Dominion Energy Turns to Cow Manure in Gas Pact

Wall Street Journal Vanguard-Dominion Pact

Dominion Energy Inc. has struck a $200 million pact with a renewable energy producer and the Dairy Farmers of America Inc. to extract natural gas from cow manure.

The arrangement calls for the utility to fund construction of organic-waste processing facilities called anaerobic digesters amid clusters of large dairy farms, connect the facilities to natural gas distribution pipelines and sell the gas. Vanguard Renewables, of Wellesley, Mass., will build and operate the digesters, which break down organic waste into usable fuel and fertilizer. Dairy farmers, for a fee, will supply manure, and in some cases lease out land upon which the equipment will be built.

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