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Key Takeaways:
- Canadian pipeline operator Enbridge is investing up to $1 billion in Divert, a US tech company that converts food waste into renewable natural gas (RNG).
- Divert plans to build 30 RNG plants across the US to manage 5% of US food waste, with Enbridge's investment being part of its focus on the energy transition and reducing carbon emissions.
- RNG can displace fossil fuels in cars, trucks, and electric power markets and can play a complementary role in reducing carbon emissions in hard-to-decarbonize industries, but it is still primarily methane, a potent greenhouse gas.
- Enbridge's investment in RNG has been criticized by some as greenwashing, given the company's gas-expansion projects and its focus on reducing Scope 1 and 2 emissions rather than Scope 3 emissions from the oil and gas burned by its customers.
- The RNG sector is gaining ground, with companies like BP, Shell, and Kinder Morgan investing billions of dollars in RNG production. However, the environmental impact of RNG production is still a matter of debate among climate advocates.
Oil and Gas Companies Turning to Food Waste for Renewable Natural Gas:
Canadian pipeline operator, Enbridge, is investing up to $1 billion in Divert, a US tech company that converts food waste into renewable natural gas (RNG). Divert uses its software to track food waste from thousands of grocery stores, recovering what can be donated to food banks and diverting the rest into anaerobic digesters to create energy. The company plans to build 30 plants across the US over the next eight years, enough to manage 5% of US food waste. Currently, Divert handles about half a percent. Enbridge's investment in RNG is part of its focus on the energy transition and reducing carbon emissions.
The Benefits and Concerns of RNG:
Converting food waste into RNG can avoid greenhouse gas emissions from landfills and displace fossil fuels in cars, trucks, and electric power markets. However, some climate advocates argue that RNG is still primarily methane, which has up to 80 times the global warming power of carbon dioxide. They also argue that RNG can only meet a small fraction of gas demand and is a costly way to generate energy, while electrification is a cheaper, proven solution.
The Role of RNG in Achieving Climate Goals:
According to the World Resources Institute, RNG made from food waste or landfills and manure pits that weren't already controlling methane can play a complementary role in reducing carbon emissions. While RNG cannot replace enough fossil fuels to meet long-term climate goals, it can displace gas in heavy-duty trucking, heating for existing buildings, and other hard-to-decarbonize industries.
Enbridge's Investment in Divert:
While Enbridge's investment in Divert has been hailed by some as a green opportunity, others have criticized it as greenwashing. Enbridge's latest financial report shows that it has secured $7.5 billion in gas expansion projects through 2028, including pipelines and terminals to boost exports to Europe and Asia. The company has also invested in offshore wind power in France and onshore wind and solar projects. Jon Harding, a spokesperson for Enbridge, said the company plans to invest closer to $4 billion in renewables and low-carbon solutions through 2025.
Enbridge's investment in RNG and efforts to reduce Scope 3 emissions:
Enbridge, the Canadian pipeline operator, is investing up to $1 billion in Divert, a US tech company that converts food waste from grocery stores into renewable natural gas (RNG). The company plans to expand its food waste-to-RNG operations across the US and build 30 plants to manage 5% of US food waste. Enbridge aims to achieve net-zero emissions by 2050, but its target only applies to its own operations, not the oil and gas burned by its customers. Enbridge officials emphasized the need for gas in heavy industry and to move away from coal.
RNG and its impact on emissions:
RNG can avoid greenhouse gas emissions that seep out of landfills and can displace fossil fuels in cars, trucks, and electric power markets. However, RNG is still primarily methane, which has up to 80 times the global warming power of carbon dioxide. Cara Bottorff, managing senior analyst for the Sierra Club, argues that RNG can only meet a small fraction of gas demand and is a costly way to come up with an energy source. An analysis by the World Resources Institute found that RNG made from food waste or landfills and manure pits that weren't already controlling methane had promising climate benefits. While RNG can't displace enough fossil fuels to meet long-term climate goals, it can play a complementary role by replacing gas in heavy-duty trucking, heating for existing buildings, and other hard-to-decarbonize industries.
RNG sector gaining ground:
States like California, Washington, and Oregon, along with Europe, subsidize RNG production through their climate policies, making it an attractive play for fossil fuel companies. BP acquired Archaea Energy for $4.1 billion, Shell plans to acquire Denmark-based Nature Energy for $2 billion, and Kinder Morgan, the largest gas pipeline company in North America, plans to invest $1.1 billion in RNG by 2024. BlackRock also acquired RNG producer Vanguard for $700 million.
Environmental impact of RNG production:
Divert claims that its RNG expansion could avert 400,000 metric tons of carbon dioxide emissions a year, based on a third-party life cycle assessment of its current operations. However, some climate advocates argue that RNG is more like greenwashing because it represents a small portion of Enbridge's business, and RNG is still primarily methane, a potent greenhouse gas. Enbridge is working within its supply chain to lower Scope 3 emissions, but those emissions account for the majority of its emissions.
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