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Committee authorizes MOU and NDA with Black Hills Energy to evaluate landfill and wastewater RNG potential
Summary
Rapid City authorized staff to sign a memorandum of understanding and a confidentiality agreement with Black Hills Energy Renewable Resources to evaluate whether landfill and wastewater methane can be processed as renewable natural gas; Black Hills will fund the technical evaluation and expects to return by 2026 with a feasibility package.
The Rapid City Public Works Committee on Aug. 12 authorized the mayor and the finance director to sign a memorandum of understanding and a confidentiality agreement with Black Hills Energy Renewable Resources to evaluate the feasibility of producing renewable natural gas (RNG) from the city’s landfill and water reclamation facility.
Stacy Titus, solid waste director, said the city currently flares methane at both facilities and is using only a fraction of the gas produced. Paul (director of origination for Black Hills Energy), speaking for the company’s RNG group, described how RNG is produced (removing contaminants so the product is generally greater than 90% methane and roughly 950 BTUs) and how federal and regional incentive markets — notably the Renewable Fuel Standard (RINs) and California’s Low Carbon Fuel Standard — create revenue opportunities for RNG producers.
Black Hills Energy said it already owns pipeline interconnections, operates 10 injection points in its footprint and acquired an operational RNG plant at a landfill in Dubuque, Iowa, in January 2024. Paul said Black Hills will hire a third‑party engineering firm, analyze well‑field and gas generation data from the city’s landfill and wastewater plant, and return with a technical and commercial package if the project is feasible. Titus said the evaluation is expected to conclude in 2026 and that the evaluation work is at Black Hills’ expense; city staff said no upfront city capital is required for the study, though Black Hills will need site access and data.
If feasible, Titus said Black Hills would build, operate and maintain the plant and the well field, and the city would receive royalties under a long‑term agreement yet to be negotiated. The committee voted to authorize execution of the MOU and the confidentiality agreement.
Why this matters: Converting fugitive methane to pipeline‑quality RNG can reduce greenhouse‑gas emissions and provide a revenue stream for the city’s solid‑waste operations, subject to commercial terms and feasibility.
Next steps: Black Hills will conduct the technical evaluation and return with a rate‑of‑return prospectus for council consideration in 2026 if the project is viable.
