Targray Deal Moves Dairy RNG Into Canadian Markets

Targray is partnering with LF Bioenergy to deliver dairy-based renewable natural gas to Canadian industrial, commercial, and transportation customers. The deal pairs LF Bioenergy's farm-level RNG production with Targray's supply chain network and regulatory expertise, addressing a gap that has limited RNG access in parts of Canada.

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What Did Targray and LF Bioenergy Announce?

Targray announced a strategic collaboration with LF Bioenergy, a producer of renewable natural gas, on June 11, 2026, to supply RNG across Canada. Under the deal, Targray buys RNG that LF Bioenergy produces and supports customers with procurement, environmental attribute management, and compliance.

LF Bioenergy is a renewable energy developer that builds and operates RNG facilities directly on dairy farms. The company converts dairy cow manure into pipeline-quality gas through anaerobic digestion, then delivers it into regional gas networks. Its projects include facilities at Stauffer Farms and Mapleview Dairy in upstate New York, each expected to generate roughly 130,000 MMBtu of RNG a year once at full capacity.

Targray is the party with Canadian market reach. The company already operates as a leading offtaker of U.S. RNG, supporting U.S. producers like LF Bioenergy with offtake structures, logistics, and carbon market expertise.

Why Does Production Capacity Need a Supply Chain Partner?

Building an RNG facility is only half the equation. Getting that gas to customers across provincial lines, through a patchwork of regulatory programs, is a separate job entirely.

LF Bioenergy's strength is engineering and farm partnerships, not Canadian market access or compliance administration. Targray fills that gap. The company's regulatory affairs team works across Canadian and U.S. low-carbon fuel programs, helping structure RNG transactions to meet applicable compliance obligations while maximizing value for buyers.

This division of labor is common in the biogas and RNG sector. Producers focus on digesters and feedstock relationships, the same dynamic seen in Aemetis Biogas's dairy digester expansion in California. Traders and aggregators focus on offtake agreements, environmental attribute tracking, and navigating fuel standards that vary by jurisdiction. Andrew Richardson, President of Targray, framed the partnership around exactly this gap.

How Complex Is Canada's RNG Regulatory Landscape?

Canada does not have one unified RNG market. Each province runs its own version of a low-carbon fuel program, and the requirements for compliance and environmental attribute management differ across jurisdictions, a pattern also visible in how Ontario is building its own carbon storage regulatory framework separate from other provinces.

Targray says navigating this complexity has become a core part of its value to customers. The company's dedicated regulatory affairs team provides expertise in Canadian and U.S. low-carbon fuel programs, helping ensure RNG transactions meet applicable compliance obligations across multiple provinces.

Under the agreement, Targray will support customers with procurement strategies, environmental attribute management, and regulatory compliance requirements, while LF Bioenergy continues to focus on production. Together, the companies aim to help organizations meet sustainability objectives through reliable access to renewable gas and the environmental attributes associated with its use.

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An Expansion, Not a Debut

Targray is not new to Decarbonfuse readers. The company opened a new Montreal headquarters in 2024, joined Green Marine to support sustainable marine fuels, and became one of the SAFc providers committed to the Sustainable Aviation Buyers Alliance's SAFc Connect platform, a program that has also supported deals like Octopus Energy's planned SAF facility in Nova Scotia.

The LF Bioenergy deal extends that established environmental commodities footprint into the Canadian RNG market specifically. It is one more node in a trading network Targray has built across renewable diesel, marine biofuels, and carbon credits over nearly four decades in business.

Why Dairy Manure RNG Matters for the Supply Chain

LF Bioenergy's production model is narrow and specific. Every facility it operates sits on a working dairy farm and converts that farm's manure into gas, rather than drawing from landfills or municipal waste streams.

This farm-direct model creates a different kind of supply chain than landfill gas RNG, the more commonly covered feedstock source in projects like the bp Archaea Energy landfill gas plant. Each project depends on a long-term partnership with an individual farm family, and capacity grows one facility at a time rather than through large centralized plants.

• LF Bioenergy facilities convert dairy cow manure into pipeline-quality RNG through anaerobic digestion
• Projects operate on family-owned farms, including Stauffer Farms and Mapleview Dairy in New York
• Each facility is expected to generate around 130,000 MMBtu of RNG annually once at full capacity
• New York is consistently ranked among the top dairy-producing states in the country, giving LF Bioenergy a deep base of potential farm partners

That distributed, farm-by-farm growth pattern is part of why a trading partner with established offtake relationships matters. It stands in contrast to larger landfill-gas RNG platforms like Terreva Renewables, which grew through acquiring a portfolio of projects at once. Without a buyer who can connect scattered farm-level production to multiple regional markets, individual projects have a harder time reaching scale on their own. Federal incentive shifts, like the biogas tax credit extension signed into law through 2029, add further support for this kind of farm-based production model.

What Happens Next for This Partnership?

Targray and LF Bioenergy have not disclosed specific volumes or contract length for this collaboration. Both companies describe it as a strategic partnership rather than a one-time transaction, which points to an ongoing offtake relationship.

Targray's broader business model relies on stacking multiple producer relationships like this one. The company's experience supporting other U.S. RNG producers with flexible offtake structures, logistics, and carbon market expertise gives a sense of how this partnership will likely operate, even without published figures yet.

The Quiet Work Behind the Headlines

RNG deals rarely make headlines the way a billion-dollar plant announcement does. But supply chain partnerships like this one determine whether production capacity ever reaches a customer.

Targray and LF Bioenergy are betting that distributed dairy farm production, paired with experienced market access and regulatory navigation, can fill a real gap in Canada's clean fuel supply. That bet sits alongside other recent moves in the sector, including Anaergia's facility upgrade in Riverside, California, that point to growing momentum behind RNG infrastructure across North America.

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