Global Renewable Natural Gas Capacity Estimated to Nearly Triple by 2033
RNG offers an immediate decarbonization solution to a wide range of industries
A new report from Guidehouse Insights analyzes renewable natural gas (RNG) production capacity additions and equipment sales globally.
RNG, also known as biomethane, is produced by removing the impurities from biogas, which is released during the decomposition of organic matter such as animal or food waste. Once the biogas is upgraded to make a stream of pipeline quality methane, it becomes RNG, which is completely interchangeable with conventional fossil natural gas. According to a new report from Guidehouse Insights, global RNG capacity is expected to nearly triple between 2024 and 2033, climbing at a compound annual growth rate (CAGR) of 12.8% to exceed 1,000 billion cubic feet (Bcf) by the end of 2033.
“RNG offers an immediate decarbonization solution to a wide range of industries,” says Peter Marrin, principal research analyst with Guidehouse Insights. “As a drop-in fuel, RNG is compatible with existing gas infrastructure, including pipelines, storage caverns, gas turbines, and home appliances. Renewable gas is especially well suited for hard-to-abate sectors, where few other decarbonization options exist.”
While many developing countries will continue to use biogas for cooking and heating, Europe and North America were early movers on crafting legislation to help incentivize the use of renewable fuels such as RNG. Market demand today largely reflects those policies. In addition to high production costs, the scalability of feedstocks is a primary concern about the development of the RNG market. Producers need a steady long-term supply of feedstock, which can be a challenge considering the cyclical nature of some agriculture activities. In addition, competition over feedstocks will increase as new demand and RNG suppliers emerge, according to the report.
The report, Renewable Natural Gas, provides analyses for RNG production capacity additions and equipment sales revenues from 2024-2033. Projections are based on an analysis of planned RNG production capacity and primary research that includes phone and in-person interviews with industry leaders. Analyses have been segmented by global region, production pathways, and end-use application. An executive summary of the report is available for free download on the Guidehouse Insights website.
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* The information contained in this press release concerning the report, Renewable Natural Gas, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.