Renewable Natural Gas and Carbon Credit Programs for Gas Utilities
Pressure to decarbonize our energy supply is mounting as the climate crisis intensifies. As a result, many gas utilities are exploring the best way to integrate renewable natural gas (RNG) and carbon credits into their solution set as part of a voluntary program.
Voluntary programs are the best next step for most natural gas utilities as they address three major challenges:
Demonstrate action in response to stakeholder pressure to decarbonize |
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Respond to commercial customer demand to address carbon emissions |
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Enable the utility to show progress in the near term, in a way that doesn’t complicate future decarbonization efforts |
Demonstrate action in response to stakeholder pressure to decarbonize |
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Respond to commercial customer demand to address carbon emissions |
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Enable the utility to show progress in the near term, in a way that doesn’t complicate future decarbonization efforts |
RNG certificates are used in a number of voluntary and compliance frameworks to substantiate claims of consuming renewable energy fuel from a common carrier pipeline. As a relatively new commodity compared to electricity-derived energy attribute certificates, reporting requirements are still under development for some corporate sustainability initiatives.
HOW WE CAN HELP
3Degrees’ deep experience helps utilities design, build, and grow voluntary programs faster, at a lower cost, and bearing less risk compared to relying on an in-house team. For natural gas utilities who are new to voluntary programs, it can be difficult to go it alone. Working with 3Degrees allows the utility to deploy best practices, identify and avoid risks up front, and maximize the value delivered to the utility and its most important customers.
OUR GAS UTILITY PROGRAM SERVICES
Smart Launch SolutionTM
3Degrees’ Smart Launch Solution provides gas utilities with an efficient, cost-effective, and low-risk way to demonstrate climate action while engaging customers with near-term solutions to address their emissions today.
PROGRAM REGULATORY FILING TOOLKITConfidently file the voluntary program with your Commission or governing body by utilizing insights about projected customer interest and participation, a program financial model, a detailed program design, and best practice knowledge about other successful gas programs. |
LOW-RISK, LONG-TERM SUPPLY OF CARBON CREDITS AND RNG3Degrees insulates the utility, participant, and the rate base from both volatility in the carbon and RNG markets, as well as unpredictable program uptake rates, which can make long-term purchasing challenging for utilities. Deliver cost-effective, compelling options for your customers to address their carbon emissions at a competitive fixed price without having to manage the volumetric and market risk across multiple years. |
PROGRAM MARKETING AND COMMUNICATIONS TOOLKITLeverage decades of 3Degrees’ voluntary program experience with proven marketing and communications best practices and tools that meet the highest program disclosure and Federal Trade Commission (FTC) green marketing guidelines. |
DEDICATED 3DEGREES UTILITY PARTNERSHIPS PROGRAM MANAGEMENT SUPPORTFacilitate program launch and ongoing implementation success with access to the expert advice and guidance of an experienced voluntary utility renewable programs manager. |
Program Design
The right program design is central to a successful voluntary RNG and/or carbon credit program. However, voluntary RNG and carbon credit programs have several complex factors to consider.
CHALLENGES INCLUDE:
- Determining the right product design and pricing
- Assessing customer demand and forecasting subscription rates
- Sourcing high-quality RNG certificates and/or carbon credits for the program
3Degrees partners with gas utilities to help them navigate all of these considerations and ensure the design of a successful voluntary RNG and/or carbon credit program.
Marketing and Customer Acquisition
A successful program is one with robust and growing participation. 3Degrees is the market-leading expert in selling additional-cost voluntary programs to utility customers in ways that build the utility’s brand and result in high customer participation rates.
When we were looking for renewable natural gas attributes to supply to our customers, we had several concerns about costs and how to validate the environmental attributes. We partnered with 3Degrees given their years of industry experience, and worked with them on a verification process that made us confident in the purchase for us and our customers. The 3Degrees team was good to work with and was key in making our program possible.