RNG / BIOMETHANE
Renewable Natural Gas (Biomethane) Advisory
Confidently mitigate your natural gas emissions
An increasing number of organizations around the world are realizing the benefits of renewable natural gas (RNG), also called biomethane in Europe. RNG presents an exciting opportunity to mitigate greenhouse gas (GHG) emissions from natural gas combustion. However, numerous factors must be considered by organizations to determine whether it’s the right solution for them, including price, feedstock, environmental integrity, and more.
The 3Degrees team can guide your organization through these considerations and then work with you to finalize an RNG procurement strategy, seeking solutions such as long-term gas purchase agreements (GPA).
Determining the feasibility of RNG for your organization
RNG, also known as biomethane, is an effective solution for decarbonization. However, due to the nascency of the market, it may not be suitable for all corporate buyers. Before purchasing, organizations must consider the following factors:
While this list covers primary considerations, there are additional factors that our advisory team can walk your organization through when building your RNG strategy.
Once you’re confident that RNG is the best solution for your organization, 3Degrees can help you move forward with procurement. One procurement approach is through a gas purchase agreement (GPA). A GPA is a contract between a corporate off-taker and a project developer to obtain the environmental attributes associated with RNG, normally called renewable thermal certificates (RTCs) or green gas certificates, from a specific renewable energy project or feedstock.
Contract structures are flexible and fall into these three main categories:
Unbundled Certificates
- EAC purchase contract
Direct Contract
- Virtual gas purchase agreement
- Long-term EAC purchase contract
- Physical gas purchase agreement
- GPA for physical supply from own plant (private pipeline or via tankers)
RNG advisory expertise
sold through short- and long-term sales to corporate and utility customers
methane capture projects from which 3Degrees has managed, verified, and issued credits
consulting engagements completed
RNG vs. Biomethane: How the US & EU markets differ
What’s called RNG in the US, is referred to as biomethane in Europe. That’s not the only difference between the two regions when it comes to this resource. Learn about the other ways in which these regions differ with our infographic.
3Degrees’ comprehensive RNG advisory services
Develop a strategy to address natural gas consumption
- Measure baseline GHG emissions from natural gas
- Review climate commitments
- Engage and educate key stakeholders and decision-makers
- Design custom procurement strategy and business case
Launch procurement for new RNG supply
- Issue RFP specifying desired geography, feedstock, structure, and term
- Perform comprehensive quantitative and qualitative evaluation
- Conduct due diligence to ensure environmental integrity
- Propose shortlist of best-fit offers, and recommend awardee(s)
- Negotiate RNG purchase agreement
Monitor performance of executed contracts
- Monitor contract fulfillment to ensure you get what you paid for
- Ensure proper contractual attestations for compliance with applicable standards
- Perform invoice auditing and financial analysis, as applicable
- Provide guidance on appropriate claims
RNG around the world
No matter where your operations are based, 3Degrees can assist with your RTC procurement needs.
Suggested insights
While RNG can be an effective tool for decarbonization, it is not suitable for all corporate buyers and several considerations must be validated prior to RNG purchasing. Read on to learn more about these key considerations.
In our video we talk through the basics of biomethane, get into biomethane purchase agreements (BPAs), and uncover the key benefits of BPAs and whether they are a suitable choice for accelerating your organization's sustainability efforts.
There’s growing demand for RNG and RTCs, so it's important to understand how these certificates work, geographic differences (U.S. vs. Europe), nuances associated with different project types, and how they can be applied towards an organization’s climate goals.
Learn more about how 3Degrees can support your organization at any stage of your sustainability journey.
