PHILADELPHIA, PA — UGI Energy Services, LLC, a subsidiary of UGI Corporation (NYSE: UGI), has entered into a new partnership with the City of Philadelphia to supply renewable natural gas for the city’s compressed natural gas–powered trash compactors. The deal marks the first time Philadelphia will use RNG environmental attributes to support its municipal CNG fleet.
Under the agreement, the city will purchase biogas sourced from Pennsylvania and regional landfills. The fuel, produced from methane generated by waste decomposition, will be directed into the natural gas distribution system and used to power 35 CNG trash compactors operating in neighborhoods across Philadelphia. City officials say the arrangement will help curb landfill flaring while strengthening local markets for renewable natural gas.
Joe Hartz, president of UGI Energy Services, said the company maintains a broad biogas portfolio to ensure supply reliability and emphasized its commitment to prioritizing Pennsylvania-sourced production for customers in the state.
Philadelphia sustainability chief Liz Lankenau said the partnership advances the city’s goal of developing a cleaner municipal fleet by capturing and reusing gas that would otherwise be burned off. She added that the effort supports wider adoption of fossil fuel alternatives such as renewable natural gas.
Joseph Rosati, commissioner of the city’s Department of Fleet Services, said shifting the municipal fleet to RNG reflects Philadelphia’s long-term push toward more efficient and environmentally responsible operations.
The initiative arrives as cities nationwide explore renewable fuels to meet emissions targets and update aging fleets, with landfill-derived RNG emerging as a practical near-term option for reducing greenhouse gas output.
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