Net Zero | Canadian Gas Association

Vision Statement

Canada’s natural gas delivery industry has the most reliable energy infrastructure, a rapidly growing array of technology solutions, and a dedicated workforce. These assets make the industry uniquely suited to affordably deliver on emissions reduction targets, like those being pursued by the Government of Canada with its net zero by 2050 goal.

An Ongoing Commitment

Natural gas utilities in Canada have long been leaders in helping Canadian energy consumers reduce their GHG emissions by reducing energy consumption and shifting to lower emitting alternatives, such as renewable natural gas and hydrogen. Through investments in innovation and clean technologies, we are identifying more and more opportunities to reduce our environmental impacts.

Net Zero Pathways for Canadian Buildings

The Canadian Gas Association commissioned a study prepared by leading experts titled Gas Pathways to Net Zero in Canada.

Three key takeaways as we look at the idea of net zero emissions by 2050

Canada’s natural gas industry will make important contributions to the nation’s energy future, and planning for net-zero targets does not necessitate a choice between energy systems (gas or electric);
There are a variety of end-use and renewable gas technologies through which gas utilities can support their customers in pursuing net-zero GHG emissions but all come with new cost pressures, and;
Net-zero will require reform in the legislation and regulations that underpin utility investments in Canada, and these changes will require policy leadership from provinces and territories, with a supporting role for federal decision makers.

Our research includes three distinct scenarios for decarbonizing buildings in Canada, as outlined below.

Gas Pathways to Net-Zero Buildings Highlights
	Gas Demand Reductions	Renewable Gases	Offsets / Negative Emissions	Scenario Reaches Net Zero Target
Pathway 1 – Efficiency	35 million tonnes (43%)	34 million tonnes (43%)	11 million tonnes (14%)	✓
Pathway 2 – Hybrid Heating	45 million tonnes (56%)	28 million tonnes (35%)	8 million tonnes (9%)	✓
Pathway 3 – Renewable Gases	24 million tonnes (30%)	44 million tonnes (55%)	12 million tonnes (15%)	✓

Interested in reading the report?
Download Gas Pathways to Net Zero in Canada

Learn more in our infographic

Read our statement on net-zero in Canada

How We’ll Do Our Part

There are a variety of clean technologies and renewable gases that can be leveraged to help reduce emissions from the natural gas system. Below you will find several key strategies that are available to the industry. The technologies introduced can drive significant emissions reductions in support of net-zero targets.

Interested in deeper insights?
Download Gas Pathways to Net Zero in Canada

Efficient Home

Energy Efficiency for Canada
Energy efficiency in the building and industrial sectors is a critical mechanism to reduce emissions. It is typically the most affordable strategy as it reduces energy use – and therefore cost – for the consumer, and therefore should be the first action taken to achieve reduction targets.

Learn more about energy efficiency:
Natural Gas Drives Energy Efficiency and Cleantech Innovation
Natural Resources Canada – Energy Efficiency

Renewable Natural Gas (RNG)
RNG is derived from biomass or other organic waste sources from farms, forests, landfills, and water treatment plants. It is a pipeline-quality gas that is fully interchangeable with conventional natural gas and is low to negative emissions, depending on its source. RNG is produced over a series of steps: collection of a feedstock, delivery to a processing facility for biomass-to-gas conversion, gas conditioning, compression, and injection into the pipeline.

Learn more about Renewable Natural Gas:
Renewable Natural Gas (RNG) Handbook for Canadian Municipalities
The Renewable Natural Gas Opportunity

Hydrogen
Hydrogen is seen as an important component in a lower emission future largely because, when burned, its only by-products are heat and water (H20). Canada has several low- and no-carbon pathways (blue and green hydrogen, respectively) to produce hydrogen, including natural gas. Once hydrogen is produced, gas infrastructure is critical to the distribution and end-use of hydrogen for heating purposes.

Learn more about Hydrogen:
Enabling Higher-Hydrogen Blending in Natural Gas Distribution Systems
Canada’s Natural Gas Delivery Industry Responds to Government of Canada’s Hydrogen Strategy
Government of Canada Hydrogen Strategy

Natural Gas Technology Solutions
Supporting Clean Technology Innovation for Natural Gas
NGIF Capital Corporation is accelerating cleantech innovation in natural gas through a results-driven approach to reducing emissions in Canada. Bringing together strategic investors across the natural gas value chain, NGIF is investing in transformational solutions and building a portfolio of disruptive clean technology startups. Their solutions will underpin our sector’s strong future and increase the competitive and environmental performance of Canada’s natural gas molecule.

Natural Gas Vehicles
Natural gas is a clean, affordable and market-ready transportation fuel option for a variety of modes including medium and heavy-duty trucks, rail, marine, and off-road. It is particularly beneficial for buses, refuse collection vehicles, and other fleets as it provides cost and emissions savings compared with other conventional transportation fuels. Natural gas vehicles also have the opportunity to leverage the benefits of renewable natural gas, providing the lowest-cost pathway to net-zero emissions.

Learn more about Natural Gas Vehicles

What Our Members Are Doing

ATCO
ATCO is continuing to pioneer the innovative energy solutions its customers and partners are looking for, with a focus on enabling the transition to a net-zero energy future. This strategy of transformation is predicated upon the production of cleaner fuels, renewable electricity, energy efficiency, and critical infrastructure.

For more information visit: ATCO

Enbridge
Continuing on its proven track-record of responsibly addressing environmental challenges, Enbridge is pursuing multiple avenues to reduce the intensity of GHG emissions by 35% by 2030 and achieve net-zero emissions by 2050. Some of these avenues include gradual investment in low-carbon projects and businesses, revamping existing infrastructure, and purchasing and retaining renewable energy credits.

For more information visit: Enbridge

FortisBC
FortisBC has set-out a clear and diversified pathway to foster market transformation and significantly reduce GHG emissions. Some significant shifts include making significant investments in both low and zero carbon vehicles, ramping up Renewable Natural Gas (RNG) and hydrogen deployment, and developing innovative energy projects in BC’s communities. FortisBC’s Clean Growth Pathway charts a path for reducing GHG emissions by 30% by 2030 and 80% by 2050.

For more information visit: FortisBC

For more information visit: Eastward Energy

Manitoba Hydro
Manitoba Hydro is well-positioned with abundant hydroelectric resources, but reliable and efficient natural gas will remain an important source of energy for the province. Greenhouse gas (GHG) emissions from our electricity and natural gas operations constitute less than one percent of total provincial GHG emissions, and we’re also committed to helping our customers reduce their emissions on an individual basis.

Conservation and Efficiency
Working in concert with programs offered by Efficiency Manitoba, Manitoba Hydro supports customers lowering GHG emissions by reducing natural gas consumption through efficiency improvements. Not only does this help reduce GHG emissions, it makes Manitoba businesses more competitive in the global marketplace by lowering their energy costs.

Technology
Manitoba Hydro continues to reduce global GHG emissions by enhancing the generation output of our existing hydroelectric generating stations where possible, and using that energy to displace coal-fired generation in other jurisdictions.

Just as importantly, we are also continually looking at how wind, solar, renewable natural gas, hydrogen and a wide array of new, emerging technologies may help to decarbonize our energy supply portfolio. Heat pumps and other technologies will also be a focus for Manitoba Hydro in the energy world of tomorrow.

Future Resource Planning
As part of our future energy planning, Manitoba Hydro looks to optimize existing infrastructure, both gas and electric, in meeting annual and peak energy demand. Developing complementary roles for gas and electricity can help maximize reliability and direct available energy to the sectors of the economy where it will provide the most benefit on the path to decarbonization.

For more information visit: Manitoba Hydro

Pacific Northern Gas (PNG)
The company is replacing older equipment at its natural gas compressor, metering, and regulating facilities with more efficient versions to reduce natural gas consumption and lower GHG emissions. PNG has plans underway to use renewable natural gas (RNG) in its own facilities, further reducing emissions from its operations. PNG is also evaluating opportunities for deploying hydrogen to meet customers’ energy needs.

PNG is helping its customers save money by reducing their demand for natural gas. Its ‘Smart Energy Solutions’ programs provide rebates and energy-saving advice to homeowners and businesses that maintain or upgrade their heating equipment, and the company educates school-age children to help them become the energy leaders of tomorrow.

For more information visit: Pacific Northern Gas

SaskEnergy
Net Zero Housing:

SaskEnergy has partnered with Big Block Construction on the first Net Zero multi-unit residential building in Saskatchewan. This innovative building includes right-sized, high efficiency furnaces with on-site energy consumption offset by renewable energy production.

Building broke ground in 2020 and showcases natural gas as the heating source. The building is only one of seven that is part of a national initiative coordinated by the Canadian Home Builders’ Association to build affordable and comfortable housing

A Net Zero home produces as much as energy as it uses. Moreover, it can be up to 80% more energy efficient that a standard new home since the building envelope (i.e windows, insulation) is built to a higher standard.

For more information visit: SaskEnergy

TC Energy
As part of its long-standing commitment to sustainability and environmental stewardship, TC Energy aims to reduce GHG emissions intensity from its operations 30% by 2030, and is positioning the business for net zero emissions from operations by 2050. The company is investing in technologies to reduce methane emissions from natural gas pipelines; decarbonizing its own energy consumption; and developing a broad range of low-carbon opportunities such as renewable energy projects, renewable natural gas, hydrogen, and carbon capture and storage.

For more information visit: TCEnergy.com/Netzero

Liberty Utilities
Rooted in our purpose of sustaining energy and water for life, Algonquin has established a goal of net-zero by 2050 for scope 1 and scope 2 emissions across our business operations. Through our operating business, Liberty, our net-zero goal is supported by a strong decarbonization track record of transitioning to greener solutions, extensive experience in regulated utility management, and deep expertise in renewables development. Natural gas utilities are an important part of how Liberty delivers energy to its customers, and over the last several years, Liberty’s gas pipe replacement program has made great progress. Through our participation in the Environmental Protection Agency’s (EPA) Methane Challenge, Liberty has committed to a pipe replacement rate of at least 6.5% annually – a target we’ve exceeded regularly, resulting in over 1,400 metric tonnes of avoided methane emissions from 2017 through 2020. Liberty is also exploring opportunities to reduce its carbon intensity through the integration of green fuels ― such as renewable natural gas and hydrogen― into its energy supply mix, while also continuing to enhance energy efficiency, upgrade infrastructure, and further reduce methane leaks. Liberty is dedicated to its role as a steward of energy and water assets and has demonstrated significant emissions reduction results to date. To learn more about Liberty’s Net-zero by 2050 goal and about our natural gas business, please visit our website and read Liberty’s 2021 ESG Report.

PM-C13-AlKleinschmidt-078b-scaled-e1632928624618-283x300

Al Kleinschmidt, P.Eng., Manager, Energy Solutions, Pacific Northern Gas

The member companies of the CGA are each committed to meeting the challenge of reducing greenhouse gas emissions and I am excited to be part of a talented team at PNG that is finding innovative ways to warm homes and businesses in northern BC in a clean, sustainable way.

Derek Estabrook, VP Business Development, Heritage Gas

The challenges we face as a society in reaching our climate change goals require diverse solutions. The need to heat our homes, fuel our energy intensive industries, and keep people and goods moving will still exist in the future. We need to change how we meet those needs by integrating renewable natural gas and hydrogen into our future energy system.

Cara-Lynne Wade, Manager Energy Transition, Enbridge Gas Inc.

Integrated energy solutions which include electricity and natural gas are essential to meet our future energy needs sustainably, practically and affordably. We’re leading the low-carbon transition by advancing innovative solutions like greening the gas supply, low-carbon heating and transportation technologies and conservation.

Cory Frei, Director, Strategic Planning, SaskEnergy

I am proud to be a part of a team at SaskEnergy that is committed to providing critical energy for a greener Saskatchewan.

Ariel Bautista, Director of Sustainability - Algonquin Power & Utilities Corp.

Natural gas utilities are an important part of how Liberty delivers energy to its customers, and through our purpose of ‘sustaining energy and water for life’ and our net-zero target, we are regularly looking for decarbonization opportunities to continue our strong track record of being a leader in the transition to a low-carbon economy.

Patrick Keys, Chief Sustainability Officer, TC Energy

We are embracing the energy transition that is underway and contributing to a lower-carbon energy world. Our people have the technical capabilities and innovative mindset required to enable change, seize new opportunities, and meet our climate goals.

Upcoming Projects

British Columbia

Fraser Valley Biogas
Abbotsford, BC
Online

Fraser Valley Biogas combines anaerobic digestion (breaking down organic matter in an oxygen-free environment) and a biogas upgrading plant to produce high-quality biomethane, or Renewable Natural Gas, from agricultural and food processing waste. FortisBC operates the interconnection facility at this project, monitoring gas quality and connecting this source of Renewable Natural Gas to customers.

In addition to producing Renewable Natural Gas, this project produces nutrient rich fertilizer for use on surrounding farms and contributes to the local economy through job creation.

Annual Production: 90,000 gigajoules of Renewable Natural Gas, which is enough to heat more than 1,000 homes* for a year.

*Number of homes based on average Lower Mainland / Vancouver use of 90GJ annually

Salmon Arm Landfill
Salmon Arm, BC
Online

At the Salmon Arm Landfill, biogas derived from landfill gas is upgraded so it can be injected into the local natural gas distribution system.

In 2010, the first phase of the Salmon Arm Landfill was closed and a series of gas collection wells were installed to capture methane gas, which is created by the breakdown of garbage in a closed landfill. Through a partnership with FortisBC, the methane gas collected is being processed and upgraded to pipeline quality RNG, which is then being delivered to the FortisBC pipeline for distribution to homes and businesses in Salmon Arm.

Since beginning production, the project has won a Sustainable Community Award for capturing and using landfill gas, helps the Columbia Shuswap Regional District (CSRD) come closer to being carbon neutral, and provides a model for similar projects in British Columbia and across Canada.

Total Project Cost: $3,000,000

Annual Production: Approximately 15,000 gigajoules of Renewable Natural Gas, which is enough energy to heat more than 160 homes* for a year.

*Number of homes based on average Lower Mainland / Vancouver use of 90GJ annually

Glenmore Landfill
Kelowna, BC
Online

Biogas created from the landfill waste at the City of Kelowna owned landfill is captured and cleaned so it can be injected into the local natural gas distribution system.

FortisBC owns and operates the biogas upgrading plant working in cooperation with the City of Kelowna.

Annual Production: 75,000 gigajoules of Renewable Natural Gas, which is enough to heat more than 830 homes*.

*Number of homes based on average Lower Mainland / Vancouver use of 90GJ annually

Seabreeze Farm
Delta, BC
Online

Seabreeze Dairy Farm in Delta combines anaerobic digestion and a biogas upgrading plant to produce high-quality biomethane from the manure of the farm’s dairy cows along with organic waste from the Metro Vancouver area.

FortisBC operates the interconnection facility at this project, monitoring gas quality and connecting this source of RNG to customers.

The byproducts created as a result of this process include hygienic bedding for the cows and a nutrient rich digestate which becomes fertilizer for growing crops to feed the cows, creating a sustainable loop of food, waste and energy.

Annual Production: 90,000 gigajoules of Renewable Natural Gas, which is enough to heat about 1000 homes* for a year.

*Number of homes based on average Lower Mainland / Vancouver use of 90GJ annually

Surrey Biofuel Facility
Surrey, BC
Online

Designed to process 115,000 tonnes of organic waste a year, the Surrey Biofuel Facility will be the largest of its kind in North America and will help Metro Vancouver achieve its regional waste diversion objectives under the Integrated Solid Waste and Resource Management Plan.

Surrey Biofuel Facility uses the latest anaerobic digestion technology to convert organic waste into Renewable Natural Gas and a sophisticated enclosed tunnel process to produce high-quality compost. It is fully enclosed with a state-of-the-art air treatment system that ensures minimal odour impact on the surrounding community.

The 160,000 square foot facility houses an organic waste collection hall, anaerobic digester, biogas upgrader, compost tunnels, odour abatement system, compost storage and an Education Centre. Each year the facility will process organic waste from more than 150,000 Surrey households, local Industrial, Commercial and Institutional operations, and other municipalities in the region. The RNG produced is used to power the City’s waste collection trucks, operations vehicle fleet and to feed the City’s District Energy System. The high quality ‘closed loop’ compost is available for purchase by a wide range of customers including farmers, landscapers and homeowners.

Total Project Cost: $67,600,000

Annual Production: 45,000 tonnes of compost, and 100,000 gigajoules of Renewable Natural Gas, which is enough to heat over 1100 homes* for a year.

*Number of homes based on average Lower Mainland / Vancouver use of 90GJ annually

Lulu Island Wastewater Treatment Plant
Richmond, BC
In Development

The Lulu Island Wastewater Treatment Plant treated 26 billion litres of wastewater in 2012. The plant provides secondary treatment to wastewater from about 172,000 residents in the western part of Richmond. Once treated, wastewater is discharged into the Fraser River.

The treatment plant uses anaerobic digestion to break down organic materials from wastewater to produce biosolids and methane gas. Currently, the methane is used to generate heat for use in the plant’s operations. The Lulu Island plant produces enough energy to meet all of its own heat requirements.

It also produces about 7,800 bulk tonnes of biosolids every year. Metro Vancouver regional authority announced it will spend $13 million on the project.

Annual production: 60,000 gigajoules of Renewable Natural Gas, which is enough to heat about 660 homes* for a year.

*Number of homes based on average Lower Mainland / Vancouver use of 90GJ annually

Quadrogen
Delta, BC
Online

Quadrogen Power Systems Inc. operates a facility that takes landfill gas from Village Farms and upgrade the gas to produce Renewable Natural Gas.

FortisBC has hired an independent transport company, Certaurus to transport the Renewable Natural Gas to an existing FortisBC natural gas pressure regulation station in Richmond, BC. The Renewable Natural Gas is compressed at Village Farms, and transported by tanker truck, creating a “virtual pipeline.” FortisBC will use this project to understand the logistics of moving renewable gases by truck.

Annual production: Approximately 50,000 gigajoules of Renewable Natural Gas each year, which is enough energy to heat around 550 BC homes annually.

City of Vancouver Landfill
Delta, BC
Online

Biogas created from the landfill waste at the City of Vancouver owned landfill is captured and cleaned so it can be injected into the local natural gas distribution system.

FortisBC will own and operate the biogas upgrading plant working in cooperation with the City of Vancouver

Annual Expected Production: 250,000 gigajoules of Renewable Natural Gas in the first full year of operation, which is enough to heat more than 2,700 homes*.

*Number of homes based on average Lower Mainland / Vancouver use of 90GJ annually

REN Energy
Fruitvale, BC
In Development

REN Energy International Corp. plans to construct, own and operate a facility capable of converting forestry biomass to biomethane near Fruitvale, BC.

REN will convert syngas to biomethane via a gasification and methanation process. This project will make use of waste from forestry operations, sawmills and other wood product manufacturers. The syngas is converted to methane and then purified to meet natural gas pipeline specifications. Once operational, the technology will create a use for forestry waste in BC and unlock the potential for significant new volumes of RNG in BC.

Annual Expected Production: 1,200,000 gigajoules of Renewable Natural Gas in the first full year of operation.

Alberta

EPCOR Gold Bar Wastewater Treatment Plant
Edmonton, AB
In Development

EPCOR RNG Limited Partnership, a subsidiary of EPCOR Utilities Inc. will design, build, own, and operate a facility capable of upgrading biogas to Renewable Natural Gas through the expansion of the existing Gold Bar Waste Water Treatment Plant located in Edmonton, Alberta. The RNG will be injected into the Atco Gas distribution system, and transported to the Nova Inventory Transfer Trading Hub where FEI will take delivery of the RNG on to the FEI natural gas system in BC.

Annual Production: 210,000 gigajoules of Renewable Natural Gas in the first full year of operation, which is enough to heat more than 2,300 homes*.

*Number of homes based on average Lower Mainland / Vancouver use of 90GJ annually

Fort Saskatchewan Blending Project
Fort Saskatchewan, Alberta
Status

The Fort Saskatchewan hydrogen blending project plans to blend hydrogen, at a concentration of 5% by volume, into a section of the Fort Saskatchewan natural gas distribution system to approximately 2,000 customers by Q3 2022. Once completed, this will be the first hydrogen blending project in Alberta.

Lethbridge Biogas
Lethbridge, AB

Net Zero Hub

Vision Statement

An Ongoing Commitment

Net Zero Pathways for Canadian Buildings

Read our statement on net-zero in Canada

How We’ll Do Our Part

What Our Members Are Doing

Upcoming Projects

Gas Pathways to Net Zero in Canada