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  • Exclusive Interview with Ben Kruger and Bryan Sievers: Exploring RNG’s Role in Decarbonizing Agriculture, Transportation, and Beyond
Exclusive Interview with Ben Kruger and Bryan Sievers: Exploring RNG’s Role in Decarbonizing Agriculture, Transportation, and Beyond
RNG
SAF
CA LCFS
Tuesday, 28th January 2025
Mansift Kaur

We recently interviewed Ben Kruger, VP of the Renewables Division at Roeslein & Associates (Left), and Bryan Sievers, Director of Government Relations at Roeslein Alternative Energy (Right), a subsidiary specializing in renewable natural gas (RNG) production. With extensive experience spanning agricultural and energy sectors, they bring deep insights into transforming organic waste into sustainable energy solutions. Their work involves developing RNG projects that leverage farm-generated manure waste, navigating complex regulatory frameworks like the California Low Carbon Fuel Standard (LCFS), and advancing domestically produced renewable energy initiatives. Through innovative engineering and strategic project development, Ben and Bryan are at the forefront of creating sustainable infrastructure that bridges agricultural practices with clean energy production.

Key Takeaways

  • CARB’s amendments to crediting periods in the LCFS provide greater market stability, supporting renewable fuel demand and long-term investments.
  • Feedstock innovation, such as renewable biomass, is crucial for sustaining RNG production and meeting future market demands.
  • RNG is expected to play a growing role in maritime shipping and sustainable aviation fuel, diversifying its applications beyond transportation.
  • The inclusion of RNG-generated electricity for EV charging shows potential but requires further regulatory clarity for broader adoption.

Impact of LCFS Crediting Period Changes on RNG Investments and Strategies

cCarbon: What are the implications of having two consecutive 10-year crediting periods for avoided methane emissions in RNG projects?

Ben Kruger: These changes by CARB are supportive of renewable fuel demand growth and help sustain the pace of investment our industry has experienced in recent years. The amendments ensure stability in the program, which is critical for stakeholders to make long-term investment decisions and maintain the momentum of innovation and deployment in renewable energy.

cCarbon: How does the possibility of a third 10-year crediting period affect RNG investment strategies?

Ben Kruger: Certainty is critical for investors deciding where to allocate capital. The two main risks in these markets are demand for the products and feedstock availability. By extending the program’s time horizon or providing more certainty about the timelines, the market becomes more attractive to a broader pool of capital. This supports fuel demand growth and helps achieve California’s environmental goals.

The clarity provided by these modifications offers security, encouraging investments in production, infrastructure, and research. It aligns with the broader goals of decarbonizing the energy sector and meeting climate objectives.

Bryan Sievers: Reducing the crediting periods from three to two could shrink the overall market potential, slightly dampening business volumes. However, if we reach market saturation, this adjustment may prevent oversupply issues. CARB can revisit this if market signals show a need for more production capacity in the future.

For now, the certainty these changes provide is a positive step, offering a stable framework for businesses to plan their investments effectively.

cCarbon: What technical changes would Roeslein need to ensure a project qualifies for maximum crediting periods?

Ben Kruger: We don’t anticipate significant modifications to our plans. Our strategies are based on growth forecasts, and the recent changes bring clarity to program mechanics and demand forecasts. This gives us additional confidence to proceed with planned investments without requiring major shifts.

Bryan Sievers: CARB might explore additional pathways under the LCFS, such as beef and poultry manure, which aren’t currently Tier 1 pathways because avoided emissions aren’t included. We’ve been discussing integrating these pathways through the Livestock Offset Protocol and Cap-and-Trade Program.

Additionally, we’re looking at programs like the RFS to modify plants and incorporate feedstocks like cellulosic materials derived from biomass. These adjustments align with evolving regulations and market opportunities.

Role of RNG in EV Charging and Emerging Pathways Under LCFS

cCarbon: Will RNG electricity for EV charging under book-and-claim accounting encourage new RNG plants nationwide?

Ben Kruger: The inclusion of RNG-generated electricity for EV charging under book-and-claim accounting is supportive. It opens new pathways for renewable molecules to contribute to clean energy systems.

However, the full impact depends on regulatory clarifications and market dynamics at state and federal levels. While this signals encouragement for the RNG industry, greater clarity is needed to determine its long-term effects on project development and investment decisions.

cCarbon: Will existing RNG plants shift resources toward fuel cell pathways instead of combustion engines?

Ben Kruger: This depends on economics and where producers see the best returns. The industry values having multiple options to monetize RNG molecules. Investment decisions will vary based on local considerations, available incentives, and federal policies.

Bryan Sievers: RNG electricity under the LCFS is limited to projects connected to California’s electric grid, unlike natural gas, which benefits from a fully interconnected transmission system across the U.S. This restricts electricity producers outside California from participating in the LCFS market. Maintaining diverse pathways is essential for broad participation.

cCarbon: What is your outlook on RNG for EV charging?

Ben Kruger: RNG is a highly versatile energy source for decarbonization. While it will play a role in power generation for EV charging, I believe its use will shift to sectors that are harder to decarbonize, such as maritime shipping.

RNG’s allocation will depend on market dynamics and regulatory frameworks. Electricity generation has numerous competitive options, while global shipping faces limited alternatives. This versatility ensures RNG will contribute effectively where it is most needed.

cCarbon: How will book-and-claim accounting changes impact out-of-state RNG projects?

Ben Kruger: Limiting book-and-claim accounting to pipelines flowing into California may initially shift investments toward the West Coast. However, RNG serves diverse markets, including transportation, maritime, and thermal applications, so significant investment shifts are unlikely.

Long-term, the primary challenge for RNG will be developing feedstocks to meet demand. Advancing new feedstocks like renewable biomass is critical for supporting diverse applications.

Bryan Sievers: Feedstock innovation is essential. At Roeslein, we’re developing renewable biomass sources like cover crops and perennial grasses. These feedstocks support RNG production while delivering environmental benefits such as carbon sequestration, improved water quality, and reduced field emissions.

We’re collaborating with institutions like Iowa State University and UC Davis to scale these solutions. Such advancements are key to the long-term sustainability of the RNG industry.

Future Trends: RNG’s Expanding Role in Maritime, Aviation, and Diversified Energy Sectors

cCarbon: What trends do you foresee for RNG in maritime and other sectors in the next five years?

Ben Kruger: RNG demand will grow significantly across sectors beyond transportation. Maritime shipping is poised for expansion, with RNG playing a key role in bio-LNG production and green methanol for flex-fuel ships.

RNG will also be used as a bio intermediate in sustainable aviation fuel (SAF) production, lowering the carbon intensity of SAF through hydrogenation.

With increasing mandates in the EU, Asia-Pacific, and North America, the market for RNG will grow and diversify, resulting in a larger and more varied market portfolio in five years.

cCarbon: How should clean fuels be promoted in the marine sector? What does the future of clean fuels look like in the marine industry?

Ben Kruger: While 100% electrification is possible, charging times and battery power remain challenges. Trucks need heavier batteries, and electric airplanes will likely be limited to small aircraft. Marine vessels, however, still need liquid fuels like methanol, LNG, ammonia, and hydrogen for long voyages. Methanol is particularly promising because it’s “plug-and-play” with minimal engine modifications and doesn’t face storage issues like LNG and ammonia. It also has low-carbon sources and is useful in methanol-to-jet applications, making it ideal for both marine and aviation sectors, which are harder to decarbonize. Even with progress in other sectors, we’ll still need these fuels.

The concept of using methanol dates back 40 years, and while it had challenges, such as making it work in diesel engines, technological advancements like CAD and diesel particulate filters have proven that significant innovation is possible. It’s unclear whether electric vehicles will be widely adopted, especially given charging infrastructure and affordability issues. For those without garages, EV ownership is a unique challenge, like those who drive hydrogen cars despite limited fueling stations.

cCarbon: Can you share general trends or patterns regarding RNG allocation across transportation, thermal, and electricity sectors?

Ben Kruger: We keep specific company data confidential, but we can speak to broader industry trends. Over the next five years, we expect RNG demand to diversify significantly beyond road transportation. Maritime shipping will see substantial growth, with RNG being used in bio-LNG for bunkers and as a building block for green methanol in flex-fuel ships.

We also anticipate increased use of RNG in hydrogen sectors, particularly as a bio intermediate in sustainable aviation fuel (SAF) production, where it lowers the carbon intensity of the process.

With growing mandates globally, including the EU’s CORSIA program and emerging markets in Asia-Pacific, we expect the RNG market to expand and become more diversified. While road transportation remains vital, other sectors will increasingly drive demand as the market evolves.

Important Links

Treasury Allows Clean Hydrogen Projects to Stack 45V Credits with LCFS Benefits | cCarbon

Larger but Less Frequent Transfers During 2024 in BC LCFS Market | cCarbon

Oregon Takes Step Forward with Comprehensive Clean Fuels Program Overhaul | cCarbon

New Mexico’s Draft Rules on Clean Transportation Fuel Program: A First Look

Exclusive Interview with Nausher Khan, SVP and Director at Northwest Advanced Bio-Fuels

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