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BetterFarming.com
Better Farming
August 2016
MAIN
FEATURE
Father and son team John Jr. and John Sr. Ysselstein of Oxford County are among
Rural Green Energy’s five partners. The company is working to establish a
compressed natural gas station south of Woodstock to fuel vehicles. Plans are
also in the works to generate renewable natural gas by developing an anaerobic
digester at John Jr.’s 2,000-head cattle finishing operation.
pick-ups and vans. He says a couple
of haulers for milk and grain have
also converted their highway tractors.
The gas will be cleaned on the
farm, piped to a Union Gas process-
ing station outside of Woodstock to
be blended at a rate of 10 per cent
with the fossil-based natural gas, and
then piped to the natural gas station.
No infrastructure currently links the
Ysselstein operation to the natural
gas grid.
Over the phone, Ysselstein Sr.
sounds confident they can convince
Union Gas to lay the pipe. Their
farm won’t be the only customer.
“There’s Gunn’s Hill cheese plant
(owned by another son) – they use a
lot of propane – and my neighbour
across the road has got a propane
large corn dryer.”
Motivating expansion through
renewables
Players in both Ontario’s biogas and
farm industry say renewable natural
gas projects can help make the
extension of natural gas infrastruc-
ture into rural areas financially viable
for gas companies.
Ian Nokes, energy and environ-
mental economic policy analyst with
the Ontario Federation of Agricul-
ture (OFA), says proposals that Union
Gas and Enbridge have submitted to
the Ontario Energy Board reveal
rural gas infrastructure will be pricey.
In its 2015 proposal, Union Gas
outlines plans to extend service to
Milverton in Wellington County,
Prince Township outside of Sault Ste.
Marie and Lambton Shores, as well
as First Nations communities at
Kettle Point, Stoney Creek, Walpole
Island and Moraviantown. To do so,
the company said it wanted to raise
existing users’ rates and obtain
financial support from the new
municipalities and future users.
If it doesn’t tap resources of
existing users, up-front costs for the
expansion would cost $68 million, or
the equivalent of a more than $7,000
up-front charge for the first 9,000 cus-
tomers, a company submission says.
The natural gas expansion funding
to be detailed in the fall will likely
help with those costs, but Nokes says
the renewable natural gas funding
further encourages companies to
address rural areas.
Connections to renewables
projects can help the companies
reach their targets of two per cent
renewable natural gas by 2020 and
up to 16 per cent by 2030. (The
Canadian gas industry voluntary
targets are five per cent by 2025 and
10 per cent by 2030.) Pressure to
add renewables comes from both
Ontario’s carbon cap-and-trade