California utility Pacific Gas & Electic (PG&E) has signed an agreement with Microgy, Inc., a subsidiary of Environmental Power Corporation (Amex: EPG), to deliver gas made from cow manure.
PG&E will purchase of up to 8,000 million cubic feet of pipeline quality cow power daily.
Microgy plans to construct four production facilities on the site of large dairy farms in California and interconnect those systems to PG&E’s extensive gas pipeline network.
“The state of California is the largest dairy producer and the largest energy consumer in the U.S.” said Rich Kessel, President and CEO of Environmental Power. “This agreement is an important step towards developing an important renewable energy source from California’s vital agricultural sector.”
“Biomethane takes the problem of air pollution and greenhouse gas emissions and turns it into a key part of the solution to California’s reliance on fossil fuels,” said Allen Dusault, Biofuels Project Director for Sustainable Conservation, an environmental nonprofit.
“We’re excited about the opportunity this presents to make these renewable energy projects work economically for both dairies and utilities,” said Michael Marsh, CEO of Western United Dairymen. “This is a market-based solution, which we prefer over mandates.”
PG&E is committed to reducing carbon emissions in California, evidenced by its support of AB32. Currently, over 50% of its electricity delivered is carbon free.
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