Southern Company Gas expands clean energy portfolio with new renewable natural gas agreements for its Virginia and Tennessee subsidiaries

Rhea-AI Summary

Southern Company (NYSE:SO) announced that its subsidiaries Virginia Natural Gas and Chattanooga Gas have completed new renewable natural gas (RNG) purchases, expanding their clean energy portfolio. The transactions will reduce lifecycle emissions by 18,978 metric tons of CO₂e, equivalent to carbon sequestered by 19,036 acres of U.S. forests annually.

The purchases involve acquiring environmental attributes from RNG facilities in Texas, following their initial RNG purchases in 2023. The initiative is supported by favorable policies in Virginia and Tennessee, including Virginia's Energy Innovation Act and Tennessee's Natural Gas Innovation Act. Additionally, Virginia Natural Gas is collaborating with Hampton Roads Sanitation District to develop a new RNG facility at the Atlantic Treatment Plant.

Positive

• Lifecycle emissions reduction of 18,978 metric tons of CO₂e
• Expansion of clean energy portfolio through new RNG purchases
• Supportive regulatory environment in Virginia and Tennessee
• Strategic collaboration for new RNG facility development
• Progress toward net-zero direct greenhouse gas emissions goal by 2050

Negative

• None.

News Market Reaction

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-0.54% News Effect

On the day this news was published, SO declined 0.54%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Lifecycle emission reductions estimated to be 18,978 metric tons of CO₂e, equivalent to the carbon sequestered by 19,036 acres of U.S. forests in one year

ATLANTA, June 25, 2025 /PRNewswire/ -- Two Southern Company Gas subsidiaries – Virginia Natural Gas and Chattanooga Gas – have completed new renewable natural gas purchases, adding to both utilities' growing portfolios of clean, sustainable fuel. The lifecycle emissions avoided by these transactions combined are estimated to be 18,978 metric tons of carbon dioxide equivalent (CO₂e), which is equivalent to the carbon sequestered by 19,036 acres of U.S. forests in one year.

RNG is a sustainable product produced from naturally occurring methane emitted from landfills, agricultural waste, wastewater and food waste as it decomposes. By capturing this methane before it enters the atmosphere, RNG significantly reduces greenhouse gas emissions. This fuel is fully compatible with existing natural gas infrastructure and appliances, providing a seamless transition to a more sustainable energy source.

"We're leveraging our advanced infrastructure to deliver cleaner fuels, which is part of our commitment to providing sustainable solutions for our customers and communities," said Southern Company Gas Executive Vice President of External Affairs and Chief External and Public Affairs Officer Bryan Batson. "These transactions are the latest examples of how we are supporting emission reductions efforts aligned with our goal of achieving net-zero direct greenhouse gas emissions from operations by 2050."

The purchases involve acquiring environmental attributes from RNG facilities in Texas. They follow the utilities' first-ever RNG purchases in 2023.

This deal is made possible by the passage of supportive policies in both Virginia and Tennessee. Virginia's Energy Innovation Act and Sustainable Gas Program allow and encourage the production and delivery of RNG, and the Tennessee Natural Gas Innovation Act permits natural gas utilities to pursue cleaner energy options and allows incremental innovative natural gas costs to be reflected in the utilities' purchased gas adjustment. Building upon these renewable natural gas purchases, Virginia Natural Gas recently announced an initiative in collaboration with the Hampton Roads Sanitation District that seeks to bring more renewable energy to the market. When completed, the new facility will transform biogas produced from organic waste at HRSD's Atlantic Treatment Plant into RNG.

For more information on Southern Company Gas' commitment to sustainability, visit: www.southerncompanygas.com/sustainability.

About Virginia Natural Gas

Virginia Natural Gas is one of four natural gas distribution companies under Southern Company Gas, a wholly owned subsidiary of Southern Company (NYSE: SO). Serving over 314,000 customers in southeast Virginia, Virginia Natural Gas was again named a Top Workplace in 2024. The company has earned recognition for its safety, reliability and customer focus among natural gas service providers, and was named 2024 LDC of the Year by the VA Dept of Energy and VA Oil & Gas Association. For more information, visit virginianaturalgas.com and connect with the company on Facebook, X, Instagram and LinkedIn.

About Chattanooga Gas

Chattanooga Gas is one of four natural gas distribution companies of Southern Company Gas, a wholly owned subsidiary of Southern Company (NYSE: SO). Chattanooga Gas provides retail natural gas sales and transportation services to approximately 72,000 customers in Hamilton and Bradley counties in southeast Tennessee. The Chattanooga Gas service area includes the communities of Chattanooga, Cleveland, Red Bank, East Ridge, Lookout Mountain and Signal Mountain. For more information, visit chattanoogagas.com.

About Southern Company Gas

Southern Company Gas is a wholly owned subsidiary of Atlanta-based Southern Company (NYSE: SO), one of America's premier energy companies. Southern Company Gas serves approximately 4.4 million natural gas utility customers through its regulated distribution companies in four states and more than 600,000 retail customers through its natural gas marketing businesses. The company also invests in interstate pipelines, provides asset management for natural gas wholesale customers, and owns and operates natural gas storage facilities. For more information, visit southerncompanygas.com [southerncompanygas.com.

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SOURCE Southern Company Gas

FAQ

What is the environmental impact of Southern Company's new RNG agreements?

The agreements will reduce lifecycle emissions by 18,978 metric tons of CO₂e, equivalent to carbon sequestered by 19,036 acres of U.S. forests in one year.

Which Southern Company Gas subsidiaries are involved in the new RNG purchases?

Virginia Natural Gas and Chattanooga Gas are the subsidiaries that completed the new renewable natural gas purchases.

What regulatory policies support SO's RNG initiatives in Virginia and Tennessee?

Virginia's Energy Innovation Act and Sustainable Gas Program, along with Tennessee's Natural Gas Innovation Act support these initiatives by allowing utilities to pursue cleaner energy options.

What is Southern Company's greenhouse gas emissions reduction target?

Southern Company aims to achieve net-zero direct greenhouse gas emissions from operations by 2050.

Where are the RNG facilities located for Southern Company's new purchases?

The environmental attributes are being acquired from RNG facilities located in Texas.