Harnessing Renewable Energy – New Jersey Business Magazine

SJI Renewable Energy Ventures is building one of the nation’s largest food waste-to-renewable natural gas projects in Linden, aimed at converting organic waste into pipeline-grade RNG that can be used for a variety of applications.

energy

Discover how utilities and other energy providers are helping companies achieve their clean energy goals.

By Lisa Goulian Twiste, contributing author on December 4, 2024

New Jersey has become a leader in the clean energy journey. The New Jersey Clean Energy Act of 2024 requires 35% of energy sold in the state to come from qualified energy sources by 2025 and 50% by 2030. Some of them are of great importance. Electric utilities and solar companies in the state are trying to do their part by offering business customers solutions to reduce costs while protecting the environment.

“Our energy efficiency programs help businesses of all sizes in a variety of industries,” said Rachael Fredericks, director of energy services at PSE&G, New Jersey’s largest gas and electric utility. “By offering incentives, we help companies reduce energy consumption, reduce operating costs and contribute to a more sustainable future. These efforts not only support companies’ bottom lines, but also align with broader environmental goals – a win for both our customers and their communities.”

Approximately 14,000 PSE&G business customers participate in a range of commercial and industrial (C&I) energy efficiency programs, including Direct Install, which can reduce energy consumption and costs by up to 30%, helping businesses save approximately $12 million annually on utility bills . says the company. For example, Carvel Ice Cream in Pennington upgraded two rooftop HVAC units as part of this program, resulting in $10,000 in installation savings and more than $1,600 in annual utility savings, while Jola Coffee-based in North Caldwell benefited from lighting and HVAC upgrades and PSE&G covered 80% of their project costs and the company reduces and increases energy consumption at the same time, operational efficiency and customer convenience.

PSE&G also offers tailored options such as custom and prescriptive solutions, energy management solutions and engineered solutions that enable comprehensive energy upgrades for larger facilities as well as municipalities, universities, schools and hospitals. For example, Kean University used the Engineered Solutions Program for customized upgrades to lighting and heating systems in several buildings. The project is projected to generate annual cost savings of approximately $400,000, with PSE&G covering approximately 48% of the project cost while the university will contribute approximately 52%, which will be repaid interest-free through its utility bill upon completion of construction.

NJR focuses on efficiency and renewable sources

Another major player in New Jersey’s utility market is New Jersey Resources (NJR), whose primary subsidiary, New Jersey Natural Gas (NJNG), serves 582,000 customers – approximately 32,000 of which are commercial and industrial. While NJNG has long been committed to energy efficiency, the company has significantly expanded its efforts with the SAVEGREEN project, launched in 2009. SAVEGREEN offers incentives and rebates to help customers save energy and money, and NJNG invested approximately $150 million between fiscal year 2021 and fiscal year 2023 alone to make energy efficiency more accessible.

For example, since 2021, SAVEGREEN has helped five Hackensack Meridian Health hospitals in Monmouth and Ocean counties become more energy efficient through electrical, mechanical, lighting and HVAC upgrades – with NJNG providing $29 million in incentives and a 0% -Provided financing and saved HMH approximately $2.2 million annually. “We are helping the state meet its climate goals while helping customers reduce their consumption, save them money and reduce their emissions profile,” said Patrick Migliaccio, NJNG’s chief operating officer. “In the context of an energy transition, it really is a win-win-win opportunity.”

In terms of renewable energy, NJNG is the first natural gas utility in New Jersey to blend hydrogen into its natural gas stream, reducing greenhouse gas emissions. In addition, the company is exploring potential renewable natural gas projects at landfills and wastewater treatment plants where methane can be recovered and reused for customer use. NJNG is also the first utility in the state to use CarbinX carbon capture technology at its headquarters in Wall. The units connected to the HVAC system and capturing carbon emissions that would otherwise be emitted as smoke exhaust help improve overall efficiency by converting waste heat into heated water, reducing water heater usage, emissions and energy costs.

“As we think about this energy development, we are careful to preserve the security and affordability of these solutions,” says Migliaccio. “This is the balancing act that we have to achieve in order to achieve the country’s climate goals.”

SJI: A leader in RNG production

South Jersey Industries (SJI), which serves approximately 50,000 commercial customers through South Jersey Gas and Elizabethtown Gas, has invested more than $219 million in energy efficiency programs since 2009. The utility is also committed to cleaner energy for business customers by replacing aging transmission lines, reducing “fugitive” emissions and improving leak detection technologies to make New Jersey’s infrastructure more resilient.

SJI also continues to invest in renewable energy technologies such as fuel cells, hydrogen and renewable natural gas (RNG), a low-carbon and cost-effective transportation fuel. On the latter, Linden-based SJI Renewable Energy Ventures is building what could be one of the nation’s largest food waste-to-renewable natural gas projects, aimed at converting organic waste into pipeline-grade RNG that can be used for a variety of applications.

Additionally, SJI and Opal Fuels have partnered to construct landfill gas RNG projects at the Atlantic County Utilities Authority landfill in Egg Harbor Township and the Burlington County landfill in Florence Township. “For many companies, the energy focus is on reliability,” said Kyle Nolan, vice president and chief operating officer of SJI Renewable Energy Ventures. “They need to make sure their businesses have the energy they need to operate. RNG is a pipeline-grade gas that is interchangeable with conventional natural gas. We expect businesses and residents will welcome these fuels.”

The solar solution is the key

Solar energy is also an important part of New Jersey’s energy equation, accounting for approximately 87% of the state’s renewable energy and nearly 7% of total electricity generation. “I would say solar energy is critically important and an integral part of New Jersey’s energy goals. Wind power is also an important component, said Ed Seliga, chief information officer and co-owner of Flemington-based Advanced Solar Products. “If you build enough offshore wind turbines and add enough solar energy to new buildings – as well as retrofitting as many existing buildings as possible – it is entirely feasible to completely replace fossil fuels.”

A large portion of today’s solar market consists of third-party investors who pay solar companies to provide continuous solar power to schools and other facilities. This is cost-effective for public entities that do not benefit from the tax benefits associated with solar use due to their tax-exempt status. Additionally, agricultural demonstration sites – like the three Advanced Solar projects recently completed with Rutgers University – allow farmers to create a dual-use arrangement on their farms to maintain agricultural production while producing clean energy and selling the electricity. This provides farmers with an additional source of income while helping to sustain New Jersey’s farms and keep the state green.

While the Solar Act of 2021 directed the New Jersey Board of Public Utilities (NJBPU) to double the growth of the state’s solar program by 2026, challenges continue to hamper the sector, according to Seliga. Permits for community solar projects that once took about six weeks to obtain locally are now moving across the state, with delays of a year or more in connecting new solar projects to an aging power grid.

“We have already reached the capacity of the grid to connect more solar power, and it is difficult to imagine New Jersey meeting our ambitious goals until some of these important issues are resolved,” Seliga added. “In the next decade we need to dramatically change the entire energy picture if we want to combat climate change.”

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