"Following H.I.G.'s original investment in September 2022, the acquisition of these three facilities marks an acceleration of the Company's rapidly expanding RNG project development pipeline," the firm explained. "These acquired dairy RNG facilities are in close proximity to Northern Biogas' existing footprint, creating attractive operational and commercial synergies, and are expected to begin commercial service by the first quarter of 2024."
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The decomposition of animal manure gives off methane, which companies can purify and use as a substitute for conventional natural gas. File photo by Bill Greenblat/UPI
H.I.G. was short on specifics, though Northern Biogas has a deep portfolio spread out over much of the Midwest, the largest of which draws on the waste from 12,000 head of cattle in southern Idaho.
Decomposition of organic matter results in the release of natural gas in the form of methane, which can be purified to remove harmful compounds and increase its potency. That product can then be put through conventional pipelines for delivery to end users. Its use is expanding across the region.