Renewable natural gas (RNG) is a substitute for fossil natural gas that is produced from organic wastes such as food waste, agricultural residue, animal manure, wastewater treatment plant digester gas, and other waste sources via anaerobic digestion or thermal gasification. RNG has the same physical and chemical characteristics as fossil natural gas and can be used in the same applications. It is interchangeable with fossil natural gas in natural gas pipelines and can be used as compressed natural gas (CNG) or liquefied natural gas (LNG) for transportation. RNG provides greenhouse gas (GHG) emission reductions when compared to fossil natural gas and helps reduce waste methane emissions.

The global renewable natural gas market is estimated to be valued at USD 14.03 Bn in 2024 and is expected to reach USD 24.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.1% from 2024 to 2031.

Key Takeaways

Key players operating in the renewable natural gas market are Air Liquide, EnviTec Biogas AG, Ameresco, Inc., Vanguard Renewables LLC, PlanET Biogas Global GmbH, and WELTEC BIOPOWER GmbH.

The key opportunities in the renewable natural gas market include rising investments in RNG production facilities, incentives and policies supporting RNG development, and focus on waste reduction and carbon neutrality goals.

The global adoption of RNG is expected to increase significantly during the forecast period led by supportive government policies and incentives for waste-to-energy projects across regions such as Europe, North America, Asia Pacific, and Central & South America. Countries like the US, Germany, Italy, UK, China, India, Brazil, and Mexico are emerging as major markets.

Market Drivers

The major driver propelling the Renewable Natural Gas Market Demand is the rising concerns over greenhouse gas emissions. Waste disposal by means of landfilling and incineration leads to methane emissions which have a high global warming potential. RNG generated from organic waste prevents these methane emissions from being released into the atmosphere and provides a carbon-negative fuel option. Stringent regulations limiting landfill methane emissions and incentives promoting renewable fuels are further boosting the adoption of RNG globally.

PEST Analysis

Political: Renewable Natural Gas is gaining support from policymakers as it helps reduce dependence on fossil fuels and compliance with environment regulations. Many countries have introduced incentives and mandates to promote production and usage of renewable gases.

Economic: The production of Renewable Natural Gas requires large capital investments but offers long term cost savings compared to fossil natural gas. It can lead to price stability as the fuel source is domestically produced.

Social: There is increasing awareness among public about need to adopt cleaner sources of energy to curb pollution and protect environment. Renewable gases are considered more sustainable and their use is socially accepted compared to conventional natural gas.

Technological: New technologies allow efficient capture of biogas from various waste sources like landfills, wastewater treatment plants etc. Upgraded biogas can be directly used as vehicle fuel or injected into natural gas pipelines. Some gas utilities also experiment blending hydrogen into natural gas network using new infrastructure.

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