Avista signs renewable natural gas contract

Rhea-AI Summary

Avista has signed an agreement with Pine Creek RNG to procure renewable natural gas (RNG) from projects in Richland, Washington, and Waterloo, Iowa. The initiative follows Avista's October 2022 RFP to secure long-term RNG resources, contributing to lower methane emissions from organic waste. The projects are expected to produce a combined total of 5.1 million therms annually, sufficient to supply around 4,173 homes. Completion of construction is anticipated by the end of 2023, enhancing Avista's goal of reducing natural gas emissions by 30% by 2030 and achieving carbon neutrality in its operations by 2045. Both companies emphasize the environmental benefits of this partnership, signaling a significant step towards a more sustainable energy future.

Positive

• Agreement with Pine Creek RNG to purchase renewable natural gas.
• Projects expected to produce 5.1 million therms annually, benefiting approximately 4,173 homes.
• Supports Avista's goal to reduce natural gas emissions by 30% by 2030.
• Aids in achieving carbon neutrality in natural gas operations by 2045.

Negative

• None.

SPOKANE, Wash., April 11, 2023 (GLOBE NEWSWIRE) -- Avista recently signed an agreement with Pine Creek RNG to purchase renewable natural gas (RNG) to be produced from projects in Richland, Wash. and Waterloo, Iowa.

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.

Some of Pine Creek’s projects include the Horn Rapids Landfill owned by the City of Richland and Lamb Weston’s potato processing plant in Richland. Construction is expected to be complete in both projects by the end of 2023 and produce 2.5 million therms of RNG annually, which is equivalent to the natural gas used by approximately 4,173 Washington homes each year. In early 2024, a project at the Black Hawk County Landfill in Waterloo, Iowa is expected to begin producing 2.6 million therms annually.

“These RNG projects help Avista meet our aspirational goals to reduce natural gas emissions 30% by 2030 and to be carbon neutral in our natural gas operations by 2045,” 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.”

“Pine Creek is pleased to be working with Avista who has done an excellent job placing themselves at the forefront of the transition to renewable natural gas,” said Kevin Orchard, Pine Creek’s vice president of development. “These are exciting projects for Pine Creek and will provide meaningful contribution towards Avista’s climate goals while also benefiting all involved and creating a positive impact on the environment.”

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

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FAQ

What is Avista's agreement with Pine Creek RNG about?

Avista has signed an agreement to purchase renewable natural gas (RNG) from Pine Creek RNG's projects in Richland, WA, and Waterloo, IA.

How much renewable natural gas will the projects produce?

The projects are expected to produce a total of 5.1 million therms of renewable natural gas annually.

What are Avista's goals regarding natural gas emissions?

Avista aims to reduce natural gas emissions by 30% by 2030 and achieve carbon neutrality in its natural gas operations by 2045.

When will the RNG projects be completed?

The construction of the RNG projects is expected to be completed by the end of 2023.

How many homes will the renewable natural gas supply?

The renewable natural gas produced will be equivalent to the natural gas used by approximately 4,173 homes.