Q&A: WM’s Malik on the Company’s RNG Investment Strategies and Near-Future Plans

WM operates one of the largest landfill gas-to-renewable energy platforms in North America and is on an aggressive trajectory to go further.  

In this Q&A, Shahid Malik, vice president of Renewable Energy, WM, discusses goals the company aims to reach before the end of 2024 and zeros in on 2026, which is anticipated to be a major milestone.

Malik illuminates on renewable energy investment strategies; and he talks Scope 1 and 2 emissions.

Waste360: What will WM invest in renewable natural gas (RNG) in the near future? What drives those investment decisions?

Malik: We are executing on plans to invest more than $1.4 billion between 2022 and 2026 to build 20 new WM-owned facilities that will process landfill gas into pipeline-quality renewable natural gas.

This is a strategic planned investment– not only do we believe this to be good for the environment, but it is also good for our business. We have targeted beneficial use of 65 percent of our captured landfill gas by 2026, which we expect to contribute to reducing landfill emissions and meeting customer and community demand for lower-emission energy sources. We are making progress on this target – in 2023, we utilized 43 percent of captured landfill gas, and we opened one new renewable natural gas facility.

Waste360: What percentage of  WM’s fleet runs on compressed natural gas (CNG)? What are your goals for converting more vehicles, and where are you on that trajectory?

Malik: The renewable natural gas generated from WM landfills can be allocated to fuel a portion of our CNG collection fleet. It is our target to convert 70 percent of our fleet to alternative fuel vehicles by 2025.

We have achieved 66 percent conversion as of the end of 2023, the equivalent of more than 12,000 natural gas trucks. WM is also actively exploring emerging alternative fuel technologies, including electric and hydrogen-powered vehicles, as we work to further reduce emissions in connection with our sustainability goals.

Waste360: Can you catch us up on all of WM’s RNG projects to date, and what’s in the pipeline?

Malik: WM has more than 135 beneficial use projects in operation at our landfills, of which 68 percent are fully owned by WM, with the remaining being third-party owned projects that are hosted at our landfills.

So far, we have completed three projects as part of our more than $1.4 billion planned investment in building approximately 20 new WM-owned RNG facilities by 2026, and we expect to remain on track to commission another four renewable natural gas facilities in 2024.

Waste360: What are some of your latest projects?

Malik: Most recently, we opened a $55 million renewable natural gas facility in Lewisville, Texas, outside of Dallas. The facility processes landfill gas captured from the WM DFW Landfill as organic material decomposes. It is expected to generate up to approximately 1.2 million MMBtu per year of RNG, which can serve the equivalent of almost 55,000 households annually or fuel up to 1,100 heavy-duty CNG vehicles per day.

This RNG plant was a conversion of two existing power plants that had been operating since 1987 and 2009 at the landfill. We were able to reuse the existing buildings and reduce the need for excessive demolition, which is an example of our ambition to repurpose materials.

In 2023, we debuted the WM-owned Eco Vista RNG facility in Springdale, Arkansas. This $35 million facility is anticipated to generate up to approximately 750,000 MMBtus of RNG per year.

Looking ahead, we are nearing completion of a new RNG facility at WM’s Fairless Landfill in Bucks County, Pennsylvania. Once operational, this will be the largest facility in our portfolio, capable of processing up to 3 million MMBtu per year of RNG.

Waste360: How is WM reducing its Scope 1 and 2 greenhouse gas emissions? The landfill gas projects clearly come into play, but are there other strategies?

Malik: WM is the first U.S.-based company in the solid waste management utilities sector to have a near-term Scope 1 and 2 GHG emissions target validated and approved by the Science-Based Targets initiative (SBTi), in line with limiting global warming to 1.5^oC. In 2023 we reduced our Scope 1 and 2 emissions by 12 percent compared to our 2021 baseline, showing progress toward achieving this target.

To meet this target, we are investing in landfill cover and capping systems, implementing landfill gas capture and emissions measurement, and continuing to transition our fleet to run on lower-carbon fuels. WM’s renewable energy business also plays an important role, as we are capturing a portion of our landfill gas and converting it into renewable natural gas.

Waste360: What regions do you focus on to build out RNG, and what do you consider to inform your selections? 

Malik: WM has renewable natural gas projects in regions across North America. When assessing landfill assets for new facilities, we consider whether the landfill is large enough to accommodate a facility, the permitting requirements in that area, and the proximity and ability to connect to the pipeline network.

Waste360: Tell us about WM’s start in the RNG space and how the company evolved

Malik: WM has been a renewable energy player for nearly 40 years – initially collecting landfill gas and converting it to electricity. We have seen a growing demand for renewable natural gas over the past several years, due in part to the Renewable Fuel Standard that came out in 2007, then amended to include cellulosic biofuel in 2014, which requires obligated parties to blend a certain amount of renewable fuels or purchase credits (RINs). As companies, large utilities, and other parties seek to comply with these regulations and decarbonize their operations, WM is able to generate revenue through the RNG we create.  Through this work, we are expanding environmental benefits by collecting and beneficially using more landfill gas, and we are strengthening our core business by positioning our landfill assets as community energy partners.

Waste360: Can you discuss both opportunity and risk associated with developing landfill RNG projects?

Malik: A big part of WM’s strategic approach to growth is to find opportunities where we can leverage our expertise – such as turning landfill gas into renewable natural gas – to meet a future need and capitalize on it. Not only do WM’s RNG projects provide a financial return as we are helping to meet demand for lower-emission energy sources, but they also help us make meaningful progress on our sustainability goals. The landfill gas we are capturing is contributing to reducing our own emissions and generating renewable energy for use for a portion of our CNG fleet and for our communities. For the right projects, these benefits outweigh risks, such as those across regulatory and administrative areas, technology and equipment specifications, and supply chain dynamics.

Waste360: What’s next for WM along its renewable energy path?

Malik: We will continue to execute on our planned RNG investments and pursue other initiatives that allow us to increase beneficial use of landfill gas. Looking ahead, we aim to generate an additional 25 million MMBtus of renewable natural gas annually by 2026, allocate renewable natural gas to 100 percent of our compressed natural gas fleet by 2026, and open 17 additional renewable natural gas facilities by 2026. We will also continue to improve landfill gas emissions measurement and reporting by piloting emerging technology and launching voluntary surface-emissions monitoring at landfills.