Renewable Natural Gas Growth and CO2 Emission Reduction Strategies
KINDER MORGAN
7.7 bcf of RNG reduces emissions by 4.3 million
metric tonnes CO2 e per year, equivalent to:
10mm
barrels of oil
consumed
2021
2023
2025
0.5 0.2
2027
Note: See Non-GAAP Financial Measures and Reconciliations
Sources: U.S. RNG production per Wood Mac North America Gas Market Strategic Planning Outlook, March 2022. Emission calculation and equivalencies based on the EPA's Landfill Gas Energy Benefits Calculator. We expect our plants
to capture 16.5 bcf/year of feedgas to produce 7.7 bcf/year of RNG.
2029
2031
2033
2035
2037
489mm
gallons of gasoline
consumed
Carbon sequestered
by 5.3mm acres
of U.S. forest
2039
2041
2043
2045
2047
2049
3.2
2.8
2.5
Hundreds of landfills
2.2
across the U.S. are
2.0
candidates for RNG
1.5
1.5
0.8
1.0
0.4
RNG Portfolio Grows with Mas & NANR Acquisitions
Continue to execute on our disciplined growth strategy
U.S. RNG PRODUCTION bcfd
3.5
Landfill facilities are
3.0
expected to drive RNG
production growth
KM LANDFILL-RNG FACILITES
2.2 bcf capacity already operational (1.8 bcf net to KM interest)
Recently acquired 1.4 bcf Arlington facility; potential to grow the
facility to 2 bcf over the next decade without much capex
5.5 bcf of additional capacity under development
3 Indiana facilities under construction; total annual capacity of 3.5
bcf online by year-end 2023
Converting 4 gas-to-power facilities in Michigan and Kentucky to
2.0 bcf of RNG capacity; operational by early 2024
$331 million development capex for the 7 facilities
Expect <6x 2024 Adj. EBITDA based on ~$1.1bn total investment
Current RNG offtake is contracted with high-quality counterparties in the
transportation market
Because the gas is sold into the transportation market, we also generate
RINS which are sold to obligated parties (like refiners)
FUTURE DEVELOPMENTS
RNG-dedicated team is focused on pursuing new projects to expand RNG
platform
Plan to mitigate exposure to RIN volatility over time through fixed-price
contracts as voluntary market develops
28View entire presentation