Policy support and technology development trajectory for renewable natural gas in the U.S

Alvina Aui and Yu Wang

Renewable Energy, 2025, vol. 244, issue C

Abstract: Renewable natural gas (RNG) is a clean alternative to fossil natural gas, which can be used as transportation fuel, among other applications. This study projects the development trajectory of RNG and evaluates its impacts on the future U.S. transportation market using a hybrid computable general equilibrium model. This analysis considers various factors and uncertainties affecting RNG production, such as technology development, market conditions, competition with other advanced biofuels, and national and state policies. In 2050, RNG production will grow to 2.7 billion gallons (10 billion liters), mostly from swine manure, under current policy provisions. This will lead to a reduction in greenhouse gas (GHG) emissions by 58.56 million metric tonne of CO2e in 2050. Analysis of different technology cases finds RNG from animal manure to be predominant, while RNG from corn stover and cellulosic ethanol are less competitive. A high mandatory target of 1 billion gallons will drive RNG production higher by 8–18 %, while an extended 2nd-generation biofuel production tax credit will mostly increase cellulosic ethanol production. The model also finds RNG production being affected by uncertainties in market conditions, such as GDP growth, fossil fuel prices, and oil and gas supply.

Keywords: Renewable natural gas; Biomethane; Policy support; Technology trajectory (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:244:y:2025:i:c:s0960148125003313

DOI: 10.1016/j.renene.2025.122669

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