Released February 08, 2023 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Renewable natural gas (RNG) is rivaling hydrogen as the vital component of the energy transition, where it could replace nearly 10% of total conventional natural gas used in the United States, research suggests.
British energy company BP (NYSE:BP) (London, England) announced plans last year to spend around $4 billion in cash, plus another $800 million to cover net debt, to acquire U.S.-based Archaea Energy (Houston, Texas). Archaea operates 50 renewable natural gas and landfill gas-to-energy facilities across the country.
On Tuesday, BP Chief Executive Bernard Looney said the company would slow its transition to low-carbon forms of energy to capitalize on the things that drove profits last year.
"We need continuing near-term investment in today's energy system -- which depends on oil and gas -- to meet today's demands and to make sure the transition is an orderly one," he said.
But the $4 billion investment last year may be seen as something of a watershed moment for renewable natural gas -- otherwise known as biomethane.
The decomposition of organic matter results in the release of methane. Rather than let that escape, processors can treat it to remove excess moisture, carbon dioxide and other contaminants, concentrate it and send it on to consumers through conventional infrastructure.
That goes a long way to addressing net-zero ambitions. The U.S. Environmental Protection Agency (EPA) estimates the decomposition of organic matter in everything from the landfills to farms accounts for about 30% of anthropogenic methane emissions.
Raw biogas, the product captured from organic waste streams, usually has a methane content no greater than 65%, but the end product that's injected into pipelines is usually almost pure methane.
"Methane has a global warming potential more than 25 times greater than CO2 and a relatively short (12-year) atmospheric life, so reducing these emissions can achieve near-term beneficial impacts in mitigating global climate change," the EPA stated. "For facilities that are not already required to mitigate such emissions, an RNG project can reduce methane emissions significantly."
The World Resources Institute, meanwhile, estimates the U.S. waste stream could have the capacity to yield enough methane to replace nearly 10% of the conventional natural gas consumed annually.
Not only does that help with net-zero goals, it could in theory alleviate some of the geopolitical strains that have gripped the energy sector for the better part of a year. While RNG does run through conventional infrastructure, given the feedstock it would be assumed that developments would be local rather than international. We could assume that Europe, for example, would not be beholden to the waste streams of other nations to source emerging fuels such as biomethane.
Biomethane is certainly not new. Michigan officials recently changed operators at a waste-to-energy facility in Grand Rapids, the second-largest city in the state after Detroit. Only a small percentage of the population -- barely 1% -- are getting gas from biomethane, though the area has been utilizing the resource for more than 30 years.
But it's gaining traction as the emphasis on the energy transition continues. While similar trends are apparent in the hydrogen sphere, particularly green hydrogen, most of the technology that would be considered clean is still in the nascent stage.
Critics point to cost as a deterrent. RNG could be about six times as expensive per million British thermal units compared with conventional natural gas, and its availability is largely limited to areas within the vicinity of the waste stream, suggesting it might not be a panacea for a clean-energy future.
At least some of the companies supporting a cleaner future -- including BP -- are advocating an all-of-the-above approach, with various emerging technologies playing a role rather than meeting all the requirements for an easy transition.
RNG might not be the solution, but among the various emerging options, it appears to be among those most easily infused into today's market. As BP's Looney said, companies are focused on the energy system of today in order to "make sure the transition is an orderly one" and, with its established track record, RNG might be a low-hanging, but beneficial, fruit.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
British energy company BP (NYSE:BP) (London, England) announced plans last year to spend around $4 billion in cash, plus another $800 million to cover net debt, to acquire U.S.-based Archaea Energy (Houston, Texas). Archaea operates 50 renewable natural gas and landfill gas-to-energy facilities across the country.
On Tuesday, BP Chief Executive Bernard Looney said the company would slow its transition to low-carbon forms of energy to capitalize on the things that drove profits last year.
"We need continuing near-term investment in today's energy system -- which depends on oil and gas -- to meet today's demands and to make sure the transition is an orderly one," he said.
But the $4 billion investment last year may be seen as something of a watershed moment for renewable natural gas -- otherwise known as biomethane.
The decomposition of organic matter results in the release of methane. Rather than let that escape, processors can treat it to remove excess moisture, carbon dioxide and other contaminants, concentrate it and send it on to consumers through conventional infrastructure.
That goes a long way to addressing net-zero ambitions. The U.S. Environmental Protection Agency (EPA) estimates the decomposition of organic matter in everything from the landfills to farms accounts for about 30% of anthropogenic methane emissions.
Raw biogas, the product captured from organic waste streams, usually has a methane content no greater than 65%, but the end product that's injected into pipelines is usually almost pure methane.
"Methane has a global warming potential more than 25 times greater than CO2 and a relatively short (12-year) atmospheric life, so reducing these emissions can achieve near-term beneficial impacts in mitigating global climate change," the EPA stated. "For facilities that are not already required to mitigate such emissions, an RNG project can reduce methane emissions significantly."
The World Resources Institute, meanwhile, estimates the U.S. waste stream could have the capacity to yield enough methane to replace nearly 10% of the conventional natural gas consumed annually.
Not only does that help with net-zero goals, it could in theory alleviate some of the geopolitical strains that have gripped the energy sector for the better part of a year. While RNG does run through conventional infrastructure, given the feedstock it would be assumed that developments would be local rather than international. We could assume that Europe, for example, would not be beholden to the waste streams of other nations to source emerging fuels such as biomethane.
Biomethane is certainly not new. Michigan officials recently changed operators at a waste-to-energy facility in Grand Rapids, the second-largest city in the state after Detroit. Only a small percentage of the population -- barely 1% -- are getting gas from biomethane, though the area has been utilizing the resource for more than 30 years.
But it's gaining traction as the emphasis on the energy transition continues. While similar trends are apparent in the hydrogen sphere, particularly green hydrogen, most of the technology that would be considered clean is still in the nascent stage.
Critics point to cost as a deterrent. RNG could be about six times as expensive per million British thermal units compared with conventional natural gas, and its availability is largely limited to areas within the vicinity of the waste stream, suggesting it might not be a panacea for a clean-energy future.
At least some of the companies supporting a cleaner future -- including BP -- are advocating an all-of-the-above approach, with various emerging technologies playing a role rather than meeting all the requirements for an easy transition.
RNG might not be the solution, but among the various emerging options, it appears to be among those most easily infused into today's market. As BP's Looney said, companies are focused on the energy system of today in order to "make sure the transition is an orderly one" and, with its established track record, RNG might be a low-hanging, but beneficial, fruit.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
