SJI and Captona Announce Construction of one of the Largest Food Waste-to-RNG Facilities in the US
- The partnership between SJI, Captona, and RNG Energy Solutions to construct one of the largest food waste-to-renewable natural gas (RNG) projects in the United States is a significant step in advancing clean energy and decarbonization goals in the NJ/NY region.
- None.
Insights
The construction of one of the largest food waste-to-renewable natural gas (RNG) facilities in the United States by SJI, Captona and RNG Energy Solutions represents a significant development in the energy sector, particularly within the renewable energy niche. The Linden Renewable Energy (LRE) Project in New Jersey is poised to convert a substantial volume of organic waste into pipeline-quality RNG, which can displace fossil fuels and contribute to decarbonization efforts.
From an energy sector perspective, the project's capacity to convert up to 1,475 tons of waste into 3,783MMBtu/day of RNG is notable. This conversion rate is equivalent to the energy value of 30,200 gallons of gasoline per day, highlighting the project's potential to significantly offset traditional energy consumption and reduce greenhouse gas emissions. The partnership with Phoenix Power Group and top-tier equipment providers underscores the commitment to utilizing proven technology for this transition.
Furthermore, the collaboration with waste haulers to meet organic waste diversion requirements and the strategic location of the project, with its optimized transportation logistics, position the LRE Project as a competitive player in waste management and renewable energy production. The project's alignment with aggressive waste diversion regulations in the NJ/NY region also indicates a proactive approach to regulatory compliance and environmental stewardship.
The financial implications of the LRE Project are multifaceted, with a consortium of lenders led by Investec Bank plc providing project financing debt, which is a common practice for large-scale infrastructure projects. The investment in this renewable energy facility is indicative of a broader trend in the capital markets where environmental, social and governance (ESG) factors are increasingly influencing investment decisions.
The project's impact on SJI's financial performance could be substantial, given the potential revenue streams from RNG production and waste management services. The inclusion of RNG in Elizabethtown Gas's distribution system could translate into diversified income and a hedge against volatility in traditional natural gas prices. However, as with any infrastructure project, there are risks associated with construction timelines, technology performance and regulatory changes that could affect the project's profitability.
The target completion date of Q1 2026 suggests a medium-term horizon for financial returns and the project's success could serve as a catalyst for future investments in renewable energy by SJI and its partners. Stakeholders, including investors and customers, should monitor the project's progress and the evolving regulatory landscape that supports RNG development.
The LRE Project's alignment with New Jersey and New York's clean energy and decarbonization goals is an example of how public-private partnerships can advance environmental policy objectives. By converting food and grease waste into RNG, the project supports the circular economy and provides a sustainable solution to waste management challenges in a densely populated region.
The project's contribution to reducing emissions is significant, given the high energy equivalent of the RNG produced and the displacement of fossil fuel use. This initiative is likely to receive support from environmental advocacy groups and may influence policy decisions related to waste management and renewable energy incentives. Additionally, the creation of hundreds of union construction jobs demonstrates the potential for renewable energy projects to contribute to economic development while advancing environmental goals.
It is important to consider the long-term policy implications, as successful implementation of the LRE Project could set a precedent for similar initiatives and potentially influence the expansion of organic waste diversion regulations. The project's ability to meet these regulations and provide a sustainable service will be closely watched by policymakers and industry stakeholders alike.
The project will strengthen clean energy efforts for the NJ/NY region
FOLSOM, NJ, Dec. 20, 2023 (GLOBE NEWSWIRE) -- 
Media Contact: Krystle Straus
Director, Exeternal Communications
(609)-561-9000 ext. 4131
ksraus@sjindustries.com
FOR IMMEDIATE RELEASE
SJI and Captona Announce Construction of one of the Largest Food Waste-to-RNG Facilities in the US
The project will strengthen clean energy efforts for the NJ/NY region
FOLSOM, NJ, December 20, 2023 – SJI remains committed to investing in projects to advance the clean energy and decarbonization goals of New Jersey and our region. SJI, Captona, and RNG Energy Solutions today announce their partnership to construct one of the largest food waste-to-renewable natural gas (RNG) projects in the United States. The Linden Renewable Energy (LRE) Project, based in Linden, NJ will convert organic waste into pipeline-quality RNG that can be used for a variety of applications to displace fossil fuels.
First-ever opportunity for Elizabethtown Gas customers to receive RNG.
This marks SJI’s first non-utility led anaerobic digester project that will directly connect its utility customers with a New Jersey-based RNG producer. Elizabethtown Gas, one of SJI’s primary utility subsidiaries, will blend the RNG from the Project into its existing natural gas distribution system.
The LRE Project will accept a wide range of feedstock, including food waste from industrial, commercial, and institutional entities, as well as grease waste from restaurants and other food service establishments. Anaerobic digestion is a natural process that breaks down waste in the absence of oxygen to produce natural gas and a nutrient-rich material that can be used as fertilizer.
As a result, the LRE Project will convert up to 1,475 tons of waste to produce up to 3,783MMBtu/day of RNG—this is the energy equivalent value of 30,200 gallons of gasoline per day. The LRE Project includes development and construction of multiple off-site food waste pre-processing and depackaging operations in New York City, New York State and New Jersey.
“SJI is thrilled to continue its commitment to decarbonization and RNG by investing in the Linden Renewable Energy facility. It’s a triple win for us—it repurposes food waste, generates renewable energy that our customers can benefit from, and bolsters our commitment to environmental stewardship,” said SJI President and CEO, Mike Renna. “Through this flagship project, we’re actively contributing to a more sustainable, energy-efficient future for both our state and the environment.”
“Captona recognizes this marquee investment in this food waste-to RNG plant in New York City and the New Jersey area as a major milestone in the growth of its Energy Transition Infrastructure portfolio of Fuel Cell, RNG, Solar and Storage projects” said Captona’s Founder and CEO, Izzet Bensusan. “This project will greatly contribute to reducing emissions and upcycling food waste.”
Utilizing proven technology and experienced partners to power the clean energy transition.
LRE has partnered with Phoenix Power Group as the engineering, procurement and construction provider and is proud to have top tier equipment providers to bring this project to completion. It has also strategically aligned with multiple waste haulers in New York City and New Jersey that will provide source-separated waste as part of their compliance with New York City and New Jersey organic waste diversion requirements.
"The City of Linden has been a proud host community for the Project," said Linden Mayor Derek Armstead. "This is another in a long list of renewable energy projects that the City has undertaken. We have supported the LRE Project throughout the planning phase and we definitely appreciate the investment in our City and the hundreds of union construction jobs that come with it. This is a long-term renewable and sustainable solution to waste management, and we look forward to our continued association with the Project and its sponsors."
“The LRE Project will provide a sustainable and competitive waste management service within a 40-mile metro region with over 18 million residents. The same region has implemented aggressive organic waste diversion regulations that need a sustainable anaerobic digestion project solution,” said James Potter, President of RNG Energy Solutions. “We are not aware of any project site within this proximity to NYC that affords the superior capacity to receive barges combined with close proximity to the I-95 transportation corridor. These optimized transportation logistics make the project the preferred low carbon and low-cost provider of organic waste management services.”
A consortium of lenders led by Investec Bank plc raised project financing debt to support the construction and operation of the plant.
The project will begin construction this month with a target completion date of Q1 2026.
###
About SJI
SJI, an energy infrastructure holding company based in Folsom, NJ, delivers energy services to customers through two primary subsidiaries: SJI Utilities (SJIU) and SJI Energy Enterprises (SJIEE). SJIU houses the company’s regulated natural gas utility operations, delivering safe, reliable and affordable natural gas to more than 725,000 residential, commercial and industrial customers across New Jersey via its South Jersey Gas and Elizabethtown Gas subsidiaries. SJIEE houses the company’s non-utility operations primarily focused on clean energy development and decarbonization via renewable energy production and energy management activities.
For more information about SJI and its subsidiaries visit https://www.sjindustries.com.
About Captona
Captona is a North America-focused investment company dedicated to the Energy Transition and Decarbonization. Captona invests in late stage, mid-market Clean & Renewable Energy projects across North America with a focus on Wind, Solar, Fuel Cell, Renewable Natural Gas, and Storage assets. The team differentiates itself through its unique strategies like repowering and drastically improving aging Solar and Wind farms, while preserving land.
For more information about Captona visit https://captona.com.
About RNG Energy Solutions
RNG Energy Solutions is a successful developer of complex energy infrastructure projects. The RNG Energy Team has completed development of multiple projects using and deploying diverse energy and project solutions. These include gas fired combined cycle, mid merit generation, biomass, biogas (anaerobic digesters), landfill gas and fuel cell projects.
For more information about RNG Energy Solutions visit https://rngenergysolutions.com.
FAQ
What is SJI's partnership with Captona and RNG Energy Solutions about?
What is the Linden Renewable Energy (LRE) Project?
What is the significance of the LRE Project for Elizabethtown Gas customers?
What is the expected output of the LRE Project?
Who are the key partners in the LRE Project?
What is the financing plan for the LRE Project?
