Pacific Northern Gas Ltd. (PNG) and ATCO Future Fuel announced an agreement for the sale and purchase of renewable natural gas from ATCO Future Fuel’s new biomethane facility in Two Hills County, Alberta.

The renewable natural gas will be delivered to PNG through existing natural gas pipelines.

“Our goal is to shrink our environmental footprint while continuing to deliver safe, reliable energy,” said Leigh Ann Shoji-Lee, President, Pacific Northern Gas. “Our new, renewable energy option is part of our commitment to operating sustainably for the benefit of the environment and the communities where our customers and employees live and work.”

Under the agreement, ATCO Future Fuel will begin delivering RNG to PNG in late 2022 and quickly ramp up production volumes to 230,000 gigajoules per year—enough for space and water heating needs of about 2,300 homes in northern B.C. The project will lead to the avoidance of up to 20,000 tonnes of carbon dioxide equivalent emissions per year.

“ATCO Future Fuel RNG is proud to partner with Pacific Northern Gas for the sale of renewable natural gas from our new RNG operation,” said Bob Jones, Director, ATCO Future Fuel RNG, and President, ATCO Energy Solutions. “This plant is an investment in energy transition and reinforces our commitment to deliver sustainable energy projects—here in Alberta and globally—in an effort to decarbonize the way we live and work, in support of a safe, reliable, affordable and cleaner energy future.”

Emissions Reduction Alberta has committed $7.9M to the ATCO Future Fuel project through its Natural Gas Challenge. This investment comes from the Government of Alberta and is sourced from the Technology Innovation and Emissions Reduction fund.