In the United States (US), Avista Utilities, an energy production, transmission, and distribution arm of Avista Corporation (Avista), has issued a Request for Proposal (RFP) seeking to secure renewable natural gas (RNG) resources for its customers over the long term.
Renewable natural gas (RNG) or biomethane is derived from organic waste streams such as landfills, wastewater treatment plants (WWTPs), and food- and dairy waste.
Avista is seeking to obtain RNG, so that we may build on our aspirational goals to be carbon neutral in our natural gas operations by 2045, and so that we may also meet the requirements of Washington’s Climate Commitment Act and Oregon’s carbon reduction goals. Additionally, legislative changes have laid the groundwork for utilities, such as Avista, to enter the RNG market as developers, long-term buyers, and long-term partners to help grow and mature the RNG market in North America, said Jason Thackston, Chief Strategy and Clean Energy Officer at Avista.
In 2019, the Oregon legislature passed Senate Bill 98, which allows natural gas utilities to acquire RNG for delivery to their customers.
The rules implementing Senate Bill 98 are established and overseen by the Public Utility Commission of Oregon, including limits on total expenditures for RNG and the overall rate impact on customers.
In 2019, the Washington State legislature also passed a bill supporting RNG procurement, House Bill 1257.
Request for Proposals
The RFP is open to parties who currently own, propose to develop, or hold rights to resources, or those marketing a resource or portfolio of resources meeting Avista’s requirements for RNG.
Bidders may submit multiple proposals; each proposal may include certain configuration, contracting, or pricing options.
Avista anticipates RNG deliveries to be no earlier than January 1, 2025. Avista anticipates proposals from both new and existing resources such as:
- Landfill RNG
- Biomass Fast Pyrolysis Synthetic RNG
- Dairy RNG
- Food Waste RNG
- Municipal Wastewater Treatment Plant RNG
- RNG commodity portfolios (bundled or unbundled)
- Carbon Capture with synthetic RNG byproduct
- Hydrogen
- Other RNG offerings meeting Avista’s needs
RFP responses are due by October 29, 2024.
