Program uses excess poultry organics to create sustainable, carbon-negative energy source to augment utility portfolios

COLUMBIA, MD – JUNE 4, 2020 – Bioenergy DevCo (BDC), a leading global developer of anaerobic digestion facilities that create renewable energy and healthy soil products from organic material, announced today that it has entered into an agreement with Chesapeake Utilities Corporation (CPK), a NYSE-listed diversified energy company, on a project to remove excess organics from the poultry industry and convert it into renewable natural gas. The intent is for BDC and Chesapeake Utilities Corporation affiliates Eastern Shore Natural Gas, Chesapeake Utilities and Marlin Gas Services, to collaborate on this project in addition to several other project sites where organic waste can be converted into a carbon-negative energy source. Beyond the environmental and energy benefits, this project will also support the economy in the Delmarva region.

The resources generated from organic material at BDC’s anaerobic digestion facilities in Delaware, known as the  Bioenergy Innovation Center, will be processed by Chesapeake Utilities Corporation, and Eastern Shore Natural Gas and Marlin Gas Services will facilitate the transport and receipt of RNG for multiple suppliers through its interconnect facility and equipment. Marlin Gas Services will transport the sustainable fuel to Eastern Shore Natural Gas, Chesapeake Utilities Corporation’s interstate pipeline, where it will be introduced to CPK’s own distribution system and ultimately distributed to its natural gas customers. This project provides the opportunity for Chesapeake Utilities to maintain the green attributes of the RNG by distributing the gas to its own natural gas distribution customers.

“Chesapeake Utilities Corporation, by working together with municipalities and the food-industry, understands that digesting organics is a solution that creates a sustainable, environmentally-friendly supply of renewable natural gas while also helping to solve major waste management problems,” said Shawn Kreloff, CEO of Bioenergy DevCo. “Recent estimates have shown that turning agricultural waste and excess organics from the poultry industry into truly renewable natural gas could replace 7 billion gallons of diesel fuel and generate 70,000 new jobs. Companies that embrace utility-scale anaerobic digestion, like Chesapeake Utilities Corporation, are on the forefront of a revolution in waste and energy infrastructure innovation.”

Anaerobic digesters use naturally occurring microbes to break down food waste into biogas and an organic soil amendment used by farmers. This waste would otherwise be sent to a landfill where it would decompose and release greenhouse gasses, or it would be incinerated, contributing to air pollution. Anaerobic digestion sequesters and transforms this waste, reducing the burden on local infrastructure and providing a source for renewable energy.

“We have taken steps to ensure that Chesapeake Utilities Corporation can support the emergence of the renewable fuels market and do its part to assist in managing agricult