Report: NW Natural's Biomethane Investments Fail to Cut Emissions
A report by Sierra Club and Breach Collective finds NW Natural spent over $60 million on out-of-state biomethane projects that haven't reduced emissions. The projects support polluting slaughterhouses and delay electrification. The report calls SB 98 a greenwashing tool.
The report documents that NW Natural's ratepayer-funded biomethane strategy has channeled tens of millions of dollars into anaerobic digesters at concentrated animal feeding operations and meat processing plants, including facilities operated by Tyson Foods in Nebraska. Communities near these industrial livestock sites have experienced heightened air and water pollution from concentrated animal waste, with evidence suggesting the biomethane market may encourage even larger, more pollution-intensive operations.
Two of the utility's flagship projects have already failed. The Lexington, Nebraska facility closed after only a few years of operation, while a $43 million investment in an East Wenatchee, Washington facility was quietly abandoned in 2025, leaving ratepayer impacts unclear. The report argues these investments have produced far less gas than projected while delaying the adoption of heat pumps and electrification, which it identifies as the most cost-effective emissions reduction pathway for buildings.
This report could affect how Oregon regulators and ratepayers view gas utility climate strategies. If the findings gain traction, they may pressure policymakers to scrutinize SB 98's effectiveness and reconsider whether ratepayer dollars should fund out-of-state projects with questionable emissions benefits. Residential and commercial gas customers could face higher bills without corresponding climate gains, while communities near industrial agriculture facilities may continue bearing pollution burdens. The report may also influence broader debates about whether biomethane credits genuinely offset fossil gas use or merely serve as a public relations tool for utilities seeking to preserve their customer base.