VGS Renewable Natural Gas Program Program Objectives
VGS Renewable Natural Gas (RNG) program is a simple way for our customers to reduce fossil fuel use, achieve their carbon reduction objectives and contribute in an innovative way to addressing climate change. What VGS’ RNG Product?
RNG also known as biomethane or biogas, is produced by the anaerobic digestion of organics at farm digesters, waste treatment plants and landfills.
“VGS Renewable Natural Gas” is an innovative offering that will allow customers to purchase the renewable attributes of biogas production. VGS Renewable Natural Gas Supply
2018 RNG Supply ▪EBI Landfill in Quebec:
Future RNG Supply ▪VT Farm Digester 2019/20 ▪Canadian RNG Plant 2019 How much does VGS RNG costs?
Percentage
The initial voluntary “Adder” is 10% $1.1749/ccf. 25% Customers can choose a percentage of 50% their usage for the Adder 100% How is the RNG Adder Calculated?
Rate Component Cost Average RNG Supply $1.6809/ccf Average Natural Gas $.5060/ccf VGS RNG Adder $1.1749/ccf
It is also the value of the “RENEWABLE ATTRIBUTE”. Updated with each Quarterly PGA. VGS Renewable Gas Website RNG Public Policy Opportunity
Supply Potential- NREL study estimates 4,200 BCF/yr. in US and the Canadian Gas Association estimates 1,400 BCF/yr of RNG is technically available in North America. That is ~50% of total Natural Gas Consumption. VGS’ Firm Customers only use ~6Bcf/yr.
Renewable Fuel Standard- Federal Incentive ~$30/MMBtu for RNG used in Compressed Natural Gas vehicles. California LCFS-$$$
Elsewhere- Ontario is $100m spending on RNG development, WI, CA, Quebec, WA and NY working on RNG development. Europe has 100’s of RNG projects.
Vermont- Salisbury Farm Project will be a model for leveraging RNG market, Food waste recycling and lake clean up efforts. VGS is looking at more farm projects in VT.
Corporate RNG Market- Businesses with aggressive sustainability goals are looking for RNG as a tangible step toward reducing their carbon footprint. RNG Resources
▪ Renewable Natural Gas Coalition- http://www.rngcoalition.com/
▪ American BioGas Council- http://www.americanbiogascouncil.org/index.asp
▪ National Renewable Energy Laboratory- https://www.nrel.gov/docs/fy14osti/60178.pdf
▪ Energy Vision- http://energy-vision.org/fact-sheets/EV-RNG-Fact- Sheet.pdf
▪ US Dept. of Energy- https://www.afdc.energy.gov/fuels/natural_gas_renewable.html The journey is just beginning