The Cellulosic-RIN Revolution

by Katie Fletcher (Biomass Magazine) Expanded cellulosic fuel pathways have led to a surge of biogas-based fuel credits, and producers are taking advantage of a significant boost to project economics.

Traditionally, the biogas project end market has been the sale of power to the grid, but transportation fuel may become the new end use of choice. Conversion of biogas into compressed natural gas (CNG) and liquefied natural gas (LNG) is now frequently considered when penciling out project financials, and not without reason. The volume of biogas-based transportation fuels used for compliance with the renewable fuel standard (RFS) has increased. As a recap, last July the U.S. EPA expanded cellulosic fuel pathways to include CNG and LNG from biogas created in landfills, municipal wastewater treatment plant (WWTP) digesters, agricultural digesters and separated municipal solid waste (MSW) digesters. A booming volume of cellulosic renewable information numbers (RINs) from renewable CNG and LNG pursued the ruling, and as a result has increasingly shown the potential for biogas as a source of transportation fuel.

According to the EPA, the net number of cellulosic biofuel or (D3) RINs generated in 2014 was nearly 33 million. EPA’s RFS2 data for the total production of biogas-based transportation fuel in 2014 by total volume in gallons and total quantity of RINs was nearly 15 million for CNG and over 17 million for LNG. In December alone, 8.5 million D3 RINs, the highest reported number for any single month in 2014, were generated.

Although there have been multiple, effective biogas-to-fuel projects, and more on the horizon, the end use has to exist for continued success. “I think the projects that make the most sense are projects where an owner already has a fleet of vehicles, or has access to a fleet of vehicles, that are currently running on CNG,” Wittmann (Steve Wittmann, senior client manager with BioCNG) says. “Being able to use the gas to fuel your own vehicles or identifying a fleet partner to purchase the fuel is a key component to a successful project.”

Successful projects have an end use for the gas, as well as fueling infrastructure, which is currently one of the impediments with these ventures. Many projects have one fueling station. The St. Landry Parish project had only one fueling station at its landfill, and thus decided to build another 15 miles away to provide a more convenient location for the public to access the fuel. Limited infrastructure is one challenge, as well as associated costs. Investments must be made into gas upgrading technology, as well as natural gas vehicle conversions or new vehicle purchases. READ MORE