Utilities combine resources to meet the state’s energy goals
LOS ANGELES—Four Southern California utilities have partnered to solicit proposals for dairy biomethane pilot projects—Southern California Gas Co., San Diego Gas and Electric, Pacific Gas and Electric Company, and Southwest Gas. This is the first step in a new program created under S.B. 1383 by the California Public Utilities Commission, which has been directed to reduce methane emissions from agriculture in the state by 2030.
The proposed projects must be able to capture and process biogas from dairy cows to produce renewable natural gas, which will be used to augment traditionally sourced natural gas for generating electricity, heating homes and fueling vehicles. At least five projects will be selected.
“Capturing agricultural biogas is an innovative way to produce RNG while helping achieve the state’s climate goals,” said Michael Schneider, chief environmental officer for SDG&E. “These pilot projects will help us to identify a largely untapped energy resource and put organic waste to work for California.”
Lisa Alexander, vice president of Customer Solutions and Communications for SoCalGas, added that these pilot projects are “an exciting way to start building the market for RNG.”
Building that market is a top concern for all of the participating utilities. Finding new ways to reduce methane emissions and their effect on the environment such as through RNG has long been a priority for PG&E, according to Gas Operations Senior Director Christine Cowsert. “We are committed to playing a key role in California’s emissions reductions effort and clean energy future,” she said. “The capturing, transformation and utilization of methane emissions as a clean fuel source are going to have significant environmental benefits.”
“Southwest Gas is excited to partner with SoCalGas, San Diego Gas & Electric, and Pacific Gas and Electric to further develop the RNG market in California,” added Randall Gabe, vice president of Gas Resources for Southwest Gas. “Together we can help achieve the state’s climate-change goals.”
Proposed projects will be selected by the CPUC, California Air Resources Board and California Department of Food and Agriculture. The agencies will jointly choose projects based on an evaluation of the proposed business model and anticipated greenhouse-gas reductions, as well as cost effectiveness, environmental benefits, disadvantaged-community benefits and project readiness.
Dairy biogas development is rapidly increasing in California, with help in part from a $35 million grant from the CDFA in 2017. The agency is expected to provide an additional $61 million to $75 million in grant funding for new dairy biogas projects this year.