Viridi Energy Acquires Maine Digester Facility for Industry-Leading Biosolids-to-RNG Project

Rhea-AI Summary

Viridi Energy acquires a biosolids digester plant in Maine to create a waste-to-RNG facility in partnership with Casella Waste Systems, Inc. The facility aims to generate renewable energy, support local regulations, and provide sustainable waste management solutions.

Insights

Environmental Economist

The acquisition of the legacy biosolids digester plant by Viridi Energy and its transformation into a waste-to-renewable natural gas (RNG) facility is a significant development in the waste management and renewable energy sector. From an economic perspective, the investment into this type of infrastructure addresses both the demand for renewable energy sources and the need for sustainable waste management solutions. The collaboration with Casella Waste Systems, Inc. ensures a reliable supply chain for the feedstock, which is critical for the facility's success.

By converting biosolids into RNG, Viridi is tapping into the growing market for clean energy, which is incentivized by various government policies and consumer demand. The environmental benefits, such as reduced landfill usage and lower greenhouse gas emissions, also align with broader economic goals of transitioning to a low-carbon economy. The project's potential to heat over 3,000 homes indicates a sizeable contribution to the local energy supply, likely to have a positive impact on regional energy prices and energy security.

The facility's compliance with Maine's PFAS regulations demonstrates a proactive approach to environmental risk management, which could serve as a model for other regions facing similar regulatory pressures. By reducing the volume of biosolids by nearly 90 percent, the project not only alleviates the strain on landfills but also presents a case study in cost-effective waste reduction. This could influence the waste management industry's practices and encourage further investment in similar technologies.

Renewable Energy Analyst

The strategic move by Viridi Energy to overhaul an existing biosolids digester into a state-of-the-art waste-to-RNG facility reflects a significant shift in the renewable energy landscape. The facility's capability to supply electricity directly to Brunswick Landing is a direct application of RNG in a commercial context, which could stimulate further investment in the sector. The direct use of RNG to power a business campus is a relatively new concept and signifies an innovative approach to localized energy generation.

From a renewable energy standpoint, the project's estimated completion and operational dates are critical for investors and stakeholders. The timeline suggests a mid-term horizon for the realization of returns on investment and the commencement of environmental benefits. Additionally, the project's alignment with existing waste management services by Casella indicates a seamless integration of renewable energy production into traditional waste management processes.

It is important to note that the RNG produced at this facility can be a key component in diversifying energy portfolios and reducing reliance on fossil fuels. The mention of previous partnerships with other counties to develop similar RNG projects suggests that Viridi is establishing a replicable business model that could see wider adoption, potentially influencing stock valuations of companies within this sector.

Waste Management Consultant

The collaboration between Viridi Energy and Casella Waste Systems represents a forward-thinking approach to biosolids management, a critical issue for waste management entities. The agreement to manage feedstock collection and delivery logistics for an estimated 85,000 tons of biosolids per year showcases Casella's operational capabilities and Viridi's strategic planning. The project's focus on anaerobic digestion technology is a nod to the industry's shift towards more sustainable and advanced waste processing methods.

The operational aspect of transforming biosolids into RNG is complex and requires specialized expertise. The reduction in biosolid volume and the subsequent transportation and landfill implications are significant. By creating a more stable, post-process digestate, the project not only improves the efficiency of landfill use but also addresses the transportation cost and environmental concerns associated with long-distance hauling of waste.

The project's impact on local wastewater treatment facilities, which are currently limited to less sustainable disposal methods due to PFAS regulations, could be transformative. By providing an alternative to land application or landfilling, Viridi and Casella are offering a solution that could reshape the market for biosolid management. This has the potential to influence the business strategies of other waste management companies and could lead to increased competition and innovation in the field.

The deal, leveraging an agreement with Casella Waste Systems, Inc., marks a major step in offering a sustainable, cost-effective waste solution that complies with the state’s new biosolids management rules.

NEW YORK--(BUSINESS WIRE)-- Viridi Energy (“Viridi” or “the firm”), a leading renewable natural gas (RNG) platform, announced today that it has acquired a legacy biosolids digester plant in Brunswick, Maine, with plans to transform the site into an industry-leading waste-to-RNG facility. The facility will generate valuable renewable energy and help power the local community, offer a sustainable and cost-effective solution for managing biosolids, and support compliance with local regulations aimed at mitigating per-and polyfluoroalkyl substance (PFAS) contamination in the region.

In connection with the acquisition, Casella Waste Systems, Inc. (Nasdaq: CWST) (“Casella”), a regional solid waste, recycling, and resource management services company, will manage feedstock collection and delivery logistics for an estimated 85,000 tons of biosolids per year collected from a network of wastewater treatment plants. At Viridi’s overhauled Brunswick facility, the biosolids will be transformed, via anaerobic digestion, into enough energy to heat more than 3,000 homes for a year. The facility will also supply electricity directly to Brunswick Landing, the 3,300-acre campus featuring more than 1.6 million square feet of commercial, industrial, and professional office space that is home to both the Brunswick facility and more than 160 other companies.

“Viridi continues to lead the industry with innovative solutions that help overcome challenges in both the waste management and energy sectors, and this project signals the team’s ongoing emphasis on diversifying our waste feedstocks and expanding our processing capabilities to meet growing renewable energy needs,” said Dan Crouse, CEO of Viridi. “We are excited to be working with Casella, whose established track record in successfully managing multifaceted waste streams will be pivotal to our success. Casella has been at the forefront of finding a sustainable solution to this issue since the law prohibiting land application of biosolids was enacted and has played a significant role in bringing this vital piece of infrastructure online.”

In addition to fulfilling growing demand for RNG, this project will yield numerous environmental benefits across Maine. Once completed, the facility will offer an innovative solution for managing waste that complies with Maine’s PFAS regulations while allowing Casella to once again put the material to a higher and better use for its customers rather than send it directly to disposal.

With Maine laws now prohibiting the practice of land-applying biosolids digestate in agricultural settings because of PFAS concerns, wastewater treatment facilities are facing the choice between two less sustainable alternatives: trucking the material long distances or landfilling it, where it requires stabilization and takes up large volumes of space – a strategy that is especially problematic in landfill-constrained Maine.

The anaerobic digestion solution offered at Viridi's Brunswick facility is expected to reduce the volume of the biosolids by nearly 90 percent, from 85,000 wet tons down to 10,000 tons once the material has been digested and dried. Once processed, Casella will transport this more stable, post-process digestate to landfill in a form that preserves landfill capacity, lessens the need for stabilization material, and reduces transportation distances.

“Our agreement with Viridi represents a major step toward finding a sustainable solution for Maine’s biosolids,” said John W. Casella, Chairman & CEO of Casella Waste Systems, Inc. “The need for efficient, responsible biosolids treatment and disposal solutions has never been more pressing. We are pleased to be working with Viridi to provide a comprehensive approach for managing this waste stream in a safe, sustainable, and beneficial way.”

With the development of this relationship, Viridi and Casella are providing a sustainable pathway for Maine municipalities to reduce uncertainties in managing their biosolids. Viridi is currently conducting siting, permitting, and environmental due diligence at the Brunswick site. Retrofit construction of the Brunswick facility is expected to be complete by the second half of 2025, with full operations slated to commence in 2026.

Viridi’s Brunswick acquisition marks the firm’s fourth high-profile deal announcement in the last year. In March 2023, Viridi announced its partnership with Marathon County, Wisconsin, to convert the county’s landfill emissions into clean RNG, equal to more than three million gallons of gasoline annually. In May 2023, the firm announced a partnership with Baldwin County, Alabama, to develop a waste-to-RNG project at that county’s landfill, and in June 2023, it announced it was partnering with American Organic Energy to develop one of the largest food waste-to-RNG projects in the United States.

About Viridi Energy

Viridi Energy is a full-service renewable natural gas investor, operator, and partner founded by a veteran RNG management team. With the backing of Warburg Pincus and Green Rock Energy Partners, the firm’s platform builds, owns, and operates RNG assets with landfill, dairy, wastewater, and food waste feedstocks across North America. For more information, please visit www.viridirng.com. Follow Viridi Energy on LinkedIn.

About Casella

Casella Waste Systems, Inc., headquartered in Rutland, Vermont, is one of the largest recyclers and most experienced fully integrated resource management companies in the Eastern United States. Founded in 1975 as a single truck collection service, Casella has grown its operations to provide solid waste collection and disposal, transfer, recycling, and organics services to more than one million residential, commercial, municipal, institutional, and industrial customers and provides professional resource management services to over 10,000 customer locations in more than 40 states.

Casella Safe Harbor Statement

Certain matters discussed in this press release, including, but not limited to, the statements regarding intentions, beliefs or current expectations concerning, among other things, the benefits of the proposed program, are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as “believe,” “expect,” “anticipate,” “plan,” “may,” “would,” “intend,” “estimate,” "will," “guidance” and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which Casella operates and management’s beliefs and assumptions. Casella cannot guarantee that it actually will achieve the benefits disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of Casella's operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in its forward-looking statements. Such risks and uncertainties include or relate to, among other things, the following: the biosolids digester plant in Brunswick, Maine may not be successfully converted into a waste-to-RNG facility or generate renewable energy that can be used to power the local community; the operation of such plant may not be sustainable as a cost-effective solution for managing biosolids, and such operation may not satisfy laws and regulations aimed at mitigating per-and polyfluoroalkyl substance (PFAS) contamination in the region as they may evolve from time to time.

There are a number of other important risks and uncertainties that could cause Casella’s actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A. “Risk Factors” in Casella’s most recently filed Form 10-K and in other filings that Casella may make with the Securities and Exchange Commission in the future.

Casella undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240319046667/en/

Viridi Media:

George Spencer

BackBay Communications

viridi@backbaycommunications.com



Casella Media:

Jeff Weld

Director of Communications, Casella

jeff.weld@casella.com

802-772-2234



Casella Investors:

Charles Wohlhuter

Director of Investor Relations

charles.wohlhuter@casella.com

802-772-2230

Source: Viridi Energy

FAQ

What did Viridi Energy acquire in Brunswick, Maine?

Viridi Energy acquired a legacy biosolids digester plant in Brunswick, Maine.

Who will manage feedstock collection and delivery logistics for the biosolids at the facility?

Casella Waste Systems, Inc. will manage feedstock collection and delivery logistics for the biosolids.

How much energy is expected to be generated at the Brunswick facility?

The facility is expected to generate enough energy to heat more than 3,000 homes for a year.

When is the retrofit construction of the Brunswick facility expected to be complete?

The retrofit construction of the Brunswick facility is expected to be complete by the second half of 2025.

How many high-profile deals has Viridi Energy announced in the last year?

Viridi Energy has announced four high-profile deals in the last year.