June 20, 2023. Viridi Energy has partnered with American Organic Energy (AOE) to develop one of the largest food waste-to-renewable natural gas (RNG) projects in the United States. The project is expected to convert 210,000 tons of waste per year – which is equivalent to the entire annual food waste of Dallas, Texas – into clean energy and agriculture products.
Located in Yaphank, NY, the AOE facility represents a historic step toward circularity in waste disposal, housing the first anaerobic digester to process food waste in the New York City metropolitan area. The project will divert food waste from landfills located up to 300 miles away and transform it into RNG, via anaerobic digestion, and into other renewable products, such as fertilizer. The project will generate emissions reductions equivalent to nearly 100,000 tons of CO2 per year and is projected to produce renewable fuels equivalent to 10 million gallons of gasoline annually.
“This landmark project demonstrates to the renewable energy industry that large-scale food waste-to-RNG projects are viable as robust financial investments and as environmentally impactful solutions to our greenhouse gas emissions and food waste crises,” said Dan Crouse, CEO of Viridi.
This deal is significant for Viridi and for the renewable energy industry as it will deliver RNG at an attractive price-per-ton of CO2 avoided without being dependent upon the credit markets. The firm, which launched last year with the backing of Warburg Pincus and Green Rock Energy Partners, has signed an offtake agreement with FortisBC, a British Columbia-based energy solutions provider. Per the agreement, which has a term length of 20 years, FortisBC will purchase the RNG produced at the AOE facility to deliver to its customers. Financing partners supporting the construction of the project include JP Morgan, NY Green Bank, and Pathward®, N.A. Green Arrow Engineering serves as the owner’s engineer, and Venture Engineering & Construction is the project’s engineering, procurement, and construction contractor. Financial advisor to AOE was Mike Land, formerly with Baker Tilly Capital and now with Virentis Advisors.