UGI Energy Services (“UGIES”) is a leading Renewable Natural Gas (“RNG”) marketer with over 10 years’ experience delivering RNG to customers. That experience includes producing, procuring, and supplying RNG as a transportation fuel for fleets.
RNG is a pipeline-quality biogas that is interchangeable with traditional, geological natural gas. It can be produced from a variety of organic waste materials including: matter from landfills, waste from food production or other manufacturing plant activities, wastewater treatment plants, and agricultural manure.
RNG has become a popular alternative for transportation fleets that use Compressed Natural Gas “CNG” or Liquified Natural Gas “LNG” to fuel their vehicles.
Recently, the Transport Project (TTP) and Coalition for Renewable Natural Gas (RNG Coalition) announced that 79 percent of all on-road fuel used in natural gas vehicles in calendar year 2023 was renewable natural gas (RNG), surpassing the previous year’s record-breaking level.
Captured above ground from organic material in agricultural, wastewater, landfill, or food waste, RNG can produce carbon-negative results when fueling on-road vehicles like short- and long-haul trucks, transit buses, and refuse and recycling collection vehicles. California Air Resources Board data confirms that the annual average carbon intensity (CI) value of California’s bio-CNG vehicle fuel portfolio in its Low Carbon Fuel Standard (LCFS) program for the first three quarters of 2023 was carbon negative and below zero at -118.85 gCO2e/MJ.
RNG use as a transportation fuel grew 16 percent over 2022 volumes, up 92 percent from 2019 levels. TTP and RNG Coalition report that in 2023 a total of 675 million gallons (GGE)2 of natural gas were used as motor fuel. Of that, 531 million gallons (GGE) were from renewable sources.
“Commercial fleets deploying trucks fueled by RNG can achieve a cost-effective carbon-negative transportation outcome today without compromising existing business operations,” said Dan Gage, President of The Transport Project. “The newest natural gas engines with Zero Emissions Equivalent technology exceed stringent federal NOx emissions standards and are certified to the CARB Model Year 2024 standard without using credits.”
“Renewable natural gas supply is growing,” said David Cox, Founder & CFO of Coalition for Renewable Natural Gas. “With 338 RNG facilities transforming waste into fuel, and another 489 planned or under construction, we are increasingly able to affordably offer consumers the opportunity to decarbonize with RNG – the cleanest of any fuel available today.”
RNG use as a motor fuel in 2023 displaced 6.96 million metric tons of carbon dioxide equivalent (CO2e). Put into perspective, RNG motor fuel use last year:
- Lowered greenhouse gas emissions, equivalent to removing the GHG from over 17.8 billion miles driven by the average passenger car;
- Eliminated CO2 emissions, equivalent to removing CO2 emissions from over 783.5 million gallons of gasoline consumed; and
- Sequestered carbon, equal to growing over 115 million tree seedlings for ten years, or over 8 million acres of U.S. forests for one year.
Details of the report – including graphics – can be accessed at: TTP’s website HERE and RNG Coalition’s website HERE.
Investing in Renewables
UGI is focused on delivering on our commitment to invest $1-$1.25 billion in renewable solutions by 2025. We remain focused on our stringent investment criteria while prioritizing four investment priorities: invest in renewable energy solutions, leverage existing infrastructure and our core competencies, achieve carbon reduction goals, participate in evolving regulatory landscape.
Learn more about our investment in RNG in our latest ESG report.
