Black Hills Corp. will seek to achieve net-zero greenhouse gas emissions by 2035 across its natural gas distribution systems that span six states in the Central and Western U.S.
The Sept. 13 announcement showed the growth of Black Hills' ambitions. Nearly two years ago, the company said it would aim to reduce its gas grid emissions intensity by 50% from 2005 levels by 2035. To go beyond this goal, Black Hills plans to further drive down emissions by refining its leak detection and damage prevention programs, and it expects to reach net-zero status through renewable fuel blending, carbon offsets and technological innovation.
"Our net-zero target by 2035 builds on our natural gas system safety and integrity initiatives and expands upon strategies underway to strengthen our system," Black Hills President and CEO Linn Evans said in a press release announcing a sustainability report.
The new target encompasses all Scope 1 methane emissions sources across the company's distribution system, including mains and service lines, transfer stations, meters and pressure relief valves, and damage to this equipment. As defined by the U.S. Environmental Protection Agency, the Scope 1 category covers direct greenhouse gas emissions from sources controlled or owned by the company, including emissions from infrastructure and vehicles. Scope 2 emissions are indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat, or cooling, and Scope 3 emissions come from activities or assets not owned or controlled by the company but that impact the company's value chain, including customers' use of the company's products.
Scope 3 by definition is the most difficult emissions category for a company to manage, and many companies in the U.S. gas industry have said this category is not their responsibility.
Expanding existing emissions-mitigation programs
By 2035, Black Hills will try to replace all unprotected steel pipe with less leak-prone protected steel and plastic pipe. These materials already make up nearly 99% of the company's roughly 42,200 miles of gas distribution mains and service lines, according to the sustainability report.
The company plans to expand its leak surveys and pursue advanced leak detection methods. Paired with aerial mapping, the advanced methods would allow Black Hills to prioritize large leaks and identify trends across its systems, the company said.
Black Hills aims to achieve its damage prevention target of 1.5 hits or fewer per thousand excavations by conducting more site visits and using predictive analytics to spot high-risk locations. Punctures can release methane, the chief component of natural gas.
The ongoing initiatives will yield a 40% reduction in system emissions, and the expanded leak survey and damage prevention efforts will drive a further 60% decrease, Black Hills projected.
Renewable fuels get Black Hills to net-zero
To reach net-zero status, Black Hills will incorporate renewable natural gas, or RNG, and low-carbon hydrogen into its gas grid. To date, Black Hills has connected its systems with six RNG supply projects at landfills and wastewater treatment plants in Nebraska and Iowa. The company is evaluating dozens of additional projects to refine methane waste into RNG, according to the sustainability report.
In 2021, Black Hills developed a voluntary RNG and carbon offset program, which allows customers to offset up to 100% of the emissions tied to their gas use. The company has filed with regulators to offer similar programs in Colorado, Kansas and Nebraska, and it plans to offer the programs to all customers by 2023, according to the report.
Along with other gas utilities, Black Hills has pushed back on a proposed overhaul of Colorado gas utility regulations geared toward avoiding new fossil fuel infrastructure investments and electrifying heating load. In four other states where Black Hills distributes gas — Arkansas, Iowa, Kansas and Wyoming — lawmakers have outlawed local measures to restrict access to gas utility service.
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