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SoCalGas supports reservation system for biomethane project funding

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Southern California Gas Co (SoCalGas) has announced support for the California Public Utilities Commission’s (CPUC) new Incentive Reservation System for the CPUC biomethane monetary incentive programme. The reservation system will help to increase transparency about available incentive funding for biomethane interconnection projects in California.

According to SoCalGas, there is currently around $32 million (€29.5 million) in funding available through the incentive programme. The money is available for eligible projects on a first-come-first-served basis until 31 December 2026, or until the funding runs dry.

The new reservation system is a key step to give biomethane developers certainty that the money they applied for will be there at the end of the project. It is also hoped the system can spur additional interconnection projects.

“SoCalGas commends the CPUC for establishing an incentive reservation system,” said SoCalGas vice-president of strategy and engagement and chief environmental officer, Sharon Tomkins. “It is my hope that state policymakers will realise the increased demand for renewable natural gas projects and make additional incentive funding available for many years to come.”

California law requires 40% of methane from sewage treatment plants, landfills, dairies and other agriculture to be captured, with provisions for energy delivery to customers as part of the state’s plan to cut greenhouse gas emissions. Renewable natural gas (RNG) can be used to heat homes and businesses, for cooking, and to fuel trucks and buses.