Is RNG a California-Only Fuel?

by Jake Drake (ACT News/Trillium) ... It is true that California continues to make great strides in RNG investment and production. In just the first half of 2020, RNG made up nearly 90% of all natural gas vehicle fuel consumed in the state.

Accelerated by the state’s Low Carbon Fuel Standard (LCFS) program, RNG use as a transportation fuel has increased 210% in the state over the past five years.

Sourced from a variety of feedstocks including dairy farms, landfills and wastewater treatment plants, California’s average renewable compressed natural gas is now carbon-negative at -.85 grams of carbon dioxide equivalent per megajoule of energy, or gCO2e/MJ—making it the first time in the history of the LCFS program that any low carbon fuel portfolio has achieved a carbon negative status in any three-month reporting period of the program. This means fleets fueling with just California’s average mix of renewable compressed natural gas can achieve not just carbon-neutral, but carbon-negative, operations.

And, with more sources of increasingly carbon-negative RNG, such as biogas produced from dairy digesters, coming online in the next few years, California’s RNG is on track to become even cleaner. By 2024, the average carbon intensity of RNG for transportation is on track to be negative 101.74 gCO2e/MJ.

A Growing Industry Across the U.S.

While it may seem like all-things RNG are happening only in California, the reality is that there is investment and development in RNG happening at a record pace across the U.S.

Over the past year alone, the North American RNG industry has developed more projects than it did during in its first 30 years in existence, according to the RNG Coalition.

From landfill gas projects, wastewater treatment plants and anerobic digestors capturing methane from livestock farms—development across the U.S. is racing to keep up with growing demand from domestic fleets.

Looking outside of California, interest and development in projects continues to grow. Landfill gas-to-energy projects, for instance, are currently operating in 48 states.

Municipalities large and small are leading in the development of innovative, and profitable, wastewater treatment plants which can convert would-be fugitive methane into biogas-producing revenue streams from a previously ignored resource. Some cities harness this value by capturing tons of climate-altering greenhouse gas emissions and converting it to generate power and heat.

Others, like Des Moines Wastewater Reclamation Authority, will enter agreements to provide valuable biogas as feedstock for RNG as vehicle fuel in exchange for revenue generated by the credit programs.

In the Midwest and Southeast, large-scale projects are utilizing livestock waste from hog and dairy farms to create transportation-ready fuel that can have carbon intensity ratings 200-300% lower than even a battery electric vehicle powered by renewable energy such as solar or wind.

And 2021 brings the potential for more states implementing low carbon fuel standard programs, helping to further build the economic case for expanding the use of this renewable and cost-effective fuel across the U.S.

Best Next Steps for Sourcing RNG

A first step for fleets looking to implement an RNG fuel program is to establish a relationship with your fuel supplier. Working with your fuel supplier directly and expressing interest in RNG for your operations lets your provider be proactive in exploring supply sources for you. When fleets convey that cost-efficient and low-emission RNG are top priorities for a fleet, fuel suppliers will deliver. READ MORE