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(KNSI) — A Litchfield dairy farm is the site of a new renewable energy facility that will convert food waste into natural gas.

Vanguard Renewables broke ground Thursday on an anaerobic digestion plant at Wagner Dairy, a family operation that has been running since 1887. The facility will process more than 300 tons of food and beverage waste per day, converting it into renewable natural gas and fertilizer. This creates a closed-loop system that keeps waste out of landfills, supports local energy production, and returns nutrients to the soil.

Once operational, the plant is expected to produce enough energy to power about 5,300 homes a year. The renewable natural gas will feed into CenterPoint Energy’s distribution system, which serves roughly 950,000 customers across the state, including several communities in central Minnesota.

The project is a joint venture between Vanguard Renewables and TotalEnergies. Construction is expected to support 100 jobs, with approximately 10 permanent positions created once the facility is running.

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