Leaving telltale signs that can only be renewable natural gas (RNG) from animal waste, Pacific Gas and Electric Co. and its alternative energy partner BioEnergy Solutions struck paydirt Tuesday in a biogas-to-pipeline injection project in the agricultural fields of Fresno County in California. It is the first project in the state to deliver pipeline-quality RNG to a utility, according to PG&E.

Under terms of a 10-year contract approved last year by the California Public Utilities Commission (CPUC), BioEnergy Solutions is obligated to provide up to 3 Bcf of RNG annually (see Daily GPI, Aug. 24, 2007). Last year the San Francisco-based utility signed another 10-year deal for RNG with Microgy Inc. for up to 2.8 Bcf.

Bakersfield, CA-based BioEnergy said its system reduces emissions of methane, a greenhouse gas (GHG) that is 21 times more potent than carbon dioxide, by 70% at a 5,000-cow dairy, developing potential carbon offset credits. BioEnergy CEO David Albers said his company has “an innovative way of bringing together dairies and power companies to generate a new source of green energy.”

“Using proven technologies, we design, build and operate highly efficient biogas systems that enable dairymen to meet new air quality requirements and help utilities meet their goals for production of energy from renewable sources,” said Albers, a third-generation dairyman.

Vintage Dairy, which is owned by Albers in western Fresno County near Riverdale, is BioEnergy’s first project, with manure from the 5,000 milk-producing cows and calves flushed into a covered lagoon the size of five football fields and three stories deep. This process traps methane gas produced as the manure decomposes.

The methane is upgraded, or scrubbed, to remove corrosive materials to meet PG&E’s environmental standards and then delivered to the utility through its pipeline. PG&E uses the RNG to deliver renewable electricity to its customers in central and Northern California.

Ultimately, PG&E thinks it can get as much as 5% of its natural gas used for power production from these biogas-to-pipeline projects in the agriculture-rich central valleys of California.

“With nearly two million dairy cows in California, there is great potential for the state’s agriculture and power sectors to work together to address the challenges of climate change,” said Roy Kuga, PG&E vice president of energy supply. “This project is yet another example of our company’s commitment to add innovative forms of clean renewable energy to help meet our customers’ future power needs.”

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