Dominion Energy and Smithfield Foods Inc. are joining forces in an historic initiative to transform the future of sustainable energy and agriculture, announcing their first projects in North Carolina, Virginia, and Utah. The companies are forming a joint venture called Align Renewable Natural Gas that will capture methane emissions from hog farms and convert them into clean renewable energy for residential home heating and power for local businesses.
“At Smithfield, we recognize true, enduring sustainability initiatives require collaboration with other proven innovators who share a similar vision,” said Kenneth M. Sullivan, president and chief executive officer of Smithfield Foods. “Dominion Energy is one such proven innovator and we are proud to partner with them in our longstanding pursuit of renewable energy. Align RNG is part of our nationwide expansion of Smithfield Renewables, innovative projects designed to help meet our goal to reduce our greenhouse gas emissions 25 percent by 2025.”
By capturing methane that would otherwise be released into the atmosphere, the use of RNG leads to a significant reduction in methane emissions from the agriculture and energy industries.
Reducing Greenhouse Gas Emissions
RNG is produced from the methane generated from hog or dairy farms, landfills, wastewater treatment plants and food processing facilities. Capturing the methane from hog farms reduces the use of traditionally-sourced natural gas and keeps greenhouse gas from entering the atmosphere. It can be stored and delivered to homes and businesses through existing natural gas infrastructure, making it a cost-effective, renewable option.
The new joint venture will leverage Smithfield’s relationships with contract farmers, who raise and care for its hogs, and the decades the company has spent studying and perfecting the commercial viability of ‘manure-to-energy’ projects. Using a technology known as anaerobic digestion, the projects will capture and process methane from large clusters of Smithfield’s company-owned and contract hog farms. Once collected at the farms, the natural gas will then be transported to a central conditioning facility where it will be converted into RNG.
“Our companies recognize the urgent need to reduce greenhouse gas emissions for the future of our planet. RNG is an innovative and proven way to dramatically reduce greenhouse gas emissions from the agriculture industry by converting it into clean renewable energy,” said Thomas F. Farrell, II, chairman, president and chief executive officer of Dominion Energy. “RNG is considered carbon-negative because it captures significantly more greenhouse gas emissions than are released from its end use in homes and businesses.”
Supporting Virginia and North Carolina’s Greenhouse Gas Initiatives
Governor Ralph Northam and Governor Roy Cooper have recently announced historic initiatives to significantly lower greenhouse gas emissions in Virginia and North Carolina over the next decade. RNG will play an important role in supporting these initiatives and help both states achieve their ambitious greenhouse gas reduction targets. Because methane is at least 25 times more potent than CO2 as a greenhouse gas, reducing methane can have a more dramatic impact on the environment than other carbon reduction initiatives.
“I’m excited about the technological advances for capturing methane that escapes into the atmosphere from farms,” said Utah Governor Gary R. Herbert. “That methane — which we call renewable natural gas — can be used to heat our homes, generate low-carbon electricity and drive industry. This bodes well for Utah’s environmental health and economic development.”
New Revenue Stream for Family Farmers & Enhanced Protection from Storm Events
RNG will provide a new revenue stream for family farmers. In fact, the initiative will turn one of farmers’ largest costs into a new revenue source. Farmers who participate in the program will be paid for the energy their farms produce through long-term contracts.
“This project is a true win-win for all involved and reflects Smithfield’s innovative, value-driven approach to sustainability,” said Sullivan.
RNG facilities will also help protect hog farm lagoons from storm-related damage. In addition to converting ‘manure-to-energy,’ the covered lagoon digesters mitigate potential issues associated with severe rain events such as hurricanes. Covered lagoon digesters prevent rain from entering the lagoon during severe weather events providing enhanced environmental protection.