UGI Acquires 33% Stake In Ag-Grid Energy
UGI Corporation (UGI) announced that its subsidiary, UGI Energy Services, LLC, acquired a 33% equity interest in Ag-Grid Energy LLC (Ag-Grid), a renewable energy producer with projects in the United States. Ag-Grid currently develops and operates small-scale renewable power projects that support local energy demands while lowering emissions.
Ag-Grid is currently engaged in the production of renewable power with four operational projects in Connecticut and Massachusetts, and two under construction with a target completion date in December 2022. These six projects include the conversion of dairy waste and roughly 16 million gallons of food waste annually from nearby food manufacturers to renewable power. Ag-Grid also has food waste de-packaging services at selected sites. The renewable power, currently produced annually using anaerobic digesters, is sold through long-term net metering contracts to local utility and industrial customers. Approximately 1300 kW of power generation capacity is now in service with the four existing projects, and an additional 1500 kW is expected after the completion of the two projects under construction in Connecticut and New York.
Ag-Grid also has a pipeline of dairy and food waste digester projects that are expected to produce additional renewable power and renewable natural gas (RNG) in the United States. GHI Energy, LLC, a wholly owned subsidiary of UGI, will be the exclusive off-taker and marketer of RNG for Ag-Grid.
“We are pleased with the opportunity to increase our supply of safe, reliable, affordable, and environmentally friendly energy,” said Robert F. Beard, executive vice president of natural gas, global engineering, construction, and procurement for UGI. “This investment provides a platform for growth and additional diversification as we expand our renewables footprint into new geographies. We look forward to a long, productive relationship with Ag-Grid.”
“We are very excited to partner with UGI and look forward to creating a reliable supply of renewable energy for UGI and achieve our common goals of environmental stewardship and long-term sustainability of the communities that we serve and operate in,” said Rashi Akki, founder and CEO of Ag-Grid Energy. “Ag-Grid has a robust pipeline of projects in both renewable electricity and RNG and, with this partnership, we will be able to effectively execute and accelerate these projects to provide enhanced financial and environmental sustainability benefits to all stakeholders including our dairy farm partners as well as our food waste partners.”
