Scaling RNG for Transportation Fuel: Barriers and Opportunities

Ventures to make transportation fuel from biogas are attracting big investment dollars while creating tens of thousands of jobs, and these renewable natural gas projects (RNG) keep rolling out. In the past year the industry developed more RNG facilities than during its first 30 years (between 1982 and 2011). Though it has a long way to go to enjoy a robust market share, and it faces barriers along the way.

Today there are 130 operational facilities and 37 under construction in the U.S. and Canada, according to the Coalition for Renewable Natural Gas. Approximately 82 of the operational facilities are producing RNG for transportation fuel.

A bulk of the output goes to California, incentivized by the state’s low-carbon fuel standard (LCFS), which is driving more projects across the country than the U.S. Environmental Protection Agency’s Renewable Fuel Standard program, according to Patrick Serfass, executive director of the American Biogas Council.