Renewable Natural Gas Year in Review: 2022

Posted on Monday, December 19, 2022
This year has proven to be another dynamic year for the renewable natural gas (RNG) industry and a year full of milestones for Kinetrex Energy, a Kinder Morgan company. The market continued to evolve with increased sustainability commitments, significant policy reforms and the accelerated adoption of RNG by a number of customers.  

Driving Vertically-Integrated RNG Solutions
Kinetrex celebrated its first year as a Kinder Morgan company. As part of Kinder Morgan’s Energy Transition Ventures group, the acquisition of Kinetrex served as our entry point into the RNG industry. Together, we continue to enhance our renewable portfolio to address the growing demand for lower carbon energy solutions.

Throughout 2022, we commenced construction on three RNG plants in Indiana and completed two acquisitions that increased the scale and diversity of our renewable energy assets. In July 2022, Kinder Morgan acquired Mas CanAm, LLC, adding an RNG facility in Arlington, Texas and two medium Btu facilities in Louisiana and Texas. In August 2022, Kinder Morgan acquired North American Natural Resources (NANR) and its sister companies, North American Biofuels, LLC and North American-Central-LLC. This acquisition further diversified our renewable portfolio by adding seven landfill gas-to-power facilities throughout Michigan and Kentucky.  

Enabling the Renewable Energy Transition
The adoption of renewable energy and reducing emissions are growing in priority for more organizations. In March 2022, the U.S. Securities and Exchange Commission proposed a rule that would standardize the climate disclosure requirements provided by public companies.[deloitte] At COP27, businesses voiced the need for specific guidance to combat climate change and clearer policies to support sustainability initiatives.[WSJ]  With many factors emphasizing the need for greater emission reduction efforts, driving sustainability initiatives will be essential to a company’s success.

In conjunction with the business community’s rising need for lower carbon energy solutions, new legislative reform has been introduced at federal and state levels. These new policies will spur climate efforts to reduce greenhouse gas emissions, advancing the demand and implementation of renewable energy even further. 

The Inflation Reduction Act – Signed into law in August 2022, the Inflation Reduction Act represents a historic, $369 billion investment in the modernization of the American energy system that aims to help shift economy-wide greenhouse gas emissions to 40% below 2005 levels.[Dept. of Energy] 

Renewable Fuel Standard (RFS) Program – In December 2022, the Environmental Protection Agency (EPA) took next steps and issued a multi-part proposal to progress the RFS. [EPA] The proposal set specific Renewable Volume Obligations (RVO) for 2023 through 2025, raising the amount of biofuel obligated parties must blend annually. The EPA’s proposal also revamped the biofuel-to-electricity pathway to allow the creation of e-RINs when biomethane is used to generate electricity that charges electric vehicles.[Reuters]

Renewable Portfolio Standards (RPS) – An increasing number of RPS policies, clean energy standards and other climate legislation are being introduced and enacted to accelerate the transition to renewable energy. The proposed bills sets emissions-reduction goals and establishes renewable energy procurement targets for utilities. As more states continue to implement environmental policies, the demand for RNG and other renewable energy sources will continue to rise. 

Renewable Energy Solutions for Today and the Future
RNG developers like Kinetrex, businesses, government agencies and communities have made significant strides in creating a more sustainable future, and there is plenty more progress to be made. With more than 540 RNG facilities operating or in development in the United States,[RNG Coalition] renewables make up a small portion of the energy used to power, fuel and heat businesses and homes. Society’s increasing demand for energy overall is also intensifying the need for affordable, reliable lower carbon energy solutions. Our ability to execute, along with our seamless integration with one of the largest energy infrastructure companies in North America, allows us to deliver RNG solutions to help organizations progress toward their sustainability goals. 
 
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