Avista signs new renewable natural gas contract

Rhea-AI Summary

Avista signs agreement with Pine Creek RNG to purchase renewable natural gas from Quad Cities Landfill, marking the fourth contract with Pine Creek. The project is expected to produce 3 million therms of RNG annually and help Avista meet emission reduction goals.

Insights

Energy Market Analyst

The agreement between Avista and Pine Creek RNG to purchase renewable natural gas from the Quad Cities Landfill represents a strategic move within the energy sector. Renewable natural gas (RNG) is gaining traction as a cleaner alternative to conventional natural gas, with the potential to play a significant role in reducing greenhouse gas emissions. The energy market is increasingly influenced by environmental considerations and RNG fits into the broader trend of transitioning towards sustainable energy sources.

From an energy market perspective, Avista's long-term investment in RNG could be seen as an attempt to diversify its energy portfolio and hedge against future regulatory changes that may favor low-carbon energy sources. The construction of the Milan, Illinois project and the expected annual production of 3 million therms of RNG contribute to a growing supply of renewable energy. The cumulative output from Pine Creek's projects with Avista, amounting to 9.7 million therms annually, signifies a notable increase in RNG availability and could influence market dynamics by providing a renewable option for approximately 17,500 homes.

Environmental Policy Expert

The collaboration between Avista and Pine Creek RNG underscores the impact of legislative changes on the energy industry. As governments introduce policies aimed at reducing carbon emissions, utilities are incentivized to invest in renewable energy sources like RNG. Such investments are not merely business decisions but are also aligned with the broader policy objectives of reducing the carbon footprint of energy consumption.

Legislative groundwork that allows utilities to enter the RNG market as developers and long-term buyers can be seen as part of a policy toolkit designed to foster a sustainable energy market. Avista's strategy to meet emission reduction goals through RNG projects is a direct response to these policy shifts. This approach could serve as a model for other utilities seeking to adapt to a regulatory environment that increasingly prioritizes emissions reductions and sustainability.

Sustainable Business Strategist

The announcement by Avista reflects a growing trend among energy utilities to integrate sustainability into their core business strategies. RNG is produced by capturing methane—a potent greenhouse gas—from decomposing organic waste, which would otherwise contribute to atmospheric pollution. By utilizing RNG, Avista is effectively turning a waste management challenge into an energy solution, demonstrating innovation in sustainable business practices.

The vertical integration of RNG into gas utility distribution systems, as highlighted by Pine Creek's vice president of development, is indicative of a strategic approach to control the supply chain and enhance the utility's competitiveness in a market that is increasingly valuing sustainability. Additionally, the use of RNG as a clean transportation fuel at Pine Creek fueling stations represents a diversification into new market segments, potentially opening up additional revenue streams and contributing to the long-term resilience of the business.

SPOKANE, Wash., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Avista recently signed an agreement with Pine Creek RNG (“Pine Creek”) to purchase renewable natural gas (“RNG”) to be produced at the Quad Cities Landfill in Milan, IL. The Quad Cities Landfill is owned by Millennium Waste Incorporated, a subsidiary of Waste Connections. In October 2022, Avista released a request for proposal (RFP) to secure 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 and food 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.

This latest contract marks Avista’s fourth with Pine Creek. Previous RNG projects include the Horn Rapids Landfill in Richland, Washington, Bayview Landfill in Elberta, Utah, and the Black Hawk Landfill in Waterloo, Iowa. Construction on the Milan, Illinios project is expected to be complete by the end of 2024 and produce 3 million therms of RNG annually. The total output of Pine Creeks projects contracted with Avista is an expected 9.7 million therms annually, which is the equivalent amount of natural gas used by approximately 17,500 homes.

“These RNG projects help Avista meet our aspirational goals to reduce natural gas emissions,” 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.”

“This fourth offtake agreement marks another step forward in contributing towards Avista’s emission reduction goals,” said Kevin Orchard, Pine Creek’s vice president of development. “We look forward to building on the continued relationship with Avista as we further invest in our RNG strategy, which is focused on the vertical integration of our RNG into gas utility distribution systems and as a clean transportation fuel at Pine Creek fueling stations.”

About Avista Utilities
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to 411,000 customers and natural gas to 377,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 17,000 customers in the city and borough of Juneau, Alaska. Our stock is traded under the ticker symbol “AVA”. For more information about Avista, please visit www.avistacorp.com.

This news release contains forward-looking statements regarding the company’s current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company’s control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company’s and the Quarterly Report on Form 10-Q for the quarter ended Dec. 31, 2022, and its Annual Report on Form 10-K for the year ended Dec. 31, 2022.

Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

SOURCE: Avista Corporation

About Pine Creek RNG
Pine Creek RNG, LLC is a vertically integrated Renewable Natural Gas (RNG) producer that develops, owns, and operates RNG facilities across the U.S. Industry-leading owners of landfills and industrial digesters partner with Pine Creek to convert sources of raw biogas into low carbon fuels. Lancer Energy, a Pine Creek Renewables owned company, has over 30 years of experience in the alternatives fuel market serving the compressed natural gas industry, converting vehicles, building and maintaining fueling stations. Pine Creek’s executive team is comprised of industry veterans with decades of experience in energy and technology, deep market knowledge, and know-how. Driven by a culture of collaboration and partnership, Pine Creek and its people are committed to creating value through positive environmental impact.

For more information about Pine Creek RNG, please visit: www.pinecreekrng.com, http://www.lancerenergy.com and http://www.pinecreek.com.

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Contact:
Media: Annie Gannon, annie.gannon@avistacorp.com
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FAQ

What is the latest agreement signed by Avista?

Avista recently signed an agreement with Pine Creek RNG to purchase renewable natural gas from the Quad Cities Landfill in Milan, IL.

How much RNG is expected to be produced annually from the Milan, Illinois project?

The project is expected to produce 3 million therms of RNG annually.

How many homes can be powered with the total output of Pine Creek's projects contracted with Avista?

The total output of Pine Creek's projects is expected to power approximately 17,500 homes.

Who is Avista's chief strategy and clean energy officer?

Jason Thackston is Avista's chief strategy and clean energy officer.

What is Pine Creek's focus in their RNG strategy?

Pine Creek's focus in their RNG strategy is on the vertical integration of RNG into gas utility distribution systems and as a clean transportation fuel at Pine Creek fueling stations.