Policies that seek to mandate electrification as the only pathway to decarbonization disregard the role that renewable natural gas (RNG) and hydrogen must play in New Jersey’s clean-energy future.
Energy policy has come into sharp focus this year and will likely remain top of mind as our state elects a new governor this November. The candidates for governor will be well-served by adopting a balanced approach to energy, and one that preserves the ability for New Jerseyans to continue to rely on natural gas service, instead of electrification mandates.
Approximately three-quarters of New Jersey residents and businesses rely on natural gas for heating and cooking. New Jersey’s strong preference for natural gas service largely relates to affordability and reliability.
According to the U.S. Department of Energy, natural gas is over three times cheaper than electricity per unit of energy delivered. And natural gas is more reliable, with only one out of 650 natural gas customers nationwide experiencing an unplanned gas outage in a given year on average.
Safely blending RNG and hydrogen in the gas system will help reduce the carbon intensity of the energy New Jersey uses while avoiding the strain and costs associated with electrification.
South Jersey Industries is a leader on this front, developing and advancing sustainable energy solutions through subsidiary SJI Renewable Energy Solutions (SJI REV). With more than two dozen facilities across eight states, this clean-energy leader develops, owns and operates a diverse portfolio of renewable energy projects with a core focus on producing renewable natural gas.
Closer to home, SJI REV’s flagship project, the Linden Renewable Energy (LRE) project, will convert methane from organic food waste into energy. Once completed, LRE is expected to be the largest food waste-to-RNG project in the United States and will go a long way in helping New Jersey meet its decarbonization goals by removing food waste from landfills and avoiding an estimated 120,000 metric tons of carbon dioxide emissions annually when operating at planned capacity.
Landfills represent a third of human-made methane emissions in the United States. Diverting organic waste from landfills will significantly reduce methane emissions. In 2020, New Jersey took action in addressing this issue and enacted legislation requiring large food waste generators such as supermarkets, banquet halls, and hospitals that are located within 25 road miles of an authorized facility, to separate and recycle their food waste.
As of today, however, there are only two authorized food waste recycling facilities in the state. New Jersey generates more than 1.46 million tons of food waste every year. With limited food waste recycling options in the state, New Jersey may not have enough recycling capacity to meet demand.
However, once the LRE project is operational, it will have the capacity to take in up to 1,475 tons of organic food waste daily and produce up to 3,783 million BTUs per day of pipeline-quality RNG, energy that will be safely injected and blended into the Elizabethtown Gas natural gas delivery system to heat homes and businesses in the Elizabethtown Gas service area.
The LRE facility is expected to accept a wide range of feedstock, including food waste from industrial, commercial and institutional entities and grease waste from restaurants and other food service establishments.
SJI is incredibly proud that this flagship facility will be one of the largest clean-energy projects in the U.S. to date.
Additionally, SJI Renewable Energy Ventures has a portfolio of more than 20 dairy RNG projects throughout the country, 10 of which are currently online and operating, injecting RNG into natural gas transmission or distribution networks in various parts of the country.
The company is also developing projects at two New Jersey landfills, where the biogas produced from decomposing organic landfill material can be captured by a gas well collection system and processed into pipeline-quality gas.
SJI is also in the process of constructing a hydrogen project facility in South Harrison, where the power from an on-site solar farm is expected to generate green hydrogen that will be blended directly into South Jersey Gas’ distribution system. As a result, South Jersey Gas customers will soon be utilizing blended natural gas for heating and cooking, with lower carbon emissions intensity than conventional natural gas.
Energy demand is projected to grow at record levels over the coming years, in large part as states like New Jersey seek to expand their investment in data centers and artificial intelligence. Reliability and resiliency will be key, requiring an all-of-the-above approach that includes a complementary mix of renewable and traditional generation sources and a massive investment in utility transmission and distribution facilities.
RNG and hydrogen, which can be blended with geologic natural gas and safely delivered through existing modern utility infrastructure, can play a critical role in shaping New Jersey’s energy future, safely, reliably and affordably. Policymakers, including those seeking to lead our state as governor, should embrace RNG and hydrogen as part of our clean-energy future.