Illinois Commerce Commission greenlights Nicor Gas renewable natural gas pilot program
A program floated by Nicor Gas — the Renewable Gas Interconnection Pilot — received approval from the Illinois Commerce Commission (ICC) earlier this month, paving the way for new renewable natural gas (RNG) facilities to be interconnected.
By encouraging the development of RNG production facilities within its service territory, Nicor Gas hopes to determine how such gas could be efficiently integrated into its natural gas distribution system at large and fill out its offerings with cleaner, reliable fuel. RNG is a sustainable non-fossil fuel produced from food and animal waste, wastewater plants and landfill gas, relying on the methane produced from decomposing organic waste. The Interconnection pilot project will take this methane and convert it to RNG to replace geologic natural gas.
“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,” John Hudson III, president and CEO of Nicor Gas, said. “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.”
The project will be promoted with an investment cap of $16 million, setting a tariff for the distribution system to interconnect renewable fuel production systems. In that regard, it is a first for Illinois gas utilities. That first will also allow Nicor to theoretically reduce greenhouse gas emissions from its distribution system and create economic benefits for the region, including $78 million in total economic output over a project’s 20-year lifespan — the amount predicted for a single RNG project.
