Virginia Beach to Build Renewable Gas Facility
Hampton Roads Sanitation District and Virginia Natural Gas partner on a $30 million wastewater-to-energy project.
Updated on Oct. 28, 2026 in Utilities
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The Hampton Roads Sanitation District is partnering with Virginia Natural Gas to construct a $30 million facility in Virginia Beach that will convert biogas from wastewater into renewable energy. This project aims to power 5,000 homes annually by purifying methane currently lost to flaring.
Why it matters
The initiative represents a strategic shift toward utilizing wastewater treatment byproducts as sustainable energy sources. By converting biogas into usable power, the partnership seeks to integrate more renewable resources into the local energy grid.
The new facility will generate enough power for 5,000 homes annually using a 200-foot interconnection pipe to link into the utility lines. Virginia Natural Gas anticipates that residential monthly bills will increase by $0.36 to cover the $30 million investment.
The players
Hampton Roads Sanitation District
This public utility provides wastewater treatment and management services to the Hampton Roads region of Virginia.
Virginia Natural Gas
A regulated utility company that provides natural gas service to more than 315,000 customers across the region.
The details
Machinery at the site will capture and purify biogas produced during the anaerobic digestion of wastewater, preventing it from being flared into the atmosphere. This purified gas will then be funneled directly into existing utility pipelines for local distribution.
Timeline
2022: The Roanoke project partnership was initially formed.
2023: The Roanoke renewable facility became fully operational.
2026: The Virginia General Assembly passed new regulations restricting PFAS levels in biosolids.
Next four months: Virginia Natural Gas will file for necessary cost recovery approval.
Market Landscape
This project marks a departure from traditional utility operations as energy companies increasingly seek to integrate waste-to-energy technology into their portfolios. It follows the regulatory shift established by the 2026 Virginia General Assembly biosolids regulations.
Residential customers can expect a monthly bill increase of $0.36 once the facility is integrated into the utility system. While the initial investment will be borne by consumers, the company forecasts that the facility will generate bill credits in later years.
The takeaway
The project serves as a model for how municipal wastewater systems can be repurposed to contribute to regional energy needs. Residents should monitor regulatory filings in the coming months for final updates on how these costs will be managed on utility statements.
What happens next
Virginia Natural Gas will file for cost recovery approval within the next four months.
Further reading
For more information on infrastructure development, visit the Utilities section.
Source note: This article includes information reported by Virginia Mercury.
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