Rrenewable Natural Gas as a Greener Energy Source: A Life Cycle Cost–Benefit Analysis

Abstract

Natural gas (NG) supplies approximately one-third of Canada’s electricity and heating demand. Even though it is a cleaner form of energy compared to other fossil fuels, it still contributes to greenhouse gas emissions. Therefore, rigorous actions are required to further reduce the NG-related emissions. Renewable natural gas (RNG) is a greener option compared to conventional NG. It possesses an untapped potential in energy generation applications. However, a comprehensive analysis is required to determine the incremental benefits and costs of replacing conventional NG with RNG in the main carbon-intensive applications of the energy sector. Moreover, while greener interventions provide operational environmental benefits, they may carry added life cycle impacts during fuel production, transmission, and end-of-life stages. Therefore, life cycle thinking is essential in assessing the exact costs and benefits. This study conducted scenario-based life cycle environmental and economic assessments to determine the costs and benefits of replacing the conventional NG system with RNG and other alternative residential building heating systems. The assessment was further extended to assess the suitability of replacing NG with RNG-based and other building heating systems in Canadian provinces that rely heavily on NG to discuss the effect of regional parameters on decisions related to building energy infrastructure. The findings of this study are geared towards enabling decision-makers and investors to gain a more holistic view of investment decisions related to green energy initiatives in building energy infrastructure.