Virginia Natural Gas, HRSD and Johnson Controls break ground on renewable natural gas facility in Virginia Beach
Innovative partnership will transform wastewater biogas into renewable energy, strengthen energy resiliency and support regional sustainability goals
VIRGINIA BEACH, VA – Oct. 27, 2026 – Virginia Natural Gas (VNG), Hampton Roads Sanitation District (HRSD) and Johnson Controls today celebrated the groundbreaking of a renewable natural gas (RNG) facility at HRSD's Atlantic Treatment Plant in Virginia Beach.
The innovative project brings together three organizations with a shared commitment to sustainability, innovation and community impact. Once operational, the facility will capture biogas generated through wastewater treatment processes and upgrade it into pipeline-quality natural gas for injection into VNG's distribution system, creating a new local source of energy while reducing greenhouse gas emissions generated through the wastewater treatment process.
The project marks VNG’s first renewable natural gas facility and is being developed through Virginia's Sustainable Gas Program, established under the Virginia Energy Innovation Act.
"Today's groundbreaking reflects the power of partnership and innovation," said Shannon O. Pierce, president and CEO of VNG. "Together with HRSD and Johnson Controls, we're creating a new source of renewable energy from a resource that already exists within our community. This project supports emission reductions from wastewater treatment processing, enhances energy resiliency and delivers meaningful benefits for our customers and the region for years to come."
The facility is expected to produce more than 200,000 MMBtu of natural gas annually, enough energy to heat about 5,000 homes each year. The project will also significantly reduce on-site flaring by creating a beneficial use for biogas produced during wastewater treatment operations.
"At HRSD, we're always looking for innovative ways to recover resources and create value from our operations," said Jay Bernas, general manager and CEO of HRSD. "This project demonstrates how collaboration can transform a byproduct of wastewater treatment into a renewable energy resource that benefits our environment, strengthens our region's energy future and advances our commitment to sustainability. We're proud to partner with Virginia Natural Gas and Johnson Controls on a project that will have a lasting impact across Hampton Roads."
"This renewable natural gas partnership once again demonstrates how Virginia Beach is open for business and on the leading edge of innovation," said Bobby Dyer, mayor of Virginia Beach. "By bringing together industry leaders, investing in sustainable infrastructure and creating new jobs, this project strengthens our local economy while helping build a more resilient and sustainable future for our community."
Johnson Controls will construct and operate the RNG production facility, leveraging its expertise in sustainable infrastructure and advanced energy technologies. Mead & Hunt will provide construction management and inspection services, helping ensure the successful delivery of the project through construction and commissioning.
"This project showcases how advanced technology and strategic partnerships can deliver: modernizing critical public infrastructure, reducing energy use and carbon emissions, and freeing capital that public agencies can reinvest in the communities they serve," said Chuck McGinnis, vice president of Development, Sustainable Infrastructure at Johnson Controls. "We're honored to provide deep technology expertise with local, lifecycle support to Virginia Natural Gas and HRSD, putting efficiency to work to unlock value and opportunity in community services and support critical infrastructure."
Construction of the facility is expected to create approximately 268 jobs, with an additional 18 permanent positions supporting ongoing operations. Johnson Controls will construct and operate the RNG production facility, while VNG will own the RNG production infrastructure and build and operate the interconnection facilities that will deliver natural gas into its pipeline system. VNG will retain exclusive rights to the RNG and its attributes, which may be sold to customers or third parties to reduce their carbon footprint.
The project is expected to be placed into service in the first quarter of 2028.
Together, VNG, HRSD and Johnson Controls are transforming waste into a valuable renewable energy resource, demonstrating how innovative partnerships can support economic growth, environmental progress and a more sustainable energy future for Virginia.
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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 http://www.southerncompanygas.com.
Media Contact:
Morgan Chase
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