Michigan Regulator Launches Study to Identify Barriers to Renewable Natural Gas Development

The Michigan Public Service Commission on Dec. 9 initiated a study to examine the potential of renewable natural gas (RNG) development. The study aims to identify existing and potential sources of RNG in Michigan and any barriers to development, in order for the state to provide a carbon neutral energy solution, using the existing natural gas distribution system. Further, the study would help Michigan find a long-term clean energy source, without a significant cost impact, in turn assisting the state’s quest to be carbon neutral by 2050.

This study is in accordance with legislation enacted in 2021, directing the commission to conduct such a study and report its findings to the legislature by Sept. 30 2022. The commission has established a workgroup, which will hold its first meeting on Jan. 10, 2022.

The study will evaluate the state’s ability to produce RNG energy and help lower emissions. RNG is essentially biogas that has been processed to purity standards. RNG is derived from the breakdown of organic matter from sources including landfill, farm animal waste and food waste.  As waste breaks down, it emits methane, a potent greenhouse gas. Renewable natural gas projects capture this methane, thereby removing a harmful contaminant from the atmosphere. The spread of RNG projects across Michigan is expected to reduce the state’s carbon footprint and provide a clean, affordable, and reliable energy option.

As directed by the law, the study must identify existing and potential sources of RNG in Michigan. Furthermore, the commission is to report the estimated energy content and greenhouse gas abatement potential of the source. The study should also shed light on the estimated cost per unit of heat as well as the potential greenhouse gas reduction per unit of heat, in order to maximize the use of RNG. A key aim of the study is to determine the RNG production potential by valid feedstock sources in the state and determine the barriers to developing and utilising the gas.

Michigan is projected to benefit from using RNG, with the gas providing numerous economic benefits. It is expected to be a job creator across the state and offer consumers and businesses choice and affordability. Other green energy options often involve major, costly structural changes to homes and businesses. In contrast, RNG offers the ability to utilise the current gas infrastructure for natural gas, while shifting to a clean energy alternative. In addition, increased use of RNG would enable farmers and landowners to create revenue streams, not only from efficiently handling their own farm waste, but also from sale of RNG.