Global RNG capacity to nearly triple by 2033, says Guidehouse Insights report
Global renewable gas (RNG) capacity is expected to nearly triple between 2024 and 2033, growing at an annual rate of 12.8% to surpass 1,000bn ft3/ year by the end of 2033, according to a new report from Guidehouse Insights.
RNG, also known as biomethane, is produced by removing impurities from biogas, which is released during the decomposition of organic matter such as animal or food waste. Once upgraded to pipeline-quality methane, RNG becomes fully interchangeable with conventional fossil natural gas.
"RNG offers an immediate decarbonisation solution to a wide range of industries," says Peter Marrin, principal research analyst with Guidehouse Insights. "As a drop-in fuel, RNG is compatible with existing gas infrastructure, including pipelines, storage caverns, gas turbines, and home appliances. Renewable gas is especially well suited for hard-to-abate sectors, where few other decarbonisation options exist."
While many developing countries will continue to use biogas for cooking and heating, Europe and North America were early adopters of legislation to incentivise the use of renewable fuels such as RNG. Market demand today largely reflects these policies, the report states.
However, the report highlights concerns about the high production costs and the scalability of feedstocks in the development of the RNG market. Producers require a steady long-term supply of feedstock, which can be challenging due to the cyclical nature of some agricultural activities. Additionally, competition for feedstocks is expected to increase as new demand and RNG suppliers emerge.