Nikan
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Great insight from Nikolas on this, i also like to add the monopolization of the current pipeline grids by the energy companies in each province or region, does not allow for much choices for producers and importers and takes so much of the control of the fate of their products away from them.
That is another great question…I agree with all the answers already given in this thread. I also have to add the support from market regulators does not currently exist for CCS. For a RNG plant that creates CFR credits through compliance category 2, capturing the CO2 at the downstream currently does not create any additional credits… this provides less incentive for projects to invest and accept the risk of adapting CCS.
While I understand this the reason for this question, the hypothetical world for which RNG has to be economically viable without any regulations does not exist… In Unless we can come up with a wide blanket solution that fits all to remove all emissions from usage of Fossil fuels , RNG can and should be supported to reduce the emissions, and if we do have such technology, I am sure RNG is already economically viable due to built in infrastructure…
To add to Hatem’s point, in the case that injecting RNG into pipeline is not a feasible option ( due to logistics), more support for Carbon removal projects from the policymakers should be happening. For instance, It is a shame that a program like CFR is still not taking into consideration CCS projects.
This is a great question with a general sense to it. I have to first emphasize the reduction requirements increase for big emitters through CFR on a yearly basis. This ensures the demand for LCIF such as RNG to increase overall in the long term. Considering the logistical issues with RNG in the short term in Canada as discussed in other days of RNG online, I do not expect the supply to catch up quick enough. Hence I do expect the ECCC removing some of the redlines and allowing for biogas projects to create more credits and in new pathways in order to satisfy the demand from the market. Considering the low CI of RNG projects , biogas would be a real winner here. I also expect the CFR market to recognize digestate as a coproduct at some point in future which could be an extra boost.