Meadowbrook Energy RNG facility will provide important environmental benefits.
The Meadowbrook Energy ("Meadowbrook") RNG facility is a state-of-the-art renewable natural gas plant under development in Throop, Pa. The facility will accept biogas from a local landfill and will use a sophisticated, ultra-low emission purification process to separate and purify the renewable gas that is contained in all biogas as a by-product of natural bacterial decomposition processes. The separated and purified renewable gas from the Meadowbrook RNG facility will be injected into the natural gas pipeline system, with the intention that the renewable gas will be applied to displace gasoline, diesel or other fossil-derived fuels in the U.S. transportation fuel sector. The product produced by the Meadowbrook RNG facility is called “renewable natural gas” or RNG and is a biofuel.
The Meadowbrook RNG facility is supported by the incentives available under the Renewable Fuel Standard (or RFS), a federal legislative initiative designed to increase the amount of renewable fuel used in the U.S. national transportation system. The RFS legislation was originally enacted by Congress on a bipartisan basis and was signed by President Bush in 2007. In 2014, the EPA determined that RNG derived from biogas qualifies as a cellulosic biofuel under the RFS, and that the RFS market-based incentives are available to all processing facilities that derive RNG from biogas for transportation fuel applications.
Once operational, the Meadowbrook RNG facility will provide two important environmental benefits. On the local level, this new facility will deliver a significant reduction in local air emissions because existing amounts of biogas that are currently being combusted in engines, turbines and flares will be diverted to the Meadowbrook facility, processed into RNG, and injected into the national gas pipeline system. This will substantially reduce total air emissions in the Mid-Valley region. On the national level, the RNG from the new facility is expected to be used in clean-burning natural gas vehicles to displace the equivalent of 26 million gallons of gasoline annually. Based on EPA guidelines, this substitution of RNG for gasoline will produce a net reduction of overall national air emissions.
The Meadowbrook RNG facility is independently owned and operated by Meadowbrook Energy LLC. All the capital for the project is being provided by private sources. Meadowbrook has entered into an agreement with Keystone Sanitary Landfill under which Meadowbrook will purchase biogas as a feedstock for the new facility.
Meadowbrook expects that the new facility will cost an estimated $100 million. Of that amount, Meadowbrook estimates that $30 million will be paid to vendors in the local communities for goods and services, including the estimated 100 local union construction jobs that will be necessary to build the Meadowbrook RNG facility.
On an ongoing basis, Meadowbrook expects that the annual contribution of the RNG facility to the local communities will be approximately $13 million for payment of salaries, local taxes and purchase of local goods and services required to operate the Meadowbrook facility.
Meadowbrook’s new facility, which will be situated on 20 acres of land immediately adjacent to UGI’s Marshwood Road Station, is anticipated to be completed in the second half of 2019.