Chesapeake Utilities Corporation Announces Acquisition of Planet Found

Rhea-AI Summary

Chesapeake Utilities Corporation (NYSE: CPK) has acquired 100% of Planet Found Energy Development, LLC for $9.4 million. This acquisition enhances Chesapeake's renewable energy initiatives, specifically in poultry waste management. Key benefits include technology expertise in organic soil conditioning and the operation of a poultry biogas facility in Maryland for testing renewable energy potential. The acquisition represents a significant step in Chesapeake's strategy to develop waste-to-energy solutions in its service territories, supporting sustainability and growth in biogas production.

Positive

• Acquisition of PFED strengthens Chesapeake's renewable energy capabilities.
• The technology is scalable, allowing for future growth in biogas projects.
• Partnership with poultry communities enhances sustainable energy solutions.

Negative

• None.

Proprietary poultry waste technology expands the Company's waste-to-energy capabilities

DOVER, Del., Nov. 7, 2022 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) announced today that it purchased 100% of the membership interest of Planet Found Energy Development, LLC (PFED) for $9.4 million. PFED is a Maryland-based entity formed by Delmarva-based scientists, farmers and business people dedicated to developing poultry litter management technologies. This acquisition aligns with the Company's renewable energy investment objectives including:

• Internal technology expertise, especially related to organic soil conditioner and future fertilizer production, an important economic component in poultry waste biogas production.
   
• Operation of a small poultry biogas facility in Maryland that Chesapeake Utilities will use as a test facility to help verify waste stream and fertilizer chemistry on future projects, useful in both financial projections and potential regulatory treatment.
   
• Development of a second biogas site in Maryland that the Company can expand and complete.
   
• PFED technology and process scalable for growth going forward.

"Environmental considerations are important factors when we assess future opportunities for Chesapeake Utilities, and the acquisition of Planet Found, located in our Delmarva service territory, is a major step in advancing our efforts," said Jeff Householder, president and CEO. "Development of waste-to-energy has become a significant interest to energy delivery companies and their investors as a component of a lower carbon energy strategy. Chesapeake Utilities is geographically located in areas with significant agricultural facilities and waste sources, and the Company has the industry knowledge, energy delivery asset base and capital deployment appetite to play a leading role in the generation and delivery of biogas in its service territories. Following our first RNG transportation project completed in Ohio last year, we have now expanded our portfolio of renewable energy delivery solutions. Planet Found enhances our expertise, technologies and know-how that can be leveraged for various scale biogas and RNG development projects on Delmarva and beyond."

Located in Somerset County, Maryland, PFED's farm-scale anaerobic digestion pilot system and technology biologically produces biogas from 1,200 tons of poultry litter annually, which can generate renewable energy in the form of electricity or be upgraded to renewable natural gas. In addition to generating biogas, PFED's nutrient capture system plays a major role in converting digestate, a natural byproduct of the anaerobic digestion process, into a nutrient-rich soil conditioner, which is distributed to bulk and retail markets under the brand Element Soil.

"Anaerobic digestion is one of the most efficient and sustainable solutions for managing waste and producing renewable energy that reduces our carbon footprint. This acquisition reinforces our commitment to move the energy and agricultural industries toward a more sustainable future," said Kevin Webber, senior vice president and chief development officer. "Our investment in Planet Found and their innovative technologies provides us with significant testing capabilities and will allow us to partner with poultry communities throughout our service territories as we work toward expanding our portfolio of sustainable solutions in the areas we serve."

About Chesapeake Utilities Corporation

Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange (NYSE: CPK). Chesapeake Utilities Corporation offers sustainable energy solutions through its natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions, and other businesses. For more information, visit www.chpk.com.

Please note that Chesapeake Utilities Corporation is not affiliated with Chesapeake Energy, an oil and natural gas exploration company headquartered in Oklahoma City, Oklahoma.

For more information, contact:

Brianna Patterson
Manager, Public Relations and Strategic Communications, Chesapeake Utilities Corporation
302-217-7050
bpatterson@chpk.com

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SOURCE Chesapeake Utilities Corporation

FAQ

What is Chesapeake Utilities' recent acquisition about?

Chesapeake Utilities has acquired Planet Found Energy Development, LLC, focusing on poultry waste management and renewable energy solutions.

How much did Chesapeake Utilities pay for Planet Found?

Chesapeake Utilities purchased Planet Found for $9.4 million.

What are the benefits of the PFED acquisition for Chesapeake Utilities?

The acquisition enhances Chesapeake's expertise in renewable energy technology and supports their sustainable energy initiatives.

Where is Planet Found Energy Development located?

Planet Found is based in Maryland and operates a poultry biogas facility there.

How does this acquisition align with Chesapeake Utilities' goals?

It aligns with Chesapeake's objectives to invest in renewable energy and reduce carbon footprints through waste-to-energy solutions.