact. Spruce Haven also works to improve the lives of its employees and families both in their neighborhood and in Guatemala.
See their website http://pursuehappiness.farm for details of their goals and progress.
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Source: UGI Corporation