What We Do

Recent changes in the value of renewable natural gas (RNG) have resulted in a resurgence of farms seriously evaluating the use of biogas for RNG production. The Federal Renewable Fuel Standard for transportation fuels also has provisions for dairy-derived RNG. These changes have led to manure becoming a proftable income stream for farms. With a methane content of 98%+, RNG is identical to fossil natural gas. This means that just like CNG, RNG when used in transportation is cleaner burning than diesel. Several State and Federal programs exist to incentivize cleaner transportation fuels. RNG, when used as a transportation fuel, is eligible to receive credits from these programs, giving the farm a long term revenue stream. As many companies have entered the market to take advantage of these incentives, it is important for the farmer to partner with the right company.

Income streams from RNG:

Renewable Fuel Standard (RFS)

Administered by the EPA through the Clean Air Act, the RFS mandates that blenders and refiners of petroleum-based fuels procure alternative fuels through its annual Renewable Volume Obligation. Alternative fuel providers receive a Renewable Identification Number (RIN) for each gallon of fuel used in transportation. These RINs are then sold to Obligated Parties. RNG qualifies as a cellulosic biofuel and receives a D3 RIN for ethanol gallon equivalent of fuel used in transportation.

Low Carbon Fuel Standard (LCFS)

In addition to qualifying for RINs, RNG qualifies for LCFS credits in California and Oregon. The LCFS program uses lifecycle analysis to determine the environmental impact for every fuel pathway issuing a Carbon Intensity (CI) score. Carbon Intensity is measured in grams of CO2 equivalents per megajoule. For each ton of CO2 equivalents avoided, LCFS creditors (like RNG providers) receive credits. These credits are then sold to deficit-producing entities. Because of the dual pathway to greenhouse gas reduction outlined above, RNG is recognized by CARB as the cleanest fuel pathway in the LCFS program.

Why partner with OCEP? OCEP offers a unique value proposition:

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Transparency

OCEP is a true partner with the farm. This means open financial books and shared revenue. For example, for a 4,000 head dairy this can be upwards of 16 million dollars over 10 years.

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Capital

We bring capital, engineering and operations expertise and extensive gas marketing experience to farms around the Midwest.

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Turn-Key Approach

From permitting to trucking and attaching to the pipeline, OCEP will do the heavy lifting allowing the farmer to do what they do best…Farm

We are members of:

”Following an extensive vetting process, we chose OCEP as a trusted partner. Their transparent business model offered both of us the best opportunity for long term success”.

John Jacobs

Green Valley Dairy