Verbio Nevada Biorefinery starts United States' first renewable natural gas production

The Verbio plant in Nevada started production of renewable natural gas Tuesday, becoming the first industrial-scale facility of its type in the United States to use agricultural residues as its feedstock.

“We are extremely pleased to announce the formal commissioning of our Nevada, Iowa Biorefinery,” Greg Northrup, president of Verbio, said in an email to the Ames Tribune.

Verbio North America Holdings Corp. is based in Livonia, Michigan. Its Nevada plant has been under construction and renovation for about 2½ years to make it a combined renewable natural gas and ethanol production facility.

“Our biorefinery facility is now injecting pipeline quality natural gas into Alliant Energy’s gas distribution system for sale, nationally, to (compressed natural gas) and (liquefied natural gas) transportation customers,” Greg Faith, president and general manager of the Nevada plant, said in a news release. “This is a great day for our company, for our employees and for our partners in agriculture.”

At a cost of about $35 million, the first part of a two-phase project made the renewable natural gas portion of the plant operational. The second phase, at a cost of about $80 million, will involve the construction necessary to produce ethanol as well as additional renewable natural gas. The second phase is expected to be operational by the fourth quarter of 2022.

The Nevada plant is producing two materials: renewable natural gas and humus.

The natural gas is created using anaerobic digestion technology, a process where gas is produced when biodegradable material is broken down in the absence of oxygen. The gas is injected into an onsite distribution pipeline where it will eventually be used as compressed natural gas or liquefied natural gas vehicle fuel.

Humus, also known as digestate, is “a value-added lignin and nutrient rich soil amendment,” the release stated. “Its appearance is similar to peat moss or compost, and it will be principally returned to feedstock suppliers and spread on farmland to replace the agronomic value of the crop residue that was harvested.”

Verbio Nevada does not create wastewater, according to the release, and therefore will not pollute ground or surface waters.

The Nevada plant is expected to produce about 7 million ethanol gallons equivalent of renewable natural gas with the completion of the first phase of the project. After completion of the second phase, the site will begin operating as a refinery and is expected to produce 19 million EGE of renewable natural gas and 60 million gallons of corn-based ethanol.

The integration of renewable natural gas and ethanol production is unique to Verbio, according to the release, and “incorporates advanced operational technology as currently practiced at the company’s facilities in Germany.”

Verbio Ag is the German parent company of Verbio North America Holdings Corporation. The Nevada plant is 100% owned by Verbio Nevada, which is a subsidiary of VNAH.

Verbio Ag bought the former DuPont Cellulosic ethanol plant in late 2018.

At the time of the purchase, Claus Sauter, founder and CEO of Verbio Ag, said he was delighted to announce Verbio's first major investment.

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Sauter recently stated, according to the release, “Our team of German engineers, working with their U.S. counterparts and our construction partners have positioned the company to achieve substantial, and more importantly, sustainable long-term growth by utilizing VERBIO’s revolutionary and proven technology in the area of renewable gas production from agricultural residues, such as corn stover.”

Corn stover includes cobs, stalks and other debris from harvesting.

Verbio Nevada's first phase adds 41 high-quality jobs

Verbio has not sought public financing, federal grants or bank loans for the Nevada plant, according to the release. Verbio Nevada was, however, approved for incentives offered by the Iowa Economic Development Authority for both phases of the project. It also received a property tax abatement through the city of Nevada and Story County for the first phase, and approval is pending for the second phase.

The incentives are tied to high-quality jobs. Currently, there are 41 full-time staff members, including plant manager, production manager, operators, material handlers, mechanics, electrician, truck driver, logistics manager, lab manager and IT support.

“We greatly appreciate the support we have received from the City of Nevada, the Iowa Economic Development Authority, the Des Moines Area Community College, Alliant Energy and many others — their support has been critical to our project’s success,” Faith said in the release.

According to a March 19 article in the Des Moines Register, the company pledged to add at least 33 jobs that would pay at least $27 an hour.

“VERBIO is a first-class company, and I’m pleased they chose to invest in Iowa for this new biorefinery facility,” Debi Durham, executive director of the Iowa Economic Development Authority and Iowa Finance Authority, said in the release. “This important renewable energy project exemplifies our economic development strategy in Iowa, which is about innovation and attracting highly skilled jobs that will raise the standard of living and create wealth for our state.”

This article originally appeared on Ames Tribune: Verbio Nevada Biorefinery starts renewable natural gas production