CAPTURING METHANE FROM ORGANIC WASTE WILL REDUCE GHG
EMISSIONS
CALGARY, AB, July 8, 2021 /CNW/ - ATCO Ltd. (TSX: ACO.X)
(TSX: ACO.Y)
ATCO Energy Solutions, an ATCO company, today announced it has
partnered with Future Fuel Ltd. to build and operate a renewable
natural gas (RNG) facility in Alberta. Located north of Vegreville, Alberta, the Two Hills RNG
Facility is ATCO's first commercial RNG production facility and a
strategic investment in ATCO's clean fuels strategy. RNG is a
renewable fuel produced by capturing methane emissions which would
otherwise be released to the atmosphere.
The RNG facility combines organic waste from nearby
municipalities with agricultural waste to produce approximately
230,000 gigajoules per year of renewable natural gas, enough to
fuel 2,500 homes, that will enter the natural gas grid under a
long-term sales contract. This project will lead to the avoidance
of up to 20,000 tonnes per year of carbon dioxide equivalent
emissions. Future Fuel, with deep experience in biofuels and
agricultural biomass, is a key partner in developing the project
and expanding the reach of the facility to new markets. The
construction and operation of the facility will be managed by ATCO
Energy Solutions.
"This facility is an important investment in the advancement of
ATCO's clean fuels strategy," said Bob
Jones, President, ATCO Energy Solutions. "ATCO is
leading the shift to a lower-carbon energy system by enabling our
customers' energy transition to cleaner fuels such as renewable
natural gas and hydrogen. We are actively investing in 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."
While Canada currently produces
approximately six (6) petajoules (PJ) of RNG per year, it has the
potential to generate more than 150 PJ per year from various
organics feedstocks, according to industry estimates. This is
equivalent to supplying 1.5 million Canadian homes with renewable
natural gas. RNG projects provide innovative resource recovery
solutions and improved waste management opportunities to sectors
such as municipal organics and agricultural byproducts, which are
striving to meet increased diversion targets and emissions
reductions goals. ATCO, as a leading energy infrastructure provider
with a long history of gas handling and upgrading, is uniquely
suited to develop these projects and help its customers combat
climate change and convert waste into an ongoing source of clean
fuel. ATCO is actively developing several RNG and Clean Fuels
projects to help Canada meet its
climate change goals.
Brian Nilsson, Director at Future
Fuel, added, "We are pleased to announce our partnership with ATCO
Energy Solutions to recommission and repurpose an idle biogas asset
in Two Hills County. This project adds organics processing
facilities in the Capital region, offering a solution to both
municipalities and the confined feeding industry for organics
processing and emissions reductions. We look forward to continued
cooperation with ATCO Energy Solutions and Emissions Reduction
Alberta."
Emissions Reduction Alberta (ERA) has committed $7.9M to the project through its Natural Gas
Challenge. This investment comes from the Government of
Alberta and is sourced from the
Technology Innovation and Emissions Reduction (TIER) fund.
The project is currently undergoing detailed engineering work,
with some construction activities expected to take place this year.
Full commercial operation of the project is expected to be achieved
in late 2022.
With approximately 6,200 employees and assets of $22 billion, ATCO is a diversified global
corporation with investments in the essential services of
Structures & Logistics (workforce and residential housing,
innovative modular facilities, construction, site support services,
workforce lodging services, facility operations and maintenance,
defence operations services, and disaster and emergency management
services); Utilities (electricity and natural gas transmission and
distribution, and international electricity operations); Energy
Infrastructure (electricity generation, energy storage and
industrial water solutions); Retail Energy (electricity and natural
gas retail sales); Transportation (ports and transportation
logistics); and Commercial Real Estate. More information can be
found at www.ATCO.com.
ATCO Investor Inquiries:
Colin Jackson
Vice President, Finance, Treasury & Risk
403 808 2636
ATCO Media Inquiries:
Kurt Kadatz
Senior Manager, Corporate Communications
587 228 4571
Future Fuel Inquiries:
Anna De Paoli
Commercial Advisor
403 461 7400
TWO HILLS RNG FACILITY
BACKGROUNDER
What is RNG?
- Renewable natural gas is produced by capturing and utilizing
methane produced from the decomposition of organic materials that
would otherwise be released to the atmosphere. Methane has Global
Warming Potential (GWP) 28 times greater than carbon dioxide per
the IPCC.
- A number of organic feedstocks can be utilized to make
renewable natural gas, including manure and other agricultural
by-products, residential and commercial organics, waste from water
treatment plants, and methane emitted from organics breakdown in
landfills.
- Renewable natural gas is injected into the existing natural gas
system in the same manner as conventional natural gas and can be
utilized to fuel vehicles or heat homes and businesses.
What are the benefits of this project?
- The project will safely, efficiently, and cost-effectively
process locally generated manure and organic waste from local
municipalities and other customers.
- The project will produce digestate fertilizer as a byproduct
which will be land-applied by local farmers to fully utilize the
nutrients in the feedstock.
- The project represents a critical step in optimizing
Alberta's significant agricultural
and municipal waste as an energy resource and recycled end
product.
- The project will support the reduction of more than 20,000
tonnes of CO2e per year and produce enough RNG to heat the
equivalent of up to 2,500 homes per year.
- The project will create new skilled jobs to ensure the ongoing
operation of the facility within the community.
- The project will make use of existing pipeline assets to
support the transportation of clean fuels to end users.
What will the RNG produced at this facility be used
for?
- The RNG produced at the Two Hills RNG facility will be injected
into the local natural gas distribution system and delivered to
customers for use in heating or transportation applications.
What are the project's timelines?
- The facility is currently in the detailed engineering phase
with commercial operations expected to begin in late 2022.
What is ATCO's clean fuels strategy?
- ATCO is committed to decarbonization through the production and
distribution of clean fuels such as RNG and hydrogen. By providing
our customers with lower-carbon, lower-emitting energy solutions,
we are leading the transition to a more sustainable energy
future.
What other investments is ATCO making in energy transition
and clean fuels?
- ATCO and Suncor Energy are working together to build a
potential clean hydrogen project near Fort Saskatchewan, Alberta, which would
produce more than 300,000 tonnes per year of clean hydrogen, reduce
Alberta's CO₂ emissions by more
than two million tonnes per year, significantly advance
Alberta's hydrogen strategy,
generate substantial economic activity and jobs across the
province, and make a sizable contribution to Canada's net zero ambition. Learn more
here.
- With $2.8 million in funding from
Emissions Reduction Alberta, Canadian Utilities, an ATCO company,
will build Canada's largest
hydrogen blending project in Fort
Saskatchewan, Alberta. Once complete, the project will
inject up to five per cent hydrogen by volume into a section of
Fort Saskatchewan's residential
natural gas distribution network, lowering the carbon intensity of
the natural gas stream for its customers. Learn more here.
- ATCO received $28.7 million from
the Australian Renewable Energy Agency (ARENA) to help kickstart
the production of hydrogen on a large scale, providing clean fuel
for the Australia's natural gas
networks. The funding enables ATCO and its joint-venture partner,
Australian Gas Infrastructure Group (AGIG) to move forward with
additional planning to establish Australia's first commercial-scale green
hydrogen supply chain. A final investment decision is expected in
December 2021. Learn more here.
- Also in Australia, with the
support of the federal government ATCO is working with Fortescue
Metals Group to develop and operate a hydrogen vehicle refuelling
system. Learn more here.
- Canadian Utilities completed Canada's largest off-grid solar project in
Fort Chipewyan, Alberta, providing
the remote northern community with clean energy and reducing its
reliance on diesel fuel to generate electricity. In partnership
with local Indigenous communities, the project is an innovative
model for other remote communities across Canada to achieve energy autonomy and
transition to cleaner, lower-emitting energy solutions. In 2020,
the Vuntut Gwitchin First Nation in Yukon was connected to a microgrid built in
partnership with ATCO, helping the community reduce its diesel
consumption. Learn more about the Fort
Chipewyan project here.
SOURCE ATCO Ltd.