Southern Company Gas Adds RNG Supply for Virginia, Tennessee Utilities

(P&GJ) — Southern Company Gas has expanded its renewable natural gas (RNG) portfolio with new supply agreements for its Virginia Natural Gas and Chattanooga Gas subsidiaries.

The purchases build on the utilities’ first-ever RNG deals in 2023 and involve acquiring environmental attributes from Texas-based RNG facilities. Together, the new agreements are expected to avoid an estimated 18,978 metric tons of carbon dioxide equivalent (CO₂e), roughly equal to the annual carbon sequestration of more than 19,000 acres of U.S. forest.

RNG is produced by capturing methane from landfills, agricultural waste, and wastewater treatment facilities before it escapes into the atmosphere. The fuel is compatible with existing gas infrastructure, allowing for an easier transition to lower-emission energy sources.

"We're leveraging our advanced infrastructure to deliver cleaner fuels, which is part of our commitment to providing sustainable solutions for our customers and communities," said Bryan Batson, executive vice president of external affairs and chief external and public affairs officer for Southern Company Gas. "These transactions are the latest examples of how we are supporting emission reductions efforts aligned with our goal of achieving net-zero direct greenhouse gas emissions from operations by 2050."

These purchases follow policy changes in both states. Virginia’s Energy Innovation Act and Sustainable Gas Program support RNG integration, while the Tennessee Natural Gas Innovation Act permits cost recovery for cleaner energy initiatives.

Additionally, Virginia Natural Gas recently partnered with the Hampton Roads Sanitation District on a project that will convert biogas from the Atlantic Treatment Plant into RNG for market distribution.

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