Minnesota regulators approve CenterPoint Energy plan to use state-made renewable natural gas

CenterPoint Energy will introduce locally produced renewable natural gas (RNG) to its Minnesota natural gas distribution system, thanks to approval from the Minnesota Public Utilities Commission (MPUC).

The move was backed by the Minnesota Department of Commerce, which dubbed the proposal innovative and an opportunity for RNG producers seeking to reduce greenhouse gas emissions and encourage domestic energy use. In this, CenterPoint Energy was also supported by 20 other organizations and businesses.

“Renewable Natural Gas is part of CenterPoint Energy’s ongoing commitment to pursue innovative clean energy solutions,” Brad Tutunjian, vice president of Minnesota regional operations, said. “We are already in discussions with potential RNG producers who are interested in the opportunity to work with us to build a Minnesota RNG industry that can help diversify our energy supply, improve waste management and boost the economy, especially in rural areas.”

RNG is produced by recycling biogas from organic materials, like manure, wastewater, and commercial food waste — materials that might otherwise dispatch methane gas directly into the air. Now, Minnesota RNG suppliers will be able to pay to interconnect with CenterPoint’s pipeline system, and customers will so no costs added. These suppliers will also be required to meet gas quality standards so CenterPoint can guarantee what they’re bringing to the system is interchangeable with conventional natural gas.

CenterPoint, the state’s largest natural gas utility, believes that its distribution system can promote Minnesota RNG production by making it easier for producers to sell their products to existing markets. Other states could also benefit from this, as Minnesota-made RNG passes through interstate pipelines.