Growing U.S. Renewable Natural Gas Sector Targets Increasingly Large Projects

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Industrial Info Resources is tracking $1.4 billion worth of U.S. renewable natural gas (RNG) projects presently under construction and another $6.2 billion worth on the books.

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Significant Growth

The U.S. renewable natural gas, or RNG, sector represents a substantial but still very much growing segment of the U.S. energy sector. ...And it's definitely growing. A 2025 Wood Mackenzie report noted North American RNG capacity had grown 35% since 2023, increasing to more than 600 million cubic feet per day from less than 400 million cubic feet per day in 2023.

Industrial Info Resources data on U.S. RNG construction reflects this growth, showing around $1.4 billion worth of current, on-the-ground RNG construction underway and another $6.2 billion on the planning table. While RNG is chemically the same as natural gas obtained from traditional extraction methods and is considered "pipeline ready," it's prime market at the moment in the U.S. is the transportation sector, with a substantial amount of this used in California.Truck News reported that 755 million gasoline gallon equivalents (GGE) came from RNG in U.S. transport in 2025, up 94% since 2021.

U.S. RNG Project Activity

While several RNG-production facilities are located on-site at landfills or dairies, a blockbuster RNG project that is nearing completion in Linden, New Jersey, represents a centralized facility designed to take in multiple organic waste streams from New Jersey and New York. Industrial Info Resources has reported on the project, being developed by RNG Energy Solutions, since 2020, reporting construction eventually kicked off in 2024 with the end activity now in firm site.

The project is set to use 1,400 tons per day of organic waste (primarily food waste) to produce 3,300 dekatherms per day of pipeline-ready RNG, which will go to Elizabethton Gas, a subsidiary of SJI, which reports that it distributes gas to more than 300,000 residential, commercial and industrial customers in seven New Jersey counties. Subscribers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

While that project gives a substantial boost to New Jersey's RNG project activity, current U.S. RNG construction is actually led by Indiana, thanks largely to two $100 million+ projects. One of those projects is very similar to the Linden project, although at much smaller scale. Nexus W2V LLC's grassroot RNG plant in La Porte County will process 200 tons of organic waste per day into RNG that will be injected into the Northern Indiana Public Service Company's (NIPSCO) gas utility system for downstream use by customers.

Another Indiana RNG project is taking shape about 25 miles east in South Bend, where 16 anaerobic digesters are being added at an existing ethanol plant to produce around 2.8 billion cubic feet per of RNG. Outside of Indiana and New Jersey, Industrial Info is tracking current, ongoing RNG capital construction across 13 other states.

Future Projects

That number of states expands even more when accounting for the $6.2 billion worth of U.S. RNG projects in the planning and engineering stages. The projects range in size, spanning from several smaller installations going in at dairies and poultry farms to a blockbuster project in the Midwest that would require more than $1.5 billion in investment.

Particularly notable activity is on the books for the U.S. division of France-based Waga Energy, which has scoped out eight landfill sites across seven states suitable for RNG production, with larger projects set for sites in New Jersey, Illinois and California.

Key Takeaways

• Industrial Info Resources is tracking nearly $7.6 billion worth of current and planned capital RNG construction in the U.S., including $1.4 billion worth presently underway.
• The Southwest and Midwest represent particularly strong destinations for RNG activity, each accounting for more than $2 billion worth of capital projects.
• While the transportation sector represents a prime end-market for U.S. RNG, larger RNG-production projects are increasingly targeting injection directly into pipeline systems.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).