Renewable Natural Gas Market Size to Reach USD 31.37 Billion by 2034 | growing at 8.15% CAGR - Exclusive Report by Towards Chemical and Materials Consulting

According to Towards Chemical and Materials, the global renewable natural gas market size is calculated at USD 15.50 billion in 2025 and is expected to reach around USD 31.37 billion by 2034, growing at a CAGR of 8.15% for the forecasted period. North America dominated the renewable natural gas market with a market share of 38.77% in 2024.

Ottawa, July 30, 2025 (GLOBE NEWSWIRE) -- According to the new market research report ' the global renewable natural gas market size was reached at USD 14.33 billion in 2024 and is expected to be worth around USD 31.37 billion by 2034, a study published by Towards Chemical and Materials a sister firm of Precedence Research.

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The market is growing as increasing environmental regulation and carbon reduction mandates drive adoption, advances in technology for waste-to-gas conversion, and growing adoption in the transportation and energy sectors support solid long-term market growth.

Renewable natural gas (RNG), or biomethane, is produced by upgrading biogas produced from organic waste feedstock’s via landfills, agricultural waste, and wastewater treatment facilities. RNG is chemically equivalent to fossil natural gas, with the capability to be injected into fossil natural gas pipelines as well as providing a clean fuel option for the transportation industry. The market is gaining traction as decarbonization aspirations grow, and government policies supporting development of new energy sources increase alongside use of renewables and other energy alternatives.

Sectors such as utilities, transportation and industrial manufacturing are looking to incorporate RNG into their operations as means of reducing emissions. Production costs are high, and this is creating issues for players along the circle of supply in lowering unit economics. Overall, it appears as though the market and financing for the renewable natural gas sector is set to expand as part of a circular economy.

Renewable Natural Gas Market Major Trends

What are the Major Trends in the Renewable Natural Gas Market?

Advanced Upgrading Technologies- Membrane separation and pressure-swing adsorption methods are improving RNG purity and efficiency, which exponentially increase the feasibility of large-scale production and lowering costs associated with processing in general.
Use in Transportation Fuel- Utilization of RNG is increasing in fleets and heavy-duty vehicles, as it is a low-carbon alternative to diesel, and gaining momentum, as policies backed by clean fuel standards and corporate emission goals promote the widespread use of RNG as an alternative fuel source.
Government Incentives- Government incentives, in the form of tax credit programs, biofuels mandates, or renewable energy objectives, are leading to the quickened development of RNG projects and ultimately, progress toward a potential market, and experiences in Europe and the U.S. suggest this is an intriguing trend.
Focus on Energy Security- RNG not only helps curb methane emissions but also adds a level of autonomy to local energy independence by converting the organic waste into a reliable, sources of new, renewable fuel because they are part of a circular economy model.

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Renewable Natural Gas Market Report Scope

Report Attribute	Details
Market size value in 2025	USD 15.50 billion
Revenue forecast in 2034	USD 31.37 billion
Growth rate	CAGR of 8.15% from 2025 to 2034
Historical data	2021 - 2024
Forecast period	2025 - 2034
Quantitative units	Revenue in USD million/billion, Volume in Kilotons, and CAGR from 2025 to 2033
Report coverage	Revenue forecast, competitive landscape, growth factors, and trends
Segments covered	By Feed Stock, By Application, By Region
Key companies profiled	Clean Energy Fuels Corp. (United States),Montauk Renewables, Inc. (United States), VERBIO Vereinigte BioEnergie AG (Germany) , Eni S.p.A. (Italy), TotalEnergies SE (France) , BP plc (United Kingdom) , Engie SA (France) , Orsted A/S (Denmark) , Technip Energies N.V. (France) , VARO Energy (Switzerland) , Gazprom PJSC (Russia) , FortisBC Energy Inc. (Canada) , Dominion Energy, Inc. (United States).

North America Renewable Natural Gas Market Size to Hit USD 3.52 Billion by 2034

The North America renewable natural gas market size was valued at USD 2.19 billion in 2024, grew to USD 6.01 billion in 2025, and is expected to hit around USD 12.18 billion by 2034, growing at a compound annual growth rate (CAGR) of 8.16 % over the forecast period from 2025 to 2034.

North America dominated the renewable natural gas market in 2024 because of the continuing focus on decarbonization, robust policy incentives, and large investments in clean energy infrastructure. Reforms to boost low-carbon fuels usage in transportation, utilities, and heavy industry are driving production of and adoption of RNG. Additionally, the increase in capital investment in landfill gas capture, and anaerobic digestion projects is driving growth. As well, support from the public sector and energy sector partnerships, and the agricultural sector, is keeping North America strong in development and deployment of RNG.

Market Trends in U.S.

The U.S. is leading in the North American renewable natural gas market because of enabling policies like the Renewable Fuel Standard (RFS), and California’s Low Carbon Fuel Standard (LCFS). These policies support RNG production from landfill, wastewater treatment, and agricultural waste. Several states have rolled out RNG utility programs, and some of the largest fuels providers are now purchasing RNG to add in their transportation networks to reduce emissions. The U.S. is also home to the largest number of RNG projects from the private sector and distributed RNG projects from the public sector with strong involvement from the agricultural and waste sectors.

In March 2025, SoCalGas (Southern California Gas Company), based in Los Angeles, has signed its first CPUC approved renewable natural gas (RNG) agreement under California's SB 1440 on March 18, 2025. The agreement, with Organic Energy Solutions, will harvest methane from industrial and food waste in San Bernardino for injection into the pipeline and will help advance the state's clean energy, and decarbonization objectives.

Why Asia Pacific showing up as the Fastest Growing Region in Renewable Natural Gas Market?

Asia Pacific expects the fastest growth in the renewable natural gas market during the forecast period, due to increased environmental awareness, rising energy demand, and desire to reduce dependency on fossil fuels. Investments in waste-to-energy projects are increasing, and urban centers including utility companies, are looking to RNG to deal with air pollution and waste management challenges. The demand for sustainable alternatives, imminent energy security related goals, and a ballooning population is promoting the application of RNG across sectors including transportation, power generation, and industrial uses; thus, resulting in Asia Pacific being a highly promising region for growth in the future.

Market Trends China

China's renewable natural gas industry development has been predominantly achieved with policy support and research-oriented assistance. An operating list of biogases to RNG plants in Heilongjiang province now includes 7 facilities producing nearly 50 million m³ annually from agricultural waste, with an additional 6 facilities under construction and adding 28 million m³ of capacity.

In October 2024, the China Energy Engineering Group is developed an unprecedented integrated waste‑to‑fuel project in Heilongjiang province, which will incorporate biomass, wind, solar and hydrogen power, to produce 200,000 tons of green methanol and 300,000 tons of sustainable aviation fuel each year.

These types of projects exemplify China's intent to implement clean energy technologies, aid resources in rural areas of the country, and create modern fuel from the energy sources.

Renewable Natural Gas Market Growth Factor

Is expansion of landfill methane recovery projects driving global Renewable Natural Gas growth?

A major non‑regulatory driver of the renewable natural gas market is the rapid growth of landfill methane recovery and utilization projects. The U.S. EPA’s Landfill Methane Outreach Program (LMOP) supports these projects with government technical assistance programs. The Landfill Methane Outreach Program run by the EPA has stated that at the end-of-2023 there were 135 RNG projects operating on agricultural sites and 102 projects based on landfills in the U.S. a considerable increase from previous years.

The EPA’s LMOP and its Global Methane Initiative also actively assist developing countries build capacity and technical skills in public private partnerships to duplicate RNG projects at municipal solid waste landfills, agricultural, and wastewater sources worldwide . As part of its duties under the Clean Air Act, the EPA pledged to develop 840 million gallons of cellulosic biofuel in 2023 and 1.38 billion gallons in in 2025. RNG fuels (such as liquefied or compressed RNG) are able to produce RINs under these regulations.

These programs help get the funding, construction, and design of RNG projects moving faster to replicate and make good use of waste feedstocks on a commercial and sustainable scale globally.

Market Opportunity

How Shift Towards the Greener Public Transportation System creates opportunity for Renewable Natural Gas?

An opportunity for the renewable natural gas market is transformational volume from continuous municipality transit systems and from heavy-duty logistics fleets, allowing RNG to be a premier low-carbon transportation fuel. For instance, San Antonio’s VIA transit system has run over 400 CNG buses with landfill-derived RNG for the past three years to displace 7 million gallons of diesel and reduce net CO₂ emissions.

Similarly, In March 2024, U.S. Energy™, has signed a long-term supply contract with the Cleveland sister agency SARTA in Ohio to fuel more than 30 buses with RNG, with emissions reduced equivalent of nearly 1,000 gasoline-powered passenger cars.

These scenarios show that there is real momentum like RNG achieving lower carbon emissions, implementing lower cost options for fleet fuel operated by cities trying to meet sustainable public service emissions goals.

AI Powers a New Dawn in the Renewable Natural Gas Market

Artificial intelligence is changing the renewable natural gas market by increasing production efficiencies, advancing infrastructure, and facilitating intelligent energy ecosystem strategies. Generative AI is being harnessed to forecast consumption, optimize asset maintenance, and minimize downtime, greatly enhancing RNG plant flexibility. Advanced AI models now evaluate project feasibility, provide real-time emissions monitoring, and boost regulatory compliance through the identification of high-leak zones.

In biogas plants, AI systems are automating plant production processes and identifying inefficiencies, resulting in cleaner and faster production cycles. Predictive analytics and digital twin counting technology are driving investment decision making and performance monitoring, establishing AI as a significant enabler of RNG and its effective scaling and advancement into sustainable solutions.

In February 2024, Anessa has launched an artificial intelligence powered platform, “Anessa AD•O” designed to improve the efficiency of biogas plants, utilizes AI to analyze real-time data from biogas digesters and optimize plant operations.

Renewable Natural Gas Market Challenges

High Production Costs- The production of RNG relies on advanced technologies that use anaerobic digestion or gasification, resulting in production costs that are much higher than conventional natural gas. These higher costs can hinder scalability and discourage investing in new markets.
Limited Feedstock Availability- RNG relies on organic waste sources, such as agricultural residues, landfill gas, and wastewater, for feedstock. The availability of feedstock can vary geographically, but is also typically not enough to support larger-scale demand, limiting the deployment of RNG and the potential for long-term supply stability.
Infrastructure Roadblocks- Utilizing RNG in natural gas distribution systems can require upgrading systems and improving compatibility. Many areas do not have the proper pipeline systems or assets to create injection facilities which can limit the movement and use of RNG and reduce market entry.

Renewable Natural Gas Market Segmentation

Feedstock Insights

Why is Landfill the Dominated Feedstock in the Renewable Natural Gas Market in 2024?

The landfill segment leads the renewable natural gas market in 2024, for several reasons, including the reliable and mass-produced volume of municipal solid waste, which is rich in the organic material that feeds RNG production. Landfill gas recovery systems have long-standing infrastructure and are the least expensive ways to turn methane emissions into fuel. The level of continued usage of landfill feedstock is based on multiple long-term environmental benefits, including greenhouses gas. Landfill feedstock is the most affordable and dependable source of RNG feedstock.

The wastewater treatment segment expects the fastest growth in the market during the forecast period; the segment is the fastest growing feedstock source for RNG production for the dual purpose of waste management and renewable energy generation. Many facilities can take advantage of anaerobic digestion of sewage sludge to produce biogas, reducing both the environmental impact and the costs associated with managing the waste stream. As urbanization rises significantly and the environmental regulations governing sewage disposal tighten, municipalities are investing in upgrading their wastewater plants with biogas recovery systems.

Application Insights

Which Application Segment Dominates the Renewable Natural Gas Market?

The vehicle fuel segment dominate the renewable natural gas market in 2024 with greenhouse gas (GHG) emissions reductions compared to fossil fuel use. Transportation fleet management is now incorporating RNG, especially with heavy-duty fleets, public buses, and refuse trucks, including applications in which electrification is not an option. By adopting RNG, governments and private operators benefit from cleaner fuel combustion and can use existing natural gas infrastructure. Governments provide an incentive for adopting RNG through renewable fuel credits (RFC) and low carbon fuel standards (LCFS) incentives.

Power generation segment expected to grow at fastest CAGR in the market during the forecast period, as the world seeks more sustainable and cleaner energy sources. Utilities and independent power producers are now sourcing RNG for their growing energy portfolios to secure energy supply, decarbonize, including fossil fuel alternatives in their sources, and meet regulatory requirements. RNG will increasingly provide both reliable and dispatchable power, as intermittent renewables such as wind and solar will be needed for carbon-neutral electricity. Increased demand for carbon neutral electricity will make RNG highly attractive in decentralized and grid-connected power systems.

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More Insights in Towards Chemical and Materials:

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What is Going Around the Globe?

In April 2025, Ares Management announced the launch of SagePoint, a landfill gas conversion platform committed to renewable natural gas development. Along with this announcement, the note included RNG updates from Opal Fuels, EnviTec, and Nexus to showcase, at least in the U.S., the growing participation of private capital and innovation in waste-to-energy business opportunities.
In April 2025, Viridi Energy opened its first company-operated RNG facility in Ohio. This milestone will allow Viridi to expand its operating footprint as a company while turning agricultural waste to produced clean energy and benefitting local decarbonization projects.
In September 2024, The European Commission commenced a public consultation on a draft methodology for establishing low-carbon hydrogen. This effort, which does not apply directly to renewable natural gas, contributes to transparency and regulations and will tangentially impact possibilities for the RNG sector when considering the hydrogen-based energy transition in the EU.
In September 2024, In southeast Louisiana, there was a proposal for US$1.35 billion investment for a large-scale RNG and green hydrogen facility that would create more than 100 permanent jobs, further establishing Louisiana as a clean energy leader.

Competitive Landscape in the Renewable Natural Gas Market

Clean Energy Fuels Corp. (United States)- Leading U.S. provider of RNG for transportation; operates RNG fueling stations nationwide.
Montauk Renewables, Inc. (United States)- Develops, owns, and operates RNG production sites; converts landfill gas and manure to RNG.
VERBIO Vereinigte BioEnergie AG (Germany)- Major European RNG producer; converts straw and waste into RNG for transport and grid use.
Eni S.p.A. (Italy)- Expanding RNG projects in Italy via biogas from agricultural waste and organic materials.
TotalEnergies SE (France)- Invests in RNG production from agricultural waste; expanding RNG presence in Europe.
BP plc (United Kingdom)- Acquired RNG assets in the U.S., expanding biogas operations through strategic investments.
Engie SA (France)- Operates multiple RNG plants in France, scaling agricultural and wastewater-based RNG.
Orsted A/S (Denmark)- Exploring biogas and RNG via pilot projects, mainly in Northern Europe.
Technip Energies N.V. (France)- Provides engineering for RNG plants; supports global RNG infrastructure development.
VARO Energy (Switzerland)- Investing in RNG infrastructure and downstream distribution across Europe.
Gazprom PJSC (Russia)- Minimal RNG involvement; focuses mainly on conventional natural gas.
FortisBC Energy Inc. (Canada)- Pioneering RNG utility in Canada; supplies RNG to residential and commercial customers.
Dominion Energy, Inc. (United States)- Developing RNG projects using agricultural and food waste in the U.S.

Renewable Natural Gas Market Top Key Companies:

Clean Energy Fuels Corp. (United States)
Montauk Renewables, Inc. (United States)
VERBIO Vereinigte BioEnergie AG (Germany)
Eni S.p.A. (Italy)
TotalEnergies SE (France)
BP plc (United Kingdom)
Engie SA (France)
Orsted A/S (Denmark)
Technip Energies N.V. (France)
VARO Energy (Switzerland)
Gazprom PJSC (Russia)
FortisBC Energy Inc. (Canada)
Dominion Energy, Inc. (United States)

Renewable Natural Gas Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2034. For this study, Towards Chemical and Materials has segmented the global Renewable Natural Gas Market

By Feed Stock

Landfill
Wastewater Treatment
Agricultural Waste
Others

By Application

Vehicles Fuel
Power Generation
Pipeline Injection
Others

By Regional

North America
Europe
Asia Pacific
Latin America
Middle East Africa

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