Calling it a nod for “cow power,” Pacific Gas and Electric Co. announced Thursday that it has singed an agreement with a manure-to-methane producer to deliver 8 MMcf/d of “renewable natural gas” (RNG) produced from cow dung. Promising to leave no meadow cake undigested, PG&E labeled this as its “newest and most innovative” renewable energy project, albeit one of the smallest in terms of energy output.

The agreement is with Microgy Inc, the farm waste energy producer that is a subsidiary of Environmental Power Corp., a New Hampshire-based producer of biogas and waste coal power projects. Supplies will come from four Microgy facilities in California.

Under the deal, PG&E will purchase the RNG from four production facilities that Microgy will build on large dairy farms, interconnecting those systems to the utility’s extensive natural gas pipeline network serving the northern and central portions of California. Along with the renewable energy benefits, the utility said the dairy-based facilities produce “significant” greenhouse gas (GHG) benefits.

The utility announcement cited supportive backing from a nonprofit environmental group pushing biofuels and the western dairy operators’ association. “Biomethane takes the problem of air pollution and GHG emissions and turns it into a key part of the solution to California’s reliance on fossil fuels,” said Allen Dusault, the biofuels director for Sustainable Conservation, a nonprofit group. Similarly, Michael Marsh, CEO of the Western United Dairymen, called the project a great opportunity and a chance to pursue renewables with a “market-based solution,” which the dairy operators prefer over government mandates.

PG&E’s Fong Wan, vice president for energy procurement, said his utility’s priority is “to develop new sources of renewable energy.” They are looking for clean and “climate-friendly” sources. “This most recent project is yet another example of our company’s commitment to combat climate change.”

Environmental Power CEO Richard Kessel, a former senior executive with both Sithe Energies, and energy service provider Trigen, labeled California as a natural location for this technology because it is the nation’s largest dairy producer and the largest energy consumer. “This agreement is an important step toward developing an important renewable energy source for California’s vital agricultural sector.”

PG&E said it continues to push its renewable energy buying effort, and it is exploring other projects that it said will “demonstrate the viability of converting biomethane to pipeline quality gas for use in power plants.” A second announcement with another biofuel producer will be forthcoming later this month, a PG&E spokesman said.

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