Decarbonization — a phased reduction of carbon dioxide emissions by eliminating
or significantly reducing the use of fossil fuels — is a key piece in the
climate-change mitigation
puzzle.
The combination of decarbonization and electrification can result in an enormous
reduction of greenhouse gas emissions, not to mention energy savings.
Electricity generation using renewable natural gas (RNG) increases the
decarbonization benefit even further.
I recently met with Johannes
Escudero — CEO and Executive
Director of the Coalition for Renewable Natural Gas (RNG Coalition) — to
discuss the environmental challenges we face and the solutions we can employ,
including renewable energy sources. The RNG Coalition is the trade association
representing and providing public policy advocacy and education for the North
American RNG industry.
John Hanselman: What role does renewable natural gas play in the implementation of decarbonization strategies?
Johannes Escudero: When working toward a resilient energy system and
economy, RNG — like electrification — is an important piece of the puzzle. Our
world needs a diverse portfolio of sustainable solutions — including
decarbonization — to truly address global environmental challenges. We cannot
afford to place all bets on a single stock or gamble with our future by placing
all chips on one approach. Renewable natural gas is a necessary and
complementary resource that pairs well with other decarbonization technologies.
JH: How is renewable natural gas produced?
JE: RNG production starts with the collection and control of naturally
occurring biogas — including methane — that emits from the anaerobic digestion
of organic feedstocks, such as food and beverage waste and farm
manure. Biogas is upgraded to RNG by removing CO~2~ and trace contaminants to create a
purified gaseous product — biomethane or renewable natural gas — that is
completely interchangeable with traditional natural gas.
JH: Is there enough RNG available to contribute to an impactful decarbonization strategy?
JE: Sufficient RNG could be developed from organic waste
feedstocks
to cover approximately 13 percent of current US natural gas demand. This could
be used to supply all current commercial gas demand nationwide, 75 percent of
current residential demand, or 45 percent of industrial demand.
JH: How does renewable natural gas work with other decarbonization strategies, such as electrification?
JE: The RNG industry alone cannot solve the challenge of decarbonizing existing natural gas and oil demand — but RNG is an important and sustainable part of the solution. As of January 1, 2021, we have 157 operational RNG production facilities in North America, and an additional 110 RNG production facilities under construction or that have completed substantial development.
According to the International Energy Agency, there are limits to how
quickly and extensively electrification can occur; because electricity is not
well suited to deliver all types of energy. Even California — which is in
the top tier in energy consumption and on an aggressive path to net-zero energy
consumption — will still require significant volumes of gas in 2050. Per the
California Energy Commission, in a high-electrification scenario, just under
1,000 tBtu of gas demand will still exist in California in 2050 — compared to
approximately 2,000 tBtu in 2020.
In the longer run, we expect other sources of renewable gas — including hydrogen
derived from RNG and from renewable electricity — to play an important role in
meeting energy demand that can’t easily be electrified. Renewable hydrogen is
currently more expensive than RNG derived from organic wastes.
Vanguard Renewables' Farm Powered anaerobic digestion facility; Haverhill, MA | Image credit: Vanguard Renewables
JH: Will renewable natural gas programs incentivize the generation of more waste?
JE: Absolutely not; but so long as life on our planet is sustained and
energized by organic materials, there will always and inevitably be some waste.
Every day, society pushes waste bins out to the curb without giving thought to
what happens next — including with the organic waste we produce. What happens to
that waste matters. Unless RNG production facilities are developed, that methane
will be flared (literally wasted) or worse, escape fugitively into the
atmosphere as a short-lived climate pollutant and greenhouse gas that is many
times more harmful than CO~2~. RNG production facilities abate and recycle
captured methane and convert those avoided emissions into renewable energy for
productive, everyday applications.
JH: Is renewable natural gas too expensive to be a meaningful part of decarbonization?
JE: As with all renewables, there is also a premium associated with RNG
production — but as markets mature and technologies advance the cost delta
between RNG and conventional natural gas is decreasing. RNG supply from organic
waste is comparable in price with other important decarbonization technologies.
Further, GHG emissions reductions from RNG often fall below regulated
cost-containment caps in those places in the US where the pricing target is set
by utilities. RNG is an available drop-in substitute for conventional natural
gas.
JH: Will increased use of renewable natural gas require a buildout of infrastructure?
JE: No. RNG production facilities are co-located with various sources of
organic waste — including at landfills, wastewater treatments facilities and
farms, and connect to existing gas systems. As such, interconnecting with RNG
production facilities presents an opportunity for gas utilities to decarbonize
existing energy infrastructure and offer their customers a renewable product.
RNG is transported via virtual (mobile) pipelines and gas distribution to the
end-user for transportation, dispensation and consumption. Because of RNG’s
compatibility with conventional gas systems, it can be a big driver of near-term
greenhouse gas reductions. As we use more hydrogen and electricity to carry
energy, RNG from organic waste streams can become a valuable part of the
renewable energy supply — and a prime candidate to further decarbonization
efforts.
JH: How can companies use renewable natural gas in their sustainability profiles?
JE: Beyond the commodity value, RNG also contributes to greenhouse gas
reductions — adding further value in the form of environmental credits that can
be monetized. It can help companies reach carbon neutrality and adhere to
stringent sustainability mandates. RNG is composed of biogenic
carbon;
this means that any emissions released from combustion, collection or
transportation of RNG are already part of the carbon cycle. Under current GHG
reporting protocol, CO~2~ emissions from RNG are treated as carbon neutral.
RNG consumers achieve 100 percent reduction in Scope 1 emissions; and biogenic
emissions are offset by a reduction in Scope 3
emissions,
based on the carbon-intensity
score of the RNG.
RNG with a carbon-intensity score of zero eliminates 100 percent of biogenic
emissions.
At Vanguard Renewables, we get asked all of
the time how a company can currently buy and use renewable natural gas. The
outstanding utilization factor for RNG is that it requires no new capital
equipment or system modifications. RNG utilization and the resulting reduction
in carbon intensity is completed through the contractual agreement with the
users’ utility or energy supplier. Supply of RNG is currently limited to certain
states and regions of the country where food waste or landfill gas has been
captured and repurposed, but is growing daily.
Companies that want to increase their use of renewable natural gas should take
time to ensure they are dealing with a reputable seller or reseller of RNG, and
that the purchaser commits to a long-term agreement — RNG is going to be in
greater and greater demand as the US retail energy market becomes increasingly
aware of its significant value.
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John Hanselman is Founder and Chief Strategy Officer of Vanguard Renewables — the U.S. leader in farm-based organics to renewable energy. John launched Vanguard Renewables in 2014 to connect farm-based anaerobic digestion to agricultural resilience and produce renewable energy. His work includes finding a decarbonization pathway for the food and beverage industry by enabling the repurposing of unavoidable manufacturing and supply chain waste into renewable natural gas. John’s strength is bringing together partners in the decarbonization journey and Vanguard has strategic partnerships with Dairy Farmers of America and Dominion Energy, among others. (Read more ...)
Published Jan 27, 2021 7am EST / 4am PST / 12pm GMT / 1pm CET