en.Wedoany.com Reported - Anaergia Inc. (TSX: ANRG, OTCQX: ANRGF) has begun delivering renewable natural gas (RNG) to the distribution system of Southwest Gas Corporation, marking the first RNG delivery under California's Bio-Methane Procurement Program.
The project received conditional approval from the California Public Utilities Commission (CPUC) on March 19, 2026, and commenced RNG deliveries after meeting relevant conditions. This milestone validates the effectiveness of SB 1440 in advancing commercial-scale RNG projects that meet utility safety and quality standards.
Located at the Victor Valley Wastewater Reclamation Authority in Victorville, the Southern California Bio-Methane Facility co-digests municipal wastewater solids and source-separated organic waste from Southern California, upgrading the resulting biogas into pipeline-quality RNG that meets Southwest Gas's California tariff. The facility can process up to 104,000 tons of organic waste annually and has the potential to reduce greenhouse gas emissions by up to 31,710 metric tons of CO2 equivalent per year.
Anaergia CEO Assaf Onn stated that as the first facility to deliver RNG under California's Bio-Methane Procurement Program, it demonstrates that organic waste can be converted into a reliable renewable fuel source at scale. By integrating existing wastewater infrastructure, the project delivers immediate value to customers and establishes a replicable blueprint for communities across the state.
Southwest Gas President and CEO Justin Brown said this agreement is a significant step in integrating RNG into the company's supply portfolio, and projects like this demonstrate what is possible, delivering tangible environmental benefits to communities while supporting customers' energy needs.
Anaergia partners with commercial partner Anew Climate, which markets the facility's RNG and serves as the core transportation agent in California to support utility offtake, carbon intensity compliance, and physical delivery and scheduling. This collaboration and contract establish a model for SB 1440 implementation and provide a replicable pathway for future bio-methane projects across the state.
Anew Climate President of Low Carbon Fuels Andy Brosnan expressed pleasure in supporting this project's transition to active delivery under SB 1440, noting that the work reflects the coordination between industry and regulators required to bring RNG projects online, and the lessons learned will benefit future projects in California and other regions seeking methane reduction, grid reliability, and expanded renewable energy supply.
SB 1440 requires California's investor-owned utilities to procure RNG from landfill-diverted organic waste, with statewide targets indicating the need for many similar facilities by 2035. The transition of the Southern California Bio-Methane Project to active delivery provides an operational and regulatory template for accelerating broader deployment.
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