Clean Fuel Regulations, The Role of Biogas

In our second article of this series, we look closer at the Clean Fuel Regulations (CFR), explore its connection with Biogas, and highlight how Anessa plays a significant role in this context.

• What is Biogas and how is it produced?

  Biogas, a renewable methane source, is generated through the microbial breakdown of organic matter in an oxygen-deprived environment, a process commonly referred to as Anaerobic Digestion. The range of organic material can be extensive, from manure, food waste, and industrial waste to crop residue.

• What specific role can biogas play within the Clean Fuel regulations?

  Biogas emerges as a powerful ally in the fight against greenhouse gas (GHG) emissions under the Clean Fuel Regulations (CFR), offering a multifaceted solution to environmental challenges. Unlike fossil fuels, biogas draws carbon from the atmosphere, enabling carbon-negative processes. Alongside renewable natural gas (RNG) production, biogas empowers Canadian communities and industries to convert organic waste into a renewable energy source through Anaerobic Digestion (AD). This process not only curbs methane emissions but also has the potential to reduce overall GHG emissions by up to 5%. Beyond energy generation, biogas is a waste management solution, a method of environmental preservation, and a value add for agricultural applications with biofertilizer production. Its flexibility allows seamless integration with intermittent renewable electricity sources, furthering sustainability.

  Additionally, the captured CO2 during production serves various industrial purposes like refrigeration, and food processing, promoting circular economy principles. Biogas's adaptability underscores its pivotal role within CFR, offering a comprehensive strategy to cut emissions and promote clean energy. Therefore leveraging biogas' potential is vital for Canada's GHG reduction goals.

• How does CFR Incentivise the production and use of biogas?

  The Clean Fuel Regulations (CFR) incentivize the production and use of biogas by requiring the primary suppliers of liquid fossil fuels, such as producers and importers, to gradually reduce the carbon intensity (CI) of gasoline and diesel sold for use in Canada. This reduction requirement started at 3.5 gCO2e/MJ in 2023 and increases annually, reaching 14 gCO2e/MJ by 2030. Fuel producers are compelled to find innovative solutions to lower the CI of their fuels to comply with these reduction requirements. The CFR establishes a credit market where regulated parties can create or purchase credits to offset their emissions and meet reduction targets. This creates a financial incentive for producers to adopt cleaner fuel options, such as renewable natural gas (RNG), or to improve their production processes to reduce CI. By leveraging biogas and other low-CI fuels, producers can meet compliance requirements and contribute to overall emission reduction efforts throughout the fuel production and consumption lifecycle.

• How does Anessa come into play?

  Anessa plays a crucial role in the Canadian and global biogas industry by providing comprehensive solutions that help stakeholders navigate regulatory requirements effectively. Here's how Anessa contributes:

  Assessment Platform (AD•A): Anessa's Assessment Platform enables stakeholders to conduct thorough feasibility assessments for anaerobic digestion projects. This involves analyzing technical, financial, and environmental factors, ensuring successful project development from the get-go with built-in risk analysis and maximizing the value of environmental organizations.

  AI-Driven Operational Planning (AD•O): Anessa's Operational Platform assists operators in optimizing their feedstock recipe for maximum energy production or profitability while ensuring compliance with waste management, energy production, and emissions regulations. Through predictive modelling and AI-driven planning, Anessa helps operators maintain compliance while maximizing efficiency.

  Real-Time Monitoring (AD•M): Anessa's Monitoring Platform offers real-time data visualization and centralized information management, which is crucial for regulatory compliance. By continuously monitoring emissions, waste management practices, and operational efficiency, Anessa provides insights to improve safety and overall operational health, ensuring adherence to regulations.

  Adaptation to Regulatory Changes: Anessa listens to customer feedback and adapts its technology to evolving regulatory landscapes. For instance, the flexibility of the AD•M platform allows user-customization of reporting standards, enabling you to set up reporting to match the regulations your project is subject to. Additionally, Anessa's sensitivity solver simplifies meeting specific targets, helping clients adjust operations efficiently in response to regulatory changes.

• What are the future trends or developments expected in the biogas industry under the CFR?

  The biogas industry under the CFR is poised for significant growth and development, driven by technological innovation, supportive policies, and increasing awareness of the environmental benefits of renewable energy sources. Some of the key points the Anessa Team would like to highlight are: 

  • Continued advancements in biogas production technologies are expected, leading to more efficient and cost-effective processes. This includes improvements in anaerobic digestion systems, and RNG upgrading technologies.

  • With the increasing emphasis on reducing GHG emissions and promoting clean energy, there is expected to be a surge in the establishment of biogas facilities across Canada. These facilities will vary in scale, from small-scale farm digesters to large centralized plants.

  • Biogas production will likely diversify feedstock sources beyond traditional agricultural waste, such as manure and crop residues. This may include organic waste from municipalities, food processing industries, and wastewater treatment plants, thereby expanding the availability of feedstock for biogas production

  • Continued support from government policies and incentives, such as carbon pricing mechanisms and renewable energy subsidies especially on capital expenditure for developing such facilities, will drive investment and advancement in the biogas sector. This support will facilitate the industry's growth and encourage innovation in biogas technologies ultimately getting us closer to 2030 and 2050 environmental targets.

Written By:

Madiha Kantroo

Market Analyst

Mrs. Madiha Kantroo, holds a Masters in Environmental Management from the University of New Brunswick. Environmental studies hold a special place in her heart due to experiencing first-hand the impact of climate change in her home country. Her passion, in addition to her background in agriculture, made her a fantastic fit for the Anessa team. Most recently, Madiha joined the Anessa Team as a Market Analyst, using her unique blend of experience and education to communicate how specialized software solutions can help the biogas industry as a whole.