Southern Company Gas Subsidiaries Secure First Renewable Natural Gas Deal
(P&GJ) — Two Southern Company Gas subsidiaries, Virginia Natural Gas and Chattanooga Gas, have finalized their inaugural renewable natural gas (RNG) agreement.
The transaction, involving environmental credits from facilities in Nebraska and Indiana, is estimated to yield emissions reductions equivalent to carbon sequestered by over 12,000 acres of U.S. forest or an area the size of Manhattan.
"Incorporating RNG into our fuel supply not only meets our customers' expectations for sustainable solutions but also advances our goal of achieving net-zero operational emissions by 2050," stated Bryan Batson, Executive Vice President of External Affairs and Chief External and Public Affairs Officer at Southern Company Gas.
Renewable natural gas is derived from naturally occurring methane emitted primarily from landfill, agricultural, wastewater, and food waste sites, with its capture at the source reducing greenhouse gas emissions. Compatible with existing infrastructure and appliances, RNG is a sustainable and reliable energy source, offering carbon-neutral or even carbon-negative attributes depending on its source.
This milestone transaction was made possible by supportive policies in Virginia and Tennessee, such as the Energy Innovation Act and Sustainable Gas Program in Virginia, and the Tennessee Natural Gas Innovation Act. These policies enable and encourage the production and delivery of RNG while permitting natural gas utilities to pursue cleaner energy options.
Aligned with Southern Company Gas' commitment to decarbonization, Chattanooga Gas previously announced that 100% of its natural gas supply for residential and small business customers is "Next Generation Natural Gas," procured, transported, or delivered by companies reducing methane emissions. Virginia Natural Gas, which initiated the use of Next Generation Natural Gas in 2019, continues to expand its engagement with suppliers to deliver cleaner fuel options to its customers.
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