Did you know natural gas station owners in California and Oregon are getting paid to dispense natural gas? This is because policymakers have realized the benefit it can have on air quality. Therefore, through the Federal Renewable Fuel Standard (RFS), California’s Low Carbon Fuel Standard (LCFS) and Oregon’s Clean Fuels Program (CFP), financial credits are generated by dispensing clean fuel in transportation.
FUEL CLEAN — FUEL FORWARD
Adding renewable natural gas to your station’s offering provides financial benefits, while enabling cleaner air for the communities you serve.
Natural gas, consisting primarily of methane (CH4), is used as an alternative fuel and renewable energy solution once injected into a natural gas pipeline. In terms of sourcing, it can either be extracted from the ground or produced from renewable sources.
Renewable natural gas, which results from sequestration of methane when organic waste decomposes at agricultural facilities, landfills and wastewater treatment plants, is the cleanest option for natural gas. After the methane is captured, it is cleaned and processed to match the molecular structure of traditional natural gas. Once that’s complete, it’s then ready to be injected into natural gas pipelines.
We partner with farmers, landfill owners and municipalities for the RNG production and development process. The methane from waste at these sites is captured and then cleaned of any impurities. The resulting RNG is molecularly identical to that of traditional natural gas, and therefore, able to be injected into the natural gas distribution pipeline — a network of more than 2.1 million miles within the United States. After being injected into the pipeline, RNG is then distributed to the transportation sector as an alternative fuel.
After RNG has been produced, it’s injected into the natural gas pipeline network which your natural gas station can then draw from. This distribution process is done through displacement which acknowledges every unit of RNG injected into the pipelines prevents an equal amount of fossil gas from being extracted from the earth. Furthermore, if the injected amount matches an amount of traditional natural gas withdrawn by the transportation sector, a pathway can be certified for RIN, LCFS and CFP credit generation.
In an attempt to reduce the carbon intensity of transportation fuels and expand adoption of biofuels, state and federal governments created market-based incentive programs. Through these programs, environmental credits, as well as RIN, LCFS and CFP credits, are generated once RNG is dispensed as fuel for the transportation sector. These credits are then sold to obligated parties who failed to sell a specific volume of renewable fuel. By purchasing those credits, not only do the parties eliminate their deficit, but provide payment to you for supplying the credits.
Actively seeking distribution outlets for our RNG development projects, we’ll share a portion of environmental credits with natural gas station owners. After agreeing to source your station’s RNG supply from us, provide monthly summaries of total gallon volumes distributed and a quarterly affidavit for regulatory compliance, your station will receive a quarterly payment from us.