Montauk Renewables to Build Biogas Facility in Orange County, California

(Reuters) — Montauk Renewables Inc. said on Tuesday it will develop a renewable natural gas (RNG) project at a municipal waste landfill site in Irvine, California.

RNG, also known as biogas, is captured from organic waste in landfills and can be a substitute to fossil-fuel natural gas, resulting in a lower carbon footprint.

The company said the project will be undertaken by its subsidiary Bowerman Power at the Frank R. Bowerman waste landfill site.

This marks Montauk's second landfill gas-to-energy initiative in Orange County alongside the existing 20-megawatt renewable electric generation facility commissioned by it in 2016.

Capital investment for the project is estimated between $85 million and $95 million, the company said, with its commissioning expected in 2026 to produce about 3,600 million British thermal units per day.

"Our project with Montauk supports the circular economy by taking a waste product and producing renewable natural gas that can be used to power vehicles, heat homes and generate electricity in our communities," said Tom Koutroulis, director of the Orange County Waste & Recycling Department.

The Inflation Reduction Act signed last year expanded available tax credits to include biogas systems that produce heat and natural gas, previously available only to projects that generated electricity.

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