Chevron Expands Renewable Natural Gas Production at Michigan Dairy Farms with $100M Tax-Exempt Bond

USA 23.10.2024

Source: DairyNews.today

Chevron, the second-largest oil company in the U.S., is accelerating its renewable energy efforts by expanding renewable natural gas (RNG) production at five dairy farms across western Michigan. In partnership with Brightmark RNG, a waste solutions company, Chevron has invested in anaerobic digesters to convert animal waste into renewable fuels at farms located in Greenville, Hartford, Morenci, Orleans, and Coopersville.

Chevron Expands Renewable Natural Gas Production at Michigan Dairy Farms with $100M Tax-Exempt Bond

These facilities capture animal manure and transform it into renewable natural gas, fertilizer, and water, which are then recycled into agriculture and energy systems. The initiative is part of Chevron’s broader commitment to sustainable energy production and waste reduction.

To finance the project, Chevron secured a $100 million tax-exempt bond, approved by the Michigan Strategic Fund during its October 22 board meeting. Bank of America will act as the bond’s underwriter.

The $135 million project, spanning five years, is now at its final stage, with the funds raised being used to reimburse costs. Once operational, these digesters are expected to reduce greenhouse gas emissions by 135,000 tons of carbon dioxide annually.

Additionally, the Michigan Strategic Fund also approved a $235 million bond for BerQ, another renewable natural gas developer, to fund four RNG facilities throughout Michigan. These projects, slated to be operational by the end of 2025, will further expand Michigan’s contribution to reducing greenhouse gas emissions.

Chevron and Brightmark’s partnership in renewable natural gas is part of a larger system spanning 11 states, underscoring the company’s efforts to push forward environmental sustainability initiatives.