Southern California Gas (SoCalGas) has plans to become the cleanest natural gas utility in North America.
SoCalGas has set a target to replace 20% of its traditional natural gas supply with renewable gas by 2030.
The plan will help the utility to improve its customer services as it will allow the provision of affordable energy to consumers. In addition, the utility will line with state and federal regulation on carbon emission reduction as the plan will reduce its carbon footprint.
The projects are part of the utility's vision to develop long-term and seasonal renewable energy storage using existing infrastructure.
SOCalGas is filing a proposal with the California Public Utilities Commission to implement a broad renewable natural gas procurement programme with a goal of replacing 5% of its natural gas supply by 2022.
Bret Lane, CEO at SoCalGas, said; "Californians deserve clean, safe, and reliable energy that every family can afford. Today's announcement is an important step toward delivering a clean energy future that works for every family and business in our state."
"SoCalGas is taking a bold step in the fight against climate change," added Maria Salinas, CEO of the Los Angeles Area Chamber of Commerce.
"California has a population of 40 million people, converting the waste we produce into clean energy for use in our homes and businesses is necessary if we are going to achieve a carbon-neutral economy by 2045," said Dr. Matt Rahn of Cal State San Marcos, Environmental Leadership Institute.
The news follows a recent University of California study showing stating the region has the potential to produce nearly 100 billion cubic feet per year of renewable natural gas, enough to power 2.3 million homes.
The US Department of Energy predicts the country will increase its renewable gas generation from 1 trillion cubic feet per year now to 10 trillion by 2030.