SoCalGas to add biomethane at fueling stations

Southern California Gas Company (SoCal Gas) plans to start using renewable natural gas at more than 30 fueling stations in the region.

The utility today put out a solicitation for companies that want to supply the gas and said it expects to complete gas purchase agreements in the near future.

"Using renewable natural gas at our natural gas fueling stations will help clean the air for southern California communities and support the state's clean energy future," SoCal Gas vice president of customer solutions and strategy Sharon Tomkins said.

The fuel would go to 25 stations in SoCal Gas' service territory, which encompasses much of southern California outside of San Diego, as well as six located in San Diego. SoCal Gas is owned by Sempra Energy, as is utility San Diego Gas & Electric.

Renewable natural gas, also known as biomethane, is a more refined version of biogas that is captured at sites like landfills, wastewater treatment plants, food processing plants and dairy farms. The fuel can be used interchangeably with conventional natural gas and injected into natural gas pipelines.

The latest generation of natural-gas engines for heavy-duty vehicles can reduce greenhouse gas (GHG) emissions by 80pc and smog-forming emissions by 90pc when powered by renewable natural gas, according to the utility.

Some environmental groups said the move would help with local air quality issues and contribute to the state's climate goals.

"It is good to see SoCal Gas taking the lead on this renewable natural gas project," Coalition for Clean Air president Joseph Lyou said. Lyou also sits on the governing board of the South Coast Air Quality Management District, the air quality regulator for Orange County and portions of Los Angeles, Riverside and San Bernardino counties.

California has struggled to curtail emissions from the transportation sector, which accounts for over 40pc of the state's GHGs and 80pc of NOx emissions.

Programs like the Low-Carbon Fuel Standard (LCFS) have made renewable natural gas projects more attractive, but advocates say barriers to pipeline interconnection have held back the industry's growth in California. Higher LCFS credit prices, combined with state funds that help fleets purchase natural gas trucks, could help jump-start more projects.

SoCal Gas started to inject locally-sourced renewable natural gas into one of its pipelines earlier this summer.

The Legislature also passed a bill last month that would require the state Public Utilities Commission, in consultation with the Air Resources Board, to consider adopting biomethane procurement goals for the gas utilities. Governor Jerry Brown (D) has until the end of the month to sign it.