Northern Biogas Given Extended Deadline to Complete $10M Landfill Gas Payment

A US biogas developer has been granted a further extension to complete a $10 million (£7.9m) payment to a New Hampshire solid waste district, with the new deadline set for 1 January 2028.

Northern Biogas — headquartered in West Virginia — was selected in December 2024 to build and operate a landfill gas-to-energy plant at the Mt Carberry landfill, owned by the Androscoggin Valley Regional Refuse Disposal District (AVRRDD). The firm was chosen ahead of ten other bidders to own, build and operate the facility under a 20-year contract.

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Under the original agreement, Northern Biogas was required to make an upfront payment of $10 million to the district. However, the company has so far paid just $1.2 million and has now received six extensions to the payment schedule.

At AVRRDD's monthly meeting last week, members voted to amend the purchase and sale agreement following closed-door negotiations with the developer. Under the revised schedule, Northern Biogas must pay $1 million by 15 April 2026, a further $3.9 million by 31 May 2026, and a final instalment of $3.9 million by 1 January 2028. The amended agreement also includes provisions for terminating the contract should the company fail to meet the revised deadlines.

Once operational, the district stands to receive a share of gross revenues that Northern Biogas has estimated will range from $107.8 million to $140.5 million over the life of the contract.

The planned facility will be built on district land adjacent to the landfill in the unincorporated area of Success. It will process landfill gas — a natural byproduct of organic waste decomposition — by removing impurities and converting the methane into renewable natural gas (RNG). According to the US Environmental Protection Agency, methane accounts for approximately half of all landfill gas and is a potent greenhouse gas. AVRRDD will continue to operate the collection system that extracts and gathers the gas on site.

Northern Biogas presented conceptual plans to the Coos County and Berlin planning boards last spring. Company representative Rob McHale stated at the time that he hoped construction could begin in August 2025, though work has yet to start. The project will also require permits from state agencies including the New Hampshire Department of Environmental Services.

Neither party has publicly explained the reasons behind the repeated payment extensions, and no confirmed date has been set for construction to begin.

AVRRDD serves the communities of Berlin, Gorham, Dummer, Northumberland, Stark, Jefferson, Randolph, Errol, Milan, and the unincorporated places of Coos County.