Chesapeake, new operator of Perdue plant launch program to convert chicken droppings into natural gas

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Chicken droppings will become renewable natural gas under an agreement with the new owner of a former Perdue site.

Bioenergy DevCo (BDC), a  global developer of anaerobic digestion facilities that create renewable energy and soil products from organic material,  entered into an agreement with Dover-based  Chesapeake Utilities Corp. on. a project to convert chicken waste into natural gas.

The technology can also be used to process food waste.

Chesapeake Utilities affiliates Eastern Shore Natural Gas, Chesapeake Utilities, and Marlin Gas Services, will collaborate on the project, which could  lead to multiple sites producing renewable fuel.

Gas generated from organic material at BDC’s anaerobic digestion facilities in Delaware, known as the  Bioenergy Innovation Center, will be processed by Chesapeake Utilities Corporation, and Eastern Shore Natural Gas.

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 Marlin Gas Services will truck compressed natural gas to other suppliers, customers and  Chesapeake Utilities’ interstate pipeline where it can be distributed to natural gas customers. Florida-based Marlin is a more recent acquisition by 

“Chesapeake Utilities Corporation, by working together with municipalities and the food-industry, understands that digesting organics is a solution that creates a sustainable, environmentally-friendly supply of renewable natural gas while also helping to solve major waste management problems,” said Shawn Kreloff, CEO of Bioenergy DevCo. “Recent estimates have shown that turning agricultural waste and excess organics from the poultry industry into truly renewable natural gas could replace seven billion gallons of diesel fuel and generate 70,000 new jobs. Companies that embrace utility-scale anaerobic digestion, like Chesapeake Utilities Corporation, are on the forefront of a revolution in waste and energy infrastructure innovation.”

Anaerobic digesters use naturally occurring microbes to break down food waste into biogas and an organic soil amendment used by farmers. This waste would otherwise be sent to a landfill where it would decompose and release greenhouse gasses, or be incinerated, contributing to air pollution. 

“We have taken steps to ensure that Chesapeake Utilities Corporation can support the emergence of the renewable fuels market and do its part to assist in managing agricultural and other waste recovery. These investments and our recent tariff changes to establish gas quality standards are evidence of our efforts. We see this partnership with BDC as the next important step in our commitment to operating with a focus on the environment and sustainability. By utilizing the RNG derived from processing excess poultry industry organics in the Delmarva region and transforming that into carbon-negative energy source, we can help fuel homes and businesses throughout the community while supporting a more sustainable future,” said Jeff Householder, CEO of Chesapeake Utilities Corporation. “Beyond sustainability, these projects represent profitable growth investments across our value chain – natural gas transmission, natural gas distribution and our unregulated mobile compressed natural gas (CNG) business, Marlin Gas Services.”

Bioenergy DevCo is currently developing anaerobic digesters throughout the United States.

The company gained a foothold in the Mid-Atlantic region following a recently announced 20-year agreement with Perdue Farms, which sold a plant that was converting chicken litter into organic products.

Throughout the partnership, BDC and Chesapeake Utilities Corporation aim to jointly pursue   additional project sites to maximize the potential for renewable natural gas.

BDC’s has 22 years of experience in managing complex anaerobic digesters around the globe.

Information about Chesapeake Utilities Corporation’s businesses is available at www.chpk.com.

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