Clinton council approves $1.884 million loan for planning of renewable natural gas project

The Clinton City Council on April 22 approved resolutions to authorize up to $1,884,000 in sewer revenue capital loan notes to pay for planning and design of a renewable natural gas system tied to the city’s wastewater treatment operations.

A city staff member said the loan is strictly for planning and design — including 30/60/90/100 percent design phases — and that separate financing will be required to build a biogas-to-RNG plant. “So, this is the planning design loan,” the staff member said, adding that staff is coordinating with ADM on facility type and that current preliminary quotes for a full plant are between $20 million and $24 million.

Council context: the council opened a public hearing on the loan and then voted on two related resolutions: one instituting proceedings to authorize the loan and another authorizing an interim loan and disbursement agreement with the Iowa Finance Authority. Both measures passed; several council members expressed caution about moving ahead before agreements with industrial users were finalized and questioned how construction financing would be repaid.

Why it matters: the project links Clinton’s municipal wastewater flows and industrial wastewater from ADM to capture methane and produce renewable natural gas. That could change how the city handles methane currently sent to a flare and could create a revenue stream if gas is sold, but it also carries multi‑million-dollar construction costs and contract negotiations that will determine who pays and how.

What council members asked and what staff said

Councilmember Kearns asked whether the $1.884 million loan is only for planning and whether a $20–$25 million plant would follow. The staff member replied that the loan is for planning and design and that the larger construction cost would be separate. “We…