Dive Brief:

• The city of Hermitage, PA is considering installing new equipment that could convert biogas into compressed natural gas (CNG).
• City officials say the upgrade could lead to substantial savings. None of Hermitage's city vehicles run on CNG.
• The authority is looking to secure funds that would help pay for the installation and purchase of the new biogas conversion equipment. It would cost about $940,000 to make the necessary upgrades to the $32 million plant. 

Dive Insight:

The city is hoping to obtain a state grant worth $500,000 that would ease some of the financial burden of upgrading the plant. Officials say another solution would be to refinance a bond issue in 2015.

Those pushing for the upgrades are touting the benefits of CNG, including potential fuel savings as high as $100,000 per year and the potential to sell the biogas to utility companies. 

Jason Wert, a consultant for Hermitage, said the city’s CNG would be sought after by companies looking to secure renewable fuel attributes in order to comply with federal regulations mandating the inclusion of renewable resources in gasoline. The city is attempting to win the grant money before any major decisions regarding the upgrades are made.