Viridi Energy Expands RNG Marketing Platform Through Citadel Agreement
Viridi Energy has strengthened its renewable natural gas (RNG) commercialization strategy by entering into an agreement with Citadel Energy Marketing for the sale of RNG produced at the company’s Waco RNG facility. The contract establishes a framework for the purchase and sale of renewable natural gas and represents another step in Viridi Energy’s efforts to expand its presence in the growing North American RNG market.
The agreement comes as Viridi continues to develop, own and operate facilities designed to capture methane generated at landfills and convert that gas into pipeline-quality renewable natural gas. Through this process, the company seeks to transform a waste-related greenhouse gas into a useful energy resource while supporting municipalities, landfill owners and other project partners with opportunities to generate economic value from existing infrastructure.
Under the agreement, Citadel Energy Marketing will purchase RNG produced by Viridi’s Waco facility. The arrangement provides Viridi with an established commercial pathway for bringing its renewable natural gas into the marketplace and supports the company’s broader strategy of building long-term relationships with experienced energy marketers.
“As our portfolio continues to grow, establishing relationships with experienced energy marketers is an important component of our commercialization strategy,” said Dan Crouse, Chief Executive Officer of Viridi Energy. “This agreement enhances our ability to efficiently market renewable natural gas while continuing to deliver reliable, low-carbon energy solutions that create value for our landfill and municipal partners.”
The Waco RNG facility is part of Viridi Energy’s broader portfolio of projects focused on recovering methane from landfills. Landfill gas is generated naturally as organic materials decompose in waste disposal sites. Without recovery and utilization systems, methane can be released into the atmosphere. RNG facilities provide an alternative by capturing the gas, processing it and upgrading it to meet pipeline-quality specifications.
Once processed, RNG can be introduced into existing natural gas infrastructure and used in a variety of applications. This provides a pathway for landfill gas to become part of the broader energy system while supporting efforts to reduce the environmental impact associated with waste management.
Viridi’s business model combines waste management, renewable energy production and commercial energy markets. By developing RNG projects at landfills, the company works with local and municipal partners to establish facilities that can operate over the long term. The resulting RNG can then be marketed through established energy channels, creating a connection between landfill-based methane recovery and energy consumption.
The new agreement with Citadel is particularly important as Viridi continues to expand its project pipeline across North America. Bringing an RNG facility into operation requires more than constructing the physical infrastructure needed to capture and process landfill gas. Developers also need commercial arrangements that enable the resulting renewable fuel to reach customers and markets efficiently.
“This agreement represents another important step in building the commercial infrastructure needed to support our expanding project portfolio,” said David Barry, Chief Financial Officer of Viridi Energy. “As additional facilities enter service, strong marketing relationships help ensure we can reliably deliver renewable natural gas into the marketplace.”
For Viridi, establishing relationships with energy marketers is therefore an important part of scaling its RNG platform. As the company develops additional facilities, commercial agreements can help provide greater visibility into the sale and purchase of the renewable gas produced by those assets.
Citadel Energy Marketing also highlighted the strategic value of the relationship. The company said the agreement will support its efforts to expand its RNG portfolio while improving its ability to structure, price and execute future transactions.
“We are excited to work with Viridi on growing our RNG portfolio. Finalizing this agreement will enhance Citadel’s ability to structure, price and execute future trades,” said Erica Reicher, Head of Origination for North American Environmental Products at Citadel Energy Marketing.
The transaction utilizes the industry-standard NAESB Base Contract for the sale and purchase of renewable natural gas. The framework establishes the contractual foundation for future transactions between Viridi Energy and Citadel Energy Marketing and provides a standardized structure for conducting RNG sales and purchases.
The use of an established industry contract is significant as renewable natural gas markets continue to develop. Standardized commercial frameworks can help energy companies manage transactions more efficiently and provide a familiar structure for buyers and sellers participating in the market.
RNG has attracted growing attention because it can combine methane recovery with renewable energy production. Unlike conventional natural gas, which is extracted from underground fossil fuel reserves, RNG is produced from organic waste sources such as landfills, wastewater treatment facilities, agricultural operations and other waste streams. In landfill applications, the recovery of methane can also help address emissions associated with organic waste decomposition.
For municipalities and landfill owners, RNG projects can provide an additional use for landfill gas while potentially generating a new source of long-term revenue. For energy companies, RNG provides an opportunity to participate in renewable fuel markets while utilizing existing natural gas infrastructure.
Viridi Energy’s expansion strategy reflects this intersection of environmental management and energy commercialization. By developing facilities that capture landfill methane and upgrade it into pipeline-quality RNG, the company aims to create renewable energy assets while supporting its partners’ environmental and economic objectives.
The Waco agreement with Citadel also demonstrates the importance of commercialization as the RNG sector matures. Project development, construction and operations remain critical components of an RNG business, but the ability to consistently market the renewable gas produced by those facilities is equally important to long-term project performance.
As Viridi brings additional projects online, the company expects its commercial platform and relationships with energy market participants to become increasingly important. Agreements such as the one with Citadel can provide a structured mechanism for moving RNG from individual production facilities into broader energy markets.
The company’s expanding portfolio also positions it to participate in the continued development of North America’s renewable natural gas industry. By combining landfill methane recovery with gas upgrading and commercial marketing capabilities, Viridi is seeking to build an integrated business model that connects waste infrastructure with renewable energy demand.
The agreement with Citadel Energy Marketing does not represent an isolated transaction but rather forms part of Viridi Energy’s broader effort to establish the commercial infrastructure required to support a growing portfolio of RNG facilities. With the Waco facility providing an initial source of renewable natural gas under the agreement, the relationship may also support future opportunities as Viridi expands its operations.
For the broader RNG industry, the agreement highlights the increasingly important role of energy marketers in connecting renewable gas producers with downstream markets. As more projects are developed, experienced marketers can help producers navigate pricing, structuring, trading and delivery requirements while creating greater flexibility for market participants.
Viridi Energy will continue to focus on developing and operating RNG facilities that capture landfill methane and convert it into a usable renewable energy product. Through partnerships with municipalities, landfill owners and energy market participants, the company aims to expand the role of RNG in North America’s energy landscape.
The agreement with Citadel Energy Marketing provides Viridi with another commercial foundation as it pursues that strategy. By pairing its growing project portfolio with established marketing capabilities, the company is positioning itself to scale RNG production and bring additional renewable natural gas resources to the marketplace.
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