PG&E is trying to clean up its act, and thinks biomethane may be part of the answer. California’s mega utility power company is currently looking for partners that can cost-effectively produce significant amounts of biomethane, and would like to see a demonstration facility in operation by 2010.

Biomethane is produced by converting biomass (agricultural crops and wood wastes, for example) to biogas, a mixture that contains methane, carbon dioxide, and other trace gases. Once the carbon dioxide and other gases are removed, the result is biomethane, which is clean enough to send through existing natural gas pipelines. Biomethane can be used for many of the same things as natural gas, such as heating and cooling, and it’s also an extremely clean source of vehicle fuel. The western United States creates large amounts of biomass, so biomethane plants would have the added benefit of diverting materials from landfills.

Bio-Friendly Fuel Partners of Danville, and Yountville's RealEnergy are two of the  California-based companies that are interested in working with PG&E on the biomethane plants. PG&E has invested in several different types of renewable energy projects over the last few years, cutting deals for a solar thermal plant in central California, and a wave power plant off the northern California coast.

PG&E currently gets 12 percent of its power via renewable energy, and has a goal of reaching 20 percent by 2010.