Village Farms' Clean Energy Subsidiary Renews and Extends Vancouver Landfill Gas Contract to Transition to Renewable Natural Gas Model

Fri. November 13th, 2020
- by Anne Allen     

VANCOUVER, CANADA - Greenhouse growing is innovative by nature. And, as sustainability remains top of mind for our industry, continuous innovation is a necessity. Village Farms International is doubling down on both innovation and sustainability, recently announcing that its wholly-owned subsidiary, Village Farms Clean Energy (VFCE), has renewed and extended its existing contract with the City of Vancouver. Under this agreement, VFCE receives landfill gas captured by the City of Vancouver at the City's landfill site in Delta, British Columbia (COV LFG Contract). The 20-year extension period, with an option for an additional five-year extension period, will commence in tandem with Delta Renewable Natural Gas (RNG) Project commercial operations.

Michael DeGiglio, Chief Executive Officer, Village Farms"Throughout our history, Village Farms has been committed to environmental sustainability and clean agricultural technologies," said Michael DeGiglio, CEO of Village Farms. "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 utilization. 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 renewed and extended COV LFG Contract enables Village Farms to transition VFCE to a more attractive long-term business model based on the conversion of landfill gas to high-demand RNG, which will also generate food-grade liquid CO2, significantly reducing Village Farms' and Pure Sunfarms' reliance on natural gas. This is expected to eliminate 28,000 tonnes of CO2 emitted through natural gas production, or the equivalent of taking more than 6,000 automobiles off the road, annually.

Doubling down on innovation and sustainability, Village Farms Clean Energy (VFCE), has renewed and extended its existing contract with the City of VancouverAccording to a press release, VFCE has entered into a partnership with Mas Energy for the Delta RNG Project, under which Mas Energy will design, build, finance (including all capital expenditure for construction), own, and operate the Delta RNG facility.

Albert Shamess, Director, Zero Waste and Resource Recovery, City of Vancouver (Photo credit: The Tyee)"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 percent by 2030," said Albert Shamess, Director of Zero Waste and Resource Recovery, City of Vancouver.

The Delta RNG Project is subject to additional regulatory approvals, which the company expects to be received in the first half of 2021, potentially leading to operational start up as early as the first half of 2022.

Michael Hall, Principal, Mas Energy"Mas Energy is proud to partner with Village Farms and the City of Vancouver on this exciting project," said Michael Hall, Principal at Mas Energy. "We look forward to starting site activities very soon and delivering the benefits of cleaner energy and air to the citizens of the Vancouver region for a long time to come."

Stay tuned for more news from greenhouse innovators as we report.

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