Biogas Energy Solutions, LLC ("BES" or the "Company") through its predecessor companies has been involved in the landfill gas industry since 1981. BES is among the larger and most respected developers of landfill gas-to-energy projects in the United States. The Company utilizes landfill gas ("LFG"), which is approximately 50% methane, as a fuel source for the generation of electricity or as a replacement for natural gas in boilers. LFG is considered a renewable energy source. BES's portfolio consists of 16 landfill gas to electricity sites and two which supply gas directly to the end user for use in their processes.
Power Generation / Renewable Energy Credits – BES generates the majority of its revenue from the sale of electricity. Approximately 40 MWs of installed generating capacity is sold annually. Renewable Energy Credits ("RECs") are sold through negotiated contracts. RECs are produced when electricity is generated utilizing a renewable energy source as the fuel for generation.
Gas Sales – BES sells processed LFG as an alternative to natural gas for use as boiler fuel. The gas is sold to local industrial customers under long-term agreements and is transported to the customers through BES-owned pipelines.
Carbon Credits – The Company has also been successful in monetizing Verified Emissions Reductions ("VERs" or "Carbon Credits") which are produced by the destruction of the methane component of LFG. Regulations qualifying projects as generators of marketable Carbon Credits have not been finalized however and the open market for Carbon Credits has not yet been fully established.