Sussex County Council Approves Up to $60 Million in Bonds to Cover Bioenergy DevCo Costs

Millions in Private Activity Bonds to be issued to subsidize corporate gas scheme

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Climate and Energy

Georgetown, DE — Today, the Sussex County Council voted to approve up to $60 million in Private Activity Bonds to cover construction and other costs associated with Bioenergy DevCo’s recently approved biogas scheme. The vote came one week after the Council voted to approve a conditional use permit for the industrial gas production facility to be sited near Seaford in an agricultural-residential zone, despite an outpouring of public opposition.

In order to build their massive gas production and refining project, Bioenergy DevCo will need to secure numerous state pollution permits. If permitted, this Sussex County factory farm gas facility will be the company’s first in Delaware and their fourth project in the United States since joining forces with Italy-based BTS Biogas to enter the US market. A portion of the $60 million in private activity bonds will be exempt from federal income taxes, meaning taxpayers will subsidize the start-up costs of the dirty gas facility, rather than go toward projects that directly benefit County residents. The site is located in a community where a third of the residents currently live below the poverty line. 

In response, Food & Water Watch Delaware Organizer Greg Layton issued the following statement:

“Today’s vote confirms one of our worst suspicions — that taxpayers will subsidize the cost of this polluting facility, all to assure venture capitalists a ready profit. The hundreds of residents who expressed public opposition to the biogas scheme should have been considered in the decision to issue the tax exempt bonds, which are limited in supply, to fund the very project they opposed. Governor Carney must stop this project in its tracks, and direct the Department of Natural Resources and Environmental Control to deny Bioenergy DevCo its pollution permits.”