New Study: Renewable Natural Gas Is a Cost-Effective, Scalable Tool for U.S. Decarbonization and Energy Security
WASHINGTON – The American Gas Foundation released a comprehensive new report detailing the availability, cost and emissions reduction potential of U.S. renewable natural gas (RNG) resources on Thursday. The analysis, developed in partnership with ICF, provides national and state-by-state results, demonstrating an abundant and scalable fuel source that can provide consumers with more cost-effective solutions to lowering emissions. The use of RNG supports American economic and energy security goals while delivering reliable, affordable, safe and more efficient clean energy directly to consumers.
The 2025 Renewable Natural Gas Supply Assessment found the biomass supply available to produce RNG has increased 17% since the original 2019 assessment, providing a significant resource potential for RNG production now and potentially increasing into 2050 across the United States. This resource potential is enough to meet the energy needs of all U.S. residential households currently using natural gas for end use, with the potential to cut greenhouse gas emissions by more than 300 million metric tons every year. These statistics underscore the significant role RNG can play as a storable, dispatchable renewable energy resource.
RNG is produced from renewable, domestic sources like farms, wastewater, landfills and even hydrogen and captured carbon, representing a reliable and long-term American energy solution. Other renewable technologies require significant investment in new infrastructure and large-scale energy storage, while RNG is fully compatible with today’s existing direct-to-consumer natural gas system’s 2.8 million miles of natural gas pipelines. RNG can be stored and transported to be dispatched and available whenever energy is needed, making it a uniquely reliable and flexible clean energy resource.
“America’s natural gas industry is expanding to meet growing energy demand and to fuel our nation’s economic competitiveness,” said AGA President and CEO Karen Harbert. “RNG has tremendous potential to help reduce the environmental impact of farms, landfills and even wastewater while providing reliable, safe, clean and affordable energy. RNG does double duty – it cuts emissions while protecting jobs and fueling communities across America.”
According to the study, most RNG resources could be produced for a median of $20 per MMBtu in certain cases. While production costs are higher than traditional natural gas, implementation of this RNG strategy using existing infrastructure could be a cost-effective emissions reduction strategy when compared to alternatives like all-electric equipment, which requires expensive electric grid infrastructure investments. The use of RNG resources can reduce emissions at a cost between one-third and one-tenth the cost per metric ton of CO2e reduced from all electric homes using heat pumps, according to AGA’s Building for Efficiency analysis.
RNG can produce more emissions reductions relative to the volume used depending on the source and the amount of methane captured. RNG produced from dairy manure blended 32% with traditional natural gas can reduce lifecycle greenhouse gas emissions by 100%, all while providing an additional revenue stream for American farmers.
The report also identifies opportunities to further reduce costs and accelerate RNG deployment through technological innovation, clearer policy direction and improved coordination between stakeholders. By allowing utilities to invest in RNG now, the U.S. can accelerate toward lower emissions while strengthening its domestic energy supply chain and preserving energy choice for all Americans.
Read the full report here.