Renewable Natural Gas Market Size, Share, Growth & Industry Analysis, By Feedstock Type (Landfill Gas, Agricultural Waste, Wastewater Treatment Plants, Organic Waste, Others), By End-Use (Residential, Commercial, Industrial, Transportation, Others), and Regional Analysis, 2024-2031

Renewable Natural Gas Market: Global Share and Growth Trajectory

The global Renewable Natural Gas Market size was valued at USD 13.32 billion in 2023 and is projected to grow from USD 14.74 billion in 2024 to USD 28.27 billion by 2031, exhibiting a CAGR of 9.8% during the forecast period.

The market for renewable natural gas (RNG) is expanding quickly. This growth is fueled by growing environmental concerns, the need for green energy solutions, and advancements in biogas production technology. RNG comes from biogas made from organic waste. It is a cleaner and greener option than fossil fuels. As the world moves to cleaner energy, RNG is key to reducing greenhouse gas emissions. It helps ensure energy sustainability in transportation, power generation, and space heating.

More awareness of climate change, along with supportive government rules, is boosting the demand for RNG in many areas. Countries around the world are focusing on decarbonization. They are also developing renewable energy plans and waste-to-energy projects. These efforts are boosting the use of RNG. RNG can come from agricultural, industrial, and municipal waste. This helps solve waste disposal problems and supports cleaner energy generation.

Advances in biogas upgrading and purification are enhancing the cost and efficiency of RNG production. Processes such as membrane filtration, pressure swing adsorption, and cryogenic separation are attaining higher purity levels. This increases the compatibility of RNG with existing natural gas systems.

Moreover, increasing application of alternative fuels in the transportation sector, especially for heavy-duty trucks, is propelling the RNG market. RNG can be put into natural gas pipelines or be used as fuel for vehicles, providing an adaptable means to cut carbon footprints in diverse industries.

Europe and North America dominate the renewable natural gas (RNG) market. They heavily invest in biogas facilities and RNG manufacturing plants. On the other hand, the Asia-Pacific is increasingly interested in RNG. Its interest is brought about by urbanization, population growth, and an effort for cleaner energy. Government support and technology advancements will be responsible for sustaining growth in the RNG market. It will be instrumental in realizing global sustainability.

Key Market Trends Driving Product Adoption

Major trends are accelerating the application of renewable natural gas globally:

• Government Incentives and Regulations: Governments increasingly are providing fiscal incentives, tax relief, and subsidies. This is to enhance RNG production and consumption as part of renewable energy schemes and carbon emissions reduction strategies.
• Sustainability and Carbon Neutrity Targets: Decreasing carbon footprint is gaining major attention. RNG is becoming one such clean-energy alternative that brings down the natural gas's green footprint.
• Progress in Technology Used for RNG Manufacturing: Advances in technology used to upgrade biogas, capture methane, and waste-to-energy technology are leading to improved manufacturing of RNG. The technologies are also making its manufacturing more economically viable and as competitive as fossil fuel-based conventional natural gas.
• Integration with Existing Infrastructure: RNG can be blended smoothly with existing natural gas infrastructure, such as pipelines and distribution grids. This provides for seamless integration and reduces the necessity for new infrastructure investments.

Major Players and their Competitive Positioning

The dominant players in the renewable natural gas industry are prominent energy companies, bioenergy providers, and waste management organizations. Dominion Energy, Clean Energy Fuels, FortisBC, and Waste Management are some companies that contribute to market growth. They achieve this through strategic investment, collaboration, and new RNG production technology. These companies intend to expand output capacity and coverage. They focus on sustainability and diversify clean energy offerings.

Consumer Behavior Analysis

The market for renewable natural gas (RNG) is influenced by a number of factors:

• Business Sustainability Strategies: Firms across industries are seeking carbon neutrality. They are relying on RNG to achieve their sustainability objectives and reduce greenhouse
• Cost Competitiveness with Fossil Gas: RNG is getting increasingly cost competitive. Gains in production technology and scales favor it for both residential and commercial users.
• Environmental Awareness: Increasingly, consumers are aware of climate change and the consequences of fossil fuels. As this awareness increases, demand for clean energy sources such as RNG increases.

Pricing Trends

The cost of renewable natural gas (RNG) is a function of costs of production, technology, and regulations. The production of RNG is more expensive than traditional natural gas. This is because waste collection, processing, and upgrading costs money. Technology in producing biogas is improving and reducing such costs. Government subsidies and incentives are also assisting in the reduction of prices. This is making RNG competitive with fossil-based natural gas. In clean energy mandate regions, RNG costs will probably remain competitive with conventional natural gas.

Growth Factors

Some key drivers fuelling the renewable natural gas industry are:

• Increased Demand for Sustainable Energy: Global transition towards renewable energy in an effort to combat climate change is a leading driver. RNG is regarded as cleaner than fossil fuels.
• Innovations in Tech: Increased technology in the production of biogas and the capture of methane is becoming increasingly scalable and economical.
• Policy Support from Governments: Renewable energy mandates, low-carbon fuel policies, and carbon tax programs are driving the production and consumption of RNG.
• Improved Infrastructure and Distribution: Supplying RNG into existing natural gas pipelines is making distribution smoother and pushing the use wider.

Regulatory Landscape

National governments across the globe are establishing friendly policies to support the utilization of renewable natural gas (RNG). Such policies consist of renewable fuel standards, carbon credit policies, and waste management regulations assisting in the creation of RNG through organic waste. Important regulations forming the market include the U.S. Renewable Fuel Standard (RFS) and the European Union's Renewable Energy Directive (RED II). The two establish minimum biofuel and renewable energy use targets, encompassing RNG.

Recent Developments

Major trends in the renewable natural gas industry include:

• Technology Advances in RNG Production: Emerging biogas upgrade technologies, such as membrane separation and pressure swing adsorption, enhance efficiency and reduce cost.
• Investments and Collaborations: Large companies are investing in RNG projects and partnering with municipalities and waste management corporations to increase output.
• Increasing Application in Industrial and Commercial Sectors: Companies are implementing RNG to reduce their carbon intensity. Its application in transport and production is increasing rapidly.

Current and Potential Growth Implications

a. Demand-Supply Analysis

Demand for renewable natural gas (RNG) is likely to continue increasing. Authorities would like to have cleaner sources of energy, and companies are searching for carbon-free alternatives. Yet, in some areas, there might be issues regarding the organic waste supply to produce RNG. The market is expected to be boosted by more feedstock, new technologies, and improved RNG infrastructure.

b. Gap Analysis

The renewable natural gas industry has growth prospects, though:

• Availability of Feedstock: A constant feedstock supply of organic waste determines RNG growth. Regions with limited waste might not be able to scale production.
• Costly Upfront Investments: Technology is reducing the cost of production, yet upfront investments in RNG infrastructure remain costly. Facility and pipeline upgrades can be pricey.
• Fragmentation in the Market: The market for RNG is dispersed with numerous smaller producers and local players. For increasing efficiency and to match the global demand, consolidation could be required.

Top Companies in the Renewable Natural Gas Market

Leading players in the renewable natural gas industry include:

• Dominion Energy
• Clean Energy Fuels
• FortisBC
• Waste Management
• BP Alternative Energy
• Biogas Energy
• Brightmark Energy
• Infinite Energy
• VGS
• Ameresco

Renewable Natural Gas Market: Report Snapshot

High Growth Segments

Following sections are going to accelerate growth:

• Farm Wastes: There will be higher amounts of agriculture waste and residue, which will augment RNG generation.
• Truck and Bus: There will be an increased market demand for using RNG as cleaner fuel for transportation like buses and trucks, mainly where emissions regulation is strict.
• Space Heating for Commercial and Residential Markets: RNG heating usage for home and business purposes will expand when increasing regions transition towards clean policies.

Major Innovations

The renewable natural gas market is experiencing new technologies, which include:

• New Biogas Production Technologies: New technologies enhance the efficiency of biogas production and upgrading. This leads to increased large-scale RNG production.
• Carbon Capture and Methane Recovery: New technologies in capturing methane from wastewater treatment plants and landfills improve renewable natural gas production.

Potential Growth Opportunities

The renewable natural gas (RNG) industry has multiple opportunities for growth:

• World Expansion of RNG Infrastructure: Growing manufacturing plants and supply in new markets has strong potential.
• Industry Sustainability Initiatives: Heavy-duty trucking and manufacturing can use RNG as a low-carbon fuel option.
• Interconnection with Natural Gas Grids: Injecting RNG into existing natural gas infrastructures provides enormous opportunities for market expansion and seamless integration.

Kings Research says:

The renewable natural gas (RNG) industry is on track for robust growth. This is because there is increased demand for clean energy and policies that are favorable to it from governments. New RNG production technology and a carbon-neutral focus open up large business opportunities. The RNG industry is poised to assist in the transition to a low-carbon energy economy. There is growth potential in most uses and geographies.