Fueling the Future with Biogas: De-Risk, Accelerate, and Maximize Returns with New Delivery Models

Presentation Description: Municipalities across North America are looking for a more sustainable and fiscally advantageous solution for utilizing the biogas generated in their anaerobic digesters. With biogas beneficial utilization being outside the core mission of wastewater treatment plants, the standard design-bid-build approach places the strain of managing, funding, and operating these projects on the municipalities, making guaranteed revenue a far-fetched goal. But the tides are changing. Fueled by the decarbonization goals of private industries and energy utilities, alternative delivery methods are gaining traction for delivering biogas projects.
Whether Renewable Natural Gas (RNG), Combined Heat and Power (CHP), or Compressed Natural Gas (CNG), biogas utilization projects are prime candidates to be delivered under alternative delivery methods, with deal structures customized to match the biogas producer’s risk appetite.
Johnson Controls (JCI) was competitively selected in 2024 to bring a risk-free, guaranteed-revenue Biogas-to-RNG project to the Hampton Roads Sanitary District’s (HRSD) Atlantic Plant (ATP). HRSD serves approximately 1.7 million residents across Virginia. ATP, a 54 MGD facility, significantly upgraded its biosolids management capabilities with the implementation of a Thermal Hydrolysis Process (THP) and a Fats, Oils, and Grease (FOG) receiving facility which accepts 3 million gallons of FOG per year. FOG and thermally hydrolyzed wastewater solids are co-digested in mesophilic anaerobic digesters, generating over 540 scfm of biogas. ATP currently utilizes its biogas to feed dual-fueled digester boilers and a combined heat and power system, which has significant O&M costs. The RNG project would redirect their biogas from the boilers and CHP system and send clean natural gas to the pipeline. The project was procured and is being constructed under an alternative delivery method. JCI developed the project under a DBOOM, where JCI designs, builds, and operates the facility and a third-party Owner finances and brokers the RNG. This method allows for HRSD to reduce their financial and technical risk, accelerate the project, and have guaranteed equipment performance. HRSD will receive a fixed revenue stream without having to handle day-to-day operations of a new facility and instead focus on their core business; wastewater treatment.