Renewable natural gas - Renewable hydrogen - Senate Bill 98 - RNG Projects

Renewable natural gas is the future. We're ready.

While we work to fuel the Pacific Northwest with natural gas every day, we also innovate new, sustainable ways to meet the demands of the region's growing population.

Renewable natural gas is produced from organic materials like food, agricultural and forestry waste, landfills and wastewater. With recent advancements in technology, the gases from those waste streams can now be cleaned up and added into our pipeline network to serve homes and businesses. This turns the problem of waste into a powerful climate solution using our pipeline network already in place.

About renewable natural gas

Where does renewable natural gas come from?

Renewable natural gas is a zero-carbon resource produced from local, organic materials like food, agricultural and forestry waste, wastewater or landfills. As these materials decompose, they produce methane. That methane can be captured, conditioned to pipeline quality and delivered in the existing pipeline system to homes and businesses where it can be used in existing appliances and equipment. It can also be used in natural gas vehicles. This process closes the loop on waste and provides a renewable energy option for the natural gas system, in the same way that wind and solar are used to generate renewable electricity.

Renewable natural gas potential

How much renewable natural gas is possible?

In 2018, the Oregon Department of Energy released its first inventory of technical potential and estimated there are enough sources statewide to produce nearly 50 billion cubic feet (BCF) of renewable natural gas. That's equivalent to the total amount of natural gas used by all Oregon residential customers today.

On a national level, the technical potential for renewable natural gas is correspondingly greater. A recent study, conducted by ICF Consulting through the American Gas Foundation, estimates the technical potential of renewable natural gas supply is substantial when compared to current natural gas throughput. In fact, when looking at development costs and existing technologies, the report estimates there is enough potential renewable natural gas to achieve a 95% reduction in emissions in the residential sector.

The supply estimates from the ICF report do not include the potential for renewable hydrogen for the pipeline network or the impacts of deep energy efficiency to reduce future energy use. With these collective innovations pursued together, the company believes a carbon neutral vision for the gas pipeline network is possible.

Renewable natural gas future

What it means for the future

Replacing more and more of our natural gas supply with renewable natural gas in our existing pipeline infrastructure, combined with energy efficiency and wide adoption of our carbon offset program, will yield the fastest and most affordable results for our communities and the planet.

Renewable natural gas benefits

Reduces carbon emissions

Renewable natural gas is a zero-carbon resource produced from local organic materials such as food, agricultural and forestry waste, wastewater or landfills.

Replenishes naturally from decomposing organic materials.
New innovations give us the ability to capture that methane and transform it into renewable natural gas — stopping the environmental damage before it starts and creating a valuable new source of energy.
Works with the same equipment and appliances that deliver and use natural gas.
Used in vehicles today.

Renewable Natural Gas supply

RNG Supply

Renewable Natural Gas Projects

NW Natural is now investing in renewable natural gas projects to acquire RNG for our customers. With our first two agreements, we already have options to purchase or develop RNG totaling about 2% of NW Natural’s annual sales volume in Oregon, enough to heat about 36,000 homes.

December 2020: NW Natural formed an innovative renewable natural gas partnership with Tyson Foods and BioCarbN to convert waste to renewables at Tyson facilities. This RNG supply will be dedicated to NW Natural’s Oregon customers. Read more about this groundbreaking project.
August 2021: NW Natural announced an agreement with Element Markets to purchase RNG for Oregon customers as part of the RNG program instituted under Oregon Senate Bill 98. NW Natural will purchase the environmental attributes, or Renewable Thermal Certificates (RTCs), generated by a new RNG facility at a wastewater treatment plant in New York City and a Wisconsin-based mixed waste anaerobic digester facility.
Renewable Thermal Credits are verified and certified by the Midwest Renewable Energy Tracking System (M-RETS). The M-RETS Renewable Thermal Tracking System issues one Renewable Thermal Certificate (RTC) for every dekatherm of renewable natural gas. A dekatherm (10 therms) is approximately 1 million British Thermal Units (MMBtu).

Below are some of the RNG projects being developed in our service territory. Collectively, these projects are designed to provide immediate and impactful emissions and air quality benefits.

City of Portland’s Bureau of Environmental Services’ Columbia Boulevard Wastewater Treatment Plant. Learn more about Portland's single biggest climate action infrastructure project.
Metropolitan Wastewater Management Commission facility in Lane County. Learn more about this exciting project.
Shell New Energies Junction City biomethane facility.

Download the facts about renewable natural gas

See how much RNG is out there

Data provided by The Coalition for Renewable Natural Gas.

Download video transcript

What about renewable hydrogen?

There is also the ability to create renewable hydrogen made through the power to gas process from wind and solar energy that would otherwise go to waste — and distribute that into the pipeline network. In fact, a team of Pacific Northwest public and private organizations have signed a memorandum of understanding to explore the development of what would be one of the largest renewable hydrogen production facilities in North America.

Read about the renewable hydrogen production facility

Download the facts about renewable hydrogen

How is renewable hydrogen made?

Oregon rulemaking for SB 98 wraps up, allowing NW Natural to deliver renewable energy to customers

Rulemaking for Senate Bill 98 (SB 98) is now complete, giving NW Natural a clear path to acquire renewable natural gas on behalf of customers, and forging the way for this newest renewable resource to be an increasing part of the state's energy supply.

NW Natural worked collaboratively with legislators and renewable natural gas stakeholders to create SB 98, a groundbreaking bill that was signed into law by Oregon Governor Kate Brown in 2019. Since then, the Public Utility Commission of Oregon (OPUC), consumer groups and natural gas utilities have been working through a rulemaking process, so natural gas utilities can begin procuring renewable natural gas under the legislation.

Renewable natural gas is a zero-carbon resource produced from local organic materials such as food, agricultural and forestry waste, wastewater or landfills. The gas can be cleaned and added into the existing natural gas system, where it is fully interchangeable with conventional natural gas.

We're excited to use this landmark law, one of the first of its kind in the nation, to acquire a renewable product for our customers and bring our region one step closer to a clean energy future. Another important benefit is that local communities now have a potential revenue source to turn their waste into energy.

More information about SB 98

SB 98 Details

SB 98 goes further than any other law by setting voluntary goals for adding as much as 30% renewable natural gas into the state's pipeline system by 2050. The law allows up to 5% of a utility's revenue requirement to be used to cover the incremental cost of investments in renewable natural gas infrastructure.

Similar to a renewable portfolio standard, volumetric goals have been set, as well as other parameters for the procurement:

Voluntary targets of 5% by 2020, 10% by 2025, 15% by 2030, 20% by 2035 and 30% by 2050 are now in place.
Utilities can invest in and own the cleaning and conditioning equipment required to bring raw biogas and landfill gas up to pipeline quality, as well as the facilities to connect to the local gas distribution system.

Further, the new law supports all forms of renewable natural gas including renewable hydrogen, which is made from excess wind, solar and hydro power. Renewable hydrogen can be used for the transportation system, industrial use, or blended into the natural gas pipeline system.

The market for renewable natural gas is fairly new but growing quickly. There are about 115 projects nationwide, and that's expected to increase by 50% over the next year. Renewable natural gas is being prioritized as a main energy source for space heating in places like SeaTac Airport, and is being used in transportation fleets like UPS and Waste Management.

Happening now: NW Natural renewable energy programs

Replacing diesel with natural gas in Portland

The City of Portland's wastewater treatment plant needed a fueling station and pipeline infrastructure, and we jumped at the chance to help. Now, greenhouse gas emissions produced by wastewater can be converted into renewable natural gas. Goals:

Replace 1.34 million gallons of diesel fuel with enough renewable natural gas to run 154 garbage trucks for an entire year.
Help reduce air pollution from diesel-fueled trucks by 90%.
Cut greenhouse gas emissions by 21,000 tons annually.
Generate upwards of $3 million in revenue a year for the City.

Learn more about Portland's single biggest climate action infrastructure project.

The Less We Can campaign: inspiring action toward a low-carbon, renewable-energy future

Here's how we're working to raise awareness and focus on renewable natural gas projects:

Developed a Low Carbon Pathway, with a carbon-savings goal of 30% by 2035.
Partnering on renewable natural gas projects in Eugene and Springfield area to clean and condition biogas for our systems.
Advocating for the Power to Gas process in the U.S., which captures surplus wind and solar energy and converts it to renewable natural gas.
Joined the Coalition for Renewable Natural Gas and co-founded the Northwest Alliance for Clean Transportation.

Learn more about renewable natural gas and Less We Can, and find out what you can do to reduce your carbon footprint.

Become a Renewable Natural Gas or Hydrogen Supplier

We are currently seeking new supply opportunities

We are continuously looking to partner with organizations to increase our supplies of renewable gas. We are interested in the sale of a total or partial interest in existing or development gas projects or for the sale of pipeline-quality RNG or hydrogen. We seek RNG resources and/or associated environmental attributes from around the country and from a wide variety of feedstocks and sources. To start the conversation, contact us at renewables@nwnatural.com.

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