Opco, which utilizes biomass through anaerobic digestion processes in order to produce biogas (containing significant methane) will install a "digester" which, in order to increase its performance, will use a "co-digestion" process, i.e. a process that provides for the addition of, for example, organic waste to the manure, to increase biogas equivalent. Some of the biogas would be produced into electricity, for use by Opco or sale, and some would be purified into methane which would be marketed to industrial businesses to produce heat for use in an industrial process or to produce electricity.
CRA stated:
[T]he "digester" could not be included in Class 43.1 of Annex II if the biogas production from the digester does not originate exclusively from the anaerobic digestion of manure.
Regarding the methane sales it stated:
[T]he sale of methane is not in itself an eligible use of biogas for the purpose of determining whether property that is part of a biogas production system can be included in Class 43.1 … .
[T]he sale by Opco of methane from the biogas produced by the Project, in and of itself, would not prevent the property that is part of Opco's biogas production system from being included in Class 43.1 of Schedule II of the Regulations provided that less than 50 percent of the biogas produced by the Project is converted into methane for sale and more than 50 percent of the biogas produced by the Project is used for Eligible Uses.