Anaergia Begins Renewable Natural Gas Deliveries Under California’s Biomethane Procurement Program
Anaergia Inc. has achieved a significant milestone in California’s renewable energy transition by commencing renewable natural gas (RNG) deliveries to Southwest Gas Corporation’s distribution network. The delivery marks the first commercial supply of RNG under California’s Biomethane Procurement Program, a landmark initiative established through Senate Bill 1440 (SB 1440) to increase the use of renewable gas generated from organic waste streams.
The development represents an important step for California’s efforts to reduce greenhouse gas emissions, divert organic waste from landfills, and expand the use of low-carbon energy resources. By becoming the first facility to supply RNG under the program, Anaergia has demonstrated the viability of transforming municipal and organic waste into pipeline-quality renewable fuel while meeting stringent utility safety and quality requirements.
The project reached a major regulatory milestone earlier this year when it received conditional approval from the California Public Utilities Commission (CPUC) on March 19, 2026. Following the completion of all required conditions and compliance measures established by the commission, the facility successfully began delivering renewable natural gas into Southwest Gas’ distribution system.
The start of commercial deliveries highlights the effectiveness of California’s regulatory framework in supporting the development of large-scale biomethane projects. Industry stakeholders view the achievement as a practical example of how policy initiatives such as SB 1440 can accelerate investment in renewable gas infrastructure while ensuring reliability and public safety.
According to Anaergia, the project demonstrates that organic waste can serve as a valuable resource for producing renewable energy. The company believes the facility establishes a scalable model that can be replicated throughout California and other regions seeking to expand renewable fuel production while addressing waste management challenges.
Assaf Onn, Chief Executive Officer of Anaergia, emphasized the significance of the project in advancing sustainable energy solutions. He noted that the facility proves organic waste can be converted into a dependable renewable fuel source on a commercial scale. By leveraging existing wastewater treatment infrastructure and integrating advanced anaerobic digestion and gas upgrading technologies, the project delivers immediate environmental and economic benefits while creating a blueprint for future developments across the state.
The SoCal Biomethane facility is located at the Victor Valley Wastewater Reclamation Authority in Victorville, California. The facility utilizes a co-digestion process that combines municipal wastewater solids with diverted organic waste collected from communities across Southern California. Through anaerobic digestion, the organic material is broken down by microorganisms, generating biogas that is subsequently upgraded into renewable natural gas.
Once processed and purified, the RNG meets the quality specifications required under Southwest Gas’ California tariff, enabling it to be injected directly into the existing natural gas distribution network. This approach allows renewable gas to utilize existing energy infrastructure, reducing the need for costly new transmission systems while supporting broader decarbonization objectives.
The facility has the capacity to process up to 104,000 tons of organic waste annually. In addition to producing renewable energy, the project contributes to California’s waste diversion goals by redirecting organic materials that might otherwise be disposed of in landfills. Landfilled organic waste generates methane emissions, a potent greenhouse gas with a significantly higher warming potential than carbon dioxide over a shorter time horizon.
By converting this waste into renewable natural gas, the project can help reduce emissions while producing a valuable energy resource. Anaergia estimates that the facility has the potential to lower greenhouse gas emissions by as much as 31,710 metric tons of carbon dioxide equivalent each year. Such reductions contribute directly to California’s ambitious climate objectives and support broader efforts to transition toward a low-carbon economy.
Southwest Gas also views the project as an important advancement in its strategy to integrate renewable energy sources into its fuel portfolio. The utility has been exploring opportunities to incorporate renewable natural gas supplies that can help reduce the carbon intensity of its operations while continuing to provide reliable energy services to customers.
Justin Brown, President and Chief Executive Officer of Southwest Gas, described the agreement as a meaningful step in the company’s efforts to responsibly expand the role of renewable natural gas within its supply mix. He noted that projects such as the SoCal Biomethane facility demonstrate how environmental benefits can be delivered to local communities while maintaining dependable energy service for consumers.
Beyond the partnership between Anaergia and Southwest Gas, the project also highlights the importance of collaboration across multiple sectors of the renewable energy value chain. Anaergia worked closely with Anew Climate, a company specializing in environmental commodities and low-carbon fuel markets, to bring the project into operation.
Anew Climate plays a critical role in marketing the renewable natural gas produced at the SoCal Biomethane facility. The company supports utility offtake arrangements, assists with carbon intensity compliance requirements, and manages physical delivery and scheduling activities through its role as a Core Transport Agent in California. These services help ensure that renewable gas reaches customers efficiently while complying with regulatory standards and market requirements.
The collaboration among Anaergia, Southwest Gas, Anew Climate, regulators, and local infrastructure operators is being viewed as a model for future SB 1440 projects. Stakeholders believe the experience gained through the development and commissioning of the facility can streamline future renewable natural gas projects and provide valuable insights for policymakers and industry participants.
Andy Brosnan, President of Low Carbon Fuels at Anew Climate, stated that the project demonstrates the level of coordination required between industry participants and regulatory agencies to successfully bring renewable natural gas projects online. He emphasized that the lessons learned from the SoCal Biomethane facility will help guide future renewable gas developments both within California and in other jurisdictions pursuing methane reduction, renewable energy expansion, and enhanced grid reliability.
California’s SB 1440 legislation requires investor-owned utilities to procure renewable natural gas derived from landfill-diverted organic waste sources. The law is intended to support the development of a robust biomethane industry while helping the state achieve its climate and waste reduction targets.
Meeting statewide procurement goals outlined under SB 1440 will require the construction and operation of numerous additional biomethane facilities over the coming decade. Industry experts view the successful launch of the SoCal Biomethane facility as an important proof point that demonstrates both the technical feasibility and regulatory pathway for future projects.
As California continues to expand its renewable energy portfolio and pursue aggressive decarbonization goals, the operational launch of the SoCal Biomethane facility provides a practical template for scaling renewable natural gas production. By combining waste management, renewable fuel generation, and existing utility infrastructure, the project illustrates how innovative partnerships can support a cleaner, more sustainable energy future while creating economic and environmental value for communities across the state.
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