Renewable Natural Gas in Canada

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Renewable Natural Gas in Canada

Renewable Natural Gas is gaining momentum in Canada.
May 5, 2025
Renewable Natural Gas in Canada

Renewable Natural Gas Is Gaining Momentum in Canada

As Canada continues its energy transition, renewable natural gas (RNG) is emerging as a key solution for reducing emissions, particularly in sectors that are challenging to electrify. While electricity decarbonization has been a focal point, utilities nationwide are actively integrating RNG into their supply portfolios.

In 2025, FortisBC is at the forefront, expanding RNG access to allow commercial and industrial customers in British Columbia to purchase carbon-neutral gas directly through their utility bills. This development signifies a broader trend: RNG is becoming increasingly accessible, scalable, and relevant for Canadian energy users.

FortisBC: Expanding RNG Access for BC Businesses

FortisBC has set a goal to source 15% of its total supply from RNG by 2030 and is making significant progress toward this target. In 2024 and 2025, the utility secured new RNG supplies from landfills, agricultural digesters, and wastewater treatment facilities, integrating this carbon-neutral gas into the provincial pipeline.

As of 2025, eligible FortisBC customers can opt to purchase RNG directly, offering a straightforward path to decarbonization. By lowering barriers to entry, FortisBC is setting a strong example for the Canadian energy industry.

Other Canadian Utilities Advancing RNG Initiatives

While FortisBC leads in direct customer access, other Canadian utilities are also expanding their renewable gas efforts:

  • Énergir (Québec): Operating one of the country's most established RNG portfolios, Énergir aims for 10% RNG content by 2030. Supported by provincial policy, RNG is blended into the general supply and is available to a growing number of customers.
  • Enbridge Gas (Ontario): Enbridge is developing RNG pathways under the Ontario Energy Board’s regulatory framework. Although direct-to-customer RNG purchasing is still under development, the utility is actively supporting pilot projects and sourcing RNG for system integration, laying the groundwork for broader access in the future.

Policy Context: Carbon Tax Removal and Continued RNG Momentum

In April 2025, the federal government eliminated the consumer carbon tax on fuels like gasoline and natural gas. Despite the removal of the carbon tax, RNG initiatives are expected to continue and expand. These programs are driven by market demand, provincial policies, and utility commitments to decarbonization. RNG offers a viable pathway for businesses to reduce emissions, and its adoption supports the development of low-carbon infrastructure across Canada.

The Role of Traditional and Renewable Natural Gas in Canada's Energy Future

FortisBC’s RNG expansion reflects a broader trend: both traditional and renewable natural gas are integral to Canada’s evolving energy landscape.

  • Renewable Natural Gas (RNG): Provides a practical, carbon-neutral solution for reducing emissions in heating and industrial processes.
  • Traditional Natural Gas: Continues to play a crucial role in displacing higher-emitting fuels like fuel oil and diesel, especially in remote or off-grid operations.

Together, these energy sources support affordability, reliability, and environmental performance, offering businesses flexible options as they navigate their decarbonization journeys.

Looking Ahead

While RNG availability varies across provinces, the momentum is clear. Utility-led programs are expanding, market access is improving, and more businesses are exploring how renewable fuels can support their climate goals.

As the market matures, RNG is poised to become a standard component of energy planning across Canada, providing new opportunities for clean, flexible, and reliable energy strategies.

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