Natural Gas Decarbonization Options Capable of Encouraging Renewable Natural Gas Development to Abate Fugitive Biomethane Emissions

Abstract

This project investigates the potential for renewable natural gas development by quantifying resources in North Carolina and analyzing policy options capable of incentivizing state-wide adoption. North Carolina has enormous potential to generate energy from waste sources within the state. The resource potential in agriculture waste feedstocks has the potential to produce electricity, transportation fuels, and heat. In this analysis, the feasibility of RNG development in North Carolina was accessed by evaluating the available resources and examining various policy measures in other states that can encourage its widespread implementation. Biomethane has tremendous benefits by offering an alternative use for waste that would normally be discarded, reducing GHG emissions associated with waste disposal, providing a renewable energy source available 24/7, and enable North Carolina to generate locally sourced heating and electricity thus reducing natural gas imports. Despite its many benefits, North Carolina only currently utilizes 13% of its full feed stock potential in the state. Additionally, NC lacks regulatory mandates and financial incentives to fully account for the benefits and costs of biogas. To mitigate the challenges and encourage development, states identified with progressive renewable portfolio standards and high biogas potential (American Biogas Council) were explored. The results of this analysis indicate significant findings in 1) North Carolina’s waste-to-energy targets implemented in the renewable energy and efficiency portfolio standard must be mandated and incentivized to reach targets 2) low carbon fuel standards credits (California) and heat targets (Colorado) are capable of mandating NC’s waste-to-energy targets and targeting natural gas suppliers in the state to integrate RNG into their supply chains, 3) bioenergy feed-in tariffs (California) and methane gas conversion property tax exemption (Iowa) are capable of incentivizing development in North Carolina and reducing costs associated with transitioning to RNG, and 4) environmental justice issues hindering the state-wide adaptation of agricultural waste-to-energy targets can be mitigated based on continued research and development on the shifting impact when waste is converted to RNG.