PG&E and BioEnergy Solutions Turn the Valve on California's First 'Cow Power' Project

PG&E and BioEnergy Solutions Turn the Valve on California's First 'Cow Power'
Project
Renewable Natural Gas Made From Animal Waste to Flow Through PG&E's Pipelines

FRESNO, Calif., March 4 /PRNewswire-FirstCall/ -- Pacific Gas and Electric
Company and BioEnergy Solutions today announced that their biogas-to-pipeline
injection project in Fresno County has begun production of renewable natural
gas derived from animal waste. It is the first project in California that will
deliver pipeline-quality, renewable natural gas to a utility.
"With nearly two million dairy cows in California, there is great
potential for the state's agriculture and power sectors to work together to
address the challenges of climate change," said Roy Kuga, vice president of
energy supply at PG&E. "This project is yet another example of our company's
commitment to add innovative forms of clean renewable energy to help meet our
customers' future power needs."
Under a long-term contract approved by the California Public Utilities
Commission (CPUC), BioEnergy Solutions will deliver up to three billion cubic
feet of renewable natural gas a year to PG&E.
A BioEnergy Solutions system reduces emissions of methane, a greenhouse
gas 21 times more potent than carbon dioxide, by 70 percent on a 5,000-cow
dairy.
"We have developed an innovative way to bring dairies and power companies
together to generate a new source of green energy for California," David
Albers, president of BioEnergy Solutions, said. "Using proven technologies, we
design, build and operate highly-efficient biogas systems that enable dairymen
to meet new air quality requirements and help utilities meet their goals for
the production of energy from renewable sources."
Vintage Dairy, the site of BioEnergy Solution's first project, is located
near the town of Riverdale in western Fresno County, California. Manure from
the dairy's 5,000 milk-producing cows and calves is flushed into a covered
lagoon -- equal in size to the area of nearly five football fields and over
three stories deep -- that traps the methane gas produced as the manure
decomposes. The methane is upgraded, or "scrubbed," to remove corrosive
materials to meet PG&E's industry-leading environmental standards for power
plants and then delivered to PG&E through the utility's pipeline. PG&E uses
the natural gas to deliver renewable electricity to its customers in central
and northern California.
BioEnergy Solutions is based in Bakersfield and was founded by David
Albers, a third-generation dairyman who also owns Vintage Dairy. The company
installs at its own expense the infrastructure needed to collect and process
the manure and then pump the gas into PG&E's pipeline. BioEnergy also shares
the proceeds from the sale of gas and resulting emissions credits with dairy
owners.
PG&E is a leader in utilizing biogas. In addition to the utility's
contract with BioEnergy Solutions, PG&E is working to cultivate the next
generation of biogas technologies through its biomethanation research project.
This recently launched project explores emerging biomethanation technologies
and processes that may increase conversion efficiency, expand the range of
usable feedstocks and improve the quality of biomethane products.
PG&E expects to have 14 percent of its energy from renewable sources that
qualify under California's Renewable Portfolio Standard (RPS) Program in 2008.
On average, more than 50 percent of the energy PG&E delivers comes from
carbon-free sources, and the utility now has contracts to provide 20 percent
of its future energy supply from renewable sources. Qualifying renewable
sources in PG&E's portfolio include solar, wind, biomass, geothermal, and
small hydroelectric.
Since July 2007, PG&E has signed renewable energy contracts totaling 1,024
MW, including 57 MW of new geothermal energy with Calpine Corporation, 553 MW
of solar thermal with Solel-MSP-1, 85 MW of wind power from PPM Energy, two MW
of wave energy with Finavera Renewables, 177 MW of solar thermal with Ausra
Inc., and 150 MW of wind energy with enXco. PG&E is still seeking regulatory
approval for the Calpine, Finavera, Ausra and enXco contracts.
California's Renewable Portfolio Standard (RPS) Program requires each
utility to increase its procurement of eligible renewable generating resources
by one percent of load per year to achieve a 20 percent renewables goal by
2010. The RPS Program was passed by the Legislature and is managed by the CPUC
and California Energy Commission.For more information about BioEnergy
Solutions, please visit the company's web
site at http://www.allbioenergy.com

For more information about Pacific Gas and Electric Company, please visit the
company's web site at http://www.pge.com
SOURCE Pacific Gas and Electric Company

PG&E News Department, +1-415-973-5930; or Steve Duchesne of BioEnergy
Solutions, +1-310-364-5254, cell, +1-310-528-7226