Targray and LF Bioenergy expand renewable natural gas supply in Canada
Targray and LF Bioenergy tied agricultural RNG to Canadian market access, betting logistics and environmental attributes can move gas as well as production.
Targray on June 16 said it would expand renewable natural gas supply across Canada through LF Bioenergy, whose team has more than 100 years of combined agriculture and dairy experience. The deal pairs LF Bioenergy’s farm-based production with Targray’s market expertise, customer network and supply-chain capability for industrial, commercial and transportation buyers.
Canada’s Clean Fuel Regulations gave the collaboration a ready policy lane. Environment and Climate Change Canada says the rules are an important part of the federal climate plan, designed to cut emissions and expand clean fuels, and the regulatory framework explicitly recognizes compressed renewable natural gas and liquefied renewable natural gas for credit creation.
LF Bioenergy’s pitch is built around manure-to-RNG systems on farmer-hosted sites. The company says those projects can provide diversified revenue, eliminate the need to dispose of cow manure, improve soil and water quality, reduce odors and save money on fertilizer and bedding, while also lowering methane emissions from the farm gate.
The Canadian biogas and RNG market is still small relative to total gas demand, but it is not standing still. The Canada Energy Regulator says Canada’s RNG production began in 2003 with landfill gas injection near Sainte-Geneviève-de-Berthier, Quebec, and that RNG made up 0.36% of natural gas distributed in Canada in 2021. The CER also said 18 new RNG projects built after 2021 were expected to lift capacity from 7.2 PJ in 2021 to 17.1 PJ in 2025.
Industry groups are signaling the same direction. The Canadian Biogas Association says Canada has around 300 biogas projects that have cut emissions by 8 million tonnes, generated more than 20 PJ of energy and processed more than 2 million tonnes of organic waste annually, and its 2026 market report says the sector is poised for growth as Canada seeks domestic low-carbon energy solutions. Targray is positioning itself as the middle layer in that trade, saying it is a leading North American supplier of RNG and bio-LNG with a rail fleet, terminal network and compliance support that can connect producers to end users and environmental-attribute markets across North America, Europe and Asia.
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