The renewal and extension of the contract will help Village Farms reduce about 28,000 tonnes of CO2 emissions annually and can also help in generating liquid CO2

Village Farms Clean Energy

Village Farms extends natural gas contract in Canadian city. (Credit: Pixabay/Jan Nijman.)

Village Farms Clean Energy (VFCE), a subsidiary of Village Farms, has renewed and extended its existing contract with the City of Vancouver, Canada pursuant to which VFCE will receive landfill gas captured by the city’s landfill site in Delta, British Columbia.

The renewal and extension of the contract will enable the company to transition and convert the landfill gas to renewable natural gas (RNG), which will also generate food-grade liquid CO2.

The 20-year extension period also has an option to extend it by additional five years and will begin when the Delta RNG project begins operations.

The plan can also help in significantly reducing Village Farms’ and Pure Sunfarms’ reliance on natural gas to produce CO2 in their operations. It is also estimated that the reduction in natural gas requirements could eliminate about 28,000 tonnes of CO2 emitted through natural gas production.

VFCE has also entered into a partnership with Mas Energy for the Delta RNG Project, under which Mas Energy will design, build, finance, own and operate the Delta RNG facility.

Village Farms CEO Michael DeGiglio said: “Throughout our history, Village Farms has been committed to environmental sustainability and clean agricultural technologies.

“The Delta RNG Project will allow Village Farms to take this commitment to the next level to meet the evolving energy needs of the region and further contribute to the reduction of greenhouse gases in the Fraser Valley, while the City of Vancouver will benefit from higher beneficial landfill gas utilisation.

“Village Farms’ and especially Pure Sunfarms’ Delta greenhouses, will benefit from a reduced reliance on fossil fuel-sourced natural gas, as well as an improved earnings profile, with lower ongoing capital expenditure requirements. It’s a win-win-win for the region, our Company and our shareholders.”

The Delta RNG Project to become operational in H1 2022

The RNG project is subject to additional regulatory approvals, which are expected to be received in the first half of next year. The project is expected to begin operations in the first half of 2022.

City of Vancouver Zero Waste and Resource Recovery Director Albert Shamess said: “The City of Vancouver is pleased to continue our longstanding partnership with Village Farms for beneficial use of landfill gas from the Vancouver Landfill.

“Their new venture to convert the landfill gas into Renewable Natural Gas supports our on-going efforts to address the climate emergency and cut carbon pollution in Vancouver by 50% by 2030.”