What is Renewable Natural Gas? The Complete Guide to RNG in 2025

Introduction

Dairy farmer Mark Johnson in Wisconsin started taking methane out of the waste of his cattle in the past year, he did not realize that the impact he had on the fastest-growing clean energy industry in America.

His operation is now producing the amount of Renewable natural gas (RNG) to provide power to 300 homes and reduce the greenhouse gases emissions to up to 85%.
This transition from waste to energy highlights the extraordinary possibilities of renewable natural gas.

Understanding Renewable Natural Gas: The Basics

Natural gas from renewable sources is chemically similar to conventional natural gas. Both comprise primarily methane (CH4).
The main difference lies in the source. While conventional natural gas is derived through fossil fuel deposits that lie deep in the ground, RNG is produced from organic waste material by biological processes.

The process involves capturing methane, which would otherwise escape into the air due to organic matter decomposing.
The methane is cleaned, processed and transformed into quality pipeline gas that can be directly injected into the existing natural gas pipeline infrastructure. Presently currently, the United States produces approximately 590 billion cubic feet of RNG every year, with the production capacity increasing by 32% per year, according to EPA’s most recent information.

How RNG Production Works: From Waste to Energy

What is Renewable Natural Gas? The Complete Guide to RNG in 2025 8

It is believed that the RNG production process starts in the process of anaerobic digestion in which bacteria break down organic material in oxygen-free conditions.
This naturally occurring process takes place in waste disposal facilities, wastewater treatment plants and specially-designed digesters.

The raw biogas is typically comprised of 50 to 70 percent methane, the remaining portion made up of hydrogen sulfide, carbon dioxide and trace substances.
The process of upgrading removes these impurities using a variety of stages:
Desulfurization – Removal of hydrogen sulfide in order to stop corrosion
Dehydration – Eliminates moisture content
Removal of CO2 – Uses either adsorption by pressure swing or water scrubbers
Compression – Increases pressure to standards for pipelines
Biomethane is a result of 95–98% purity and the same standards of quality as natural gas in the conventional form.

Primary Sources of Renewable Natural Gas

Table 1: RNG Production Sources and Capacity

Source Type	Annual Production (BCF)	Growth Rate	Key Advantages
Landfills	285	18%	Current infrastructure, steady flow of gas
Livestock Operations	156	45%	Controlled methane levels, high methane concentration atmosphere
Wastewater Treatment	89	28%	Consistent feedstock, municipal partnerships
Food Waste	60	67%	Energy content high Waste diversion benefits, high energy content

Landfills are the most dependable RNG source, having more than 500 operating projects across the United States.

They capture methane which is otherwise a contributor to greenhouse gas emissions. Landfill gas has a 25-fold higher effect than CO2 in its role as greenhouse gas.

Agriculture operations such as the pig farms and dairy farms are a great source of growth.
One dairy operation that has more than 2,000 cows could generate enough RNG to power 50 garbage trucks per day while addressing odor and waste management issues.

Processors for food waste facilities are the fastest growing segment, which converts anything from food scraps to old grocery items into green energy.
These facilities usually work with waste management firms to develop integrated solutions.

Environmental and Economic Benefits

The environmental effects of RNG is far more than carbon reduction.
Every million BTU of renewable energy generally blocks 0.1 million metric tons in CO2 equivalent entering the atmosphere in addition to solving the issues of waste management within local communities.

From a business standpoint, RNG projects create substantial value streams.
An average agricultural digester needs an initial investment of $3–5 million but produces $800,000–1.2 million annually from carbon credits, gas sales and waste management costs.
The payback period typically varies between 7–12 years, and the operational duration of 20–30 years.

The sector provides more than 7500 direct jobs in the United States and includes positions that range all the way from biogas technicians to plant managers.
Rural communities especially benefit from the sector, since RNG projects create steady, long-term jobs while ensuring that energy dollars stay local.

Real-World Applications Driving Adoption

Fuel for transportation is the most prominent RNG application.
Companies such as UPS and Waste Management operate hundreds of vehicles that are powered by RNG which can achieve between 80 and 90 per cent reductions in carbon emissions compared to diesel.
California’s Low Carbon Fuel Standard has led to RNG-powered heavy-duty trucks becoming more popular on highways.
Commercial and residential heating applications make use of gas infrastructure.
Utilities such as SoCalGas as well as National Grid are blending increasing amounts of RNG into their pipeline systems, which allows customers to lower their carbon footprint, without having to change the equipment.
Industrial applications encompass all aspects of manufacturing, from production processes up to operations in data centers.
Tech companies such as Google or Microsoft are buying RNG to help offset their natural gas use and contribute to sustainable goals.

RNG vs. Conventional Natural Gas: The Complete Comparison

Table 2: Comprehensive Comparison Analysis

Factor	Renewable Natural Gas	Conventional Natural Gas
Carbon Intensity (g CO2/MJ)	-25 to +15	65–85
Price ($/MMBtu)	$8–25	$3–8
Supply Reliability	Weather and feedstock depend on the weather	Geopolitical and market-related factors
Infrastructure Compatibility	100% compatible	100% compatible
Job Creation (per BCF)	45–60 jobs	15–25 jobs
Waste Management Benefit	High (solves waste issues)	None

The carbon intensity values that are negative for RNG reflect its capability to absorb methane that could otherwise escape into the atmosphere.
This means that RNG is not just carbon neutral — it is actually carbon-negative in numerous applications.

Although RNG is currently priced at three times the price of conventional natural gas, the falling costs of production and the rising cost of carbon have helped close the gap.
Industry forecasts suggest that prices will be par by 2030 in markets that have high environmental incentive.

Overcoming Current Industry Challenges

The main issue for RNG expansion is logistical logistics for feedstock.
Unlike centralized natural gas extraction, RNG involves the collection of organic wastes from various sources.
Highly successful projects invest in supply chain partnerships and typically integrate vertically to manage the quality of feedstock and its availability.

Technical issues include maintaining gas quality across different sources of feedstock.
Advanced monitoring systems now use real-time analytics to improve digester conditions and ensure high-quality pipeline output.

Finance has seen a dramatic improvement as the industry develops.
Institutional investors increasingly view RNG projects as infrastructure investments, with pension funds and insurance companies offering long-term capital at attractive rates.

The Future of Renewable Natural Gas

A study by the industry suggests RNG could provide 10% of the nation’s natural gas requirements by 2040.
That means expanding from 590 BCF per year to about 3500 BCF — a lofty but feasible target given the current growth trajectory.

New technologies such as gas-to-power (converting surplus renewable energy into synthesized methane) and direct air capture together with green hydrogen can enhance RNG potential.
These technologies are still in the experimental phase, but have promise for mass-scale deployment over the next 10 years.

Policy support continues to grow, bolstered by the Inflation Reduction Act providing substantial tax incentives for RNG projects.
Renewable fuels standards at the state level (California, Oregon, and Washington) provide additional market-driving factors.

Conclusion

Are you ready to investigate RNG opportunities for your company?
Start by assessing the organic waste streams you have and contacting qualified RNG builders in your area.

The shift toward renewable natural gas isn’t only an environmental issue — it’s now a necessity for economic growth.

Biogas and Biomethane: Understanding the Major Differences – Learn about the difference between raw biogas and RNG ready for pipelines and why upgrading is essential for commercial applications.
Agricultural Waste Management Solutions – Learn how farms turn waste issues into lucrative businesses by using anaerobic digestion and energy recovery.
Clean Transportation Fuel Guide – Learn how RNG is changing the transport industry and reducing emissions.