LOS ANGELES, July 31, 2018 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) today presented sustainable greenhouse grower, SunSelect Produce, Inc., with a $500,000 check to offset the cost of two newly installed energy-efficient cogeneration engines at the grower's facility in Tehachapi, California. The new combined heat and power system is designed to capture otherwise wasted carbon dioxide, heat, and water to improve its greenhouse tomato and bell pepper production. In addition, large natural gas-powered engines will produce enough electricity to power the full operation—plus an additional 2,300 homes. In total, the new cogeneration system will save SunSelect over 7,000 gallons of water per day and divert approximately 12,000 metric tons of CO₂ emissions a year—the equivalent of taking 2,600 cars off the road—by converting the emissions into plant nutrients. Photos from today's check presentation event are available here.
"Natural gas-powered cogeneration systems are win-win operations that provide our customers a competitive solution for the business and sustainable results for California's clean energy goals," said Rasha Prince, director of commercial and industrial services at SoCalGas. "We're proud to support SunSelect with this energy-efficient upgrade that will help keep their energy bills low and reduce emissions linked to climate change."
"SunSelect is committed to creating a sustainable future for our planet, and with the help and support from SoCalGas' equipment incentive program, we're able to bring that vision to life and grow our business in California," said Len Krahn, CEO of SunSelect Produce, Inc. "Indoor farming is becoming increasingly more energy efficient and eco-friendly, and it's technology like this cogeneration system that is advancing the future of greenhouses."
SunSelect is a true industry leader in greenhouse sustainability and carbon reduction. In 2012, the grower's Delta facility in Delta, British Columbia was the first greenhouse in the world to utilize the GC6 Green Carbon Capture System, which allows carbon dioxide that would otherwise be released into the atmosphere to be utilized by greenhouse grown vegetable crops. In addition, SunSelect's facility in Aldergrove, British Columbia utilizes specialty energy systems to create heat from recycled wood waste from local saw mills, minimizing the amount of carbon dioxide emissions to the same amount that is released when plants decompose naturally.
SunSelect's cogeneration equipment was purchased in part through SoCalGas' Rule 38 Incentive Program, which formerly supported the development and use of new, cost-effective high-efficiency commercial and industrial equipment by reimbursing customers for up to half of the cost. SoCalGas' Rule 38 Incentive Program provided financial incentives to commercial, industrial, and agricultural customers for the purchase of energy-efficient, natural gas-fired equipment or for the cost of feasibility studies that evaluate the potential benefits of qualifying energy-efficient equipment. The program helped offset up to 50 percent of equipment costs, up to $500,000 per project. It also provided up to 50 percent of research study costs, up to a maximum of $50,000 per study. This spring the California Public Utilities Commission voted to discontinue the program, and in May the program was closed to new contracts.
Rebates and financial incentives are just one way SoCalGas helps business and residential customers keep their energy bills affordable. Since 1990, the utility's energy efficiency and rebate programs have reduced emissions equal to taking almost 700,000 cars off the road and have saved SoCalGas customers more than $670 million in utility bill costs. Moreover, because of energy efficiency measures and new innovative technology, business and homes account for only about 7.5 percent of greenhouse gas emissions statewide, according to the California Air Resources Board. SoCalGas offers more than 90 energy efficiency programs that have delivered $161 million in cost savings directly to its customers over the past five years.
SoCalGas is a leader in researching and developing new technologies that improve energy efficiency, reduce emissions, and keep bills affordable for customers. The utility is working to increase the production and use of renewable natural gas, or biogas, which turns methane emissions into a source of clean energy to fuel homes and businesses. Decarbonizing natural gas pipelines with renewable natural gas will help California obtain deep greenhouse gas reductions at the lowest overall cost while preserving energy choice for residents and businesses alike. Learn more about the environmental and cost-saving benefits of renewable natural gas by viewing the utility's latest video, Digesting the Facts About Renewable Natural Gas.
Natural gas is the most affordable, reliable, clean, and increasingly renewable energy choice for home and water heating and cooking in Southern California and is used by more than 90 percent of residents in the region. According to the American Gas Association (AGA), households that use natural gas for water and space heating, cooking and clothes drying save an average of $874 per year compared to homes using electricity for those applications.
About SoCalGas
Headquartered in Los Angeles, SoCalGas® is the largest natural gas distribution utility in the United States. SoCalGas delivers affordable, reliable, clean and increasingly renewable natural gas service to 21.7 million customers across 22,000 square miles of Central and Southern California, where more than 90 percent of residents use natural gas for heating, hot water, cooking, drying clothes or other uses. Natural gas delivered through the company's pipelines also plays a key role in providing electricity to Californians—about 60 percent of electric power generated in the state comes from gas-fired power plants.
SoCalGas is committed to investing in its natural gas system infrastructure, while keeping bills affordable for our customers. From 2013 through 2017, the company spent nearly $6 billion to upgrade and modernize its natural gas system to enhance safety and reliability. The company is also committed to being a leader in the region's clean energy future, and is working to accelerate the use of renewable natural gas from dairy farms, landfills and wastewater treatment plants and the development of renewable energy storage technologies. SoCalGas is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego. For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook.
SOURCE Southern California Gas Company