From Waste to Watts: Utilities Embrace Renewable Gas

Southern Company Gas deepens its renewable gas sourcing in Texas, marking a key step in U.S. utility decarbonization

23 Oct 2025

Southern Company Gas has taken another step in its transition to cleaner energy, announcing new agreements to purchase renewable natural gas, or RNG, from operating facilities in Texas. The June 25 deal underscores how major utilities are moving to integrate biogas into their supply portfolios as pressure mounts to cut emissions.

Company officials said the acquired RNG volumes are expected to reduce lifecycle greenhouse gas emissions by about 18,978 metric tons of carbon dioxide equivalent, comparable to the carbon captured annually by more than 19,000 acres of U.S. forest. The gas is produced by recovering methane from waste feedstocks, part of a growing effort to transform organic waste into usable fuel.

The move reflects a broader shift in strategy across the utility sector, where RNG is increasingly viewed as a foundational resource for decarbonization rather than a niche compliance measure. “We’re leveraging our advanced infrastructure to deliver cleaner fuels,” said Bryan Batson, executive vice president of Southern Company Gas. “This is part of our commitment to sustainable solutions for customers and communities.”

Analysts note that the policy landscape is driving new momentum. Federal tax incentives, state renewable fuel standards and rising corporate climate targets have created a favorable environment for RNG investment. North American production capacity has expanded sharply since 2023, and utilities are locking in offtake contracts tied to both infrastructure development and sustainability goals.

Yet the market faces obstacles. Limited access to feedstocks, evolving credit frameworks under renewable fuel programs and cost pressures remain challenges for producers and buyers alike. Utilities must also ensure accurate emissions accounting and consistent supply to sustain investor confidence and meet regulatory expectations.

Industry observers see Southern Company Gas’s latest purchase as a sign of what is to come. As utilities increasingly commit to long-term RNG sourcing, new investment could flow into landfill gas capture, anaerobic digestion and pipeline connectivity. The trend, experts suggest, could reshape how utilities pursue decarbonization, anchoring renewable gas as a permanent fixture in the nation’s energy mix.