Enbridge’s recent acquisition of seven operating landfill gas-to-RNG facilities from Morrow Renewables is a significant step in their efforts to manufacture and transport renewable natural gas. This acquisition, valued at $1.2 billion, instantly establishes Enbridge as a North American midstream leader in RNG volume.
The landfill gas-to-RNG facilities collect gas produced by waste decomposition in landfills and treat and compress it to pipeline specifications. The gas is then upgraded into pipeline-grade methane, which can be easily blended into existing natural gas distribution and transmission networks. This allows it to be used as a fuel for transit fleets, power industry facilities, and heating homes and businesses, reducing the need for traditional natural gas and minimising waste by preventing the release or flaring of the gas.
The Morrow facilities, located in six Texas locations and Fort Smith, Arkansas, have strong partnerships with local municipalities and are situated in regions with growing demographics and ongoing landfill growth. With a current annual production of approximately 5 billion cubic feet of RNG, these facilities have commercial structures supported by long-term contracts with municipalities and offtake agreements with customers, ensuring their contribution to Enbridge’s EBITDA by 2024.
Enbridge’s acquisition of these assets reflects their commitment to energy transition leadership and their goal of advancing new low-carbon sources of energy. The fundamentals for RNG are promising, with increasing demand over the long term as gas utilities set RNG blending targets. This move positions Enbridge as a key player in the cleaner energy future, contributing to society’s goals of reducing carbon emissions and promoting sustainable energy solutions.
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