UGI Utilities, Inc. (“UGI Utilities”) has begun to accept Renewable Natural Gas (RNG) from Archaea Energy into its pipeline distribution system. UGI Utilities is a subsidiary of UGI Corporation (UGI).
In Fiscal 2021, UGI Utilities signed an interconnect agreement with Archaea Energy to accept delivery of RNG produced from the Keystone Landfill in Dunmore, Pennsylvania, into its natural gas pipeline that serves its distribution system. Once fully operational, the recently completed interconnect is capable of accommodating up to 5.3 billion cubic feet of RNG supply each year, making this the largest current RNG supply point in the United States to date. The introduction of RNG supply into UGI Utilities’ distribution system provides benefits to the environment and to the many communities we serve by lowering net carbon emissions.
UGI Utilities expects to utilize a portion of the RNG to serve customers who purchase supply directly from UGI Utilities beginning in 2022. This purchase was made possible by regulatory approval of a five-year pilot program by the Pennsylvania Public Utility Commission (PUC). The pilot, the first of its kind in Pennsylvania, allows UGI Utilities to integrate RNG into its supply purchase portfolio to provide benefits for its customers.
All three PUC commissioners supported and commended UGI Utilities’ RNG pilot program, including PUC Chair, Gladys Brown Dutrieulle, with specific acknowledgement by Commissioners Ralph V. Yanora and John F. Coleman, Jr. who commended UGI Utilities for the initiative as it “represents an innovative economic model that balances environmental, customer, and gas supply requirements consistent with the Commonwealth’s least-cost gas supply requirements.”
“The approval of this pilot program is a significant step forward as we continue to develop sustainable, environmentally responsible energy solutions for our customers,” said Robert F. Beard, Executive Vice President - Natural Gas, Global Engineering, Construction and Procurement, UGI. “UGI remains committed to developing renewable energy sources for the communities we serve.”
RNG from landfills is a low carbon energy solution that is derived from organic waste. It is a sustainable and reliable energy source that is highly compatible with existing infrastructure when blended with natural gas. RNG can also be used directly in a manner consistent with natural gas use for residential, commercial, industrial and transportation customers.
Accepting the delivery of RNG reduces the release of naturally occurring methane from the Keystone Landfill into the atmosphere. It is anticipated that this project will reduce CO2 emissions by an amount equivalent to removing 67,000 passenger vehicles over the course of a calendar year.