Industrial, Sourcing Renewables - December 15, 2021
American Natural Gas Signs RNG Deal
American Natural Gas, LLC has signed a 10-year agreement to receive renewable natural gas (RNG), which will supply its compressed natural gas (CNG) in stations nationwide.
The deal is made possible through a separate long-term offtake agreement between Constellation, which will provide the RNG, and project developer, The Landfill Group, in partnership with LS Power. Through this transaction, Constellation will procure RNG from The Landfill Group’s Dubuque Metropolitan Area Solid Waste Agency landfill RNG production facility in Iowa.
Constellation will provide American Natural Gas with up to approximately 750 MMBTUs per day of RNG for its CNG commercial fleet customers. RNG used as vehicle fuel allows for the generation of renewable identification number (RIN) credits, which are used for compliance with the federal Renewable Fuel Standard program, designed to reduce GHG emissions and expand the nation’s renewable fuels sector while reducing reliance on petrol-based transportation fuel sources. Production and delivery began in September 2021.
“Our agreement with Constellation provides a reliable source of renewable supply for our compressed natural gas stations across the U.S.,” said Andrew West, founder and CEO, American Natural Gas, in a statement. “We’re excited that this collaboration will strengthen our ability to offer clean alternative fuel sources for our fleet vehicle customers who share our commitment to reducing carbon emissions and combating climate change.”