Chesapeake Utilities Corporation Completes Construction of Noble Road Landfill Renewable Natural Gas Transportation Project

Rhea-AI Summary

Chesapeake Utilities Corporation (NYSE: CPK) has completed the 33.1-mile Noble Road Landfill Renewable Natural Gas (RNG) pipeline project, constructed by its subsidiary Aspire Energy. This $7.3 million investment will transport RNG from the Noble Road Landfill, starting in Q4 2021. The project is expected to generate a gross margin of $0.1 million in 2021, increasing to $1 million annually by 2026. The RNG produced will support sustainability efforts and significantly reduce carbon emissions, providing enough energy to fuel 725 biofuel trucks each year.

Positive

• Completion of the Noble Road RNG pipeline enhances Chesapeake Utilities' renewable energy portfolio.
• Expected gross margin generation: $0.1 million in 2021; $0.75 million annually from 2022 to 2025; $1 million from 2026 onward.
• Partnership with OPAL Fuels and Rumpke Waste & Recycling strengthens industry relationships and operational capabilities.

Negative

• None.

DOVER, Del., Oct. 14, 2021 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) today announced that construction of its Noble Road Landfill Renewable Natural Gas (RNG) pipeline project has been completed. The Company's subsidiary, Aspire Energy of Ohio, constructed the 33.1-mile pipeline, which will transport RNG generated from the Noble Road Landfill in Shiloh, Ohio, to Aspire Energy's pipeline system, displacing conventionally produced natural gas. In conjunction with this expansion, Aspire Energy also upgraded an existing compressor station and installed two new metering and regulation sites.

Chesapeake Utilities invested $7.3 million in the project, which was constructed in just over a six-month period. Throughput of the RNG is expected to begin in the fourth quarter of 2021. The Company expects to generate gross margin of $0.1 million in 2021; $0.75 million annually in 2022 through 2025; and $1 million in 2026 and thereafter.

Aspire Energy partnered with OPAL Fuels, an emerging leader in the production and distribution of RNG, and Rumpke Waste & Recycling, one of the nation's largest privately-owned residential and commercial waste and recycling firms. Rumpke will extract and capture waste methane from the Noble Road Landfill, and OPAL Fuels will utilize its new, state-of-the-art facility to remove carbon dioxide and other components from the methane, purifying the biogas to pipeline quality standards. In addition to supplying Aspire Energy's customers, the RNG will be dispensed into fueling stations to fuel compressed natural gas (CNG) vehicles also via OPAL Fuels.

"At Chesapeake Utilities, we've made a strategic decision to actively support the sustainability efforts of the communities we serve. Included in that commitment is an active engagement in environmental stewardship and the development and supply of lower carbon energy sources, like RNG," said Jeff Householder, president and chief executive officer of Chesapeake Utilities Corporation. "The Noble Road pipeline represents the first of many RNG projects under development that will deliver energy that contributes to a sustainable future. Transporting RNG from the landfill through our pipeline system provides a path to markets that supports the economics of the biogas production and significantly reduces total carbon emissions. The outcome of this collaborative project is a win for customers, the local community and the environment."

The Noble Road project will capture and transport quantities of renewable natural gas equivalent to 6.9 million gasoline gas equivalents (GGE) per year, enough to fuel 725 biofuel trucks.  

About Aspire Energy of Ohio
Aspire Energy of Ohio owns and operates natural gas gathering infrastructure, including over 2,700 miles of pipeline, throughout 40 counties in Ohio. Aspire provides natural gas supplies to several local distribution companies and cooperatives.

About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange, which is engaged in natural gas transmission and distribution; electricity generation and distribution; propane gas distribution; mobile compressed natural gas (CNG) utility services and solutions; and other businesses. Information about Chesapeake Utilities Corporation's businesses is available at www.chpk.com and on the Annual Report microsite at cpkannualreport.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.

About OPAL Fuels
OPAL Fuels LLC, a Fortistar portfolio company, brings together Fortistar Methane Group, Fortistar RNG, and TruStar Energy to create a vertically integrated renewable fuels platform. The company is an emerging leader in the production and distribution of RNG. OPAL Fuels captures harmful methane emissions at the source and recycles the trapped energy into a commercially viable, low-cost alternative to diesel fuel. OPAL Fuels also manages all RNG fueling station development and construction. More information about OPAL Fuels is available at www.opalfuels.com.

About Rumpke Waste & Recycling
Rumpke Waste & Recycling has been committed to keeping neighborhoods and businesses clean and green since 1932 by providing environmentally friendly waste disposal solutions. Headquartered in Cincinnati, Ohio, Rumpke is one of the nation's largest privately owned residential and commercial waste and recycling firms. Rumpke has 14 landfills, 12 recycling facilities, employs nearly 4,000 people and serves approximately 2 million customers in parts of Ohio, Kentucky, Indiana and West Virginia. For more information, visit www.rumpke.com.

For more information, contact: 
Media Relations:
Brianna Patterson
Manager, Public Relations and Strategic Communications
302-217-7050 
bpatterson@chpk.com

Investor Relations:
Alex Whitelam
Head of Investor Relations
215-872-2507
awhitelam@chpk.com

View original content:https://www.prnewswire.com/news-releases/chesapeake-utilities-corporation-completes-construction-of-noble-road-landfill-renewable-natural-gas-transportation-project-301400779.html

SOURCE Chesapeake Utilities Corporation

FAQ

What is the Noble Road Landfill Renewable Natural Gas project by Chesapeake Utilities Corporation (CPK)?

The Noble Road Landfill RNG project involves a 33.1-mile pipeline that transports renewable natural gas from the Noble Road Landfill to Aspire Energy's pipeline system.

How much did Chesapeake Utilities invest in the Noble Road RNG project?

Chesapeake Utilities invested $7.3 million in the Noble Road RNG project.

When will throughput of the RNG begin for the Noble Road project?

The throughput of the RNG is expected to begin in the fourth quarter of 2021.

What is the expected gross margin from the Noble Road project?

The project is expected to generate a gross margin of $0.1 million in 2021 and increase to $1 million annually by 2026.

How much renewable natural gas will the Noble Road project produce annually?

The Noble Road project will capture and transport renewable natural gas equivalent to 6.9 million gasoline gallon equivalents (GGE) per year.