Vermont Biomass Project Advances, Stirring Hope and Scrutiny

LYNDON, VT – December 29, 2025 – Vermont Renewable Gas, LLC (VRG), an affiliate of California-based Clean Energy Technologies, Inc. (CETY), has advanced its proposal for a 2.2-megawatt renewable power facility by submitting its first discovery responses to state regulators. While the company described the filing as a routine step in the state's comprehensive review process, it marks a pivotal moment for a project that has navigated significant regulatory challenges and drawn scrutiny from local environmental groups.

The proposed facility in Lyndon aims to convert agricultural biomass into electricity using a novel technology. The recent submission to the Vermont Public Utility Commission (PUC) signifies continued engagement in the state's Certificate of Public Good (CPG) process, a multi-agency framework designed to ensure energy projects align with public interest, environmental stewardship, and resource management goals. However, this procedural milestone follows a notable setback, highlighting the complex path for new energy projects, even in a state with ambitious green energy targets.

A Complex Regulatory Path

The journey for the VRG facility has been anything but straightforward. The current CPG review process was necessitated after a critical ruling by the Vermont PUC in September 2025. In that decision, regulators halted VRG's attempt to secure a lucrative, high-value "standard offer" contract by classifying the project as a "farm methane plant."

The PUC determined that the facility did not meet the specific criteria for that classification, reasoning that its primary fuel source was intended to be wood products, not farm-derived methane. The ruling noted the project lacked the deep integration with farm operations required by the statute, a decision that stripped the project of valuable Renewable Energy Credits (RECs) crucial to its initial financial model. This forced VRG back to the drawing board and into the more generalized, and potentially more arduous, CPG review process it is currently navigating.

The current process involves a transparent evaluation from multiple state bodies, including the Agency of Natural Resources, the Department of Public Service, and the Agency of Agriculture, Food and Markets. VRG's recent submission of discovery responses is the first formal reply to questions posed by these agencies, signaling the project is officially under the state's microscope as it seeks final approval to proceed with construction.

Technology and Community on Trial

At the heart of both the project's promise and the public's concerns is its core technology: high-temperature fast pyrolysis. The system is designed to convert biomass—with developers stating at least 51% will be sourced from agriculture—into a renewable synthetic gas for clean combustion, producing both electricity and a valuable soil-enhancing byproduct called biochar.

Project proponents, including VRG and CETY, have championed the facility as a model for a circular economy. They argue it will create a closed-loop system that utilizes local agricultural waste, strengthens the regional economy, creates jobs, and contributes to Vermont's aggressive energy transition goals. The manager of the local Lyndon Electric Department has also previously stated that the project's financial impact on local electricity rates would be minimal.

However, the technology is reportedly new to the United States, a fact that has not gone unnoticed by local watchdogs. In the months leading up to the review, environmental organizations, including 350 Vermont, raised concerns and advocated for a more extensive public input process. A petition organized by the climate advocacy group called on the PUC to expand its permitting process to allow for deeper public engagement and scrutiny of the novel technology and its potential environmental impacts. This public-facing pressure ensures that as regulators review VRG's technical filings, they will also be weighing the sentiment of the community the plant aims to serve.

The Corporate Strategy Behind the Current

While VRG navigates local and state hurdles, its minority owner, Clean Energy Technologies (Nasdaq: CETY), views the project as a cornerstone of its growth strategy. The company's business model often involves taking stakes in affiliate projects to expand its market footprint and deploy its proprietary technologies. For the Lyndon facility, CETY's Renewables business unit has already secured a $12 million Engineering, Procurement, and Construction (EPC) contract to design and build the plant, representing a significant revenue pipeline for the firm.

This potential income arrives at a critical time. According to its Q3 2025 financial filings, CETY reported a net loss of $2.10 million and an operating loss of $1.33 million for the quarter. With a cash balance under $1 million, the company's own report included a "going-concern warning," a formal acknowledgment of conditions that could raise doubts about its ability to continue operations. Despite these pressures, the company has also reported positive developments, including a recent $4.4 million private placement and diversification into other high-growth areas, such as a $10 million battery energy storage project in New York and developing energy-efficient cooling solutions for AI data centers.

For CETY, the successful completion of the VRG project would not only generate EPC revenue but also serve as a crucial proof-of-concept for its High Temperature Ablative Pyrolysis (HTAP) technology platform, potentially unlocking future opportunities. The project's viability is further bolstered by external validation, as VRG has successfully secured a $1 million grant from USDA Rural Development and a $300,000 grant from the U.S. Forest Service.

Vermont's Ambitious Energy Puzzle

The VRG project is unfolding against the backdrop of one of the nation's most aggressive renewable energy mandates. In 2024, Vermont updated its Renewable Energy Standard, requiring all electric utilities to source 100% of their power from renewables by 2035. Crucially, the new law also doubles the requirement for in-state renewable generation from 10% to 20%, creating a powerful incentive for projects like the 2.2 MW Lyndon facility, which fits within the state's Standard Offer program for small-scale renewables.

Despite generating nearly all of its in-state electricity from renewables in 2023, Vermont remains heavily reliant on imported power to meet demand, with over 60% of its electricity coming from outside its borders in the past year, including power from fossil fuels. This reality adds a sense of urgency to developing more local, distributed energy sources. The VRG facility, if approved, would contribute directly to this goal, helping to chip away at the state's import dependency.

As the Vermont Public Utility Commission and other agencies analyze VRG's responses, they will be balancing the state's clear mandate for new in-state renewables against the specific technological, environmental, and economic questions raised by the Lyndon project. The outcome of this regulatory process will be closely watched as a bellwether for how Vermont intends to build its clean energy future, one project at a time.