December 23, 2008 / 7:27 PM / 10 years ago

PG&E to ship in cow manure-based biogas from Texas

SAN FRANCISCO, Dec 23 (Reuters) - PG&E Corp (PCG.N) has agreed to buy gas captured from cow manure and other waste at a facility in Texas as part of the California utility’s effort to use more renewable energy.

The plant in Stephenville, Texas, which is not far from a clutch of oil fields to the southwest of Dallas, produces enough “renewable natural gas” to power 15,000 homes, according to plant owner Environmental Power Corp EPG.O.

But San Francisco-based PG&E has agreed to buy up to 8 billion British thermal units of the gas per day, or enough for 50,000 homes, with much coming from Environmental Power facilities being developed in California’s rural Central Valley.

Environmental Power is a small loss-making company that also owns facilities in Wisconsin employing the same technology used at its Texas operation, which cleans the waste-generated gas and turns it into pipeline-quality methane. (Reporting by Braden Reddall; Editing by Marguerita Choy)

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