A Green Choice for Transportation
Go With RNG began as interest in meeting net zero and net negative greenhouse gas emissions increased in Canada. Originally supported by Canada’s natural gas vehicle industry, Go with RNG brings together fleets, equipment suppliers and renewable gas suppliers.
Canada’s Clean Fuel Regulation supports the use of lower carbon intensity fuels, including renewable natural gas, and for the first time, has put into place a policy framework that can support development and use of these fuels. Go with RNG aims to build capacity for a transition toward greater use of RNG in natural gas vehicles here in Canada.
RNG is produced from organic feedstocks that are regularly replenished, making it a truly renewable resource. The process primarily relies on an organic-based manufacturing method, ensuring a continuous supply of energy.
RNG and traditional natural gas are primarily methane and are molecularly identical. This makes RNG a perfect drop-in replacement fuel for existing natural gas systems.
Using RNG helps meet regulatory requirements, as it supports Canada's Clean Fuel Regulation by providing a lower carbon intensity fuel option, essential for reducing greenhouse gas emissions.
The organic feedstocks used to produce RNG emit potent greenhouse gases. By collecting and using these gases to create RNG, their emission into the atmosphere is avoided, contributing to significant greenhouse gas emissions reduction.
Refueling at an existing public CNG station may be a viable option at the early stages of switching to natural gas. If a public station is to be used, fill time and site access are important considerations.
Private onsite CNG or LNG refueling stations may be suitable if the fleet’s total natural gas fuel volume is sufficient. A general rule of thumb is that typically 20 medium or heavy vehicles are needed in order to consider a private onsite station.
Another refueling option may involve accessing a nearby private station owned by another fleet.
Visit Natural Resources Canada’s interactive map of public natural gas fueling locations across Canada: NRCan Station Locator
CNG is natural gas that is:
Fleets that choose natural gas have a range of refueling station options and a choice of service providers for vehicle refueling. Stations dispensing CNG can be designed as fast fill stations capable of matching the filling times of liquid fuels or time fill stations that refuel all vehicles simultaneously with refueling typically taking place overnight in the fleet yard.
LNG stations refuel vehicles in times similar to diesel station refueling. An LNG refueling station must have a local supply of fuel. Given that LNG is delivered by tanker truck, delivery cost and proximity of the LNG production facility are important considerations. At present, there are five LNG production facilities in Canada that can supply LNG for fleets.
These facilities are located in Montréal (QC), Calgary (AB), Delta (BC), Ladysmith (BC), and Hagar (ON).
LNG is a natural gas that is:
Existing landfill sites have been regulated to reduce methane emissions that result from the slow decay of a variety of waste types that are present at these sites. Initially these gases were captured – methane is one of the most common gases – and flared. Biogas from landfill can also be captured and used to generate electricity and can be upgraded to pipeline quality natural gas – or RNG. Legacy landfill sties can be retrofitted to generate, capture and upgrade decomposing gases to RNG. Landfill operators generally do not flare the gas, instead they prefer to use it to generate energy.
These gases have a good carbon intensity score as limited energy inputs are required for production and upgrading. However, production of gas is limited and does not allow for the addition of more waste materials.
Anaerobic digesters involve complex organic chemistry, as well as complex material handling and preparation. Additional energy is required to support the process, but the RNG yields can be much higher than conventional landfill sites. Moreover, different waste streams can be collected and processed in their own facilities.
Building facilities that can digest organic material in a controlled anaerobic environment extracts the energy in the form of RNG and process the waste into digestate – which is similar to compost.
For waste facility operators, the use of anaerobic digestion can facilitate handling of large
ongoing volumes of waste materials while maintaining a relatively small footprint.
High temperature processes like pyrolysis can unlock gases from a variety of waste streams, including inorganic materials. Currently pyrolysis technologies are being piloted in converting woody and cellulosic feedstocks into RNG. Woody biomass from forest production offers very good opportunities for very low carbon intensity scores as current emissions are offset by reforestation and related organic carbon sinks.
Using hydrogen in waste handling – “hydrogenation” – can enhance anerobic production by increasing available hydrogen to bond with carbon molecules thereby boosting methane production while waste carbon dioxide is reduced. This use of hydrogen also mirrors early technology development for the production of synthetic methane, which is another path for the production of low carbon intensity natural gas.
Hydrogenation is still largely at the experimental stage. A big consideration is the need for large quantities of waste hydrogen or zero carbon intensity hydrogen to support these processes.
RNG is a drop in substitute for conventional natural gas. There are no changes required to either fuel delivery or fuel use with currently available natural gas engine technologies.
The vast majority of RNG used today is collected and distributed in the existing natural gas pipeline and local distribution network. Because the molecules are the same, the natural gas distribution system has developed the concept of nomination. Nomination allows customers to buy a particular supply of natural gas, even though they may not receive that actual gas. In the same way that a company can contract for low-cost natural gas, a company can also contract to purchase RNG. The difference in the case of RNG is that the attribute being contracted is not just the price, but also the carbon intensity. In effect, the emissions reduction may happen somewhere else and with a different customer, but the one who purchases the RNG has also purchased those emissions reductions.
In many ways the business case for RNG sits on top of the natural gas case.
There are opportunities for increased emissions reductions through the use of RNG. Monetizing these reductions rests on a well-established network of businesses that can offer fleets options to access RNG for their own use.
Canadian fleets can opt to pay a sum for RNG while reducing the emissions impact of existing natural gas vehicles. Customers will in turn pay a premium for the service of net-zero emissions transport. Municipal and transit fleets can use RNG as a low-cost pathway to compliance with local net-zero policies.
Under the Clean Fuel Regulation, a higher emissions reductions pathway can be created for generating end-use fuel switching credits with the use of RNG. There are a couple ways these pathways can be certified for credit generation. The simplest path is for a fleet that owns its on fueling station – the default credit creator – to purchase RNG that has already been identified as a pathway under the regulations. A similar pathway would involve a commercial vendor of natural gas fuel for transport to register a lower carbon intensity pathway based on its existing natural gas CFR pathway.
Credits can improve the business case:
In 2023 RNG for an average Class 8 vehicle would be $17,000 more expensive than diesel.
Default CFR Carbon Intensity values for RNG would generate 92 tonnes of credits for that same truck.
CFR credits sold at the maximum value of $300 per tonne could net $28,000
Net savings of $10,000 per year.
Simply opting to blend RNG can result in more net greenhouse gas emissions reductions, while still maintaining a positive business case.
In 2023 an RNG blend as high as 40 percent could generate the following:
Fuel cost savings of $16,000;
Emissions reductions of 61 tonnes – roughly half over diesel baseline;
CFR maximum credit value of $18,000;
Total net savings of $34,000.
In some regions the price for RNG relative to the cost of diesel may already generate a positive business case.
In 2023 BC full use of RNG had an average retail cost of $1.80 per litre equivalent generating a modest fuel cost savings of $4,000. This is relatively weak business case, but it shows the potential for savings as diesel prices trend higher.