RNG Finding a Home in the Transportation Sector

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Renewable natural gas (RNG) drawn from the decomposition of organic matter in three U.S. landfills will go in part to the transportation sector, Vision RNG (Canonsburg, Pennsylvania) said on Wednesday.

The company said it signed agreements to build, develop, own and operate three landfill-to-gas facilities in Alabama and Tennessee. The decomposition of organic matter in landfills yields methane and is considered RNG.

Once treated to remove impurities, Vision RNG said the RNG would be injected into local midstream infrastructure for either consumer use or for the transportation sector.

"The landfill owner of the three sites has a great focus on maximizing resource value while minimizing environmental impact, and this commitment to sustainability is aligned with our own mission to provide clean, sustainable energy to users of RNG in the transportation market as well as non-transportation uses for renewable fuel and sustainability use," said William Held, the chief business development officer for Vision RNG.

Vision RNG has an expanding portfolio. A facility in Missouri could meet the demands of nearly 8,800 homes with pipeline-quality gas drawn from landfill emissions.

Industrial Info is tracking six active Vision RNG projects, worth $175 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuel Project Database can click here for a list of project reports and click here for the related plant profiles.

RNG is finding more outlets beyond consumer utilities. A report published earlier this month by BloombergNEF finds RNG is taking up some of the market share previously held by compressed natural gas (CNG) in the transportation sector.

Heavy equipment company Cummins (NYSE:CMI) (Columbus, Indiana), formerly the Cummins Engine Company, has introduced a new 15-liter natural gas engine for heavy-duty trucking that can run on RNG. Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington), Federal Express (NYSE:FDX) (Memphis, Tennessee) and United Parcel Service (NYSE:UPS) (Atlanta, Georgia), meanwhile, are among the growing list of companies turning to renewable natural gas to power their fleets.

The U.S. Environmental Protection Agency finds that RNG projects in general can help keep harmful emissions from escaping into the atmosphere. Methane gas has a far greater warming potential than carbon dioxide so keeping emissions low can have near-term environmental benefits.

"Replacing traditional diesel or gasoline with RNG can significantly reduce emissions of nitrogen oxides and particulate matter, resulting in local air quality benefits," the EPA added.

Deloitte's Research Center for Energy and Industrials adds that RNG could replace about 4.4% of natural gas demand and more than half the natural gas demand in the chemical sector. From 2025 through 2027, RNG may also qualify for clean fuel production tax credits when used in transportation.

Data from Industrial Info, meanwhile, show 93 projects worth a combined $3.79 billion in the U.S. market. GMI subscribers can click here for a list of detailed project reports.

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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).