Climate Capital Funds, LLC, a private equity firm investing in small-scale environmental sustainability infrastructure projects, announced an investment in a greenfield landfill gas to renewable natural gas project to be constructed at the Magnolia Sanitary Landfill located in Summerdale, AL. The investment provides funds for the construction and ongoing operation of the facility. Groundbreaking is targeted within 30 days with commercial operations targeted for September 2022.
Through proven refining processes, the facility will take the raw landfill gas and condition it for resell as renewable natural gas by first removing the water present in the landfill gas, then removing any contaminants present in the decomposing wastes. This will be the first project to convert gas from a municipal solid waste landfill to renewable natural gas in Alabama.
Landfill gas, which is ~50% methane, is a natural byproduct of decomposing organic material in landfills. Per the EPA, methane is a potent greenhouse gas trapping 28-36 times more heat in the atmosphere than carbon dioxide over a 100-year period. Also per the EPA, municipal solid waste landfills are the third-largest source of US human-related methane emissions, accounting for 15.1% of these emissions in 2019.
The facility can process 1,100 scfm of landfill gas and will initially produce over 200,000 dekatherms per year of renewable natural gas. The project will generate an estimated reduction of ~11,000 tons of CO2 which is equivalent to removing 2,400 passenger cars or 1.2 million gallons of gasoline every year over the project life. Total plant emissions will be below the EPA air emission thresholds resulting in much desired air quality improvements for the rural community.
"We are excited to have this transaction underway. The landfill gas to renewable natural gas project utilizes proven technologies to transform the previously flared landfill gas into a renewable resource with the same quality as natural gas obtained from oil and gas drilling activities, but with a lower carbon footprint," said Greg Roti, chief executive officer of Climate Capital Partners - the parent company of Climate Capital Funds. "This investment aligns with our mission to decarbonize the US economy while catalyzing job creation and economic development in rural communities."
The project's developer is AEP Renewable Fuels, a Georgia based project developer that develops and operates waste-to-energy projects. AEP's team has experience successfully developing multiple LFG projects.
About Climate Capital Partners
Climate Capital Partners, LLC was established to bring scale and efficiency to funding environmental sustainability infrastructure. CCP has developed three strategies to accelerate capital deployment for small-scale environmental sustainability infrastructure including dedicated private equity funds, C-PACE funding, and public private partnerships. Climate Capital Funds is the private equity platform formed to invest equity in small-scale environmental sustainability infrastructure in rural communities. CCP was founded by CleanSource Capital (www.CleanSourceCap.com), based in Charlotte, N.C., and is an affiliate of the Abundant Power Group (www.AbundantPower.com). More information about CCP is available at www.ClimateCapPartners.com.
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Original Source: Climate Capital Funds Makes Equity Investment in Alabama's First Landfill Gas to RNG Project