The Government of Ontario is investing up to $100 million (USD 77m) in cap and trade proceeds over four years to support the introduction of renewable natural gas (RNG). Through it’s Climate Change Action Plan, which will be released this spring, Ontario will encourage the use of cleaner, renewable natural gas in industrial, transportation and buildings sectors — the province’s biggest sources of greenhouse gas emissions.
The province’s investment will help reduce greenhouse gas emissions and help offset the cost to consumers of introducing renewable natural gas. Methane that is released from sources such as landfills, municipal green bin collection, agricultural residues, livestock manure, food and beverage manufacturing waste, sewage treatment plants and forestry waste can be recovered, cleaned and can be directly substituted for conventional natural gas.
“Natural gas is a vital part of Ontario’s energy supply today and in the future. These investments are about encouraging the production of clean, renewable natural gas that emits less greenhouse gas pollution, fosters greater innovation, supports our province’s rapidly growing world-renowned clean tech sector and creates more clean tech jobs,” said Glen R. Murray
Minister of the Environment and Climate Change.
The Government says strong action is needed to help reduce greenhouse gas pollution to meet it’s greenhouse gas reduction targets. Ontario’s targets are ambitious yet achievable, and in line with global objectives, with reductions from 1990 emission levels of 15 per cent in 2020, 37 per cent in 2030 and 80 per cent in 2050.
Renewable natural gas is a low-carbon fuel that does not add new carbon to the atmosphere. It is fully interchangeable with conventional natural gas and uses the same infrastructure.
Natural gas, increasingly sourced from cleaner supplies, will continue to play a critical role in Ontario’s energy supply mix for transportation and heating buildings. It is not being banned. Ontario committed to creating a $200 million Natural Gas Access Loan and a $30 million Natural Gas Economic Development Grant to help more communities that previously lacked the necessary infrastructure to switch to a cheaper, cleaner fuel source that will help residential and industry consumers reduce their energy bill.
(Source: Government of Ontario – Ministry of the Environment and Climate Change)