Become a Renewable Natural Gas supplier
In 2011 we launched the first Renewable Natural Gas (RNG) program in Canada, and we continue to invest in new infrastructure to support locally made RNG. We’re uniquely positioned to purchase RNG from BC suppliers and distribute it though our existing natural gas infrastructure to 1.1 million commercial and residential customers in 135 communities across the province.
Renewable portfolio allowance: RNG program expansion
In March 2017, the province of BC amended the Greenhouse Gas Reduction Regulation to include a renewable portfolio allowance of up to five per cent RNG on the natural gas system. This creates a greater opportunity to grow the RNG supply in BC, helping to further reduce greenhouse gas emissions.
Benefits for Renewable Natural Gas suppliers
With proven RNG expertise, FortisBC offers important benefits to RNG suppliers, including:
- Alternative revenue: selling RNG to FortisBC provides a long-term revenue stream. FortisBC pays competitive rates to our suppliers. We use a financial model which considers the capital and operating costs associated with RNG upgrading and interconnection equipment, helping suppliers achieve a reasonable rate of return.
- Partner stability: we’ve owned and operated natural gas infrastructure in BC for more than 60 years and have invested approximately $15 million in RNG infrastructure to date. RNG purchase agreements with our suppliers are typically between 10 and 20 years in length. We operate with transparency, receiving oversight from the British Columbia Utilities Commission (BCUC).
- RNG expertise: having worked with RNG suppliers for more than seven years, our team has considerable experience and expertise in RNG processing and delivery. We currently work with four RNG supply projects, successfully operating two of our own RNG purification facilities. Two more suppliers are set to come online in 2018.
- Established market: FortisBC has a growing RNG customer base wanting a carbon neutral energy source to help them meet their long-term sustainability goals. As of September 2018, our RNG program has more than 10,000 customers.
How we evaluate projects
We’re committed to developing projects that meet our customers’ needs. Each project must meet certain requirements, including:
- Economics: we evaluate potential projects using a financial model that takes into account all of the costs associated with producing a high-quality, safe biomethane for consumers. This includes costs for equipment, operation, maintenance, use of existing FortisBC infrastructure and the price of either biogas or biomethane. Once calculated, the full cost of delivered biomethane must be below a pre-determined threshold.
- Proposed technology: we have a responsibility to provide our customers with a safe, affordable and reliable energy supply. We use proven biogas purification equipment to ensure the biomethane meets the same quality standards as the conventional natural gas we deliver to our customers.
- Supplier stability: our biogas project suppliers must make long-term commitments to ensure a reliable supply of RNG.
- Proximity to existing FortisBC infrastructure: any proposed project location must be close to our existing natural gas system. In addition, each location will have local gas system load characteristics that may limit the amount of gas that can be accepted.
- Regulatory approval: as a regulated utility, FortisBC is required to submit potential projects to the BCUC for review. Unless noted specifically, all projects must meet the requirements of the BCUC.
Meet our suppliersWe wouldn’t be able to offer the Renewable Natural Gas program without our dedicated local suppliers.
Renewable Natural Gas resources
The Canadian Biogas Association is the collective voice of biogas industry and it provides valuable resources for the exploration of new developments and new markets for RNG.
- Farms: refer to Developers Guides.
- Municipalities: refer to Closing the Loop and read about the City of Surrey Biofuel project.
1Renewable Natural Gas is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create carbon neutral Renewable Natural Gas (also called biomethane).