New alliance backs use of renewable natural gas in vehicles in Delaware
Chesapeake Utilities Corporation announced a new partnership with CleanBay Renewables Inc. (CleanBay), an enviro-tech company focused on the production of sustainable renewable natural gas, which will generate greenhouse gas credits associated with vehicular usage, and provide Chesapeake Utilities the opportunity to bring additional renewable natural gas to its Delmarva operations.
Under the arrangement, Chesapeake Utilities Corporation will transport the renewable natural gas produced at CleanBay’s planned Westover, Maryland bio-refinery, to Chesapeake Utilities’ natural gas infrastructure in the Delmarva region.
The renewable natural gas generated at CleanBay’s Westover facility will reach the market through the joint effort of Chesapeake Utilities Corporation and its subsidiaries, Eastern Shore Natural Gas Company (ESNG) and Marlin Gas Services. Using a mobile pipeline concept, Marlin Gas will transport renewable natural gas from the CleanBay facility to Eastern Shore Natural Gas, Chesapeake Utilities Corporation’s interstate infrastructure pipeline, where it will be distributed to end use customers, including low-carbon, renewable vehicle fuel customers.
“Through this partnership, Chesapeake Utilities Corporation has an immediate and scalable opportunity to further impact climate change,” said Thomas Spangler, CleanBay Renewables’ Executive Chairman. “Our process to turn poultry litter into renewable natural gas is a sustainable, environmentally friendly way to both positively influence our region’s poultry ecosystem and reduce U.S. greenhouse gas emissions for end use customers including powering vehicle fleets with clean, green energy.”
“Utilizing the renewable natural gas derived from processing excess poultry industry organics in the Delmarva region, and transforming that into a carbon-negative sustainable energy source, supports our long-standing commitment to our customers and communities to invest in a resilient, environmentally-friendly and diverse energy supply,” said Jeff Householder, President and CEO of Chesapeake Utilities Corporation.
“The clean energy produced at each facility will reduce 550,000 tons annually of greenhouse gas emission equivalents (equal to removing 107,795 gasoline-fueled vehicles off the road)” said Donal Buckley, CleanBay’s CEO.
The Westover facility is scaled to be large enough to process meaningful quantities of poultry litter and will include more than $200 million of capital investment by CleanBay. Site preparation is underway, and construction is scheduled to begin later this year.
