The Next Phase of RNG Is Here, Now What?

The utility industry is rapidly adopting biomethane, also known as renewable natural gas or “RNG,” to supplement traditional natural gas as a fuel source for both electric generation and heating purposes. Previously, RNG project developers were predominantly focused on the unregulated space due to RNG’s high production costs and the regulatory requirements utilities otherwise faced in incorporating RNG into their existing, regulated systems. But times are changing. The passage of the Inflation Reduction Act, the enactment of several aggressive state-mandated carbon reduction targets, and the adoption of companyspecific environmental programs mean RNG is now in the front seat.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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