The Legislative-Citizen Commission on Minnesota Resources (LCCMR) has approved a revised work plan for a substantial anaerobic digester project in Ramsey and Washington counties. Led by Dem-Con, the proposed facility aims to process organic materials into renewable natural gas (RNG) and biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More, with the goal of diverting waste from landfills and supporting Minnesota’s sustainability targets. The decision, made on September 16, 2025, is a critical step for the project, which requires grant agreements to be finalized by October to secure bank financing and remain on schedule for construction.

​The $100 million project, which is a public-private partnership, seeks to process 75,000 tons of organic waste annually. This includes food waste that would otherwise be sent to a landfill. The process is expected to produce 10,000 tons of biochar and 170,000 MMBtu of RNG per year. The project’s proponents estimate a reduction of 30,000 tons of CO2e annually, or 900,000 tons over the facility’s 30-year operational life.

​A key element of the revised plan involves the financial model, which includes a mix of private funding, public grants, and revenue from the sale of biogas and biochar. The proposal suggests that for every $1 million in grant funding received, the tipping fee for residents could be reduced by $1.50 per ton, potentially leading to a $7.50 reduction.

The project is designed to help Minnesota meet its ambitious environmental goals, including its target of 75% recycling by 2030, 100% clean energy by 2040, and net-zero emissions by 2050. The facility will be located on Dem-Con’s Environmental Campus in Shakopee, Scott County. Construction is anticipated to take two years following the completion of site preparation work.

SOURCE: LCCMR Approves Revised Work Plan for Demcon’s $5M Anaerobic Digester Project