Constellation Buys Into Multi-State RNG Production Network

Constellation acquired a minority stake in five renewable natural gas facilities operated by Pine Creek RNG as the companies pursue expanded RNG production across multiple U.S. markets.

(P&GJ) — Constellation has agreed to purchase a minority equity interest in five renewable natural gas (RNG) production facilities operated by Pine Creek RNG as the companies look to expand RNG supply across multiple U.S. markets.

The facilities, located in Washington, Utah, Iowa and Illinois, currently produce about 1.5 million MMBtus of RNG annually. Under the agreement, Constellation and Pine Creek also established a framework to develop an additional 3 million MMBtus per year of future RNG production.

Constellation said the investment is intended to strengthen its position in the growing market for lower-carbon natural gas products and environmental attributes tied to RNG production.

Jim McHugh, senior executive vice president and chief commercial officer at Constellation, said the agreement supports the company’s efforts to expand access to sustainable natural gas solutions for customers seeking emissions reductions.

Pine Creek CEO Kevin Orchard said the partnership is expected to support additional growth and development opportunities for the company’s RNG platform.

Renewable natural gas is produced from biogas generated through decomposition of organic waste materials, including landfills, wastewater treatment facilities and agricultural operations. After processing, RNG can be injected into interstate natural gas pipeline systems or used for power generation and transportation fuel applications.