Nicor Gas receives approval for renewable natural gas pilot program

Rhea-AI Summary

Nicor Gas has received approval from the Illinois Commerce Commission for its Renewable Gas Interconnection Pilot, aimed at promoting renewable natural gas (RNG) production. The $16 million initiative will interconnect RNG facilities into its distribution system, allowing for cleaner energy alternatives. The pilot could create significant economic impacts, including $478 million in economic output and over 200 jobs tied to a single RNG project. The program underscores Nicor Gas's commitment to sustainable energy solutions in Illinois.

Positive

• Approval of Renewable Gas Interconnection Pilot to promote RNG production.
• Investment of $16 million in integrating RNG into the distribution system.
• Potential creation of 229 part-time and 46 full-time jobs from a single RNG project.
• $478 million estimated economic output over the project's 20-year lifespan.

Negative

• None.

NAPERVILLE, Ill., July 19, 2021 /PRNewswire/ -- Nicor Gas' Renewable Gas Interconnection Pilot received approval July 8 from the Illinois Commerce Commission. The pilot aims to encourage the development of renewable natural gas (RNG) production facilities within Nicor Gas' service territory, and allows the company to determine how RNG can be efficiently integrated into its natural gas distribution system as a safe, reliable and clean energy source for customers.  

"Nicor Gas is committed to helping our communities thrive and to bettering our environment. This program seeks to do that by bringing sustainable, clean RNG to the marketplace, while creating clean energy jobs and new revenue streams for Illinois businesses," said John O. Hudson III, president and CEO of Nicor Gas. "We look forward to working with RNG producers and consumers during the pilot program while helping our state lead in the progress toward a clean energy future."

As a part of the pilot, Nicor Gas will enable the interconnection of new RNG facilities, which create a pathway for lower carbon fuels to be available to customers by displacing traditional, geologic natural gas. With an investment capped at $16 million, the pilot marks the first time an Illinois gas utility has a tariff that allows its distribution system to interconnect renewable fuel production systems, creating a sustainable and clean energy solution for Illinois.

RNG is a sustainable and reliable non-fossil fuel produced from sources such as food and animal waste, wastewater plants and landfill gas. As these organic waste sources decompose, methane is produced. RNG projects, like those eligible to enroll in Nicor Gas' Renewable Gas Interconnection Pilot, capture the methane and convert it into RNG that is an interchangeable substitute for geologic natural gas. Converting waste to clean RNG and integrating it into Nicor Gas' distribution system reduces greenhouse gas emissions while creating new jobs and business opportunities in the community.

According to an Illinois economic impact study by EcoEngineers, just one RNG project could create up to 229 part-time jobs during construction, 46 full-time jobs during operations and $478 million in total economic output over the 20-year project life. 

For more information about RNG and Nicor Gas, please visit nicorgas.com/rng. RNG suppliers interested in the Renewable Gas Interconnection Pilot can contact renewablegas@southernco.com for more information.

About Nicor Gas 
Nicor Gas is one of four natural gas distribution companies of Southern Company Gas, a wholly owned subsidiary of Southern Company (NYSE: SO). Nicor Gas serves more than 2.2 million customers in a service territory that encompasses most of the northern third of Illinois, excluding the city of Chicago. For more information, visit nicorgas.com.

About Southern Company Gas
Southern Company Gas is a wholly owned subsidiary of Atlanta-based Southern Company (NYSE:SO), America's premier energy company. Southern Company Gas serves approximately 4.3 million natural gas utility customers through its regulated distribution companies in four states with approximately 666,000 retail customers. Other nonutility businesses include investments in interstate pipelines, asset management for natural gas wholesale customers and ownership and operation of natural gas storage facilities. For more information, visit southerncompanygas.com.

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SOURCE Nicor Gas

FAQ

What is the purpose of Nicor Gas' Renewable Gas Interconnection Pilot?

The pilot aims to promote renewable natural gas (RNG) production and integrate it into Nicor Gas' distribution system.

How much is Nicor Gas investing in the Renewable Gas Interconnection Pilot?

Nicor Gas is investing $16 million in the Renewable Gas Interconnection Pilot.

What economic impact could a single RNG project create in Illinois?

A single RNG project could create up to 229 part-time jobs, 46 full-time jobs, and generate $478 million in total economic output over 20 years.

When was the Renewable Gas Interconnection Pilot approved?

The pilot was approved on July 8, 2021, by the Illinois Commerce Commission.

Which company owns Nicor Gas?

Nicor Gas is a subsidiary of Southern Company, which is traded on the NYSE under the ticker symbol SO.