In the United States (US), U.S. Gain, a leader in the development and distribution of alternative fuel and renewable thermal energy, has announced that it has entered into a first-of-its-kind supply agreement with an undisclosed partner for its renewable natural gas (RNG) in the California transportation market.
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The RNG supply will be used as a feedstock for hydrogen production, enabling a greener fueling solution for the California transportation market.
The opportunity to supply RNG into hydrogen production was a natural fit for U.S. Gain’s growth strategy, said Mike Koel, President of U.S. Gain.
Hydrogen producers are quickly learning the importance of feedstock selection in the production process, especially when the hydrogen is distributed in regions with established clean fuel programs.
Leveraging a low CI score
Leveraging RNG in the hydrogen production process can dramatically impact the hydrogen’s carbon intensity (CI) score. A lower CI score translates to improved environmental benefits and additional economic value.
For hydrogen producers, the best low-carbon scenario comes from dairy-based RNG, which results in a CI score as low as -300.
Our job as a vertically-integrated RNG provider is to leverage insight on both ends of the energy supply chain – determining the best development and supply opportunities. Hydrogen is a long-term strategy that enables our existing RNG supply to perform well in future markets, Mike Koel said.
Policy and technology drivers
Though hydrogen is emerging in terms of technology readiness and infrastructure availability within the commercial transportation market, demand is certainly increasing thanks to government funding and policy, along with technology advancements that give hydrogen diesel-like performance characteristics.
Being able to keep CI scores low while maintaining fleet performance offers sustainability benefits and a compelling value proposition that is hard to ignore, said Scott Hanstedt, Director of Sales at U.S. Gain.
U.S. Gain is looking ahead to future opportunities as the hydrogen market emerges – both in terms of hydrogen development and fueling station deployments.
As a polyfuel provider, we’re working with fleets to evaluate where hydrogen makes sense along their fueling routes and look forward to building out their fueling infrastructure network, supplied with RNG-based hydrogen, ended Scott Hanstedt.
