SoCalGas signs RNG procurement contract

Monterey Park, California-based Southern California Gas Company (SoCalGas) has signed a contract with Organic Energy Solutions (OES) to procure renewable natural gas (RNG) converted from organic waste and inject it into SoCalGas’ pipeline system.

SoCalGas says the contract is the first approved by the California Public Utilities Commission (CPUC) under Senate Bill (SB) 1440, which sets specific RNG procurement targets for the state’s natural gas utilities. The RNG will be sourced from a project located in San Bernardino, California.

SoCalGas aims to replace approximately 12 percent of the traditional natural gas it delivers to residential and small business customers with RNG by 2030, pursuant to the targets that have been established under SB 1440 by the CPUC. The new RNG standard is expected to help the state achieve its goal to reduce methane emissions by 40 percent by 2030.

“As the first RNG procurement project under California’s renewable gas standard, this contract represents an important milestone for the RNG industry and SoCalGas as we work together to advance California’s energy goals,” says Elsa Valay-Paz, vice president of gas acquisition at SoCalGas. “By converting waste that would otherwise end up in landfills into usable energy, this project is intended to help reduce greenhouse gas emissions, improve air quality and help California reach its climate goals.” 

“At OES, we are proud to unite with SoCalGas on this groundbreaking renewable natural gas project, which marks a significant step forward in California’s transition to cleaner energy,” says Brian Hume, senior vice president of operations at BioStar Renewables, owner of OES. “By converting organic waste into a valuable energy resource, we aim to not only reduce greenhouse gas emissions but also create a more sustainable and resilient energy future. This collaboration underscores our commitment to innovation in waste-to-energy solutions and our shared vision for a cleaner, more sustainable California.”

OES, a company specializing in biomass processing and fuel production, will collect organic waste from local industrial and food waste sources, processing it in an anaerobic digester. Methane emissions from the decomposition process are captured and converted into RNG, which will then be injected into the SoCalGas pipeline system.

According to SoCalGas, the project is expected to begin supplying RNG to SoCalGas’ system in the second half of 2026. Once operational, OES estimates the project will prevent approximately 15,300 tons of greenhouse gases (GHGs) from entering the atmosphere each year. 

"SoCalGas’ progress toward RNG procurement targets established under California's SB 1440 will be watched closely by counterparts and policymakers in other U.S. states, with the potential for agreements like these to create a powerful precedent for lasting energy system change,” says Sam Wade, vice president of public policy for RNG Coalition. “RNG is an innovative climate solution that converts methane emissions from organic waste into a low-carbon replacement for fossil fuels, making it a cleaner fit for long-term decarbonization plans at the utility level.”