NLC Energy, Manure-to-Gas Pioneer, Files for Chapter 11

NLC Energy’s Vision for a Sustainable Future

NLC Energy has a business model that is reminiscent of a wizard turning rocks into gold or the biblical figure who could turn water into wine. The company builds, owns, and operates renewable natural gas facilities that convert organic waste into useful commodities such as clean energy, organic nutrients, clean water, organic liquid carbon dioxide, and dry ice. This innovative approach not only addresses waste management but also contributes to the production of sustainable resources.

Organic waste encompasses more than just animal manure. It can include food waste, grass trimmings, and other biodegradable materials. The process of converting this waste into valuable products is well-established and has the potential to play a significant role in reducing the United States' reliance on foreign oil. By transforming waste into energy, NLC Energy offers an environmentally friendly solution that aligns with global sustainability goals.

Transforming Waste into Renewable Energy

Through the process of anaerobic digestion, NLC Energy harvests the energy stored in organic waste sourced from farms and food manufacturers. This method allows the company to produce renewable natural gas, which serves as a cleaner alternative to traditional fossil fuels. By upcycling waste into useful commodities, NLC Energy provides a way for waste generators to reduce their carbon footprint and achieve their Environmental, Social, and Governance (ESG) goals.

Renewable natural gas produced by NLC Energy replaces higher-carbon fossil fuels used in transportation, by utilities, and by manufacturers. This shift helps clients and partners advance toward meeting net-zero carbon emission objectives. While these goals are commendable, they may not always be fully supported by the current political climate.

NLC Energy Files for Chapter 11 Bankruptcy Protection

Despite its noble mission, NLC Energy has faced financial challenges. NLC Energy Denmark LLC, a renewable energy company specializing in organic waste digestion for biogas production, has filed for Chapter 11 bankruptcy protection in the Eastern District of Wisconsin. The company, formerly known as NEW Organic Digestion LLC, operates a facility in Denmark, Wisconsin, while maintaining its principal place of business in Nashua, New Hampshire.

The company filed its voluntary petition on August 16 with a plan already prepared, indicating a strategic approach to its restructuring efforts. The filing suggests that the company's assets are valued between $50 million and $100 million, with liabilities ranging from $100 million to $500 million. NLC Energy reported having between 50 and 99 creditors and stated that funds will be available for distribution to unsecured creditors after administrative expenses are paid.

A Business Model Focused on Sustainability

NLC Energy has positioned itself as part of the solution to the problem of global warming. The company approaches this issue in a practical, not ideological, manner. By capturing methane before it is released into the atmosphere, NLC Energy converts it into fuel, which, when burned, releases less potent carbon into the atmosphere. This disruptive technology enables the company to meet the energy needs of the planet while working towards true carbon neutrality.

The company has been working toward this goal while paying farmers for their unused manure. This initiative not only helps reduce waste but also provides additional revenue for farmers. NLC Energy uses dairy manure as its primary feedstock, sourcing it from dairy farms in the region near its facility, located in the heart of dairy production in Northeastern Wisconsin.

Supporting Farmers and Enhancing Infrastructure

From a business perspective, NLC Energy effectively borrows the farm’s manure for a fee per gallon of manure collected. Once the manure has been through the digestion process, it is returned to the farm in amounts equal (gallon for gallon) to that which was collected. The farm is paid for each gallon collected, with the assumption that a modern dairy farm generates approximately 30 gallons of manure per cow per day.

In addition to covering the cost of transporting the manure from the farm and its subsequent return, NLC Energy makes capital improvements on the farm to facilitate manure collection. These improvements may include reception tanks, agitators, pumps, fill stands, and other necessary infrastructure on the farm to allow for daily collection and return of manure.

Key Details About NLC Energy’s Bankruptcy

NLC Energy, a renewable natural gas company converting manure and food waste into clean energy, has filed for Chapter 11 bankruptcy. The company has assets valued between $50 million and $100 million, with liabilities ranging from $100 million to $500 million. It lists 50 to 99 creditors. The petition was signed by CFO Welles Hatch and filed by attorney Jerome R. Kerkman.

The company's business model involves paying farmers for manure, processing it via anaerobic digestion, returning residue, and covering transport plus farm infrastructure upgrades. NLC Energy has positioned itself as a climate solution, capturing methane before release and supporting ESG/net-zero goals. Although the company has filed a bankruptcy plan, it has not yet been made public.