UGI subsidiary to produce natural gas in New York

Cayuga RNG Holdings, a joint venture of UGI Energy Services, a subsidiary of UGI Corp. and Global Common Energy, recently entered into an agreement to produce renewable natural gas (RNG) in upstate New York.

“We are very pleased with our expanding opportunities in the Finger Lakes region of New York,” Robert F. Beard, UGI executive vice president of natural gas, said. “Our growing investment in Cayuga RNG demonstrates UGI’s continuing commitment to the development of environmentally responsible energy sources and is consistent with our stated goal of significantly reducing greenhouse gas emissions. Overall, this brings UGI’s total commitment to renewable natural gas projects to over $100 million.”

The project will include the construction of an anaerobic digester and a combined heat and power project and is expected to be completed in the second half of 2022. Once completed, it will produce 85 million cubic feet of RNG annually.

Allen Farms in Scipio, N.Y., will supply dairy waste that will serve as the feedstock for renewable natural gas.

This is Cayuga’s second New York project. The other project, being developed in the Finger Lakes region, is expected to be completed next year.

UGI Corp. operates natural gas and electric utilities, and manages midstream energy assets in Pennsylvania.