PNG and ATCO Future Fuel sign 15-year renewable natural gas supply agreement
by CM Staff
Under the agreement, ATCO Future Fuel will begin delivering RNG to PNG in late 2022 and quickly ramp up production volumes to 230,000 gigajoules per year.
VANCOUVER— Pacific Northern Gas Ltd. (PNG) and ATCO Future Fuel RNG Limited Partnership (ATCO Future Fuel) announced an agreement for the sale and purchase of Renewable Natural Gas from ATCO Future Fuel’s new biomethane facility in Two Hills County, Alberta. The Renewable Natural Gas will be delivered to PNG through existing natural gas pipelines and allows PNG to offer its customers a cleaner energy alternative.
“Our goal is to shrink our environmental footprint while continuing to deliver safe, reliable energy,” said Leigh Ann Shoji-Lee, President, Pacific Northern Gas, in a company statement.
“Our new, renewable energy option is part of our commitment to operating sustainably for the benefit of the environment and the communities where our customers and employees live and work.”
According to a company statement, RNG is a low carbon, pipeline-quality gas that is fully interchangeable with conventional natural gas. RNG is produced by capturing and upgrading biogas generated by decomposing organic waste by-products from farming and forestry, landfills and wastewater treatment plants.
“ATCO Future Fuel RNG is proud to partner with Pacific Northern Gas for the sale of renewable natural gas from our new RNG operation,” said Bob Jones, Director, ATCO Future Fuel RNG, and President, ATCO Energy Solutions, in a press release.
“This plant is an investment in energy transition and reinforces our commitment to deliver sustainable energy projects—here in Alberta and globally—in an effort to decarbonize the way we live and work, in support of a safe, reliable, affordable and cleaner energy future.”
Under the agreement, ATCO Future Fuel will begin delivering RNG to PNG in late 2022 and quickly ramp up production volumes to 230,000 gigajoules per year. According to a company statement, this equates to enough for space and water heating needs of about 2,300 homes in northern B.C. and will avoid up to 20,000 tonnes of carbon dioxide equivalent emissions per year.
Emissions Reduction Alberta (ERA) has committed $7.9 million to the ATCO Future Fuel project through its Natural Gas Challenge. This investment comes from the Government of Alberta and is sourced from the Technology Innovation and Emissions Reduction (TIER) fund.
ATCO Future Fuel RNG is a joint venture between ATCO Energy Solutions, a member of the ATCO Group, held by Canadian Utilities Limited, and Future Fuel Ltd., a biofuels and agricultural biomass company. The construction and operation of the facility will be managed by ATCO Energy Solutions.