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TC Energy (TRP), GreenGasUSA Team Up for RNG Transport Hubs

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The Calgary-based energy infrastructure company TC Energy Corporation (TRP - Free Report) recently declared a tactical partnership with GreenGasUSA, which owns and operates all the critical assets of renewable natural gas (RNG), to delve into the development of a network of transportation hubs for natural gas, including RNG. These hubs will offer centralized access to the prevailing infrastructure used for energy transportation.

As a consequence of this partnership, GreenGasUSA will produce RNG, condition the gas to pipeline quality and transport it to the RNG hub. TC Energy mentioned that it would create, own and operate RNG transportation hubs in numerous U.S. states along its 32,000 mile-long natural gas pipeline system within the next four years. The first hub is expected to be operational by the second quarter of 2023. As of now, 10 RNG hubs interconnect TRP’s U.S. Natural Gas presence with a plan to quickly grow and provide more capability before the year ends.

A reduction in GHG emissions by giving cost-effective market access to RNG developers, increased equitable contributions from diverse biogas sources in renewable energy markets, augmenting energy resilience and independence with a focus on natural gas and renewables, along with providing customers with enhanced and innovative solutions, economic feasibility and carbon-neutral energy prospects, are some of the expected benefits of the partnership.

Moreover, the combination of TC Energy’s massive energy distribution network and GreenGasUSA’s vast experience in gas compression, compressed natural gas transportation and pipeline injection is anticipated to surge methane capture and increase the use of renewable fuels within the energy mix.

Marc Fetten, the owner of GreenGasUSA, said “We’re pleased to partner with TC Energy to develop these RNG hubs.” “These are key steps to making the planet greener by connecting sources of renewable gas to energy consumers that are serious about decarbonization and displacing fossil fuels,” he further added.

TC Energy Corporation is a premier energy infrastructure provider in North America. Established in 1951, the company is primarily focused on natural gas transmission through its 57,500-mile network of pipelines in Canada, the United States and Mexico. TRP is also involved in other businesses, including power generation, natural gas storage and crude oil pipelines.

TC Energy currently has a Zacks Rank #4 (Sell). Some better-ranked stocks from the energy space that warrant a look include PDC Energy (PDCE - Free Report) , Devon Energy (DVN - Free Report) and Earthstone Energy (ESTE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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