As part of the company’s sustainable renewable natural gas strategy, Chesapeake Utilities is proud to be partnered with Bioenergy DevCo, a leading global developer of anaerobic digestion facilities. Together, the two firms will provide a significant supply of carbon-negative energy to the Delmarva Peninsula. The joint venture was announced in June 2020 and involves the processing and purification of biogas from organic poultry waste.
Chesapeake Utilities Corporation is building a $6M gas processing plant to generate RNG from the organic waste at Bioenergy DevCo’s Delaware-based anaerobic digestion facilities. Once purified and ready for household use, the RNG will be injected into Chesapeake Utilities’ gas distribution system for consumption by its natural gas customers.
In addition to the capital investment in processing, two affiliated companies, Eastern Shore Natural Gas and Marlin Gas Services, will finance $7M in improvements to the interconnect facility, along with the purchase of transport equipment.
Eastern Shore Natural Gas is also responsible for establishing gas quality specifications and standards.
Acquired in 2018, Marlin Gas Services provides leading RNG transport capabilities, essentially creating a “virtual pipeline” that bridges pipeline gaps between biogas producers and natural gas distribution systems. Virtual pipelines provide both temporary solutions during the construction of pipeline interconnect and a long-term answer in scenarios where a direct pipeline is not possible.
Leveraging Business Units to Maximize Returns
By involving several of the company’s business units in different aspects of the same biogas capture, processing, and distribution projects, Chesapeake Utilities is able to generate greater value out of RNG opportunities to meet and exceed corporate revenue targets. All while operating in a manner that encourages greener energy consumption and a better quality of life.
President and CEO Jeff Householder noted, “Investments to support RNG flowing through our pipelines provide us the opportunity to significantly reduce our carbon footprint, diversify our natural gas portfolio, and benefit our customers and communities.”
Blue Flame Alliance member Chesapeake Utilities Corporation aims to accomplish long-term financial value and a more sustainable future for the communities it serves through the delivery of clean energy. The company is currently in negotiations on several new and exciting RNG projects to convert biogas from the organic waste generated at area farms, landfills, and wastewater treatment plants. Once purified, RNG is fully interchangeable with conventional natural gas, creating a unique opportunity to achieve environmental goals while driving sustainable profitability.