FRESNO, Calif., March 4, 2008 /PRNewswire-FirstCall
Pacific Gas and Electric Company and BioEnergy Solutions today announced
that their biogas-to-pipeline injection project in Fresno County has begun
production of renewable natural gas derived from animal waste. It is the
first project in California that will deliver pipeline-quality, renewable
natural gas to a utility.
"With nearly two million dairy cows in California, there is great potential
for the state's agriculture and power sectors to work together to address
the challenges of climate change," said Roy Kuga, vice president of energy
supply at PG&E. "This project is yet another example of our company's
commitment to add innovative forms of clean renewable energy to help meet
our customers' future power needs."
Under a long-term contract approved by the California Public Utilities
Commission (CPUC), BioEnergy Solutions will deliver up to three billion
cubic feet of renewable natural gas a year to PG&E.
A BioEnergy Solutions system reduces emissions of methane, a greenhouse gas
21 times more potent than carbon dioxide, by 70 percent on a 5,000-cow
dairy.
"We have developed an innovative way to bring dairies and power companies
together to generate a new source of green energy for California," David
Albers, president of BioEnergy Solutions, said. "Using proven technologies,
we design, build and operate highly-efficient biogas systems that enable
dairymen to meet new air quality requirements and help utilities meet their
goals for the production of energy from renewable sources."
Vintage Dairy, the site of BioEnergy Solution's first project, is located
near the town of Riverdale in western Fresno County, California. Manure from
the dairy's 5,000 milk-producing cows and calves is flushed into a covered
lagoon -- equal in size to the area of nearly five football fields and over
three stories deep -- that traps the methane gas produced as the manure
decomposes. The methane is upgraded, or "scrubbed," to remove corrosive
materials to meet PG&E's industry-leading environmental standards for power
plants and then delivered to PG&E through the utility's pipeline. PG&E uses
the natural gas to deliver renewable electricity to its customers in central
and northern California.
BioEnergy Solutions is based in Bakersfield and was founded by David Albers,
a third-generation dairyman who also owns Vintage Dairy. The company
installs at its own expense the infrastructure needed to collect and process
the manure and then pump the gas into PG&E's pipeline. BioEnergy also shares
the proceeds from the sale of gas and resulting emissions credits with dairy
owners.
PG&E is a leader in utilizing biogas. In addition to the utility's contract
with BioEnergy Solutions, PG&E is working to cultivate the next generation
of biogas technologies through its biomethanation research project. This
recently launched project explores emerging biomethanation technologies and
processes that may increase conversion efficiency, expand the range of
usable feedstocks and improve the quality of biomethane products.
PG&E expects to have 14 percent of its energy from renewable sources that
qualify under California's Renewable Portfolio Standard (RPS) Program in
2008. On average, more than 50 percent of the energy PG&E delivers comes
from carbon-free sources, and the utility now has contracts to provide 20
percent of its future energy supply from renewable sources. Qualifying
renewable sources in PG&E's portfolio include solar, wind, biomass,
geothermal, and small hydroelectric.
Since July 2007, PG&E has signed renewable energy contracts totaling 1,024
MW, including 57 MW of new geothermal energy with Calpine Corporation, 553
MW of solar thermal with Solel-MSP-1, 85 MW of wind power from PPM Energy,
two MW of wave energy with Finavera Renewables, 177 MW of solar thermal with
Ausra Inc., and 150 MW of wind energy with enXco. PG&E is still seeking
regulatory approval for the Calpine, Finavera, Ausra and enXco contracts.
California's Renewable Portfolio Standard (RPS) Program requires each
utility to increase its procurement of eligible renewable generating
resources by one percent of load per year to achieve a 20 percent renewables
goal by 2010. The RPS Program was passed by the Legislature and is managed
by the CPUC and California Energy Commission.
SOURCE Pacific Gas and Electric Company
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