Renewable natural gas is increasingly gaining recognition as a promising renewable fuel. In recent years, the number of renewable natural gas production facilities in the U.S. has grown from 30 production facilities in 2011 to over 300 in summer of 2023. Recent research suggests that existing organic waste streams are sufficient to eventually produce enough renewable natural gas to replace up to 7% of the natural gas consumed in the U.S. Renewable natural gas is particularly valuable in applications such as industrial processes and thermal needs, where few renewable alternatives exist.
There are several strategic and environmental benefits from the use of renewable natural gas because it can be used across an array of energy applications to help organizations meet sustainable and carbon reduction goals. However, organizations need a firm understanding of renewable natural gas use cases, procurement considerations and emissions reporting to optimally utilize this fuel in their operations. Unfortunately, many organizations lack sufficient clarity on how to procure renewable natural gas, how to verify that it renewable, and how to account for its emissions impacts. The emissions accounting guidance is often unclear and inconsistent, which can lead to confusion about its value.
Organizations generally procure renewable natural gas the same way that traditional natural gas is procured through existing distribution systems. In this case, renewable natural gas is mixed with traditional natural gas, but the organization still has an option to account for the sourcing of the renewable natural gas through the well-established concept of the book-and-claim system.
This paper is intended for organizations that are considering sourcing renewable energy, particularly renewable natural gas. It explains renewable natural gas’ benefits for decarbonization and hard-to-abate use cases, and also covers the procurement process, verification and, emissions reporting implications, helping organizations make informed decisions about renewable natural gas and its potential impact on their sustainability goals.
