Avista issues request for proposals for renewable natural gas
Avista (AVA) has issued a request for proposal (RFP) to secure long-term renewable natural gas (RNG) resources for its customers. This initiative aims to meet carbon reduction requirements and support Avista's goal of achieving carbon neutrality in natural gas operations by 2045. The RFP is open to current owners, developers, and marketers of RNG resources.
RNG is derived from organic waste streams like landfills, wastewater treatment plants, food waste, and dairy waste. It's produced by capturing and purifying methane that would otherwise escape into the atmosphere. Avista anticipates RNG deliveries to begin no earlier than January 1, 2025. The company is considering proposals from various RNG sources, including landfills, biomass fast pyrolysis, dairy, food waste, and municipal wastewater treatment plants.
Avista (AVA) ha emesso una richiesta di proposta (RFP) per acquisire risorse a gas naturale rinnovabile (RNG) a lungo termine per i suoi clienti. Questa iniziativa mira a soddisfare i requisiti di riduzione del carbonio e supportare l'obiettivo di Avista di raggiungere la neutralità carbonica nelle operazioni di gas naturale entro il 2045. La RFP è aperta ai proprietari attuali, sviluppatori e commercializzatori di risorse RNG.
RNG è derivato da flussi di rifiuti organici come discariche, impianti di trattamento delle acque reflue, rifiuti alimentari e rifiuti caseari. Viene prodotto catturando e purificando il metano che altrimenti sarebbe disperso nell'atmosfera. Avista prevede che le consegne di RNG inizino non prima del 1 gennaio 2025. L'azienda sta considerando proposte da varie fonti di RNG, comprese discariche, pirolisi rapida della biomassa, caseifici, rifiuti alimentari e impianti di trattamento delle acque reflue municipali.
Avista (AVA) ha emitido una solicitud de propuesta (RFP) para asegurar recursos de gas natural renovable (RNG) a largo plazo para sus clientes. Esta iniciativa tiene como objetivo cumplir con los requisitos de reducción de carbono y apoyar el objetivo de Avista de alcanzar la neutralidad de carbono en las operaciones de gas natural para 2045. La RFP está abierta a propietarios actuales, desarrolladores y comercializadores de recursos de RNG.
El RNG se deriva de flujos de desechos orgánicos como vertederos, plantas de tratamiento de aguas residuales, desechos alimentarios y desechos lácteos. Se produce capturando y purificando el metano que de otro modo escaparía a la atmósfera. Avista anticipa que las entregas de RNG comiencen a más tardar el 1 de enero de 2025. La empresa está considerando propuestas de diversas fuentes de RNG, incluidos vertederos, pirólisis rápida de biomasa, productos lácteos, desechos alimentarios y plantas de tratamiento de aguas residuales municipales.
Avista (AVA)는 고객을 위한 장기 재생 가능 천연 가스(RNG) 자원을 확보하기 위해 제안 요청(RFP)을 발행했습니다. 이 이니셔티브는 탄소 감소 요구사항을 충족하고 2045년까지 천연 가스 운영의 탄소 중립을 달성하겠다는 Avista의 목표를 지원하는 것을 목표로 합니다. RFP는 현재 RNG 자원의 소유자, 개발자 및 유통업체에게 열려 있습니다.
RNG는 매립지, 폐수 처리장, 음식물 쓰레기 및 유제품 쓰레기와 같은 유기 폐기물 흐름에서 파생됩니다. 이는 대기로 배출될 메탄을 포집하여 정화함으로써 생산됩니다. Avista는 RNG 공급이 2025년 1월 1일 이전에 시작되지 않을 것으로 예상하고 있습니다. 이 회사는 매립지, 바이오매스 빠른 열분해, 유제품, 음식물 쓰레기 및 지방 하수 처리장을 포함한 다양한 RNG 소스의 제안을 고려하고 있습니다.
Avista (AVA) a publié une demande de proposition (RFP) pour sécuriser des ressources à gaz naturel renouvelable (RNG) à long terme pour ses clients. Cette initiative vise à répondre aux exigences de réduction du carbone et à soutenir l'objectif d'Avista d'atteindre la neutralité carbone dans les opérations de gaz naturel d'ici 2045. La RFP est ouverte aux propriétaires actuels, développeurs et commercialisateurs de ressources RNG.
Le RNG est dérivé de flux de déchets organiques tels que décharges, stations d'épuration, déchets alimentaires et déchets laitiers. Il est produit par la capture et la purification du méthane qui s'échapperait autrement dans l'atmosphère. Avista prévoit que les livraisons de RNG commenceront au plus tôt le 1er janvier 2025. L'entreprise envisage des propositions provenant de diverses sources de RNG, y compris des décharges, de la pyrolyse rapide de la biomasse, des produits laitiers, des déchets alimentaires et des stations d'épuration municipales.
Avista (AVA) hat eine Ausschreibung (RFP) herausgegeben, um langfristige erneuerbare Erdgasressourcen (RNG) für seine Kunden zu sichern. Diese Initiative hat zum Ziel, die Vorgaben zur Kohlenstoffreduzierung zu erfüllen und das Ziel von Avista zu unterstützen, bis 2045 Kohlenstoffneutralität in den Erdgasoperationen zu erreichen. Die Ausschreibung steht derzeitigen Eigentümern, Entwicklern und Vermarktern von RNG-Ressourcen offen.
RNG stammt aus organischen Abfallströmen wie Deponien, Kläranlagen, Lebensmittelabfällen und Molkereiabfällen. Es wird durch die Auffangung und Reinigung von Methan produziert, das sonst in die Atmosphäre entweichen würde. Avista erwartet, dass die RNG-Lieferungen nicht vor dem 1. Januar 2025 beginnen. Das Unternehmen zieht Angebote von verschiedenen RNG-Quellen in Betracht, einschließlich Deponien, schneller Pyrolyse von Biomasse, Molkereien, Lebensmittelabfällen und kommunalen Kläranlagen.
- Aligns with Avista's carbon neutrality goal for natural gas operations by 2045
- Complies with Washington's Climate Commitment Act and Oregon's carbon reduction goals
- Potential for long-term partnerships to grow the RNG market in North America
- Diversifies energy sources with renewable options
- Potential rate impact on customers due to RNG procurement
- Uncertainty in the development and maturity of the RNG market
- Possible challenges in securing sufficient RNG resources to meet goals
Insights
Avista's RFP for renewable natural gas (RNG) marks a significant step towards meeting carbon reduction goals in Washington and Oregon. This aligns with the broader trend of utilities transitioning to cleaner energy sources. The 2025 delivery timeline suggests a realistic approach, allowing time for resource development. The diverse range of RNG sources sought, including landfills and food waste, indicates a comprehensive strategy to maximize potential supplies.
However, the success of this initiative will depend on the cost-effectiveness of RNG compared to conventional natural gas. The mention of expenditure limits in Oregon highlights potential financial constraints. The long-term impact on consumer rates and the scalability of RNG production will be important factors to monitor. Overall, this move positions Avista as a proactive player in the emerging RNG market, potentially enhancing its environmental credentials and long-term sustainability.
Avista's RFP for RNG resources represents a strategic move in a rapidly evolving energy landscape. The company's aim to be carbon neutral in natural gas operations by 2045 is ambitious but aligns with global decarbonization trends. This initiative could provide Avista with a competitive edge and potential new revenue streams as the RNG market matures.
Investors should note the long-term nature of these contracts, which could provide stability but also pose risks if RNG technology or pricing significantly changes. The inclusion of diverse RNG sources and emerging technologies like hydrogen suggests a forward-thinking approach. However, the economic viability of these projects and their impact on Avista's financial performance will be critical to watch. The success of this initiative could position Avista as a leader in the clean energy transition, potentially attracting ESG-focused investors.
RNG sought to meet carbon reduction requirements and goals
SPOKANE, Wash., Sept. 03, 2024 (GLOBE NEWSWIRE) -- Avista, through a request for proposal (RFP), is seeking to secure renewable natural gas (RNG) resources for its customers over the long term. RNG is derived from organic waste streams that would otherwise release methane to the environment as they decompose. These sources include, for example, landfills, wastewater treatment plants, food waste and dairy waste. RNG is produced by capturing that methane that would otherwise escape to the atmosphere and purifying it to make it very similar to conventional natural gas.
“Avista is seeking to obtain RNG, so that we may build on our aspirational goals to be carbon neutral in our natural gas operations by 2045, and so that we may also meet the requirements of Washington’s Climate Commitment Act and Oregon’s carbon reduction goals,” said Jason Thackston, Avista’s chief strategy and clean energy officer. “Additionally, legislative changes have laid the groundwork for utilities, such as Avista, to enter the RNG market as developers, long-term buyers, and long-term partners to help grow and mature the RNG market in North America.”
In 2019, the Oregon legislature passed Senate Bill 98, which allows natural gas utilities to acquire RNG for delivery to their customers. The rules implementing Senate Bill 98 are established and overseen by the Public Utility Commission of Oregon, including limits on total expenditures for RNG and the overall rate impact to customers. In 2019 the Washington State legislature also passed a bill supporting RNG procurement, House Bill 1257.
The RFP is open to parties who currently own, propose to develop, or hold rights to resources, or those marketing a resource or portfolio of resources meeting Avista’s requirements for RNG. Bidders may submit multiple proposals; each proposal may include certain configuration, contracting or pricing options. Avista anticipates RNG deliveries to be no earlier than January 1, 2025.
Avista anticipates proposals from both new and existing resources such as:
- Landfill RNG
- Biomass Fast Pyrolysis Synthetic RNG
- Dairy RNG
- Food Waste RNG
- Municipal Wastewater Treatment Plant RNG
- RNG commodity portfolios (bundled or unbundled)
- Carbon Capture with synthetic RNG byproduct
- Hydrogen
- Other RNG offerings meeting Avista’s needs
RFP responses are due by Tuesday, October 29, 2024. The RFP and bid instructions are available on the Avista website at: myavista.com/RNGRFP
About Avista Utilities
Avista Utilities is involved in the production, transmission and distribution of energy. We provide energy services and electricity to 418,000 customers and natural gas to 382,000 customers in a service territory that covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. Avista Utilities is an operating division of Avista Corp. (NYSE: AVA). For more information, please visit www.myavista.com.
Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.
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FAQ
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