Environmental and Energy Study Institute Publishes Fact Sheet: Biogas—Converting Waste to Energy

(Environmental and Energy Study Institute) The United States produces more than 70 million tons of organic waste each year. While source reduction and feeding the hungry are necessary priorities for reducing needless food waste, organic wastes are numerous and extend to non-edible sources, including livestock manure, agriculture wastes, waste water, and inedible food wastes. When these wastes are improperly managed, they pose a significant risk to the environment and public health. Pathogens, chemicals, antibiotics, and nutrients present in wastes can contaminate surface and ground waters through runoff or by leaching into soils. Excess nutrients cause algal blooms, harm wildlife, and infect drinking water. Drinking water with high levels of nitrates is linked to hyperthyroidism and blue-baby syndrome. Municipal water utilities treat drinking water to remove nitrates, but it is costly to do so.

Organic wastes also generate large amounts of methane as they decompose. Methane is a powerful greenhouse gas that traps heat in the atmosphere more efficiently than carbon dioxide. Given equal amounts of methane and carbon dioxide, methane will absorb 86 times more heat in 20 years than carbon dioxide. To reduce greenhouse gas emissions and the risk of pollution to waterways, organic waste can be removed and used to produce biogas, a renewable source of energy. When displacing fossil fuels, biogas creates further emission reductions, sometimes resulting in carbon negative systems. Despite the numerous potential benefits of organic waste utilization, including environmental protection, investment and job creation, the United States currently only has 2,200 operating biogas systems, representing less than 20 percent of the total potential.

The Renewable Fuel Standard (RFS) was created by Congress as part of the 2005 Energy Policy Act. The RFS requires the blending of renewable fuels into the U.S. transportation fuel supply. Currently about 10 percent of the gasoline supply is provided by renewable fuel, primarily ethanol. The RFS sets fuel volumes for a variety of fuel categories: biomass-based diesel, advanced biofuel, cellulosic biofuel, and renewable fuel as a whole. Each category has a required minimum reduction in greenhouse gases.

EPA approved biogas as a qualifying cellulosic feedstock under the RFS in 2014. Cellulosic biofuels must be 60 percent less greenhouse gas-intensive than gasoline. Currently, most of the cellulosic fuel volumes are being met through the use of RNG as a vehicle fuel. Compliance with the RFS is tracked through renewable identification numbers (RINs) that can be traded, and RINs for cellulosic biofuels can earn RNG producers $40/MMBtu (as of September 2017). According to biogas producers, the RFS has become an important driver of investment in the industry.

As part of the approval of biogas, the EPA updated the RFS to allow biogas-derived electricity used as vehicle fuel to qualify for RINs, or “e-RINs.” However, as of 2017, the EPA has not approved any producer requests to start generating e-RINs, despite biogas production already exceeding current transportation electricity demand. READ MORE