Cayuga RNG Holdings LLC announced today that it has entered into an agreement to develop its second project to produce renewable natural gas (RNG) in upstate New York. This is in addition to the previously announced Spruce Haven Farm initiative. Cayuga RNG is a joint venture of UGI Energy Services LLC, a subsidiary of UGI Corp. and Global Common Energy LLC.
As previously announced, Cayuga RNG’s first project is being developed at the Spruce Haven Farm, located in Cayuga County in the Finger Lakes region of New York. The project incorporates an existing anaerobic digester that generates biogas, which is used to produce renewable electricity, and is expected to be completed in the second half of calendar year 2022. Cayuga RNG contracted with Martin Construction
Resource, LLC, an industry-leading supplier of RNG equipment, for the gas upgrading equipment at Spruce Haven.
Cayuga RNG’s second project will be located at Allen Farms, which is approximately five miles from Spruce Haven. Allen Farms has contracted with Cayuga RNG to supply dairy waste that will serve as the feedstock for renewable natural gas. The project will include the construction of an anaerobic digester and a combined heat and power project. Once completed in the second half of calendar 2022, the project is expected to produce 85 million cubic feet of environmentally friendly RNG each year. Cayuga RNG is actively pursuing several other projects in the region. GHI Energy, a UGIES subsidiary, will be the exclusive off-taker and marketer of RNG for Cayuga RNG.
“We are very pleased with our expanding opportunities in the Finger Lakes region of New York,” said Robert F. Beard, executive vice president, Natural Gas. “Our growing investment in Cayuga RNG demonstrates UGI’s continuing commitment to the development of environmentally responsible energy sources and is consistent with our stated goal of significantly reducing greenhouse gas emissions. Overall, this brings UGI’s total commitment to renewable natural gas projects to over $100 million.”