FortisBC first energy utility in North America to automatically designate Renewable Natural Gas for customers

SURREY, BC, June 27, 2024 /CNW/ - With recent approval from the British Columbia Utilities Commission, as of July 1, 2024, FortisBC Energy Inc. (FortisBC) gas customers will have one per cent of their gas automatically designated as Renewable Natural Gas¹ (RNG). FortisBC is the first energy utility in North America to automatically designate RNG for customers.

FortisBC and Dicklands Farms produce Renewable Natural Gas from local agricultural waste. (CNW Group/FortisBC)

"It is clear that our province needs all available tools to address climate change and support an affordable energy transition towards lower emissions for residents, businesses and industry," said Doug Slater, vice-president of Indigenous relations and regulatory affairs at FortisBC. "The gas system is undergoing a transition as we work to increase the supply of renewable and low-carbon gases, like RNG, to lower emissions and this new RNG blend offering will help us do that." 

For the average residential customer, there will be no cost impact to their monthly bill. The one per cent RNG blend will be incorporated in the storage and transport line item on their bill and they will see a carbon tax credit (biomethane credit) for the portion of their gas that is automatically designated as RNG. The RNG blend will increase over time and customers could see a change in their bills in the future.

Today, more than 13,000 B.C. homes and businesses subscribe to RNG through FortisBC's current voluntary RNG program. FortisBC will continue to offer the voluntary RNG program so customers can choose to designate up to 100 per cent of the gas they use as RNG, inclusive of the new one per cent blend.

"RNG allows our studio to play a role in reducing greenhouse gas emissions," said Gemma Martini, CEO of Martini Film Studios. "By subscribing to RNG, we can help to lower overall emissions without requiring expensive upgrades to our equipment while continuing to create world-class film and TV productions."

"RNG is a key component of our climate action plan, as it helps reduce overall greenhouse gas emissions and supports our local economy," said James Lota, general manager of lands and facilities at City of Burnaby. "The RNG blend we subscribe to in our facilities and vehicles is pivotal to our transition to 100 per cent renewable energy, especially for applications that are hard to decarbonize with other solutions."

The gas system plays a vital role in safely, reliably and affordably meeting the energy needs of British Columbians. Increasing the amount of RNG in the gas system is an important part of the provincial government's CleanBC Roadmap to 2030 to decarbonize the economy. FortisBC will continue to develop its renewable and low-carbon gas² options, like RNG, so that it can contribute towards meeting B.C.'s climate goals, maintain affordability and provide choice for families and businesses.

For more information on the RNG blend, visit fortisbc.com/rngblend.

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¹ Renewable Natural Gas (also called RNG or biomethane) 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 RNG. When RNG is added to North America's natural gas system, it mixes with conventional natural gas. This means we're unable to direct RNG to a specific customer. But the more RNG is added to the gas system, the less conventional natural gas is needed, thereby reducing the use of fossil fuels and overall greenhouse gas emissions.

² FortisBC uses the term renewable and low-carbon gas to refer collectively to the low-carbon gases or fuels that the utility can acquire under the Greenhouse Gas Reduction (Clean Energy) Regulation, which are: Renewable Natural Gas (also called RNG or biomethane), hydrogen, synthesis gas (from wood waste) and lignin. FortisBC's renewable and low-carbon gas portfolio currently includes only Renewable Natural Gas. Other gases and fuels may be added to the program over time. Depending on their source, all of these gases have differing levels of lifecycle carbon intensity. However, all of these gases are low carbon when compared to the lifecycle carbon intensity of conventional natural gas. The current burner tip emission factor of RNG is 0.27 grams of carbon dioxide equivalent per megajoule of energy (gCO₂e/MJ) and the current renewable and low-carbon gas portfolio lifecycle emissions for stationary combustion are -22 gCO₂e/MJ. This is below B.C.'s carbon intensity threshold for low-carbon gases of 36.4 gCO₂e/MJ set out in the 2021 B.C. Hydrogen Strategy.

About FortisBC Energy Inc.

FortisBC Energy Inc. is a regulated utility focused on providing safe and reliable energy, including natural gas, Renewable Natural Gas and propane. FortisBC Energy Inc. employs around 2,096 British Columbians and serves approximately 1,075,595 customers across British Columbia. FortisBC Energy Inc. owns and operates approximately 51,200 kilometres of gas transmission and distribution pipelines. FortisBC Energy Inc. is a subsidiary of Fortis Inc., a leader in the North American regulated electric and gas utility industry. FortisBC Energy Inc. uses the FortisBC name and logo under license from Fortis Inc. For further information on FortisBC, visit www.fortisbc.com. For further information on Fortis Inc., visit www.fortisinc.com.

SOURCE FortisBC

MEDIA CONTACT: Diana Sorace, Senior Advisor, Corporate Communications, FortisBC, Phone: [phone], Email: [email protected], fortisbc.com, 24-hour media line: 1-855-322-6397