Montauk Renewables expands dairy digester RNG project

By Montauk Renewables Inc. | June 15, 2021

Montauk Renewables Inc. announces the planned expansion of its dairy digester renewable natural gas (RNG) cluster project in Jerome, Idaho.

The planned expansion is expected to be triggered by a recent amendment to the project’s feedstock arrangement, providing for approximately 65,000 gallons per day (GPD) in minimum manure feedstock supply. The increases in feedstock supply are to be staged over a projected 12-36 month period, as are the development fees to be paid by Montauk in connection with the expansion.

Montauk plans to pair the anticipated increase in feedstock supply with an intended increase in digestion capacity. With an expected total project cost of up to $18 million, inclusive of development fees, the project’s digestion capacity is expected to increase by up to 160,000 GPD of additional feedstock supply, with a corresponding potential increase in RNG production by up to 300 MMBtu per day. Montauk expects to invest up to $5 million of these project costs in 2021, and expects initial stages of the project expansion to be operational by mid-2022. Project costs are expected to be funded with a combination of existing cash and new draws under the Company’s existing credit facility. At current gas and attribute pricing levels, the existing project could generate additional revenue, assuming expected capacity at completion, of approximately $68 per MMBtu.