Virginia Natural Gas and HRSD launch innovative project to turn wastewater byproduct into renewable natural gas

Approximately $31 million investment will reduce emissions and help meet growing energy demands through sustainable partnerships

VIRGINIA BEACH, VA – February 5, 2026 – Virginia Natural Gas (VNG) announced that the Virginia State Corporation Commission has approved a new renewable natural gas project at HRSD’s Atlantic Treatment Plant in Virginia Beach. The initiative will transform biogas, a byproduct of wastewater treatment, into pipeline-quality natural gas and create a beneficial product from a local resource.

The project represents an estimated $31 million investment by VNG and is expected to produce more than 200,000 MMBtu of pipeline-quality gas annually, enough to heat roughly 5,000 homes a year. 

“Meeting the growing energy demands of Hampton Roads and the Commonwealth requires proactive, innovative solutions,” said Shannon O. Pierce, president and CEO of Virginia Natural Gas. “Renewable natural gas partnerships like the one with HRSD are key to reducing net emissions while ensuring the region has the fuel it needs to thrive. Together we are demonstrating how collaboration and forward-thinking investments can help build a cleaner, more resilient future for everyone.”

Biogas is produced during the breakdown of organic matter at wastewater treatment plants, landfills and farms. RNG is biogas that has been processed to meet stringent pipeline-quality standards. Once upgraded, the natural gas produced from this project will be injected into an existing natural gas pipeline near the Atlantic Treatment Plant. The environmental attributes associated with the RNG, including any renewable energy credits or carbon offsets, are expected to be sold to third‑party buyers. Selling the attributes will enhance affordability while preserving benefits for the local community. 

Currently, most of the biogas produced at HRSD’s Atlantic Treatment Plant is combusted using an onsite flare, rather than being utilized. The new RNG facility will capture and convert this biogas into RNG, dramatically reducing or even eliminating the need for flaring.

Construction is expected to begin later this year, with the facility operational in 2027. The project aligns with Virginia’s Energy Innovation Act of 2022, which incentivizes investment in lower-carbon fuel sources.

 
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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 more than 310,000 customers in southeast Virginia, the company celebrated its 175th anniversary in 2025.Ranked as a Most Trusted Utility Brand by Escalent, Virginia Natural Gas is committed to resilient and sustainable fuel solutions that meet the growing needs of customers, communities and the Commonwealth of Virginia.

For more information, visit virginianaturalgas.com and connect with the company on Facebook, X, Instagram and LinkedIn.

 

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. 

Media Contact: 
Morgan Chase 
Office: 757-616-7510 | Cell: 757-725-6916 
mchase@southernco.com | https://www.virginianaturalgas.com/news/press-releases.html