The Renewable Natural Gas market is defined by the production of natural gas generated from renewable feedstocks such as biomass, agriculture and food waste, as well as municipal solid waste from landfills and wastewater treatment plants. Renewable Natural Gas provides benefits like lower greenhouse gas emissions as compared to conventional natural gas and can be directly injected into existing natural gas infrastructure and used as compressed natural gas (CNG) or liquefied natural gas (LNG).
The Global Renewable Natural Gas Market is estimated to be valued at US$ 14.03 Bn in 2024 and is expected to exhibit a CAGR of 12.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Renewable Natural Gas are Clean Energy Fuels Corp., Biomethane Technologies, Fortistar, Waste Management, Inc., Renewable Energy Group, Inc., Duke Energy, EnviTec Biogas AG, Brightmark Energy, Aqua America, Inc., Gasrec, CNG Services Ltd., Calgren Renewable Fuels, Cypress Creek Renewables, RNG Energy Solutions, Greenlane Biogas, Sustainable Energy Solutions, Xebec Adsorption Inc., Agraferm Technologies AG, Ecovyst Inc., and Air Products and Chemicals, Inc. The key opportunities in the market include renewable portfolio standard policies adopted by various countries and states compelling utilities to use renewable sources of energy by a defined percentage. Additionally, the increasing use of RNG as an economical transportation fuel is expected to offer opportunities for market growth.
With supportive policies and growing concerns of reducing dependence on fossil fuels, the Renewable Natural Gas Market Demand is expected to witness robust expansion across regions. North America and Europe currently dominate the market due to strict emission norms. However, Asia Pacific is expected to offer lucrative growth opportunities with China, Japan, and India introducing initiatives to expand biogas production.
Market Drivers
The increasing concerns towards reducing greenhouse gas emissions is one of the major factors driving the growth of the renewable natural gas market. RNG produces around 90% less greenhouse gas emissions than fossil natural gas across the entire lifecycle. Additionally, growing policies by governments supporting the production and use of renewable energy sources for transportation are expected to propel the demand for RNG during the forecast period. The ability of RNG to be used directly in existing natural gas infrastructure with no infrastructure changes makes it an economical option over other renewable alternatives, thereby boosting the adoption.
PEST Analysis
Political: Government support and regulations promoting renewable and clean sources of energy positively impact the market. Many countries have introduced tax incentives and investment subsidies for the production and use of renewable natural gas.
Economic: Volatile fossil fuel prices encourage end-users to switch to renewable alternatives. Renewable natural gas market benefits from its ability to provide cost competitive source of energy while reducing carbon emissions significantly.
Social: Growing environmental consciousness among public and private organizations drive the demand. Renewable natural gas offers a sustainable solution to curb pollution from waste decomposition and agricultural activities.
Technological: Advancements in gas upgrading and conditioning technologies help upgrade biogas to pipeline standards. Emerging technologies for efficient collection and processing of biomass feedstock widen sources of renewable natural gas production.
The North American region accounts for over 45% of the Renewable Natural Gas Market Regional value, led by the United States. Abundant biomass resources and strong government support for renewable energy in the form of incentives and mandates drive the US market.
The Asia Pacific region is poised to be the fastest growing market during the forecast period. Rapid industrialization and urbanization accompanied with increasing waste generation in countries like China and India present significant opportunities. Growing focus of these nations towards achieving their climate commitments through renewable sources would aid the adoption of renewable natural gas.
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