INSIGHTS

Waste Power: America’s Biogas Revolution Heats Up

From landfills to farms, new deals and investments are turning waste into renewable energy

27 Oct 2025

Waste Power: America’s Biogas Revolution Heats Up

The US biogas sector is expanding rapidly as utilities, investors and industrial groups accelerate efforts to convert waste into clean energy. Renewable natural gas (RNG) projects are moving from pilot stage to large-scale deployment, marking a new phase in America’s clean energy transition.

In New Jersey, South Jersey Industries and OPAL Fuels have launched a landfill-gas project that injects renewable gas directly into a utility pipeline, the first such installation within the company’s network. The initiative is viewed as a model for how existing gas infrastructure can support decarbonisation goals.

Vanguard Renewables is pursuing a similar strategy at the intersection of agriculture and global transport. The company has partnered with shipping group CMA CGM to supply RNG from US dairy farms to help reduce maritime emissions. The long-term deal underscores how biogas is gaining traction as an immediate alternative to fossil fuels in hard-to-abate sectors.

Private capital is also moving into the space. Generate Capital recently raised C$60mn to expand its network of anaerobic digestion plants across North America. “The sector is maturing fast,” said one analyst. “Capital is flowing, technology costs are falling, and the perception of waste-to-energy is transforming.”

Industry data show that US RNG capacity has risen sharply since 2023, supported by federal tax incentives and growing state-level clean fuel programmes. However, developers face challenges from higher construction costs, supply chain disruptions and evolving environmental regulations.

Despite these pressures, momentum in the sector remains strong. Analysts say biogas and RNG could play a pivotal role in meeting near-term emissions targets while complementing intermittent renewable sources such as wind and solar.

As partnerships between utilities, investors and industrial users deepen, the country’s waste-to-energy network is becoming an integral part of its clean energy infrastructure. If current investment trends persist, biogas is set to become a mainstream pillar of America’s energy mix.

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