Chattanooga Gas completes first renewable natural gas transaction

Chattanooga, Tenn. – February 1, 2024 – Chattanooga Gas has entered into renewable natural gas agreements that will increase access to clean, safe, reliable and affordable fuel. The emissions reductions from this transaction, the first of its kind for Chattanooga Gas, are estimated to be equivalent to the carbon sequestered by over 1,900 acres of U.S. forest.

The deal involves acquiring environmental credits from facilities in Nebraska and Indiana.

“Chattanooga Gas is committed to improving the environment and helping our communities thrive,” said Pedro Cherry, president and CEO of Chattanooga Gas. “This is yet another example made possible by the Tennessee Natural Gas Innovation Act, helping to bring sustainable, clean natural gas to the marketplace.”

This first-ever deal for Chattanooga Gas has been enabled by the Tennessee Natural Gas Innovation Act (SB1959, HB2315, Public Chapter 706), which allows natural gas utilities to pursue cleaner energy options and incremental innovative natural gas costs to be reflected in the utilities’ purchased gas adjustment.

RNG is a sustainable fuel produced from naturally occurring methane emitted primarily from landfill, agricultural, wastewater and food waste sites. Capturing this biogas at the source before it is emitted into the atmosphere reduces greenhouse gas emissions. RNG is a sustainable and reliable energy source that is compatible with existing infrastructure and appliances. Depending on the source, it can be carbon neutral or carbon negative.

This RNG transaction supports Chattanooga Gas’ decarbonization efforts across the natural gas value chain. Chattanooga Gas announced last August that 100% of the natural gas supply for its residential and small business customers is produced, transported or delivered by companies that are reducing their methane emissions. The company entered into an agreement with Williams’ Sequent Energy Management resulting in its residential and small business customers’ supply being sourced with “Next Generation Natural Gas,” also known as certified low-emission natural gas.

In addition, Chattanooga Gas has a goal to achieve net-zero GHG emissions from its operations by 2050.