Latest news with #BiogasMonthly
Yahoo
06-05-2025
- Business
- Yahoo
Biogas market awaits RFS guidance; plus RNG news from WM, Viridi, Vision
This story was originally published on Waste Dive. To receive daily news and insights, subscribe to our free daily Waste Dive newsletter. This is the latest installment in Waste Dive's Biogas Monthly series. EPA Administrator Lee Zeldin has set out a busy regulatory (or deregulatory) agenda over the first 100 days of President Donald Trump's term, but one regulation he's left untouched is the Renewable Fuel Standard. The regulation sets a certain amount of non-petroleum fuel credits that refiners and importers of petroleum-based fuels must acquire in a given year, which plays an important role in creating demand for the fuels. The U.S. EPA initially set those levels, known as Renewable Volume Obligations, annually, but it chose to set the targets for three years in 2023. With those targets set to expire at the end of this year, many fuel producers are wondering how aggressive the Trump administration will be for the next round of RVOs. The EPA is already overdue to set those targets, and the market for renewable fuels is slumping amid the uncertainty. That's in part because the Biden EPA floated the possibility of a waiver for obligated parties that didn't hit their targets last year, said Adam Schubert, a senior associate at Stillwater Associates. That proposal is now in the hands of the Trump administration. The waiver would apply to 2024 targets, and it's looking like the market may need another waiver again this year as production lags behind demand. But no one in the fuels industry quite knows what to expect, according to Schubert. 'For producers, they don't know what the volume is. For buyers, it gives them an incentive not to buy. That creates a bad incentive,' he said. 'The market's still trying to figure out 2024 and 2025 while waiting for 2026 to come out.' Prices for RINs, the credits generated by alternative fuel producers, have been trading lower since late last year, hurting the incentive. Schubert said there are also structural aspects of the transportation fuel credit market that will be hard for the EPA to solve. Namely, many of the fleets that can run on compressed natural gas and buy RNG already do. In order for there to be more demand for these fuels, more CNG-powered fleets would need to come online. But those fleets have typically come about through state-level incentives like in California, and most regulators today are looking to facilitate a transition toward electric rather than CNG. There are several paths forward: New CNG-powered engines are entering the market with longer range that might entice more fleet owners to switch. More states could allow for a switch to CNG-powered vehicles amid attacks on clean trucks mandates. Or, the EPA could take another look at eRINs, the controversial proposal that would create a credit for renewable electricity used to power vehicles.
Yahoo
04-04-2025
- Business
- Yahoo
Ares launches Sagepoint RNG developer, plus news from Opal, EnVitec, Nexus
This story was originally published on Waste Dive. To receive daily news and insights, subscribe to our free daily Waste Dive newsletter. This is the latest installment in Waste Dive's Biogas Monthly series. Ares Management is launching a new renewable natural gas platform named Sagepoint Energy, bringing together several growing assets with a plan for expansion. The business is a combination of Dynamic Renewables and BC Organics, in which Ares purchased a majority stake in 2023, and National Organics, a logistics platform launched under Ares in 2024. Aaron Johnson, a veteran of the renewable natural gas space and no stranger to the world of private capital, is Sagepoint's CEO. He's been the CEO of Dynamic since December 2023. He previously led RNG developer Kinetrex Energy, and became president of RNG for Kinder Morgan after the energy infrastructure company acquired Kinetrex in 2021. Sagepoint plans to hit the ground running with acquisitions, according to Johnson. 'Honestly, I don't intend to slow down here,' he said. 'We've assembled the team for it and we're executing fairly quickly on it.' Less than two weeks after the combination was announced, Sagepoint announced the acquisition of Lynx Renewable Energy Kansas and Renewable Power Producers. The two each operate a landfill-gas-to-RNG asset, and Sagepoint plans to immediately expand Lynx's facility at the Plumb Thicket Landfill in Harper, Kansas. The centerpiece of the combined company is its other RNG-producing facility, BC Organics. The site uses 16 digester tanks to process about one million gallons of manure per day. National Organics, the logistics network spearheaded by Johnson at Ares, operates dozens of trucks between several dairy farms in the Green Bay, Wisconsin, area and the BC Organics facility. It also receives 40% of its feedstock via pipeline, returning nutrient-rich water to farms for reuse. The company is planning to continue growing its portfolio of landfill projects. Johnson said that's in part to balance against the dairy exposure Sagepoint already has — he noted a lack of clarity regarding federal tax credits and California's Low Carbon Fuel Standard update make that business a bit riskier at the moment. "We have quite a few, candidly, projects that we've grandfathered and done some of the initial construction, but to push forward on some of those dairy projects, we'll definitely need clarification from [the California Air Resources Board,]" Johnson said. Sagepoint is also exploring the possibility of codigesting other kinds of organic waste in its facilities. Johnson said he's learned to operate with an 'all-of-the-above strategy' in the RNG space over the years, and will carry out that philosophy at Sagepoint. 'Ares is very prolific in this area, and I think for us we are very bullish,' Johnson said. Credit pricing as of April 2, 2025 D3 RIN prices: $2.462 Down from $2.465 in 2024 D5 RIN prices: $1.025 Up from $0.935 in 2024 $61 Price per metric ton of carbon dioxide equivalent in Oregon's Clean Fuels Program $56 Price per metric ton of carbon dioxide equivalent in California's Low Carbon Fuel Standard Source: EcoEngineers Carbon Market Snapshot, April 2 Opal Fuels commissioned three landfill-gas-to-RNG projects last year, increasing its RNG output 41% to 3.8 million mmBtus, it announced in its full-year earnings release. Full-year revenue also improved 17% year over year to about $300 million, the company reported. '2024 was a solid year for OPAL Fuels, we made strong progress on our operational and strategic objectives and have positioned the company for continued success this year and for many years to come,' Adam Comora, co-CEO of OPAL Fuels, said in a statement. Last year, Opal reported owning and operating 26 total projects, including 11 which produce RNG and 15 which produce 'renewable power.' Of its RNG projects, two use dairy biogas and the rest use landfill gas. The company can generate up to 8.8 million mmBtus of RNG through its existing portfolio. The company also reported six RNG projects in construction, with the possibility to convert more of its power-generating sites to RNG in the future. SoCalGas has received approval from the California PUC for a contract with Organic Energy Solutions to receive RNG made from organic waste, the gas utility announced in March. It's the first contract approved by the commission under SB 1440, which sets short- and medium-term targets for investor-owned gas utilities to procure RNG. The law, passed in 2022, was designed to support California's short-lived climate pollutant law, SB 1383, by setting up a market for the gas produced by processing organic waste. SB 1440 does not allow for dairy biomethane to be used, since such projects can already benefit from the state's Low Carbon Fuel Standard. The commission set a target for investor-owned utilities to procure about 17.6 billion cubic feet of RNG annually by 2025, or the biomethane from about 8 million tons of organic waste. It set a further goal for utilities to displace about 12.2% of fossil natural gas with RNG by 2030. Organics Energy Solutions' project will be located in San Bernardino. It's expected to begin supplying RNG in the second half of 2026. EnviTec completed its fifth project in partnership with SJI Renewable Energy Ventures, a large dairy digestion plant in South Dakota. The 177,000 mmBtu system processes 300,000 gallons of manure a day. SJI and EnviTec are planning a portfolio of 15 total projects. Three others are currently ramping up production, including EnviTec's first Minnesota facility, per a release. EnviTec also touted its supply chain, noting the concrete tanks for its digester plants are manufactured locally. Germany-based EnviTec has built more than 700 biogas plants since 2002 across 18 countries. Nexus W2V began construction on an anaerobic digestion facility that will accept packaged food and other organic materials in La Porte, Indiana, in March. The facility is the company's first. The site is part of a $140 million plan for Nexus to break into waste-to-value development. It comes after a $75 million structured equity investment from Orion Infrastructure Capital. The Kingsbury Bioenergy Complex in La Porte is expected to support "dozens" of long-term positions once complete, per a release. It's scheduled to begin operations in late 2026. Nexus W2V is part of a family of companies based in Texas that offer wraparound waste-to-value services. It started in Texas in 2013 as an advisory firm, but expanded to include engineering and technical services. In 2023, Nexus received its first outside investment — a $50 million growth equity round backed by an affiliate of Greenbacker Capital Management, Ontario Power Generation Pension Fund and Liberty Mutual Insurance. Recommended Reading Waste companies report RNG progress; plus news from Aemetis, Waga and more Sign in to access your portfolio
Yahoo
06-02-2025
- Business
- Yahoo
Where Trump officials stand on RNG; plus news from WM, Chevron and more
This story was originally published on Waste Dive. To receive daily news and insights, subscribe to our free daily Waste Dive newsletter. This is the latest installment in Waste Dive's Biogas Monthly series. A new administration brings new officials in charge of federal policies affecting the biofuels space, and early signs point to a mostly positive environment for the industry. U.S. EPA Administrator Lee Zeldin was asked during his confirmation hearing if he would set timely renewable volume obligations under the Renewable Fuel Standard, the policy controlling federal incentives for renewable natural gas. Zeldin said he would, and also said he would be open to conversations about favorable policies for developing sustainable aviation fuels as well, Biomass Magazine first reported. On Monday, the Senate also voted to confirm Chris Wright, former chairman and CEO of Liberty Energy, to lead the U.S. Department of Energy. Liberty Energy is an oil and gas company based in Colorado, though it did acquire a company in 2023 that delivers compressed natural gas, RNG or hydrogen to remote customers. Wright will be tasked with implementing President Donald Trump's energy policy, which is focused on boosting oil and gas production. In his 'Unleashing American Energy' memo, issued on Jan. 20, Trump included biofuels among the kinds of energy production he'd like to see increase. There could also be cuts to programs that have previously supported the biofuels industry with the new administration. Experts said Wright could pause funding from the Loan Programs Office, which ramped up its investments considerably during the Biden administration. And the Rural Energy for America Program office, which has financed projects like dairy manure digesters, is on a list of programs whose funding was affected by Trump's attempt to freeze large swathes of federal funding. Judges in Rhode Island and Washington, D.C., have issued temporary restraining orders against the administration to allow funds to continue flowing for now. Despite the changes in Washington, projects continue to develop throughout the country. Read on for some RNG highlights from January. Credit pricing as of Feb. 3, 2025 D3 RIN prices: $2.433 Up from $2.420 in 2024 D5 RIN prices: $0.820 Up from $0.770 in 2024 $55 Price per metric ton of carbon dioxide equivalent in Oregon's Clean Fuels Program $73.82 Price per metric ton of carbon dioxide equivalent in California's Low Carbon Fuel Standard Source: EcoEngineers Carbon Market Snapshot, Feb. 3 On the company's earnings call on Jan. 30, WM Chief Sustainability Officer Tara Hemmer said the company was planning to commission eight RNG projects in 2025. The company commissioned four facilities in the fourth quarter of the last year, and expects RNG production to double from 2024 to 2025, according to its latest earnings report. The company now has seven out of its goal of 20 new RNG facilities built. The company spent $507 million in capital expenditures on its RNG projects last year, and expects to spend about $420 million to $450 million on such projects this year. WM does have additional landfill sites where it could build new biogas projects, though the company is still evaluating those, Hemmer said on the earnings call. Private equity-backed BerQ RNG announced the closing of $110 million in Solid Waste Facilities Limited Obligation Revenue Bonds from the Michigan Strategic Fund on Jan. 27. The company said it would use the funds to build four dairy manure-to-RNG projects in Michigan. BerQ has previously commissioned a dairy project in Western, Michigan, and announced an agreement with Bright Renewables for four projects across Michigan and New York last year. BerQ operates in Canada and the United States, with offices in Ontario and Pennsylvania. It's backed by Lotus Infrastructure Partners. Lotus is the investment platform that succeeded Starwood Energy, which first invested in BerQ in 2021. Waga Energy will design, build and operate an RNG production facility at the Bena Landfill in Bakersfield, California, through a contract with Kern County. The University of California system plans to purchase the RNG through a 20-year agreement, the company announced. This is Waga's third project in California and 13th in the U.S., the French company reported. It predicts the facility will produce at least 550,000 mmBtus of RNG annually. A joint venture between Chevron and Brightmark has achieved gas delivery at 10 RNG projects across the Midwest, the entity announced this month. Brightmark RNG Holdings owns and operates 15 RNG projects in the region, according to a release. The JV was first announced in October 2020 to build dairy RNG projects. The partnership has expanded in the years since, building a series of projects in Michigan, Wisconsin, South Dakota, Iowa and elsewhere. Recommended Reading RNG tax credit impacts spill into new year; plus news from Waga, Clean Energy Fuels Sign in to access your portfolio
