Énergir could have to play an important role in the deployment of the Hydrogen and Bioenergy Strategy that the Quebec government will present on Wednesday. However, the largest distributor is struggling to sell renewable natural gas (RNG), noted The duty.
In documents filed in recent weeks with the Régie de l’énergie du Québec, the company reports its difficulties in finding takers for the 55 million cubic meters of RNG acquired for the year 2021-2022.
“Millions of m3 » of GNR do not have been sold, can we read there. In April, during a hearing, Énergir’s Senior Director of Marketing and Energy Solutions, Anick Ratelle, explained the situation at the Régie de l’énergie in these terms: “All of the customers on the list of waiting have been contacted. Then, if we can say, they have passed their turn. »
In interview at To have to, General Manager of Gas Supply and Renewable Gas Development at Énergir, Vincent Regnault, maintains that this situation is contextual. “For nearly five years, we have worked hard to develop the RNG sector. Developing a project is something that takes time: it can take three or four years. »
There is nothing to be alarmed about, according to Mr. Regnault: “We are reaching a period when the projects developed are beginning to inject [leur production] in the network. »
Two Quebec production projects began injecting RNG into Énergir’s network in 2021. The Régie de la gestion des Matériaux Residues de la Mauricie and the City of Quebec will follow in the second half of 2022. Then, By 2024, four other projects, located for their part in Ontario and the United States, will join it. Énergir hopes that GNR will represent 5% of injections by 2025.
Risk of cost socialization
With the increase in the quantity of RNG in its network, Énergir must attract more customers if it does not want to be forced to bill the additional costs to its current customers. “Essentially, what was decided by the Régie de l’énergie is that if we had to go to a social event at any cost whatsoever, it would be for all of Énergir’s customers,” says -he.
Mr. Regnault assures that the company is not there yet. “There, now, we are in an energetic marketing phase. What we say to customers: you want GNR, you have it. Launched in the last few weeks, an advertising campaign has caught the eye of residential customers as well as institutional and industrial customers.
Higher costs
The purchase price of RNG is almost twice as high ($13.92 per gigajoule) as that of fossil natural gas ($7.76 per gigajoule). Mr. Regnault maintains, however, that this comparison should not be made: “To have a valid comparison, we must compare [le GNR] with [la source pouvant le remplacer,] which is electricity. And when you have a $14 GNR, it’s competitive with electricity. »
“Several pieces of the puzzle are falling into place” and will facilitate the commercialization of GNR, according to him, including “the pressures that are exerted by our different levels of government”.
To have a valid comparison, we must compare [le GNR] with [la source pouvant le remplacer,] which is electricity. And when you have a $14 GNR, it’s competitive with electricity.
The City of Montreal recently announced that it would no longer allow natural gas of fossil origin in buildings within a few years, he recalls. “There is a reason here why customers would like to consume RNG and avoid having to change their equipment, with the costs that entails,” he concludes.