The project represents an estimated $31 million investment by VNG and is expected to produce more than 200,000 MMBtu of pipeline-quality gas annually, enough to heat roughly 5,000 homes a year.
“Meeting the growing energy demands of Hampton Roads and the Commonwealth requires proactive, innovative solutions,” said Shannon O. Pierce, president and CEO of Virginia Natural Gas. “Renewable natural gas partnerships like the one with HRSD are key to reducing net emissions while ensuring the region has the fuel it needs to thrive. Together we are demonstrating how collaboration and forward-thinking investments can help build a cleaner, more resilient future for everyone.”
Biogas is produced during the breakdown of organic matter at wastewater treatment plants, landfills and farms. RNG is biogas that has been processed to meet stringent pipeline-quality standards. Once upgraded, the natural gas produced from this project will be injected into an existing natural gas pipeline near the Atlantic Treatment Plant.
The environmental attributes associated with the RNG, including any renewable energy credits or carbon offsets, are expected to be sold to third‑party buyers. Selling the attributes will enhance affordability while preserving benefits for the local community.
Most of the biogas currently produced at HRSD’s Atlantic Treatment Plant is combusted using an onsite flare, rather than being utilized. The new RNG facility will capture and convert this biogas into RNG, dramatically reducing or even eliminating the need for flaring.
Construction is expected to begin later this year, with the facility operational in 2027. The project aligns with Virginia’s Energy Innovation Act of 2022, which incentivizes investment in lower-carbon fuel sources.