Utilities Spark Fresh Momentum in Renewable Gas

SoCalGas, OPAL Fuels, and Ameresco lead early renewable gas deals shaping U.S. clean energy growth

30 Oct 2025

America’s renewable gas market is gaining real traction as utilities step into the spotlight, signing contracts and forming partnerships that are reshaping the country’s clean energy map. Once a niche concept, renewable natural gas, or RNG, is fast becoming a key player in the nation’s effort to curb fossil fuel dependence.

In March 2025, SoCalGas inked a landmark deal with OES under California’s Senate Bill 1440, the first such contract of its kind. The law requires utilities to source gas made from organic waste, from landfills to dairies, cutting methane emissions while fueling local economies. Though deliveries have not yet begun, the agreement gives developers long-term security and investors a clearer signal that renewable gas is ready to scale.

“This is a turning point for renewable gas,” said an executive at a waste-to-energy firm. “Utility commitments mean guaranteed demand, and that’s exactly what this sector has needed.”

The movement is expanding beyond California. In New Jersey, OPAL Fuels and South Jersey Industries launched the state’s first project to inject RNG directly into a utility pipeline. The system captures methane and converts it into pipeline-ready gas, boosting local energy resilience and advancing decarbonization goals.

Meanwhile, energy services company Ameresco is joining forces with utilities and waste-to-energy developers to build projects that balance reliability with sustainability. These early collaborations reflect a shift toward larger, utility-driven ventures that blend technical expertise with financial muscle.

Analysts say the trend fits within a broader transformation of the energy sector, where demand for verified, locally produced renewable fuels is spurring innovation in methane tracking and carbon accounting.

Challenges remain around cost and verification, but the outlook is increasingly optimistic. Experts believe renewable gas could make up a meaningful slice of the nation’s energy mix within the decade. As more utilities commit to clean gas procurement, RNG is quietly moving from the margins to become a core part of America’s energy future.