RNG Energy Solutions Completes Development Phase of Linden Renewable Energy Project
Feb. 24, 2022
RNG Energy Solutions, LLC, a New Hampshire-based developer of complex energy infrastructure projects, announced that it has completed the development phase of the Linden Renewable Energy Project, a large organic waste anaerobic digester project located in Linden, New Jersey. The LRE Project has secured all the City of Linden, Union County and New Jersey Department of Environmental Protection required permits necessary to start construction. The LRE Project will be constructed on a 21-acre site that is located in a heavily industrialized area on Tremley Point Road.
In addition, the LRE Project has received approval from the New Jersey Economic Development Authority for US$ 214 million in Industrial Development Revenue Bonds and is working with Citigroup Global Markets Inc., which is serving as the Bond Underwriter. The Industrial Development Revenue Bonds transaction is expected to close in Q1 of 2022. Starwood Energy Group Global, LLC, a private investment firm that specializes in energy infrastructure investments, and RNG Energy will be committing a total of up to US$ 100 million in equity.
“We have developed an exceptional project development and equity ownership team that will take this project to the next phase of completing the bond financing and starting construction shortly thereafter.” said James Potter, president, RNG Energy and Linden Renewable Energy.
“LRE is a groundbreaking project that will provide an environmentally sustainable path to solving a growing waste disposal problem in the United States. Furthermore, the renewable natural gas produced by LRE will enable decarbonization of the natural gas supply chain. Our investment in LRE reflects our commitment to the sustainable energy transition space and to ESG friendly investments.” stated Himanshu Saxena, CEO, Starwood Energy Group.
The LRE Project will use proven advanced anaerobic digesters to convert organic waste into biomethane, which will be upgraded to pipeline quality standards. The renewable natural gas (“RNG”) will then be directed via an interconnection to Elizabethtown Gas, a subsidiary of South Jersey Industries system located near the Project site. The LRE Project design was a collaborative effort between RNG Energy, SUEZ Water Technologies & Solutions and LRE’s EPC provider, Phoenix Power Group. The LRE Project has also executed a long-term operations and maintenance services agreement with SUEZ Water Technologies & Solutions, who provides similar services for anaerobic digester projects and waste water treatment projects throughout the world.
The LRE Project is designed to receive up to 1400 tons per day of diverted organic waste, which it will process into 3300 dekatherms per day of renewable natural gas. This is the energy equivalent of 28,400 gallons of gasoline each day. The LRE Project will have a direct interconnection to Elizabethtown Gas, a subsidiary of South Jersey Industries. The Project will also produce 260 cubic yards per day of a high value soil amendment material.
“Virtually everything we receive would have gone to a landfill and, with this project, will now be converted to a high value renewable natural gas and soil amendment. This project provides the optimized sustainable solution for managing diverted organic waste.” confirmed Ralph Daley, senior vice-president of RNG Energy.
The project will also use 3.2 MW of Bloom Energy solid oxide fuel cells to provide primary power for the facility and digester, bolster energy efficiency, reduce carbon emissions, and optimize power generation costs. RNG Energy and Bloom completed a separate 6MW project on Long Island in 2020. Mr. Potter notes: “We are maximizing the application of every possible viable technology to provide the optimized sustainable waste management and RNG production solutions for our partners. This is what our customers expect. The LRE Project will be one of the largest carbon reduction resources in the state of New Jersey.”
Significant site work has already been completed with the elevation of the site being increased by a remarkable seven feet and construction of 1600 feet of new bulkhead along the Arthur Kill and Rahway Rivers. The LRE Project includes development and construction of multiple off-site food waste preprocessing and de-packaging operations to be located in New York City, New York state and New Jersey. The LRE Project will provide a sustainable and competitive waste management service within a 40- mile metro region with over 18 million reside