North America's RNG market set for continued growth in 2025 after historic year

The renewable natural gas (RNG) market in North America is riding a wave of rapid expansion. According to Wood Mackenzie’s latest Biomethane (RNG) Market Report: North America, total RNG capacity has grown by 35% since 2023, and further growth is expected through 2025. 

The report highlights key factors shaping this evolving sector. 

Policy: navigating uncertainty 

Federal and local policies continue to be vital for RNG development. However, with uncertainty surrounding US federal incentives, the role of state and municipal policies is becoming increasingly important in supporting investor confidence and long-term growth. 

Supply: unlocking resource potential 

Although RNG production remains well below the projected 7.8 billion cubic feet per day (bcfd) potential by 2050, growth opportunities vary by feedstock. Identifying the most scalable and economically viable sources will be critical in closing the gap. 

Demand: beyond transportation 

More than half of current RNG output is used in the transport sector, but expanding into other industries such as power generation and commercial use will be essential for long-term demand stability. 

Cost: closing the breakeven gap 

RNG production costs vary widely, with breakeven prices ranging from $19 to $52 per MMBtu. Strategic policy support and economies of scale could play a major role in making RNG cost-competitive with conventional natural gas. 

Regional trends: capacity by state 

Growth in RNG production is not uniform across North America. State-level policies, project pipelines, and access to feedstocks are creating a patchwork of opportunity. 

Project pipeline: building the future 

An expanding roster of new RNG projects highlights the sector’s optimism. From landfills to livestock operations, developers are investing in infrastructure to meet both policy goals and market demand. 

Fill in the form above to receive more insights like this in your inbox.