Enbridge Inc said on Tuesday it had signed low carbon infrastructure partnerships with Royal Dutch Shell and Vanguard Renewables, as the Canadian pipeline operator pushes ahead with its emission reduction goals.
The company will purchase two billion cubic feet (bcf) of renewable natural gas (RNG) annually from Vanguard Renewables, while it will collaborate with Shell on potential green and blue hydrogen production.
Enbridge, which had set emission reduction targets in November, hopes to be a net zero emitter of greenhouse gases by 2050, as the industry faces pressure to limit carbon discharge.
The company said on Tuesday it would buy RNG from the anaerobic digesters that Vanguard will invest $200 million to build in the U.S. Northeast, Southeast, and Midwest
Enbridge will also will invest about $100 million in RNG upgrading equipment to convert the farm-derived gas into pipeline quality renewable natural gas and provide services to market it to U.S. customers.
Carbon-negative RNG is produced when carbon emissions are captured from dairies and turned into a transportation fuel, reducing the harmful effects of long-term climate change.
Blue hydrogen, where carbon emissions from its production are not released into the atmosphere, and green hydrogen, which is made with renewable power, are attracting huge interest as a clean alternative to natural gas that can be used for heating homes, heavy industry and transportation.