PG&E Announces Production Pilot, RNG Procurement

DTE Pacific Gas and Electric Company (PG&E) has commenced the process to purchase California-produced renewable natural gas (RNG) for its residential and small commercial customers. In addition to securing RNG purchase agreements from local producers, PG&E will develop a biomass-to-RNG project of its own. The RNG advancements support tenets within California’s SB 1440 policy to explore the production of biomethane in the state.

PG&E aims to procure RNG to serve 15% of the residential and commercial demand by 2030. The wood biomass-to-RNG pilot project will serve as the first secured contract to satisfy PG&E’s customer demand. The company’s vegetation management work will supply forest waste as a feed source for the project.

The biomass-to-RNG pilot project is a collaboration between PG&E and West Biofuels, utilizing technology that converts wood and forest waste into pipeline-ready natural gas. The technology converts most of the biomass’ renewable carbon into natural gas, which increases output and eliminates emissions during production. PG&E, in addition to its externally sourced RNG, will provide this natural gas service to residential and small commercial customers.

"A clean and decarbonized energy future requires steps and breakthrough technologies,” said Jason Glickman, Engineering, Policy, and Strategy Executive Vice President. “We're excited to partner with others in northern California to expand and scale the production of clean, renewable natural gas from the abundant wood waste available within our state."

PG&E plans to issue a second round of RNG procurement before the end of 2023, seeking out projects located in California that create RNG from sources of organic waste. Food waste, wastewater, and wood waste are eligible feedstocks for PG&E’s RNG procurement.

The company will continue to connect RNG production sites to its gas pipeline system and plans to interconnect a landfill-based RNG facility in early 2024.