There are certain businesses, i.e. industrial segments, that are in the business of producing or handling organic waste. This organic waste can be re-purposed into a clean, renewable fuel source called biogas.
The following are some types of businesses that tend to have sufficient supply of the waste needed to make RNG:
- Chicken Farms
- Wastewater Treatment Plants
- Landfill-diversion Facilities
Benefits of Renewable Natural Gas (RNG)
You can use RNG to power equipment or vehicles that use natural gas. Alternatively, you can also use RNG to generate your own electricity on site. This can be a great way to save money and energy.
Some other benefits of Renewable Natural Gas (or RNG) include:
- Capture of emissions of unused “waste” methane
- Reduction in the need for conventional fuel
- Cut production and consequently waste disposal costs
Unlike other sources of renewable energy – such as wind and solar – RNG doesn’t need the sun to shine or the wind to blow. Waste material can be converted into deliverable, renewable energy 24/7.
Selling Renewable Natural Gas on the Open Market
When biogas is conditioned into RNG, it potentially sells at a higher price than natural gas.
For example, in 2016 the SoCalGas® average monthly natural gas commodity price was $3.00 per MMBTU. At the same time, RNG could have been sold for significantly higher price due to the credits generated by the Low Carbon Fuel Standard and Renewable Fuel Standard. SoCalGas’ network of pipelines can transport RNG almost anywhere within Central and Southern California.
How it Works
Where do biogas and biomethane come from? Here’s an overview of the process for converting biogas into biomethane:
- Waste products, such as wastewater, food waste and manure are processed in a biodigester.
- The biodigester breaks down the organic material through an anaerobic process, creating biogas — a mixture of methane and other elements.
- Biogas is then conditioned and upgraded to remove the CO2 and other gas constituents. This produces renewable natural gas, or RNG, which can be used interchangeably with traditional natural gas. Learn more about pipeline gas quality requirements here.
- RNG can be used where it is produced for purposes such as generating electricity or fueling vehicles, or it can be injected into the utility pipeline and transported to an end user.
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