Renewable Natural Gas finds favor among states, feds By EPN Staff Renewable Natural Gas (RNG) is expected to grow rapidly through the next decade as state legislatures consider new policies that would boost biogas production, and as President Donald Trump offered his support via his sweeping executive order to unleash American energy. Why it matters RNG facilities capture methane from landfills, wastewater plants, and farms, converting it into a usable fuel source. These biogas facilities grew by 44% in 2024, and more are expected after the U.S. Treasury issued a final rule last fall to include “Qualified Biogas Property” in energy tax credits under the Inflation Reduction Act. North America is expected to dominate RNG production in 2025. Proponents say domestically sourced RNG enhances energy independence and is considered carbon neutral. How it works Since RNG is produced from decomposing organic matter, emissions released when burned are offset by the amount of carbon absorbed by that organic matter during its initial growth cycle. The process also prevents methane, a greenhouse gas, from being released into the atmosphere. After its capture, this biomethane is purified and can be distributed and used like natural gas. In its final form, RNG can power vehicles, produce electricity, and heat homes. The bigger picture Lawmakers at the state and federal levels are considering ways to tap this emerging market. Washington State last year began requiring gas collection systems to be installed in more landfills to meet its greenhouse gas reduction standards. California legislators are considering a measure to reduce utility costs imposed during the transfer of biogas assets from a developer. Iowa’s governor is supporting energy legislation that sets standards for anaerobic digestive systems used to produce and capture biomethane. At the federal level, lawmakers have pushed tax credits for businesses that use natural gas in their fleets. Federal lawmakers also have pushed for other tax credits to support biogas fuel. Additional details Although RNG has been proven to reduce greenhouse gas emissions and has the potential to replace fossil fuels, opponents question its value. Environmental groups, such as the Sierra Club and Earthjustice, argue that RNG has a “mixed environmental record” because of its potential impact on local water supplies, soils and air quality. They also argue biogas is costly to produce. Public perception has also taken a toll on RNG. Following complaints by residents at two public meetings, Archaea Energy (a British Petroleum company) pulled a special land use application for a $10 million RNG plant to be built on a shuttered landfill in Three Oaks, Michigan. Yet, despite the resistance, one market watcher has noted some big energy players, such as BP, Enbridge and Kinder Morgan, are still willing to invest in the new sector. Oil and gas giant Chevron has also announced a joint venture in RNG production.
