Business report

UGI agrees to finance a renewable natural gas project

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Wyomissing-based UGI Energy Services (UGIES) announced on Monday that it has reached an agreement with MBL Bioenergy to fully finance the first set of renewable natural gas projects in South Dakota.

The project, representing over $70 million in investment by MBL Bioenergy, is a joint venture between UGIES, Sevena Bioenergy and a subsidiary of California Bioenergy (CalBio) to develop RNG projects in South Dakota. UGIES will provide 100% of the funds for MBL Bioenergy.

“This project sets a new standard for UGI in terms of scope and size and represents a significant milestone in UGI’s investments in RNG projects and in the expected contribution to profits from these projects,” said Robert F. Beard, Executive Vice President – Natural Gas, Global Engineering. , Construction & Procurement, IGU. “We are delighted to partner with leading developers on this project which will significantly reduce greenhouse gas emissions, using dairy RNG as vehicle fuel. We look forward to making additional investments in our MBL partnership as we advance the use of RNG as a clean and environmentally friendly energy solution.

The first set of projects, or cluster, will be built on three farms located north of Sioux Falls, SD, and will generate approximately 300 million cubic feet of RNG per year beginning in 2024. Dairy waste from the farms will be digested anaerobically then piped to an upgrading facility before delivery into the Interstate Natural Gas System near Dell Rapids, SD UGIES will be the exclusive distributor for MBL Bioenergy through its wholly owned subsidiary, GHI Energy.