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Get started with renewable natural gas

renewable natural gas

We’re committed to helping the environment and supporting corporate sustainability goals. That’s why we offer expertise and assistance to customers and project developers who want to convert biogas into renewable natural gas.

Through our network of natural gas pipelines, we offer the opportunity for renewable natural gas to be accepted into our transmission and distribution system and delivered to our customers through interconnection receipt points.

Set up interconnection receipt points

There are three major steps to begin setting up interconnection receipt points:

1. Interconnection capacity study

We’ll determine the downstream capacity of our gas distribution system to accept the injection of renewable natural gas and the associated facility costs.

2. Preliminary engineering study

Black Hills Energy will develop preliminary engineering designs and cost estimates for the proposed interconnection facilities.

  • Cost estimates may include:
  • Land acquisition
  • Site development
  • Right-of-way acquisition
  • Metering facilities
  • Gas quality testing equipment
  • Permitting and regulatory requirements
  • Environmental requirements
  • Unusual construction conditions
  • Operations and maintenance costs

We will use these preliminary cost estimates in our feasibility model to evaluate potential project economics, including applicable rates and return on equity considerations.

Following the evaluation, we will prepare draft agreements, including:

  • Facilities Interconnection Agreement
  • Renewable Natural Gas Transportation Agreement

3. Final engineering study 

We’ll complete the final cost estimates and engineering construction drawings, and prepare all construction, regulatory and environmental permit applications and right-of-way acquisition requirements.

 

All costs associated with the interconnection receipt point will be the responsibility of the interconnector.