Viridi Energy, a prominent player in the renewable natural gas (RNG) sector, has joined forces with American Organic Energy (AOE) to establish one of the largest food waste-to-renewable natural gas projects in the United States. This groundbreaking initiative aims to convert a staggering 210,000 tons of waste annually, equivalent to the entire annual food waste output of Dallas, Texas, into clean energy and agricultural products.
Situated in Yaphank, NY, the AOE facility represents a significant stride towards achieving circularity in waste disposal. It houses the first anaerobic digester designed to process food waste in the New York City metropolitan area. By diverting food waste from landfills up to 300 miles away, the project will utilize anaerobic digestion to transform it into RNG and other renewable products like fertilizer. With emission reductions estimated at nearly 100,000 tons of CO2 per year, the project is estimated to produce renewable fuels equivalent to 10 million gallons of gasoline annually.
Dan Crouse, CEO of Viridi, mentioned, “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.”
This partnership holds immense significance for Viridi and the renewable energy industry as it offers an attractive price-per-ton of CO2 avoided for RNG without relying on credit markets. Viridi, backed by Warburg Pincus and Green Rock Energy Partners, has inked an offtake agreement with FortisBC, an energy solutions provider based in British Columbia. The agreement spans a 20-year term, during which FortisBC will purchase the RNG produced at the AOE facility to supply to its customers. JP Morgan, NY Green Bank, and Pathward®, N.A. are financing partners supporting the project’s construction.Â
The project is set to generate a significant positive environmental impact by curbing greenhouse gas emissions tied to existing food waste disposal practices. With an estimated carbon intensity of approximately -100gCO2e/MJ, the AOE facility located at the Long Island Compost site aims to address the substantial amount of food waste in landfills and incinerators across the United States. This project aligns with the food waste reduction goals established by the United States Department of Agriculture (USDA) and the Environmental Protection Agency (EPA), which aim to achieve a 50 percent decrease in food waste by 2030.
Charles Vigliotti, Chief Executive Officer and President of AOE mentioned, “The AOE project provides a cost-effective, sustainable solution for a meaningful portion of food waste generated annually in the New York City metropolitan area. I’m proud to embark on the next phase of this project with Viridi, an experienced RNG partner, as we envision the possibility of scaling production at the site in the future.”
