NW Natural Biomethane Spends $60 Million on Failed Projects
A new report shows Oregon ratepayers funded costly biomethane projects that failed to cut emissions and instead supported industrial farms.
Key points
- NW Natural spent over $60 million on out-of-state biomethane projects under SB 98.
- Funds supported industrial livestock facilities, causing local pollution without cutting emissions.
- A $43 million project in Washington was abandoned in 2025 with unclear ratepayer impact.
NW Natural spent over $60 million on out-of-state biomethane projects. The company did this under Oregon’s Senate Bill 98. A new report says these efforts failed to reduce emissions. It also says they worsened local pollution.
The Sierra Club and Breach Collective published the findings today. They argue the law subsidizes industrial animal agriculture. Ratepayers pay higher bills to support this model. The report claims it delays cleaner electrification.
Ratepayer Funds Support Industrial Livestock
Money flowed to anaerobic digesters at large feedlots. These facilities are known as CAFOs. They house thousands of animals in tight spaces. Waste from these sites causes air and water pollution. Tyson Foods operates some of these plants in Nebraska.
The report states this model drives consolidation in agriculture. It suggests biomethane markets encourage larger, dirtier farms. Communities near these sites face health risks. The utility failed to lower overall gas demand. It also failed to cut significant climate emissions.
Specific Projects Shut Down or Abandoned
Financial risks are growing for these investments. The Lexington, Nebraska project shut down after a few years. Oregon ratepayers had backed this facility. A separate $43 million project in East Wenatchee, Washington, was abandoned. This happened quietly in 2025.
The impact on ratepayers from the Washington closure is unclear. The utility produced far less gas than projected. Emissions benefits were limited. NW Natural now seeks to shift remaining costs. This adds financial pressure on Oregon gas bills.
Critics Cite Delayed Electrification Efforts
Biomethane is expensive and scarce as a fuel source. Experts say heat pumps and efficiency upgrades are better. These options lower bills and emissions faster. The report argues biomethane distracts from these proven solutions. It props up fossil gas infrastructure instead.
