The project is called Gevo NW Iowa RNG, LLC, and is expected to produce approximately 355,000 million metric British thermal units (MMBtu) of renewable natural gas (RNG) per year.
Gevo Inc (NASDAQ: GEVO) it has revealed that it has started bringing its wholly dairy-based manure-based (RNG) renewable natural gas (RNG) project online.
Located in northwestern Iowa, the project is called Gevo NW Iowa RNG LLC, and is expected to produce approximately 355,000 metric million British thermal units (MMBtu) of renewable natural gas (RNG) per year, which the company said.
Investors responded to the news, adding Gevo shares up nearly 8.4% to $ 3.26 on the tech Nasdaq.
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“We are excited to get NW Iowa RNG online, on schedule,” Chris Ryan, president of Gevo Inc. said in a statement. “Our staff have done an excellent job here, creating a facility that will exemplify how renewable energy will work for years to come, and we are excited to bring our partnership with area farmers to the next step. ”
NW Iowa RNG fits with Gevo’s business model to explore ways to use renewable carbon to make the most of energy opportunities by dialing sustainability and optimizing renewable resources, the company said. Because dairy manure left in lagoons and used as a fertilizer releases high levels of methane into the atmosphere, there is an opportunity to capture that methane as biogas and refine it for use as renewable natural gas.
Doing so has no effect on the fertilizer or nutrients available, but creates more options for the sustainable management of fertilizers for sustainable farming practices. The company noted that it is a smart idea and that waste reduction is a cornerstone of the circular economy at the heart of Gevo’s business model.
As Gevo reported in August 2021, the RNG is expected to be sold into the California market under distribution agreements that BP has in place with Company Information Company Name Clean Energy Fuels Corp., Ltd., the largest fueling infrastructure in the US for RNG.
Distributions from the project are expected to generate $ 9 million to $ 16 million a year from the facility which is expected to start in late 2022, or early 2023 depending on the timing of the Airworthiness Board’s Low Carbon Fuel Standard (LCFS). California (CARB), the company said.
NW Iowa RNG is expected to benefit from environmental product revenue under the California LCFS program and the U.S. Environmental Protection Agency’s Renewable Fuel Standard program.
It is estimated that up to 95% lower emissions come from RNG – fueled vehicles than those fueled with gasoline or diesel on a life cycle basis, according to a U.S. Department of Energy study.
“Farmers have shown that they are willing to try something new,” Ryan said. “By creating a source of renewable energy that will reduce the greenhouse gas footprint of agriculture while at the same time providing meaningful renewable energy when it is needed – this kind of foresight will make a difference in the long run far beyond Northwest Iowa . ”
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