A renewable energy firm based in Brown County, Wisconsin, has filed for bankruptcy protection after facing years of financial and operational challenges, reported Bioenergy Insight.
NLC Energy Denmark LLC, which runs a biogas plant in the village of Denmark, submitted a Chapter 11 petition on August 16 in the US Bankruptcy Court for the Eastern District of Wisconsin. The company is working to restructure approximately $76 million (€70 million) in secured debt.
Court documents reveal that the company has been losing close to $1 million (€920,000) each month. Despite these difficulties, NLC, which employs about 30 workers, continues to operate its Denmark facility, converting food waste and manure into renewable natural gas.
Originally established in 2008 as NEW Organic Digestion LLC, the business started with a food waste digester that produced biomethane used to generate electricity. In 2016, it expanded through a joint venture that included acquiring a second facility in South Sioux City, Nebraska.
However, problems soon arose. Following the expansion, sewer backups in the local area led to legal battles and fines totaling $1.8 million (€1.65 million). In 2019, an unexpected change in feedstock from a supplier caused an extended shutdown of the Nebraska plant.
Financial challenges mounted over time. A 20-year methane purchase agreement signed in 2016 with the University of California was hindered by lower-than-expected gas production and delays in planned expansion projects.
By 2020, the company began falling behind on its debt payments. A 2022 attempt to renegotiate gas prices with the university was unsuccessful, forcing the company to continue operating at a loss.
Among the largest secured creditors are the University of California, which is owed $8.6 million (€7.9 million), and various financial institutions listed in the bankruptcy filings.
Wisconsin hosts over 300 methane digesters, with around 50 situated on dairy farms, according to the state’s Public Service Commission. Most of these facilities feed biomethane into interstate pipelines, benefiting significantly from California’s Low Carbon Fuel Standard, a program that rewards projects reducing greenhouse gas emissions.
