Better Farming August 2016 Farm News First > BetterFarming.com 19 MAIN FEATURE program, which will include carbon caps for natural gas distributors once the program is up and running in 2017, and from the province’s climate change action plan, which calls for setting renewable natural gas targets. On-farm anaerobic digestion is only one source of renewables for gas utilities, however, and will face stiff competition from other sources to supply natural gas distributors. In a May presentation to the OFA, Union Gas identified landfills and municipal solid waste to be the most likely and largest volume suppliers. The company predicted seven per cent of renewable natural gas would come from agricultural waste and anaerobic digestion. It might be small, nevertheless that percentage is an important wedge, says Nokes. “Our focus will be to get two birds with one stone” by having natural gas-producing agricultural areas feeding into the natural gas grid. The general farm organization belongs to a recently-established working group exploring how best to develop the budding renewable natural gas sector. Other members include the Canadian Biogas Associa- tion, gas utilities, municipalities and natural gas entrepreneur hopefuls, such as Faromor, represented by Hendry. Jake DeBruyn, OMAFRA engi- neer for new technology integration, is also on the committee. He says the group wants to identify the areas where there might be agricultural sources of biogas relative to the location of the natural pipeline. DeBruyn says what everyone wants to avoid is a situation like the one that emerged after the FIT programs launched – when the grid capacity problems sidelined green energy generation projects that had received government approval. Funding source questions One major unknown about the province’s plan to power up renew- able natural gas production, however, is the financial stability of the carbon cap-and-trade system that is expected to generate the funding. Under the program, which begins next year, companies whose carbon emissions are capped will buy allowances from the government or credits from other companies that have excess emissions capacity. The allowances are sold during regularly- scheduled auctions. The system already operates in California and Quebec, and those two jurisdictions Rural Green Energy makes use of a specially-designed trailer to store and transport compressed natural gas. The gas is used to fuel vehicles. share the market under the Western Climate Initiative Inc. (The Ontario government has said it will join the initiative.) The auction revenue is what Ontario has identified as the source for renewable natural gas funding, but poor results from the most recent auction in California and Quebec’s continued on page 22 Keep growing what you’re sowing Until the cows come home Whether you’re a multi-million dollar enterprise, entrepreneur or emerging company, you can rely on Collins Barrow for objective, actionable advice. We are the audit, tax and advisory experts. Look to Collins Barrow, Chartered Professional Accountants, to help your agri-business grow and prosper. It’s time to sow the seeds of success.