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Delta Cannabis Growing Goes Green on Renewable Energy

Delta Cannabis Growing Goes Green on Renewable Energy

A large-scale cannabis greenhouse in East Ladner has switched to renewable natural gas (RNG) using methane gas from the Vancouver Landfill. Village Farms International Inc., through its subsidiary Pure Sunfarms, partnered with Atlanta-based Terreva Renewables to operate the new RNG facility.

Transition to Renewable Energy

Village Farms Clean Energy Inc., another subsidiary, decommissioned its existing cogeneration system to build a new facility for processing landfill gas (LFG). The facility produces RNG, sold to FortisBC, and carbon dioxide, used in the greenhouse. The renewed LFG contract with the City of Vancouver supports this transition, enabling a long-term business model focused on high-demand RNG and food-grade liquid CO2, reducing reliance on natural gas.

Environmental Impact

RNG, a biofuel with low-to-negative carbon emissions, plays a crucial role in the global shift to low-carbon energy. It offsets fossil fuels and replaces natural gas, contributing to environmental sustainability. Village Farms President and CEO Michael DeGiglio highlighted the project’s dual benefits of environmental sustainability and increased profitability.

“We are proud to contribute to environmental sustainability while transitioning Village Farms Clean Energy’s model to generate incremental cash flow, profitability, and value for our shareholders,” DeGiglio said. “The RNG project is a unique opportunity to reduce the harmful impact of landfill gas while addressing the region's energy needs.”

Revenue and Partnerships

Village Farms will receive royalties from the RNG facility's revenue, which is owned and operated by Terreva. Meanwhile, the City of Vancouver and FortisBC are collaborating to clean LFG for injection into the natural gas pipeline as RNG, which the city will purchase.

Project Updates and Emission Reductions

An update on the project's construction in Delta was provided last fall. The reduction in emissions is expected to be equivalent to 12,500 tonnes of carbon dioxide annually, similar to removing 2,600 cars from the road, according to the City of Vancouver. The construction and commissioning of the RNG facility was estimated to take 12 to 15 months.

FortisBC is working with farmers, landfill operators, and local governments to capture and convert gas into RNG, displacing conventional natural gas. Vancouver has been collecting and flaring LFG since 1991 to control odors and greenhouse gas emissions. From 2003 to 2022, Vancouver sold LFG for beneficial use, first to Maxim Power Corporation and then to Village Farms International in 2014.

Cannabis Operations

Village Farms converted its East Ladner greenhouse into a cannabis growing operation called Pure Sunfarms. The transition to RNG is part of Village Farms' broader strategy to enhance sustainability and profitability in its cannabis production.