Southern California Gas Co. (SoCalGas) has successfully issued $600 million of 30-year fixed-rate "Green First Mortgage Bonds," to directly support the company's sustainability investments.
SoCalGas issued the bonds under Sempra's Sustainable Financing Framework and is the first gas-only utility in the United States to issue a green bond.
The net proceeds from the sale of these fixed-rate green bonds are planned to help finance and/or refinance sustainability investments in any of three categories:
- Pollution prevention and control.
- Green buildings.
- Clean transportation.
Eligible projects in those categories may include retrofitting and replacing older pipelines to reduce fugitive methane emissions and ready them for throughput of clean fuels such as hydrogen, advancing fugitive emissions elimination technologies, investing in LEED-certified green buildings, and investment in infrastructure to support clean transportation.
Investing in Sustainability
"Sustainability informs everything we do, whether it's investing in world-class safety, accelerating the transition to clean energy and helping to meet the state's ambitious climate goals, or championing diversity and equity," said Jawaad Malik, vice president of strategy and sustainability, and chief environmental officer for SoCalGas.
"We're pleased that investors recognize the value not just in investing in our sustainable goals and initiatives, but also in SoCalGas' track record of innovation and its position as a leader as we work toward our aim to have net-zero greenhouse gas emissions by 2045," Malik added.
In 2021, SoCalGas announced its aim to have net zero greenhouse gas emissions by 2045. Earlier this year, SoCalGas announced its Sustainability Strategy, putting words into action and setting measurable objectives toward its goals.
The company's sustainability efforts cover a broad range of goals and initiatives aimed at achieving a safe, reliable, resilient, affordable, and equitable energy transition to net zero.
In 2022, SoCalGas:
- Announced plans to develop the Angeles Link.
- Plans to unveil a renewable hydrogen microgrid and home, the [H2] Innovation Experience.
- Reported that in 2021 it reduced fugitive methane emissions by 37% relative to a 2015 baseline.
- Announced a proposed collaboration with the University of California, Irvine, to demonstrate how electrolytic hydrogen can be safely blended into existing natural gas infrastructure on the university's campus.
- Was awarded "Leading Private Fleet" by the 2022 Advanced Clean Transportation (ACT) Expo.