Black Hills Completes Acquisition Of Iowa RNG Production Facility
Black Hills Corp. announced that its nonregulated subsidiary, Black Hills Energy Renewable Resources (BHERR), completed the purchase of a renewable natural gas (RNG) production facility in Dubuque, Iowa. The acquisition of the production facility at the Dubuque Metropolitan Area Solid Waste Agency site includes onsite infrastructure and the rights to RNG production at the landfill under a long-term contract. The facility currently injects RNG into the natural gas distribution system serving Dubuque, which is owned and operated by Black Hills Corp.’s regulated natural gas utility in Iowa.
“This investment advances our goal to responsibly integrate renewable resources as a component of our overall emissions reductions strategy,” said Todd Jacobs, senior vice president of growth and strategy. “This acquisition represents our entry into the production of RNG as a nonregulated business while leveraging our expertise in owning and operating regulated natural gas pipeline systems, including RNG interconnections.”
The RNG produced from the landfill facility captures methane that would otherwise vent into the atmosphere. It is delivered under long-term contracts to a third party that purchases the RNG and its related environmental attributes, in conformity with the US Environmental Protection Agency Renewable Fuel Standard Program.
“Investing in the production facility will allow BHERR to focus on growing its RNG business with an efficient and sustainable lower-carbon fuel,” said Jacobs.
