In the face of global energy demand, meeting carbon emission reduction standards will require renewable energy sources, which is expected to increase by 30% in the next two decades.
In 2017, California enacted the first low carbon fuel mandate to reduce Carbon Intensity (CI) in the state’s transportation fuel pool by 10% by 2020. The mandate was extended to 2030. By law, refiners, blenders, producers and importers of transportation fuels must purchase RIN and LCFS credits to meet annual carbon reduction standards.
From the Fortis website;
"Renewable Natural Gas (RNG) is made from organic waste produced by everyday activities. As organic matter, such as rotting food or cow manure decomposes, it releases biogas (methane) into the atmosphere. That raw biogas can be captured and purified to create Renewable Natural Gas. We have an ambitious goal to get 15 percent of our natural gas supply from renewable sources. Sustainable energy sources like renewable gases will play a big part in helping us meet our 30BY30 target to reduce our customers' greenhouse gas emissions 30 percent by 2030. For more than 10 years we've teamed up with RNG suppliers, including local farms, landfills, green energy companies and municipalities, to capture that methane and purify it to make RNG. Capturing methane that would otherwise escape into the atmosphere, and using it to make renewable energy, makes RNG a carbon neutral energy source. Renewable Natural Gas is interchangeable with conventional natural gas. It's injected into our natural gas distribution system, reducing the amount of conventional natural gas needed.
RNG is one way that is helping us meet an ambitious target to reduce our customers' greenhouse gas emissions 30 percent by 2030. Within this target is a goal to have 15 percent of our natural gas supply be renewable by 2030.
Renewable Natural Gas is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create carbon neutral Renewable Natural Gas (also called biomethane)"
And at the same time, it is apparent that the farmers are about to face heavy penalties due to the fact that methane is far more devastating to the atmosphere than CO2 is. While methane might not linger as long in the atmosphere as carbon dioxide, it is initially far more devastating because of how effectively methane absorbs heat. Some scientists are suggesting methane is up to 84 times more potent. In fact, releasing 1kg of Methane (CH4) into the atmosphere is about equivalent to releasing 84 kg of CO2. Methane's 100-year GWP is about 28x CO2 - but it only persists in the atmosphere for a little more than a decade. The 100-year GWP is used to derive the CO2 equivalent. Methane is a far stronger greenhouse gas than carbon dioxide because it has much higher heat trapping ability. Methane on a weight basis has 21 times the global warming potential of carbon dioxide. Methane is only going to exacerbate the Global Warming Crises we are in, especially in the short term! The farmers that have signed on, and are in the process of signing on to our program can most definitely see the writing on the wall.
...and from the Enbridge website;
"Convert organic waste into energy
RNG is a carbon Neutral fuel that reduces harmful emissions and provides a renewable source of energy. Waste can be put to work by converting it to RNG and injecting it into the natural gas network to fuel transportation and heat homes and businesses. Known for its carbon offsetting advantage, RNG can manage waste, generate revenue and reduce harmful emissions to fight climate change. RNG is a carbon neutral solution that can combat climate change.
Almost a third of the world's food is thrown out. If we consider greenhouse gases as countries, food would be the third biggest emitter in the world, next to China, and the United States(w/ China at 10.5 Gtonnes and the USA at 6.5 Gtonnes, food waste comes in at 4.5 Gtonnes; Source: Food and Agriculture Organization of the United Nations)."
Market research shows that renewable energy is the fastest growing energy source, accounting for 40% of the increase in alternative energy. Renewable natural gas (RNG) is the fastest growing form of bioenergy. The industry is currently expected to reach approximately $32 billion by 2026, with CAGR revenue growth projected at 5-7%.
• Agricultural biogas RNG currently has the highest average pre-tax investment IRR (18%-25%) when compared to solar (4%-6%) and landfill gas (8%-12%) projects.
• Animal manure RNG is one of the most profitable renewable energies. D3 RIN prices are currently priced at $1.613 each, up 18% from one year ago. In addition, anaerobic digester projects have produced extremely low CI Scores. Existing swine manure projects range from -300 to -386 CI Score, resulting in more LCFS credits per MMBtu created when compared to other forms of agricultural waste biofuel. LCFS credit price has grown 169% (from $77 to $207.50) in the past three years, and several states are in the process of adopting their own low carbon standard programs. The credits have a price cap of $215 and are currently trading at $207.50 due to high demand.
• The RNG produced from one digester is carbon negative and removes 10,000 metric tons of carbon from the atmosphere annually. This is equivalent to taking more than 2,100 cars off the road forever (assuming a diesel engine vehicle switching to a CNG vehicle burning RNG). Each anaerobic digester constructed can also create 13-19 permanent jobs for the local economy.