California Public Utilities Commission Conditionally Approves RNG Procurement Contract from Anaergia's SoCal Biomethane Facility

Executive Summary

• The California Public Utilities Commission conditionally approved a long‑term biomethane procurement contract for Anaergia’s SoCal Biomethane facility, making it the first project to supply renewable natural gas (RNG) under Senate Bill 1440.
• The facility can process up to 104,000 tons of diverted organic waste per year and is projected to cut emissions by up to 31,710 MTCO₂e annually – equivalent to removing ~7,400 gasoline‑powered passenger vehicles from the road.
• The contract involves Anaergia’s SoCal Biomethane LLC, Anew Climate LLC, and Southwest Gas, positioning Anaergia at the forefront of California’s decarbonisation strategy and supporting state mandates (SB 1383 & SB 1440) for RNG procurement.

Key Details

• Contract Approval: Conditional approval by CPUC for a long‑term RNG off‑take agreement between SoCal Biomethane LLC, Anew Climate LLC, and Southwest Gas.
• Regulatory Milestone: First RNG supply under California’s SB 1440 Biomethane Procurement Program; aligns with SB 1383 waste‑diversion goals.
• Facility Capacity: Able to accept up to 104,000 tons of diverted organic waste annually.
• Emission Reductions: Potential reduction of 31,710 MTCO₂e per year, comparable to removing ~7,400 gasoline passenger vehicles.
• Economic Impact: Provides local jobs and economic benefits to Victorville, Apple Valley, and Hesperia.
• Strategic Positioning: Positions Anaergia as a leader in California’s RNG market and supports the state’s requirement for utilities to procure RNG equivalent to ~55 facilities of SoCal Biomethane size by 2035.

Notable Quotes

• “Anaergia is proud that our facility will be the first to supply SB 1440‑qualified RNG in California… This milestone demonstrates how existing wastewater infrastructure can be leveraged to rapidly scale RNG supply from organic waste as mandated by California laws SB 1383 and SB 1440.” – Assaf Onn, CEO, Anaergia
• “Long‑term offtake agreements from natural gas utilities support state climate goals… This is a meaningful step toward scaling renewable, baseload energy.” – Ryan Childress, Managing Director of Low Carbon Fuels, Anew Climate

Materiality: Material – Positive (first-of-its-kind RNG supply contract under new state program; significant emissions‑reduction potential and strategic market positioning).