Clean Fuels Strategy
ATCO is committed to decarbonization through the production and distribution of clean fuels such as RNG and hydrogen. By providing our customers with lower-carbon, lower-emitting energy solutions, we are leading the transition to a more sustainable energy future.
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What is RNG?
Renewable natural gas is produced by capturing and utilizing methane produced from the decomposition of organic materials that would otherwise be released to the atmosphere. Methane has Global Warming Potential (GWP) 28 times greater than carbon dioxide per the IPCC.
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How is RNG made?
A number of organic feedstocks can be utilized to make renewable natural gas, including manure and other agricultural by-products, residential and commercial organics, waste from water treatment plants, and methane emitted from organics breakdown in landfills.
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What is RNG used for?
Renewable natural gas is a reliable energy source for all weather conditions, that is injected into the existing natural gas system in the same manner as conventional natural gas and can be utilized to fuel vehicles or heat homes and businesses.
ATCO Renewable Natural Gas Projects
Two Hills RNG Project
ATCO Energy Solutions, an ATCO company, has partnered with Future Fuel Ltd. to build and operate a renewable natural gas (RNG) facility in Alberta. Located north of Vegreville, Alberta, the Two Hills RNG Facility is ATCO’s first commercial RNG production facility and a strategic investment in ATCO’s clean fuels strategy.
The RNG facility combines organic waste from nearby municipalities with agricultural waste to produce approximately 230,000 gigajoules per year of renewable natural gas, enough to fuel 2,500 homes, that will enter the natural gas grid under a long-term sales contract.
This project will lead to the avoidance of up to 20,000 tonnes per year of carbon dioxide equivalent emissions. Future Fuel, with deep experience in biofuels and agricultural biomass, is a key partner in developing the project and expanding the reach of the facility to new markets. The construction and operation of the facility will be managed by ATCO Energy Solutions.
Emissions Reduction Alberta (ERA) has committed $7.9M to the ATCO Future Fuel project through its Natural Gas Challenge. This investment comes from the Government of Alberta and is sourced from the Technology Innovation and Emissions Reduction (TIER) fund.
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Project benefits
Produce digestate fertilizer as a byproduct which will be land-applied by local farmers to fully utilize the nutrients in the feedstock.
Represents a critical step in optimizing Alberta’s significant agricultural and municipal waste as an energy resource and recycled end product.
Support the reduction of more than 20,000 tonnes of CO2e per year and produce enough RNG to heat the equivalent of up to 2,500 homes per year.
Create new skilled jobs to ensure the ongoing operation of the facility within the community.
Make use of existing pipeline assets to support the transportation of clean fuels to end users.
A 2019 study by Environment and Climate Change Canada suggests that an average of roughly three million metric tonnes of food waste is generated in Canada every year. The diversion of organic material away from landfills benefits society and the environment by reducing GHG emissions. The production of RNG represents a safe, effective and cost-efficient method of processing food waste, combined with animal manure, into pipeline-quality natural gas that is indistinguishable from conventionally produced natural gas.
RNG is a carbon-neutral energy source that can be used anywhere where conventionally produced natural gas is used. This includes home, business or industrial heat and power, or as transportation fuel in the form of compressed natural gas or liquified natural gas.
Our Capabilities
ATCO looks to develop new markets for RNG including utilities, credit markets, public and private partnerships looking to achieve carbon reduction objectives.
ATCO will structure the right deal for each partner and customer to ensure long-term benefits are realized.
Our dedicated project management team leads a group of highly skilled technical experts to ensure projects are delivered on time and on budget.
We bring years of experience designing, managing and building significant capital projects around the world.
Our in-house gas marketing team understands how to transact RNG and ensure projects receive the best possible commercial outcomes and returns.
ATCO CLEAN ENERGY PROJECTS
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ATCO/Suncor Energy Fort Saskatchewan Clean Hydrogen ProjectATCO and Suncor Energy are working together to build a potential clean hydrogen project near Fort Saskatchewan, Alberta, which would produce more than 300,000 tonnes per year of clean hydrogen, reduce Alberta's CO₂ emissions by more than two million tonnes per year, significantly advance Alberta's hydrogen strategy, generate substantial economic activity and jobs across the province, and make a sizable contribution to Canada's net zero ambition. Learn more here.
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Canada's Largest Hydrogen Blending ProjectWith $2.8 million in funding from Emissions Reduction Alberta, Canadian Utilities, an ATCO company, will build Canada’s largest hydrogen blending project in Fort Saskatchewan, Alberta. Once complete, the project will inject up to five per cent hydrogen by volume into a section of Fort Saskatchewan's residential natural gas distribution network, lowering the carbon intensity of the natural gas stream for its customers.
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Australia's First Commercial-Scale Green Hydrogen Supply ChainATCO received $28.7 million from the Australian Renewable Energy Agency (ARENA) to help kickstart the production of hydrogen on a large scale, providing clean fuel for the Australia’s natural gas networks. The funding enables ATCO and its joint-venture partner, Australian Gas Infrastructure Group (AGIG) to move forward with additional planning to establish Australia's first commercial-scale green hydrogen supply chain. A final investment decision is expected in December 2021.
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Hydrogen Vehicle Refuelling SystemAlso in Australia, with the support of the federal government ATCO is working with Fortescue Metals Group to develop and operate a hydrogen vehicle refuelling system.
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Fort Chipewyan Solar ProjectCanadian Utilities completed Canada’s largest off-grid solar project in Fort Chipewyan, Alberta, providing the remote northern community with clean energy and reducing its reliance on diesel fuel to generate electricity. In partnership with local Indigenous communities, the project is an innovative model for other remote communities across Canada to achieve energy autonomy and transition to cleaner, lower-emitting energy solutions. In 2020, the Vuntut Gwitchin First Nation in Yukon was connected to a microgrid built in partnership with ATCO, helping the community reduce its diesel consumption.
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