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Renewable Natural Gas as Transportation Fuel in CNG and LNG Vehicles

Jaclyn Tino
Posted by Jaclyn Tino on May 22, 2024 7:00:00 AM
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UGI Energy Services (“UGIES”) is a leading Renewable Natural Gas (“RNG”) marketer with over 10 years’ experience delivering RNG to customers. That experience includes producing, procuring, and supplying RNG as a transportation fuel for fleets.

may 16 ugies rng

RNG is a pipeline-quality biogas that is interchangeable with traditional, geological natural gas. It can be produced from a variety of organic waste materials including: matter from landfills, waste from food production or other manufacturing plant activities, wastewater treatment plants, and agricultural manure.

“RNG is a game changer because it reduces the impacts of organic wastes, while also fueling a greener future. Solid waste is expected to grow nearly 70% by 2050 due to natural human activity,” explains The Coalition for Renewable Natural Gas. “RNG provides a near-term solution for effectively managing this colossal waste issue and getting us on the path to implementing a source of clean, reliable fuel.”

RNG has become a popular alternative for transportation fleets that use Compressed Natural Gas “CNG” or Liquified Natural Gas “LNG” to fuel their vehicles.

For organizations looking to further reduce transportation related emissions, RNG is an alternative natural gas fuel option for fleets offering many environmental benefits.

PREPARING RNG FOR VEHICLE USE

As explained by the U.S. Department of Energy, “To fuel vehicles, biogas must be processed to a higher purity standard. This process is called conditioning or upgrading, and involves the removal of water, carbon dioxide, hydrogen sulfide, and other trace elements. The resulting RNG, or biomethane, has a higher content of methane than raw biogas, which makes it comparable to conventional natural gas and thus a suitable energy source in applications that require pipeline-quality gas, such as vehicle applications.”

BENEFITS OF RNG

Customers using RNG to fuel their vehicles not only help use waste methane that would otherwise be released into the atmosphere, thereby helping improve air quality, but they also enjoy economic benefits. The team of experts at UGIES can assist those fleets with participation in the federal incentive program, the Renewable Fuel Standard (“RFS”), associated with the consumption of RNG as a vehicle fuel. There are no equipment modifications required to consume RNG. By consuming RNG as transportation fuel, customers receive a monthly rebate in the form of a discount on their price of natural gas. They also receive public claim for their use of a renewable fuel in their vehicles.

Rebates are created when RNG is delivered to a fuel tank. Our team will create a Renewable Identification Credit “RIN,” and sell this RIN to a party who is required to purchase it under the RFS, namely refiners. UGIES delivers the RNG, will create and then sell the RIN, and transfer a rebate to the customer. This simplifies the process for customers looking to meet their green goals. Customers only need to:

  • Enter into an addendum to their current natural gas agreement with UGIES.
  • Complete a 1-time registration affidavit and quarterly fuel consumption affidavits.
  • Ensure the RNG delivered is being consumed as fleet fuel.

There are no other obligations required of the customer to receive this rebate and claim. They will not be required to meet any volumetric consumption minimums or incur any take-or-pay fees.

Many organizations are realizing the power and benefits of Renewable Natural Gas. Recently, we announced our ‘first-in-Pennsylvania’ partnership with Lehigh and Northampton Transportation Authority (LANTA) to use RNG to power the eighty-plus buses in LANTA’s fleet. To learn more about this project, read our full blog post here. Included in the below chart is a breakdown of our Renewable Natural Gas projects committed to date.

RNG Projects Chart

If you think your organization could benefit from the use of Renewable Natural Gas or would just like to learn more, contact our team today!

Tags: Renewable Natural Gas, renewable energy, transportation, fleets

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UGI Energy Services

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We are a supplier, marketer, and midstream services provider – one backed by 135 years of natural gas experience, plus our own expanding energy infrastructure. Along with buying and selling energy commodities at the wholesale level, UGIES owns and operates key electric generation and midstream natural gas assets throughout Pennsylvania.

UGI Energy Services offers products and services for small to large companies across the Mid-Atlantic and New England states.

 

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