This is the latest installment in Waste Dive’s Biogas Monthly series.
The British Columbia Utilities Commission reaffirmed utilities' right to purchase credits for renewable natural gas as part of their decarbonization strategies, notching a win for a biogas industry that largely relies on such regulatory structures.
So-called book-and-claim systems work by allowing a utility looking to reduce the carbon impact of the fossil-based gas in its pipelines to finance landfill and anaerobic digestion RNG projects in other parts of North America and claim the resulting RNG as part of its system. Biogas industry groups support such schemes because they expand the pool of potential investors in RNG projects, similar to the broader carbon offset industry.
The questions considered by the BCUC concerned a target set by the province for utilities to acquire 15% of its total gas from RNG facilities by 2030. Alex Ripley, manager of government affairs in Canada for the RNG Coalition, said the target has been a catalyst for increased RNG contracts, in part because the utilities have the flexibility to acquire credits.
"This is the backbone of how RNG is traded across North America and in much of the world," Ripley said.
Canada's RNG targets for utilities have seen some retooling this year amid conflicting priorities. In April, the Quebec government proposed to push back to 2032 the deadline by which utility Énergir would need to acquire 10% of its gas from RNG, a two year delay.
The utility is set to reach 5% this year, but customers have complained about sharing the rising costs associated with procurement. Quebec estimates the delay would save customers between 130 million and 155 million Canadian dollars in 2030, Canada's National Observer reported.
British Columbia's RNG target is voluntary. Today, about 3% of major British Columbia utility FortisBC’s purchased gas supply is RNG.
Below is a selection of biogas industry highlights from May.
GFL and Opal Fuels partner at two landfills
GFL Environmental and Opal Fuels announced the development of RNG facilities at two sites: the Stones Throw Landfill in Tallapoosa County, Alabama, and the Grady Road Landfill in Polk County, Georgia. The two projects will be jointly owned by the partners and are expected to produce nearly 2 million mmBtus of RNG.
The RNG refined onsite will be distributed through Opal's fuel system for transportation uses. The fuel marketer and distributor expects it will be able to supply approximately 800 heavy-duty tractor trucks with the fuel produced at the two sites.
"Bringing new RNG production online amid accelerating fleet demand reinforces the strength of our vertically integrated model, connecting landfill partners to high-value end markets through our growing fuel station network," Jonathan Maurer, co-CEO of Opal Fuels, said in a statement.
GFL is in the midst of building out a portfolio of RNG facilities at its landfills. On the company's most recent earnings call in May, CFO Luke Pelosi said five such facilities are operating today, and four more will open each in 2027 and 2028.
Casella and Waga open new landfill facility
Waga Energy completed construction of an RNG facility at the Chemung County Landfill in Elmira, New York, operated by Casella Waste Systems. Waga fully funded construction of the facility and plans to own and operate it for 20 years. It will split proceeds from RNG sales with Casella.
The facility can generate up 610,000 mmBtus of RNG annually, and is expected to produce 340,000 mmBtus in its first year. The RNG produced on site is injected into the Valley Energy natural gas distribution network.
Waga continues to expand its portfolio of landfill RNG projects following EQT Infrastructure's acquisition of a majority stake in the company in September. Waga operates 36 RNG production facilities in France, Spain, Canada and the U.S., with 19 currently under construction.
Casella is also partnering with Waga at the Hyland Landfill in Angelica, New York. The company typically partners with third-party developers, including Archaea Energy and Viridi Energy, for RNG projects associated with its landfills. On the company's first quarter earnings call in May, CEO Ned Coletta said the company has seen "mixed results" with that strategy overall, but that the Waga projects "appear to be operating very well."
Investor-backed startup acquires Air Liquide biogas assets
Mobius Renewables, a biogas platform established by Australian asset manager IFM Investors in December, acquired Air Liquide's biogas production portfolio, including six landfill gas-to-RNG facilities in the United States, assets in France and a controlling interest in facilities in Norway and Sweden.
Mobius is based in Houston, and also includes the assets of GreenGasUSA, which IFM acquired in 2023. GreenGas focused on RNG produced primarily from wastewater systems via anaerobic digestion.
Air Liquide, which has its U.S. headquarters in Houston, has a long history partnering with the landfill industry. The company has developed proprietary technologies for separating carbon dioxide in landfill gas, allowing its facilities to refine the gas into pipeline-quality RNG. The company has also partnered with Waga Energy on multiple facilities.
The combined U.S. portfolio can generate up to 5.5 million mmBtus of RNG annually.
“With this transaction, our teams can now focus on improving operations and investing in new projects as we set the foundation for future global growth,” Cynthia Walker, CEO of Mobius, said in a news release.
Constellation Energy invests in Pine Creek RNG
Baltimore-based energy supplier Constellation Energy announced a minority equity investment in five RNG facilities owned and operated by Pine Creek RNG. The agreement allows Pine Creek to develop an additional set of new facilities capable of delivering about 3 million mmBtus of RNG annually, which Constellation will market.
The existing portfolio includes facilities at three public landfills in Washington, Utah, Iowa and a Waste Connections-owned landfill in Illinois, plus a facility that processes agricultural waste in Washington. Combined, the faciltiies are capable of producing about 1.5 million mmBtus of RNG annually. Privately held Pine Creek is headquartered in St. Petersburg, Florida.
Constellation has a history of including RNG in its fuel mix. It's previously partnered with Aria Energy to market the RNG produced at a Waste Connections landfill in Nebraska in 2019. It also announced a 10-year agreement with American Natural Gas in 2021 to supply RNG to the company's natural gas fueling stations nationwide. The fuel was sourced through an agreement with project developer The Landfill Group.
