Enbridge Primes RNG Prowess With Purchase of Seven U.S. Facilities - Yahoo Finance
Enbridge Primes RNG Prowess With Purchase of Seven U.S. Facilities
US$1.2-billion transaction with Morrow Renewables positions us as a major North American RNG midstream operator, fortifies our energy transition leadership
NORTHAMPTON, MA / ACCESSWIRE / November 3, 2023 / Enbridge
Enbridge has taken another significant step in the business of manufacturing and transporting renewable natural gas (RNG) - by announcing the purchase of seven operating U.S. landfill gas-to-RNG facilities from respected, experienced RNG developer Morrow Renewables.
The portfolio, worth US$1.2 billion, instantly establishes our RNG business as a North American midstream leader by volume. The carbon-neutral fuel will play a critical role in society's cleaner energy future, and these assets complement recent Enbridge moves to grow North America's volumes of RNG made from food waste and farm waste.
"This transaction represents a uniquely de-risked portfolio of operating and scalable RNG assets," says Enbridge President and CEO Greg Ebel. "The landfill gas-to-RNG facilities . . . will accelerate progress toward our energy transition goals. I am pleased to welcome the Morrow Renewables team members to the Enbridge family," adds Ebel of about 86 full-time employees in plant and field operations.
The Morrow facilities deliver RNG from municipal landfills in six Texas locations - Edinburg, Hinton, Tyler, Melissa, Longview, and Alvarado - in addition to Fort Smith, Arkansas. All are regions with growing demographics, ongoing landfill growth and strong partnerships with local municipalities.
Landfill RNG facilities collect gas produced by waste decomposition in the landfill, and treat and compress the gas to pipeline specifications.
After it's upgraded into pipeline-grade methane, RNG is easily blended into existing natural gas distribution and transmission networks - where it can be used to fuel transit fleets, power industry facilities, and heat homes and businesses. Without these facilities, the gas would be released or flared.
These seven facilities currently produce, in aggregate, about 5 billion cubic feet of RNG per year.
All seven are in operation, with a commercial structure underpinned by long-term contracts with municipalities and offtake agreements with customers, such that the portfolio will contribute to EBITDA in 2024.
"These assets were developed by a reputable management team that's been in the business for more than 20 years; we look forward to working with that team towards a smooth transition," says Caitlin Tessin, Enbridge's Vice President of Strategy and Market Innovation.
Fundamentals for RNG are strong - with indications of continued demand growth over the long term as gas utilities increasingly continue to set RNG blending targets.
Simply put, today's acquisition advances Enbridge's commitment to energy transition leadership by advancing new low-carbon sources of energy - such as RNG.
View additional multimedia and more ESG storytelling from Enbridge on 3blmedia.com.
Contact Info:
Spokesperson: Enbridge
Website: https://www.3blmedia.com/profiles/enbridge
Email: info@3blmedia.com
SOURCE: Enbridge
View source version on accesswire.com: https://www.accesswire.com/799378/enbridge-primes-rng-prowess-with-purc…
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”