TC Energy Corp. is partnering with the granddaddy of American whiskey, the 156-year-old Jack Daniel Distillery in Tennessee at Lynchburg, to break into renewable natural gas (RNG) production.

TC

For C$29.3 million ($22 million), TC bought into a partnership with 3 Rivers Energy Partners LLC called Lynchburg Renewable Fuels LLC that has a deal with the oldest distillery in the United States to convert its grain byproducts into RNG.

The Calgary pipeline and utility conglomerate said all the RNG originating from Jack Daniel would go to a Tennessee distribution company. TC predicted its partnership share would earn annual greenhouse gas (GHG) reduction credits of up to 16,000 tons.

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The deal follows a similar partnership announced by 3 Rivers and Beam Suntory Inc. at the whiskey maker’s Kentucky distillery.

The Jack Daniel deal only marks the beginning of an organic green fuel producer marriage, said TC and 3 Rivers. The companies said their arrangement includes a commitment to work together on developing an RNG supply chain.

TC reported that its North America-wide pipeline network currently has capacity to deliver more than 30 Bcf/year of RNG and 17 delivery connections. The Tennessee production is scheduled to start in 2024.

“The production of RNG onsite at the Jack Daniel Distillery offers one more opportunity to meet the challenge of growing energy needs and reducing emissions,” said TC vice president Corey Hessen.

“What we are doing is a major step for Jack Daniel’s, the local agriculture, and our planet’s future,” added 3 Rivers CEO John Rivers. The Lynchburg project will make fertilizer for Tennessee farms as well as environmental utility gas.

The latest addition to Canadian RNG supplies likewise has a country touch. British Columbia gas distributor FortisBC is adding an Alberta livestock operation, Rimrock Cattle Co., to its sources of organic gas suppliers.  

The deal with Rimrock Renewables Ltd., majority-owned by Tidewater Renewables Ltd., will tap cattle waste from rural High River, 70 kilometers (42 miles) south of Calgary, for annual RNG deliveries of up to 525,000 gigajoules (500 MMcf). 

Since 2020, the B.C. Utilities Commission has approved RNG supply deals between FortisBC and 25 municipal and agricultural landfills. Annual RNG sales will reach about 3.7 Bcf by the end of 2022, reported FortisBC.

By 2025, a company program titled Clean Growth Pathway aims to increase the FortisBC annual RNG supply six-fold to about 22.8 Bcf or about 11% of sales. The accelerating fuel substitution campaign aims to hit or exceed 15% as of 2030.