New company will convert wood waste into renewable natural gas
HOUSTON, January 25, 2022--(BUSINESS WIRE)--Today, Harvest Midstream (Harvest) announced the formation of MaderaGas I LLC (MaderaGas) in partnership with NOVUS Wood Group (NOVUS). The newly formed company will look to develop a greenfield facility near Houston to convert wood waste to renewable natural gas (RNG) on a commercial scale.
"Harvest is a company built on entrepreneurship and innovation," Harvest CEO Jason Rebrook said. "This project is a first of its kind and demonstrates our commitment to renewable energy and to delivering the energy resources that fuel American families and business."
As currently planned, the MaderaGas plant will be comprised of 5 production trains, each of which will process 100,000 tons of wood waste annually into 1Bcf of renewable natural gas per year, yielding a total of 5Bcf of gas annually if fully developed. NOVUS is also in the process of finalizing definitive agreements for RNG offtake and CO2 capture and sequestration. The technology for the project will be supplied largely by SunGas Renewables, Inc., a subsidiary of the Gas Technology Institute of Chicago. Black & Veatch has been engaged to provide the engineering for the project.
"The first plant could have the capacity to deliver meaningful quantities of renewable natural gas to market," MaderaGas CEO Bill Winters said. "Combining forces with a local experienced midstream partner like Harvest gives MaderaGas the capacity to develop not only this facility, but also future renewable opportunities as the industry grows. It is exciting to be on the leading edge of energy transition."
NOVUS will provide all the wood waste feedstock to the project from its existing facility. Construction for Train 1 could begin in early 2023 with completion expected in 2024. MaderaGas will be seeking construction and permanent financing in the form of debt and equity in the coming months before a final investment decision will be made.
Harvest Midstream is a privately held midstream service provider based in Houston, TX that operates various crude oil and natural gas gathering, storage, transportation, treatment and terminalling assets across the United States.
NOVUS Wood Group:
NOVUS has partnered for over thirty (30) years with municipalities, governments, utilities and the private sector to offer brush grinding and screening services which repurposes brush and clean yard debris into beneficial use products in Southeast Texas. Recycling with NOVUS has proven to be more economical than landfill disposal as well as more environmentally responsible and sustainable. NOVUS products return valuable organic materials to the earth and reduce harmful greenhouse gas emissions such as methane.
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