Choosing renewable natural gas for your business

Yes, if it’s produced from a renewable source. There are five main sources of renewable energy: the sun, wind, water, the earth (geothermal energy) and organic matter. Organic waste is used in the case of renewable natural gas (RNG). Things like table scraps, wastewater, manure and agricultural slurry all have very short renewal cycles.

To meet regulatory targets for RNG deliveries, Energir sources most of its RNG from producers in North America. It is working to increase its supply from producers in Quebec.

The quantity of RNG purchased by Energir from each producer is injected by the latter into the gas network of the region where the producer is located. It can therefore be injected into the gas network of Energir or another distributor in North America, and then mixed with the fossil natural gas circulating in the same gas network. So, as with its fossil natural gas supply or electricity supply, once the purchased energy is injected into the gas or electricity grid, it is not possible to track the gas molecule or electron. The gas molecule or electron is consumed by the various users connected to these networks.

The quantity of RNG purchased by Énergir reduces the quantity of fossil natural gas that Énergir buys as part of its overall supply. Given that RNG and fossil natural gas molecules circulate in the same gas network and mix without it being possible to distinguish between them, Energir has its total annual supply from RNG producers verified by the Bureau de normalisation du Québec to be at least equal to the quantity of RNG purchased by all its customers, and that the RNG purchased is of 100% organic origin (and does not include any fossil molecules).

RNG combustion is not emission-free; it generates GHG emissions (CO2, CH4 and N2O) in the same way as the combustion of fossil natural gas. CO2 is the main GHG that is generated (over 99% of combustion emissions). However, unlike the emissions resulting from the combustion of fossil natural gas, CO2 emissions from RNG combustion are not included in emissions targeted by the fight against climate change. Fossil natural gas combustion releases CO2 that has been sequestered for millions of years in geological formations. In contrast, the CO2 released into the atmosphere from RNG combustion (known as biogenic CO2) was sequestered in organic matter (food waste, manure, wastewater, etc.) that renews much more rapidly. Biogenic CO2 was therefore in the atmosphere not so long ago, was absorbed by organic matter, and will be re-absorbed. The effect of biogenic CO2 on the climate depends on a variety of factors, including the source of organic waste.

Customers can include their RNG purchases in their GHG inventory. For more details on how to include GHG emissions from RNG combustion in a GHG inventory, see the question above “How are GHG emissions from RNG combustion accounted for?” .

Although also biogenic, N2O and CH4 combustion emissions (less than 1% of combustion emissions) from RNG must be reported in the direct emissions (Scope 1 emissions) of the person or entity using RNG in their GHG inventory. 

The biogenic CO2 emitted during combustion must also be quantified, but reported separately from Scope 1 emissions in the GHG inventory. Regulations governing the GHG cap-and-trade system (CATS) stipulate that these CO2 emissions must be reported, but do not have to be covered by emission allowances under Quebec’s GHG cap-and-trade system. 

In contrast, all GHG emissions (CO2, CH4 and N2O) from fossil natural gas combustion must be reported in the direct emissions (Scope 1 emissions) of the person or entity using fossil natural gas in their GHG inventory.  

RNG production emits GHGs. GHGs are also emitted during RNG transmission and distribution. 

Énergir has a regulatory obligation to deliver a minimum amount of RNG during its fiscal year (2% in 2023-2024, 5% in 2025-2026 and 10% in 2030-2031). If customers do not voluntarily purchase a portion of that RNG, Énergir has to socialize the cost of the unsold volumes among customers who do not purchase the minimum quantity required by regulations. Thus, if demand from voluntary customers does not exceed the regulatory threshold regarding the quantity of RNG to be delivered, voluntary purchases will not impact the reduction of GHG emissions in Québec attributable to RNG. Conversely, if voluntary purchases exceed that regulatory threshold, they enable a further reduction of GHG emissions from RNG with respect to Québec.

No modifications to equipment are required since RNG and fossil natural gas are interchangeable. RNG can therefore be used for the same purposes.

Énergir has switched to purchasing renewable natural gas for the buildings it owns. For example, Énergir purchases RNG for its eight regional business offices, its head office, the École de technologie gazière and the LSR plant in an amount equivalent to its consumption of fossil natural gas for these facilities. The same will apply for our future business office in the Eastern Townships, which is currently under construction. This choice directly supports our objective to reduce fossil-based GHG emissions from our facilities and is part of meeting the decarbonization targets for buildings in Québec.