The Move to RNG Continues at a Frenetic Pace | Appa RNG Conference III

The Move to RNG Continues at a Frenetic Pace

 

The move to Renewable Natural Gas (RNG), a fuel that according the California CARB has a negative Carbon Intensity, continues at a frenetic pace.

“Right now, there is a lot of work being done to get projects already started to completion,” said Simmons, Director of Bioenergy for Cavanaugh & Associates. The North Carolina-based consulting/development firm has a growing portfolio of biogas (including Renewable Natural Gas) – centered projects.

“The pace of shovels going into the ground for new projects has slowed a bit compared to previous years as a result of inflation and questions on tax credit eligibility” Simmons added, “but there are still a great many projects under construction and under development.”  A typical RNG project ranges in price from $10 million to $150 million.

Simmons is one of numerous biogas experts scheduled to present at the Appalachian RNG Conference III – Spring 2024. The Hilton Garden Inn Southpointe, south of Pittsburgh, will host the one-day program on April 18.

Organized by the H2-CCS Network and Shale Directories, this all-day assembly will see industry leaders reveal key insights into navigating the expanding RNG landscape.

While federal and some states’ pro-RNG regulations and laws are known to positively impact projects, Simmons said the biggest driver of biogas production, including new projects, is the economy’s transportation sector.

“The demand for low-carbon fuels continues to grow and RNG is recognized as having the greatest impact in offsetting carbon emissions from the use of conventional fossil fuels,” Simmons said. Simmons added he’s seen an uptick in the number of passenger buses running on Compressed Natural Gas rather than diesel. The same holds true for commercial freight-hauling trucks. “Converting a fleet to using compressed natural gas may be an easier and better option than other low-carbon fuels”, the Cavanaugh executive said.

Simmons says biogas projects are supported by investment tax credits that help offset the rise in costs stemming from inflation and supply-chain constraints in recent years, but there are some ongoing questions regarding the applicability of these tax credits to the portion of biogas projects that upgrade the biogas to RNG so that it can be sold offsite.  Simmons and others in the U.S. biogas industry are working to garner more support for these projects.

“I believe the biogas industry will remain strong well into the foreseeable future,” Simmons added. “Biogas and RNG provide a faster path to decarbonization of the transportation sector, and will play an increasingly important role in our efforts to reduce carbon emissions.”

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