US supplier Southern Company Gas signs new deal for renewable natural gas (RNG) at two of its subsidiaries and promises it will reduce its carbon emissions by the equivalent of 12,000 acres of forest
Two Southern Company Gas subsidiaries, Virginia Natural Gas and Chattanooga Gas, have entered into their first renewable natural gas agreement, which will increase access to clean, safe, reliable and affordable fuel. The emissions reductions from this transaction are estimated to be equivalent to the carbon sequestered by over 12,000 acres of U.S. forest or an area the size of Manhattan.
The deal involves acquiring environmental credits from facilities in Nebraska and Indiana.
“We are privileged to provide over four million people in four states with fuel that is clean, safe, reliable and affordable,” said Southern Company Gas Executive Vice President of External Affairs and Chief External and Public Affairs Officer Bryan Batson. “Incorporating RNG into our fuel supply not only meets our customers’ expectations that we deliver sustainable solutions, but it’s also one of several tools we’re deploying in support of our goal to reach net zero operational emissions by 2050.”
RNG is a sustainable fuel produced from naturally occurring methane emitted primarily from landfill, agricultural, wastewater and food waste sites. Capturing this biogas at the source before it is emitted into the atmosphere reduces greenhouse gas emissions. RNG is a sustainable and reliable energy source that is compatible with existing infrastructure and appliances. Depending on the source, it can be carbon neutral or carbon negative.
This transaction is made possible by the passage of supportive policies in both Virginia and Tennessee. Virginia’s Energy Innovation Act and Sustainable Gas Program allows and encourages the production and delivery of RNG. The Tennessee Natural Gas Innovation Act permits natural gas utilities to pursue cleaner energy options and for incremental innovative natural gas costs to be reflected in the utilities’ purchased gas adjustment.
This deal is aligned with Southern Company Gas’ decarbonization efforts across the natural gas value chain. Chattanooga Gas announced last August that 100% of the natural gas supply for its residential and small business customers is “Next Generation Natural Gas,” which is fuel that is procured, transported or delivered by companies that are reducing their methane emissions. Virginia Natural Gas, which first began use of Next Generation Natural Gas in 2019, continues to engage more and more suppliers to deliver cleaner fuel to customers, as well.
About Southern Company Gas
Southern Company Gas is a wholly owned subsidiary of Atlanta-based Southern Company, America’s premier energy company. Southern Company Gas serves approximately 4.4 million natural gas utility customers through its regulated distribution companies in four states and more than 600,000 retail customers through its companies that market natural gas. Other nonutility businesses include investments in interstate pipelines, asset management for natural gas wholesale customers and ownership and operation of natural gas storage facilities.
