UGI Utilities is now accepting RNG from Archaea Energy into its pipeline distribution system, as part of a 2021 agreement.
In Fiscal 2021, UGI Utilities, a subsidiary of UGI Corporation, signed an interconnect agreement with Archaea to accept delivery of RNG produced from the Keystone Landfill in Pennsylvania into its natural gas pipeline.
Once fully operational, the recently completed interconnect is capable of accommodating up to 5.3 billion cubic feet of RNG annually, making this the largest current RNG supply point in the US.
UGI Utilities expects to use a portion of the RNG to serve customers who purchase supplies directly from the company starting in 2022. This purchase was made possible by the regulatory approval of a five-year pilot programme by the Pennsylvania Public Utility Commission (PUC). The pilot scheme, the first of its kind in the state, allows UGI Utilities to integrate RNG into its supply purchase portfolio to provide benefits for its customers.
All three PUC commissioners supported UGI Utilities’ RNG pilot programme, with specific acknowledgement by Commissioners Ralph Yanora and John Coleman, who said the initiative “represents an innovative economic model that balances environmental, customer, and gas supply requirements consistent with the Commonwealth’s least-cost gas supply requirements”.
Robert Beard, executive vice-president, natural gas, global engineering, construction, and procurement at UGI, said: “The approval of this pilot programme is a significant step forward as we continue to develop sustainable, environmentally responsible energy solutions for our customers. UGI remains committed to developing renewable energy sources for the communities we serve.”
Accepting the delivery of RNG reduces the release of methane from the Keystone Landfill into the atmosphere. It is expected the project will reduce CO2 emissions by an amount equivalent to removing 67,000 passenger vehicles over one year.