Study Reinforces Positive Outlook on Renewable Natural Gas' Future

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Dec 20, 2019, 17:04 ET

LAS VEGAS, Dec. 20, 2019 /PRNewswire/ -- Southwest Gas is pleased to highlight findings in a newly released study that outlines the supply and benefits of renewable natural gas (RNG) as a key energy source in the reduction of greenhouse gas emissions.

The Renewable Sources of Natural Gas Supply and Emission Reduction Assessment study, co-sponsored by the American Gas Foundation and fellow utilities including Southwest Gas, was conducted by ICF, a global consulting services company. The study indicates the potential supply of RNG nationwide is significant. The study adds that by 2040, RNG has the potential to play a substantial role in significantly lowering emissions, with costs that are lower or competitive with other emission reduction approaches.

"Today, natural gas helps meet energy demand affordably, drives energy independence and economic growth, and plays a major role in reducing greenhouse gas emissions in the United States," said Jose Esparza, Southwest Gas Senior Vice President, Information Services and Customer Engagement. "We are excited by the potential of renewable natural gas to further decarbonize the pipeline as we strive to achieve a balanced approach to the sustainable energy future."

The study assesses both low and high resource scenarios, both of which estimate that an impressive amount of British thermal units (Btus) of RNG will be produced annually for pipeline injection by 2040. Low resource potential targets approximately 1,660 trillion Btus, while the high resource scenario allocates as much as 3,780 Btus. Further, ICF expects that by 2040, the majority of RNG will cost between $7-$20mmbtu, making RNG competitive with other emission reduction technologies at a cost range between $55-$300/metric ton CO₂.

The American Gas Association defines RNG as methane produced from farms, landfills and wastewater treatment plants that is carbon neutral and fully compatible with existing natural gas infrastructure. The study findings strengthen Southwest Gas' commitment to bring this new environmentally friendly resource to our customers in Arizona, California and Nevada.

Southwest Gas Corporation provides safe and reliable natural gas service to over two million customers in Arizona, California and Nevada.

SOURCE Southwest Gas Corporation