RNG, Ethanol Demand Drives U.S. Alternative Fuel Fortunes

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Renewable natural gas (RNG), ethanol and other alternative fuels are set for key project kickoffs through the end of September, with several grassroot and expansion projects responding to growing domestic and export demand.

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RNG Projects Sprout Amid Demand

Different corners of the alternative fuel market are facing different fortunes: Whereas domestic and global demand for renewable natural gas (RNG) and ethanol is growing, sustainable aviation fuel (SAF) is facing significant slowdowns. Industrial Info Resources is tracking $1.3 billion worth of projects in the U.S. Alternative Fuel Industry that are set to begin construction in the third quarter, about 75% of which is attributed to grassroot developments.

According to Industrial Info Resources data, more than 20% of the total investment is attributed to RNG developments. This trend has been fueled by supportive policies from two corners of American politics normally at odds: the Trump administration, which sees RNG as beneficial to rural economic growth and energy security, and California, where state agencies signed agreements earlier this year to fuel public transportation fleets with RNG.

Two grassroot projects on the cusp of kicking off are Pacific Ag's waste-to-RNG plant in Sunnyside, Washington, which is designed to process crop residues and livestock manure into RNG, and Sagepoint Energy LLC's waste-to-RNG plant in Burton, Michigan, which will use landfill waste as a source. Sagepoint boosted its chances last year when it acquired Michigan-based Peoples LFG LLC, which operates a landfill gas-to-electricity plant in Birch Run, Michigan.

Industrial Info Resources offers more information on these developments in its Global Market Intelligence (GMI) Alternative Fuel Project Database, where readers can find details--including construction schedules, investment values and necessary equipment--in reports on the Sunnyside and Burton projects.

Sagepoint also is preparing for an expansion of its Lynx RNG Plant in Harper, Kansas, which is expected to raise total output at the plant to 1 billion cubic feet of RNG annually. Sagepoint picked up the plant from its March 2025 acquisition of Lynx Renewable Energy Kansas. Readers can learn more from a detailed plant profile and project report.

More details on California's push for RNG can be found in Industrial Info Resources' August 4, 2025, article - California Public Transit Running on RNG.

By the Numbers

• $1.3 billion: Total value of projects in the U.S. Alternative Fuel Industry set to begin construction in the third quarter
• More than 20%: Share of the total investment that is attributed to renewable natural gas (RNG) developments
• 75%: Share of total investment that is attributed to grassroot developments

SAF Struggles to Adapt to Tough Market

SAF represents a less fortunate sector of the U.S. Alternative Fuel Industry, as a slowdown in jet fuel demand--attributed to rising airfares, geopolitical turmoil and supply constraints--has delayed a long list of projects indefinitely. Only about 3% of the investment value for active or proposed U.S.-based SAF projects is attributed to developments with a mid-to-high likelihood (70% or more) of beginning construction as scheduled, according to Industrial Info Resources data.

Despite the challenging market, Sea Dragon Energy Incorporated is preparing to begin construction on an SAF demonstration plant in Kailua Kona, Hawaii. The facility is designed to extract carbon dioxide (CO2) from seawater and convert it into synthesis gas, or "syngas," with funding by the Office of Naval Research. Readers can consult a plant profile and project report.

Record U.S. Ethanol Production

Ethanol, one of the most closely watched renewable fuels, saw its U.S. production hit a record 16.49 billion gallons in 2025 amid growing domestic consumption and exports, according to the U.S. Energy Information Administration (EIA). Sandhills Renewable Energy LLC is preparing for a series of equipment additions and upgrades at its ethanol plant in Atkinson, Nebraska, where the company produces 55 million gallons per year. Components include a new fermentation tank and baghouse. Readers can learn more from a detailed plant profile and project report.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for projects in the U.S. Alternative Fuel Industry that are set to begin construction in the third quarter.

Key Takeaways

• RNG has been fueled by supportive policies from the Trump administration and California, among others.
• U.S.-based ethanol production hit a record 16.49 billion gallons in 2025 amid surging domestic and export demand.
• A long list of U.S.-based SAF projects have been delayed indefinitely amid challenging market conditions.

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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 verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).