Biogas Breakout: Corporates Fuel RNG’s Rise

Companies seek long-term RNG deals to decarbonise operations, driving investment in modular plants and emissions tracking tools

27 Jun 2025

US companies are increasingly turning to renewable natural gas (RNG) to meet climate targets, fuelling rapid growth in a sector once seen as niche. RNG, derived from waste sources such as landfills, farms and food disposal, is gaining ground as a practical low-carbon alternative to fossil gas.

Unlike hydrogen or electrification, RNG is compatible with existing natural gas infrastructure, allowing firms to decarbonise without major system overhauls. Combined with federal and state incentives, this compatibility has made RNG cost-competitive and attractive to businesses seeking immediate emissions reductions.

Utilities including SoCalGas are signing multi-decade RNG contracts to meet state mandates, while energy suppliers such as Constellation are offering bundled RNG packages with emissions tracking and energy credits. These bundled offerings simplify adoption for companies under pressure to meet ESG targets.

“This isn’t a fringe play anymore,” said a senior analyst at Clean Energy Strategies. “Corporate demand is redefining the entire biogas landscape.”

Developers are adapting by deploying modular production units near waste sources, reducing construction timelines and transportation costs. Companies like Organic Energy Solutions are expanding their presence in agricultural regions with these small-scale, decentralised plants.

At the same time, digital platforms are offering buyers more transparency through real-time emissions data and verification tools. This shift reflects growing scrutiny around the environmental claims attached to RNG credits and certificates.

Despite this growth, market volatility and tightening disclosure expectations have created pressure for more robust monitoring systems. Analysts expect a period of consolidation as producers scale operations and build credibility with corporate buyers.

The sector, historically overshadowed by solar and wind, is now drawing attention from investors seeking exposure to scalable clean fuels. Industry groups expect increased mergers and partnerships in the coming years as demand accelerates.

For companies working towards net-zero emissions, RNG is becoming a preferred option in decarbonisation strategies. For the biogas industry, the surge in demand signals a shift from pilot projects to long-term infrastructure investment.