Lead the Transition to Low-Carbon Energy by Producing and Using Renewable Natural Gas

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A guide to producing and using RNG The Future of Clean Energy Lead the transition to low-carbon energy by producing and using renewable natural gas

• Organic waste • Agriculture • Wastewater treatment • Landﬁlls • Food and beverage processing

Inside: The RNG advantage How is RNG produced and used? RNG vs. electriﬁcation Expert help to get started Get expert help planning and developing your RNG projects

This booklet will guide you through everything you need to know to produce and use renewable natural gas (RNG) with Enbridge Gas. We’ll help you leverage RNG as an e!ective solution to achieve climate action goals and create a sustainable future for your company and community. From organic waste to renewable energy

RNG will play an important role in Ontario’s clean energy future

RNG is produced RNG has the potential from organic to power various waste, landﬁll gas, sectors of our agricultural sources economy, such as (such as manure) fuelling transit ﬂeets, and wastewater powering industry treatment. and heating homes.

What is RNG? Why produce How is RNG RNG vs. Success Help and Municipal RNG gas See our A sustainable and use RNG? made and used? electrification stories expertise with Transit quality service areas The RNG alternative to There are benefits Transforming organic A reliable approach See how others are RNG projects Program requirements Use our map to potential in fossil fuels. for many sectors. waste into a low- to manage costs benefitting. Steps to get Reduce fuel costs How to check your service Canada is 36%* 04 06 carbon fuel. take climate change 12 your RNG with compressed ensure pipeline- territory. of its 2017 natural 08 action. project started. natural gas (CNG). quality RNG. 20 gas consumption. 10 14 17 18

2 Renewable Natural Gas Producer Guide *Source: cga.ca/natural-gas-101/the-renewable-natural-gas-opportunity Enbridge Gas 3 RNG: a smart strategy

Created from gases released when organic waste Beneﬁts of RNG decomposes, this carbon-neutral fuel provides a proven source of energy that also helps manage waste, reduce carbon emissions and ﬁght climate change.

A circular A sustainable A path to net zero economy approach energy source RNG can help reduce GHG RNG turns organic waste Low-carbon energy is emissions by capturing into renewable energy that created by capturing methane that would can be used in business, and cleaning landﬁll gas otherwise be released into industrial, residential and or biogas. The digestate the atmosphere. transportation applications. (byproduct of anaerobic digestion) can be converted into fertilizer, returning valuable nutrients back into the soil.

Fuel the future

Utilities across Canada have set ambitious RNG targets, aiming A clean energy A cost-e!ective An e!ective way to have a ﬁve percent blend of RNG in all natural gas streams by network solution to create energy 2025 and 10 percent by 2030. This would result in a 14 metric tonne RNG is delivered through RNG is an e!ective way to resilience reduction in greenhouse gas (GHG) emissions by 2030—equivalent the existing natural gas reduce CO2 emissions and As the RNG supply is infrastructure where it can manage costs. to taking 3.1 million cars* o! the road. distributed by underground be used to heat homes and pipes, it is reliable and businesses. resilient against extreme weather conditions.

*Source: cga.ca/natural-gas-101/the-renewable-natural-gas-opportunity

4 Renewable Natural Gas Producer Guide Enbridge Gas 5 How you can beneﬁt from RNG From fuelling vehicles to creating a new revenue source, many sectors across Ontario can beneﬁt from this sustainable energy source.

With oversight on landfills, water waste, energy For facilities where natural gas usage can account for a Municipalities infrastructure and transit, municipalities are ideally Food and beverage significant portion of energy use, RNG can help manage RNG production and use positioned to produce RNG and also use it as a processors waste and energy costs while reducing CO2 emissions. sustainable energy source. RNG production and use • Reduce carbon emissions by using natural gas blended • Meet climate change and sustainability goals by with RNG to fuel buildings and processes, or use reducing GHG emissions. compressed RNG or blended CNG to fuel fleets. • Make waste management more e!ective and reduce the • Leverage existing natural gas infrastructure to inject and need for landfill. distribute RNG. • Fuel transit and waste truck fleets with compressed RNG • Achieve corporate sustainability goals by reducing your or blended CNG. Heat buildings with blended RNG. carbon footprint. • Strengthen your local economy and infrastructure. • Get better energy value with the most a!ordable • Use the existing natural gas infrastructure to distribute RNG. renewable energy. • Manage costs and reduce CO2 emissions, compared • Avoid downtime with more resilient, reliable service to electrification. compared to electricity.

Waste management companies can take RNG can be created from your agricultural waste, Waste management advantage of a new revenue opportunity by producing Agribusinesses resulting in a new revenue stream. companies and selling RNG. RNG production RNG production and use • Earn new revenue from the production of RNG. • Repurpose organic waste by turning it into clean, • Reduce your GHG emissions. renewable RNG. • Gain an e!ective waste management solution. • Instead of flaring, capture methane to produce RNG and create a new revenue stream. • Be part of a growing biogas sector forecasted to grow up to 50 percent in the next five years.* • Reduce emissions by fuelling fleets with compressed RNG. • Return soil nutrients by using the RNG byproduct as fertilizer. • Meet sustainability and environmental goals.

* Source: news.ontario.ca/omafra/en/2019/11/changes-to-biogas-rules-for-farms-to-increase-economic-opportunity-in-ontarios-renewable-natural-gas.html

6 Renewable Natural Gas Producer Guide Enbridge Gas 7 How is RNG made and used? RNG is created by capturing methane emissions from organic waste, landﬁlls and wastewater treatment plants. A renewable source of energy, it can be injected into our natural gas network and used for residential and commercial energy needs as well as transportation fuel.

Unlike fossil fuels, RNG is created from: If we harness only % Waste recovery Anaerobic digestion Upgrading Added to system 10 of Canada’s potential, Organic waste, such as wastewater The biodigester breaks down the • The biogas is cleaned to meet The resulting RNG is added to the RNG can help heat up to treatment sludge, food waste or organic waste, creating biogas. The gas quality speciﬁcations. existing natural gas infrastructure manure is delivered to a biodigester. byproduct of anaerobic digestion, to be sold and distributed to one million • Landﬁll gas is captured and sent homes digestate, can be converted into directly for upgrading. customers—either directly into the fertilizers that return nutrients back pipeline or to fuel the producer’s for one year.* Food processing to the soil. own needs. organic waste

Agricultural waste, such Homes and businesses as leftover crops and animal manure

Bio-solids Fuel ﬂeets from wastewater treatment plants

Landﬁlls Landﬁll gas is captured Byproduct / Fertilize soil digestate

*Source, 2019 Canadian Gas Association Press Release titled: Renewable natural gas start-up company completes key milestone 8 Renewable Natural Gas Producer Guide converting Alberta forest residues into pipeline-quality gas Enbridge Gas 9 Why RNG is more e!ective See how a municipality than electrification can benefit from RNG Electrification is not the only way to meet climate change goals—RNG is an An illustrative example of how RNG is a smart, economical immediate and e!ective approach. When added to conventional natural gas, solution to achieve climate change goals it’s a cost-e!ective, reliable and low-carbon alternative to electricity. 5 reasons to choose RNG over electrification Each year, this municipality:

With net zero emissions, RNG is a more cost-e!ective way to meet climate change goals. 1 Consumes Processes It can produce 50 million m3 75,000 tonnes 5 million m3* of natural gas. of organics. of RNG—about 10% of its annual natural gas consumption. Natural gas has fewer service interruptions than electricity, and is resilient against extreme weather, ﬂooding and other 2 natural disasters. In this example:

• RNG costs $24/GJ—equivalent to $0.09/kWh.† Will reduce CO2 emissions by • Electricity in Ontario is priced at $0.128/kWh.‡ 9,381 tonnes RNG leverages the existing natural gas annually infrastructure and vehicles rather than requiring investment in new electrical • Enbridge Gas can design, build and maintain 3 infrastructure. the municipality’s RNG upgrading and injection infrastructure for approximately $0.05 – $0.10/m3 in addition to its natural gas commodity cost. Over three years, this will save RNG doesn’t contribute to peak electricity $ demand, which can lead to higher costs to 1.125 million 4 generate, transmit and distribute electricity. in avoided carbon tax.**

Let Enbridge Gas help you get up and running Contact our RNG experts to create a custom plan for your community. — By repurposing organic waste, RNG enbridgegas.com/rng reduces GHG emissions. *Source: biogasassociation.ca/images/uploads/documents/2015/municipal_guide_to_biogas/Municipal-Guide-to-Biogas-2015March.pdf 5 † Source: cga.ca/wp-content/uploads/2020/08/RNG-Handbook-for-Municipalities-in-the-GTHA_2020-07-07.pdf ‡Source: oeb.ca/rates-and-your-bill/electricity-rates (Rate as of September 2020) **Source: canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it-will-work/putting-price-on-carbon-pollution/technical- 10 Renewable Natural Gas Producer Guide brieﬁng.html (2020 at $30/tonne, 2021 at $40/tonne, 2022 at $50/tonne) Enbridge Gas 11 Success stories

Du!erin Solid Waste Management Facility Hamilton Water Treatment Plant RNG curbs emissions at Hamilton’s water treatment plant To reduce emissions created from its water treatment process, Hamilton’s Woodward Avenue water treatment plant now captures raw biogas to produce heat and power through a cogeneration unit. The surplus gas is puriﬁed and used to create RNG.

By the numbers Processes up to 10,000 m3* of RNG per day.

O!sets more than 1,100 tonnes† of CO2 annually.

Hamilton Street Railway How Hamilton fuels ﬂeets for less After realizing the cost of diesel was on the rise, the City of Hamilton expanded its ﬂeet with more than 100 new CNG buses and received funding for a new CNG station.

Proven results Toronto to transform about 35% By the numbers of organic waste into RNG Processes Highest capacity The City of Toronto will soon harness the biogas Now the highest capacity station in Ontario. emitted from processing its Green Bin organic 55,000 tonnes waste. The resulting RNG will be added to the of organic waste. existing natural gas system and used to fuel the city’s waste collection ﬂeet. Fast fuelling times Contributed to producing Eliminates Comparable to diesel pumps. It’s a smart, circular solution that will help the city approximately achieve ambitious climate change goals while diverting waste from landﬁll. 3.3 million 9,000 + m3 of RNG from the cleanup 95% fewer emissions and conditioning of about 6 tonnes Fewer tailpipe emissions helps improve air quality million m3 of biogas. of CO2 emissions. and answers climate change goals.

Projected to be operational by early 2021.

*Source: biogasassociation.ca/index.php/featured_member/member/the_city_of_hamilton 12 Renewable Natural Gas Producer Guide † Source: hamilton.ca/government-information/news-centre/news-releases/green-energy-doors-open-see-how-hamilton-generates Enbridge Gas 13 Support to produce RNG Whether you’re planning for RNG facilities or ready to start selling, Enbridge Gas is here to help you with expertise, support and ﬁnancing. 1 2 Feasibility Production

Determine your opportunity Produce your own biogas Get a free assessment to determine whether your facility is suited to produce RNG. You plan, build and maintain the anaerobic digester to turn organic waste into biogas.

Assess your facility’s capacity Upgrade your biogas to RNG We o!er three studies to check your facility’s capacity and injection capabilities. Once you start creating biogas, we o!er a turnkey solution to help you upgrade it to pipeline-quality RNG. This includes:

• Capital support to design, build and manage a new biogas upgrading system and injection station.

• Access to industry experts in engineering and construction.

Interconnection Preliminary Detailed Engineering Study Capacity Study Engineering Study Once we confirm that the proposed This study verifies that your facility: If we determine that the proposed project meets the requirements, project requirements can be met, we’ll continue to the final step, • Is at market capacity to receive we’ll help develop cost estimates for which includes: the gas and complies with the project. Estimates may include Enbridge Gas’ distribution network • A detailed description of all construction, land acquisition, site system pressure standards. construction costs. development and regulatory and • Meets safety requirements. environmental permits. • Complete engineering construction drawings. • Is designed within Enbridge Gas’ This study takes approximately The value of RNG is clear: peak demand considerations. 3 – 4 weeks. • All construction and environmental permit applications and right-of- Your Enbridge Gas Business Equivalent to approximately $0.09/kWh.* way acquisition requirements. Development Specialist may need additional preliminary information A service contract is required, Low-carbon. such as the proposed location, and a backstop agreement Reduces CO2 emissions. volume of raw biogas or RNG and or indemnification letter may also the station/pipeline requirements. be needed. Can be blended into natural gas applications. This study takes approximately This study takes approximately 4 – 6 weeks. 6 – 8 weeks.

14 Renewable Natural Gas Producer Guide *See further details on p. 11. Enbridge Gas 15 Reduce fuel costs up to 40% with CNG With many municipalities declaring climate emergencies, local governments must ﬁnd innovative ways to deal with competing budgets and urgent priorities. Enbridge Gas can help transition transit ﬂeets to compressed natural gas (CNG), a proven way for 3 municipalities to meet ambitious climate change targets. Selling and using your RNG Market-ready, with no upfront Inject your RNG into the pipeline incremental capital required With pipeline-ready RNG, you can inject it into the Enbridge Gas system. Our experts will handle everything to get your RNG connected to the pipeline, including adding safety odourants and all metering. Enbridge Gas’ turnkey, all-inclusive Municipal Transit program o!ers Ontario communities an immediate, cost-e!ective way to improve air quality and reduce costs. The program covers: Get your RNG into market After you inject your RNG into the Enbridge Gas system, the natural gas will need to be transported to its end market. We provide: The incremental cost of buses* approximately $6M • Access to an established network of brokers that can help distribute and sell your RNG through the natural gas system.

• Help to transport and store your RNG supply. Design and construction of a CNG fuelling station approximately $6M

Maintenance Your opportunity to use RNG facility upgrades approximately $2M For even greater environmental impact, we can help you get to net-zero emissions by using the RNG you produce to heat buildings or to fuel ﬂeets. Training and change management approximately $1M

CNG’s proven beneﬁts:

up to Cleanup and injection rates 90% 90% 40% The cost for each service would be speciﬁc to the location of the project and based on fully fewer tailpipe quieter than lower allocated costs. For both rates, a consistent monthly service fee over the term of the contract emissions.† diesel engines. ‡ fuel costs.** ensures cost certainty for RNG producers, an important factor to help enable and facilitate RNG production in Ontario. *Based on 100 buses. Can be scaled to suit the needs of your community. †NOx emissions of 0.02 g/bhp-hr (90% below EPA). ‡Source: xcelenergy.com/energy_portfolio/natural_gas/natural_gas_vehicles 16 Renewable Natural Gas Producer Guide **Estimate only. Savings per vehicle will vary. Enbridge Gas 17 Understanding gas quality requirements

For customers previously served by Union Gas For customers previously served by Enbridge Gas Distribution

The following represents the current Gas Quality section of the M13 transportation service. Please be aware that any of the Specifications identified gas quality requirements not met may result in the suspension of deliveries for an indefinite period of time (to be resolved between both parties on a case-by-case basis). Producers are encouraged to review the entire package of M13-related materials. RNG composition must meet the specifications outlined in Table 1. The values shown in this table represent maximum levels, Note: While there are no explicit quantitative limits included for trace constituents (such as siloxanes, ammonia or heavy metals) unless a range of values is indicated. Minimum and maximum pressures will be set for each RNG facility on a case-by-case basis. these are considered objectionable substances and are banned. In summary, in order to be injected into the Enbridge Gas distribution system, RNG must: • Not contain any contaminants, particles, or other impurities at • Not contain more than 6 mg/m3 of hydrogen sulphide. Article II: Gas quality a concentration that are known as a threat to the integrity of • Not contain more than 23 mg/m3 of total sulphur. the system, human health or the environment. • Not contain more than 3 mg/m3 of ammonia. 3 1. Natural gas • Have an energy content no lower than 36.0 MJ/m and no 3 3 • Not contain more than 1 mg/m of total siloxanes. The minimum gross heating value of the gas delivered to/by Enbridge Gas hereunder, shall be thirty-six (36) megajoules per m!. higher than 41.3 MJ/m . • Not contain more than 10 mg/m3 of halocarbons and The maximum gross heating value of the gas delivered to/by Enbridge Gas hereunder shall be forty point two (40.2) megajoules • Have a Wobbe Index during normal operation no lower than organochlorinated compounds. per m!. The gas to be delivered hereunder to Enbridge Gas may be a commingled supply from Shipper’s gas sources of supply. 47.2 MJ/m3 and no higher than 51.1 MJ/m3. • Be technically free of volatile organic compound, bacteria, The gas to be delivered by Enbridge Gas may be a commingled supply from Enbridge Gas’ sources of gas supply; provided, • Not contain more than 2% by volume of carbon dioxide. however, the end that helium, natural gasoline, butane, propane and other hydrocarbons, except methane, may be removed prior to particles and dust. • Not contain more than 0.4% by volume of oxygen. delivery to Shipper. Further, Enbridge Gas may subject, or permit the subjection of, the gas to compression, dehydration, cooling, • Not form liquid hydrocarbons at temperatures of -10 C or cleaning and other processes. • Not contain more than 4% by volume of total inerts. higher at the delivery pressure. 3 • Not contain more than 35 mg/m of water content. • Be delivered at a maximum temperature of 30 C. 2. Freedom from objectionable matter • Not contain more than 0.1% by volume of hydrogen. The gas to be delivered to Enbridge Gas at the Receipt Point(s) hereunder, a. shall be commercially free from bacteria, sand, dust, f. shall not contain more than zero point five (0.5) molar percent Table 1: Renewable natural gas—pipeline gas quality specifications gums, crude oils, lubricating oils, liquids, chemicals or by volume of carbon monoxide in the gas, Value Unit Monitoring Recommended test compounds used in the production, treatment, compression g. shall not contain more than four point zero (4.0) molar frequency* or dehydration of the gas or any other objectionable percent by volume of hydrogen in the gas, 3 substance in su"cient quantity so as to render the gas toxic, Heating value HV 38.0 – 41.3 MJ/m Continuous D1945 / D7164 h. shall not contain more than sixty-five (65) milligrams of water unmerchantable or cause injury to, or interference with, the Wobbe index WN 47.2 – 51.1 MJ/m3 Continuous D1945 / D7164 vapour per m! of gas, proper operation of the lines, regulators, meters or other Carbon dioxide CO2 2 % vol Continuous D1945 appliances through which it flows, i. shall not have a cricondentherm hydrocarbon dewpoint exceeding minus eight (-8) degrees Celsius, Oxygen O2 0.4 % vol Continuous D1945 b. shall not contain more than seven (7) milligrams of hydrogen Total inerts 4 % vol Continuous D1945 sulphide per m! of gas, nor more than one hundred (100) j. shall have Wobbe Number from forty-seven point fifty (47.50) milligrams of total sulphur per m! of gas, megajoules per m! of gas to fifty-one point forty-six (51.46) Water content H20 35 mg/m3 Continuous D1142 / D5454 / D3588 megajoules per m! of gas, maximum of one point five (1.5) c. shall not contain more than five (5) milligrams of mercaptan Hydrogen H2 0.1 % vol Periodic D1945 mole percent by volume of butane plus (C4+) in the gas, and sulphur per m! of gas, 3 maximum of four point zero (4.0) mole percent by volume Hydrogen sulphide H2S 6 mg/m Continuous D4084 / D6228 / D4468 / D5504 / D7166 d. shall not contain more than two point zero (2.0) molar percent of total inerts in the gas in order to be interchangeable with Total sulphur S 23 mg/m3 Periodic D4084 / D6228 / D4468 / D5504 / D7166 by volume of carbon dioxide in the gas, other Interconnecting Pipeline gas, Ammonia NH3 3 mg/m3 Periodic D1945 e. shall not contain more than zero point four (0.4) molar k. shall not exceed forty-three (43) degrees Celsius, and, Siloxanes Si 1 mg/m3 Periodic Gas chromatography (ELCD, AED, MS) percent by volume of oxygen in the gas, l. shall not be odourized by Shipper. Halocarbons and 10 mg/m3 Periodic Gas chromatography / electrolytic organochlorinated compounds conductivity detector 3. Non-conforming gas Volatile organic compound VOCs Site-specific Periodic Gas chromatography / mass spectrometry (GC/MS) a. In the event that the quality of the gas does not conform or if Enbridge Gas, acting reasonably, suspects the quality of the gas may not conform to the specifications herein, then Shipper shall, if so directed by Enbridge Gas acting reasonably, forthwith Bacteria Technically Periodic Most probable number determination of carry out, at Shipper’s cost, whatever field testing of the gas quality as may be required to ensure that the quality requirements free of total live bacteria (MPN), others set out herein are met, and to provide Enbridge Gas with a certified copy of such tests. If Shipper does not carry out such tests Particles, dust, etc. Technically Continuous Environmental recommendations 0.1 µm forthwith, Enbridge Gas may conduct such test and Shipper shall reimburse Enbridge Gas for all costs incurred by Enbridge Gas free of filters for such testing. Hydrocarbon dew point -10 C Continuous D5504 / D1142 b. If Shipper’s gas fails at any time to conform to the requirements of this Article II, Enbridge Gas, in addition to its other remedies, Delivery temperature (plastic pipe) < 30 C Continuous may refuse to accept delivery of gas at the Receipt Points hereunder until such deficiency has been remedied by Shipper. Each

Party agrees to notify the other verbally, followed by written notification, of any such deficiency of quality. *In this document, continuous monitoring means real-time or near-real time. Periodic monitoring could be seasonal, semi-annually or annually. Final monitoring frequency will be defined for each RNG facility.

4. Quality of gas received The quality of the gas to be received by Enbridge Gas at the Receipt Point(s) hereunder is to be of a merchantable quality and in accordance with the quality standards as set out by Enbridge Gas in this Article II, but, Enbridge Gas will use reasonable e#orts to accept gas of a quality that may deviate from the quality standards set out therein.

18 Renewable Natural Gas Producer Guide Enbridge Gas 19 Unsure about your service territory? See the areas we serve.

Lac Seul Ontario

Lake Lake Nipigon of the Woods

Thunder Bay

Lake Quebec Superior

Sault Ste. Marie Sudbury

Lake Nipissing North Bay

Ottawa United States Lake Huron

Lake Simcoe Barrie NapaneeNapanee

Lake Toronto Ontario WaterlooWaterloo HamiltonHamilton Lake Michigan London

Lake St. Clair Chatham Windsor Lake Erie

About Enbridge Gas Enbridge Gas Inc., formed on Jan. 1, 2019 from the amalgamation of Union Gas and Enbridge Gas Distribution, is Canada’s largest natural gas storage, transmission and distribution company based in Ontario with a more than 170-year history of providing safe and reliable service to customers. The distribution business serves about 3.8 million customers, heating over 75 percent of Ontario homes. The storage and transmission business o!ers a variety of storage and transportation services to customers at the Dawn Hub, the largest integrated underground storage facility in Canada and one of the largest in North America. Enbridge Gas Inc. is owned by Enbridge Inc., a Canadian-based leader in energy transportation and distribution.

20 Renewable Natural Gas Producer Guide Ready to get started? Partner with our RNG experts

Our dedicated team of energy experts are ready to provide you with the technical expertise and information to produce and use RNG.

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