Title
Renewable Natural Gas Sale
Action
Action:
A. Adopt a resolution approving the sale of unconditioned biogas recovered from the wastewater treatment process to Piedmont Natural Gas, and
B. Authorize the City Manager, or designee, to negotiate and execute all documents necessary to complete the sale.
Body
Staff Resource(s):
Angela Charles, Charlotte Water
Ron Hargrove, Charlotte Water
Thomas Powers, City Attorney’s Office
Explanation
§ Charlotte Water intends to sell a wastewater treatment byproduct (unconditioned biogas) that will be converted into renewable natural gas (RNG).
§ As a condition of the sale, Piedmont Natural Gas will finance, design, construct, own, operate, and maintain a new RNG processing facility within the McAlpine Creek Wastewater Treatment Plant site in the Town of Pineville (adjacent to Council District 7).
§ The terms of the agreement are as follows:
- Access to Charlotte Water property for a 20-year term, and
- Revenue share of 75 percent, estimated to be $56,869,539, over the 20-year term.
§ On September 5, 2024, the city issued an Invitation to Bid for the sale of its unconditioned biogas; four bids were received.
§ Piedmont Natural Gas was selected as the highest responsive, responsible bidder.
§ The sale of unconditioned biogas to be converted into RNG supports the city’s Strategic Energy Action Plan to reduce greenhouse gas emissions.
Background
§ Charlotte Water is implementing a RNG Project at McAlpine Creek Wastewater Treatment Plant. This initiative focuses on converting biogas generated from the wastewater digesters at the McAlpine Creek Wastewater Treatment Plant into RNG.
§ The primary objective of this project is to clean and refine the biogas produced at the facility, turning it into a valuable energy source. This approach reduces greenhouse gas emissions at the treatment plant by ensuring that 100 percent of the methane produced through the wastewater treatment process is utilized. Currently, a portion of this methane is flared off, contributing to atmospheric carbon emission. By capturing and converting it into RNG, Charlotte Water is taking another step in environmental sustainability.
§ Benefits of the RNG Project include:
- Reduction in greenhouse gas emissions at the treatment plant: existing emissions from gas flare will go to zero;
- Full utilization of methane: eliminating the flaring of methane ensures that this resource is fully harnessed; and
- Economic incentives: the RNG will be sold to a third party, generating payments for the city, and adding to our revenue streams.
Fiscal Note
Funding: Proceeds from sales will be deposited with Charlotte Water general revenues
Attachments
Attachment(s)
Resolution for Sale