At a Glance:

• Renewable natural gas (RNG) production and use is soaring. The RNG market is expected to grow by as much as 19% each year through 2031.
• Businesses can use RNG in a variety of ways, including heating facilities, powering manufacturing processes and fueling their fleet vehicles. 
• RNG is a turnkey renewable energy solution due to its ability to leverage existing natural gas infrastructure and book-and-claim accounting.

The Rise of RNG

The RNG industry is experiencing tremendous growth, with more plants coming online, increased production and broader adoption. RNG as a transportation fuel grew 92% from 2019 to 2023,¹ and in September 2024, the U.S. reached a milestone of 400 RNG projects.² Both of these numbers demonstrate rapid expansion, and with RNG use expected to grow by as much as 19% each year through 2031,³ it is clear RNG is a pivotal force in the transition to cleaner energy solutions. 

Businesses have many potential applications for RNG, including heating facilities, powering kilns and dryers in manufacturing settings and fueling fleet vehicles. Switching to RNG or adding RNG to the energy mix can lead to benefits for these organizations, namely in terms of reducing emissions. RNG is created from renewable sources such as biogas from landfills, wastewater treatment plants, dairy farms and organic waste, which means the organization using the RNG rather than conventional natural gas can reduce their Scope 1 emissions, while helping the country work toward its goal of reducing emissions by 50 - 52% from 2005 levels by 2030.⁴ Compliance with current regulation also becomes less of a stressor when companies use RNG. Current climate policies, such as the California Global Warming Solutions Act and the Low Carbon Fuel Standard (LCFS), which strive to reduce greenhouse gas emissions by 85% below 1990 levels no later than 2045,⁵ or the Security and Exchange Commission (SEC)’s proposed mandate that would require publicly traded companies to disclose their Scope 1 and 2 emissions. These regulations make RNG adoption a tangible way to demonstrate proactive emissions reduction. 

Natural gas utilities are also facing compliance headwinds as 31 states have introduced renewable portfolio standards or clean energy standards.⁶ These policies require utilities to procure a growing percentage of their energy from renewable sources. California utilities are required to integrate RNG for 12% of their gas supply by 2030.⁷ Vermont has a bill that would require utilities to source 75% of their energy from renewable sources by 2032, and 100% from renewable sources by 2035.⁸ 

Existing Infrastructure and Book-and-Claim Enable Seamless RNG Adoption

The U.S. has robust natural gas infrastructure that can enable organizations to seamlessly transition to RNG. By leveraging existing natural gas infrastructure and the book-and-claim mechanism, businesses can adopt renewable fuels while avoiding the construction and investment of pipeline infrastructure. The book-and-claim system allows companies to “book” RNG and other renewable fuels, establish pathways via existing infrastructure and “claim” the emissions reduction. Continued book-and-claim application supports increased RNG adoption and emissions reduction without the need to build more pipelines. Constructing infrastructure from renewable sources directly to end users could make renewable projects unviable and deter renewable energy adoption. For organizations not in close proximity to renewable sources or that are located among challenging terrain or populated, urban areas, additional infrastructure may not be feasible. As a result, book-and-claim allows organizations to take advantage of RNG as a simple, turnkey solution to reduce their environmental impact. 

Book-and-claim is a proven method that has been effectively used in LCFS and Renewable Fuel Standard (RFS). Both programs have seen significant success in part because of book-and-claim; the LCFS board is looking to reevaluate its goals, including 2025’s goal from 5% carbon intensity reduction to 9%,⁹ and a 2023 study by Life Cycle Associates found that the RFS has reduced GHG emissions by more than 1.2 billion metric tons of carbon dioxide in 15 years.¹⁰ 

The current U.S. natural gas infrastructure offers significant benefits when it comes to transporting and adopting RNG, thanks to the well-developed pipeline system. With over 300,000 miles of pipelines, the U.S. boasts one of the largest natural gas infrastructure networks in the world, which ensures reliable delivery and seamless integration of RNG into the existing pipelines. As of 2023, natural gas accounted for about 36% of the country’s energy consumption, highlighting its crucial role in the energy mix.¹¹ The book-and-claim system further maximizes infrastructure use, avoiding unnecessary pipeline construction and reducing investment costs. Requiring direct pipelines from RNG plants would limit industry growth and hinder other renewable energy developments. Thanks to book-and-claim and existing pipelines, organizations can adopt RNG as a turnkey solution for emissions reduction. 

Start Using RNG Now

Businesses using RNG experience significant benefits from this reliable, turnkey solution. Let’s start a conversation about how we can work together and start reducing your company’s emissions today. Since RNG’s chemical makeup is identical to conventional natural gas, it is a drop-in replacement for your company’s energy needs and requires no capital investment. Learn more about how your company could benefit from RNG through the buttons below or contact us to learn more about how your company can start using RNG yet this year. 
 


Sources
1. RNG Coalition: RNG breaks motor fuel usage records in 2023 | Biomass Magazine
2. North American RNG Surpasses 400 Operational Facilities — The Coalition For Renewable Natural Gas (rngcoalition.com)
3. Wood Mackenzie
4. AB 32 Climate Change Scoping Plan | California Air Resources Board
5. FACT SHEET: President Biden Sets 2030 Greenhouse Gas Pollution Reduction Target Aimed at Creating Good-Paying Union Jobs and Securing U.S. Leadership on Clean Energy Technologies | The White House
6. Five states updated or adopted new clean energy standards in 2021 - U.S. Energy Information Administration (EIA)
7. California Natural Gas Utilities Required by 2030 to Supply 12% RNG (naturalgasintel.com)
8. After Senate approval, Vermont's biggest energy bill of the session heads to Gov. Scott | Vermont Public
9. California proposes more aggressive credit system in LCFS amendments | Waste Dive
10. Study: RFS Slashed GHG Emissions by 1.2 Billion Metric Tons Since 2008 (ethanolrfa.org)
11. U.S. energy facts explained - consumption and production - U.S. Energy Information Administration (EIA)