Renewable Natural Gas Market Is In Growth Trends By Clean Energy Transition
Renewable Natural Gas Market Is In Growth Trends By Clean Energy Transition
Blog Article
The renewable natural gas market comprises of products derived from organic wastes like landfills, agricultural residue, water treatment plants, and other organic wastes through anaerobic digestion. Renewable natural gas helps reduce greenhouse gas emissions and meets renewable fuel mandates. It is interchangeable with conventional natural gas and can be used for heating, power generation, and transportation fuel.
The global renewable natural gas market is estimated to be valued at USD 14.03 Bn in 2024 and is expected to reach USD 24.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.1% from 2024 to 2031.
Key Takeaways
Key players operating in the renewable natural gas market are Shell, Chevron,BP Plc, TOTAL, Clean Energy Fuels, and Anthropic. Key players related content comprises strategies such as investments, partnerships, and capacity expansions to strengthen market position.
The growing demand for clean energy is fueling market growth. Stringent environmental regulations and carbon reduction targets set by governments worldwide are propelling the demand for renewable fuels. Deployment of RNG vehicles and infrastructure is on the rise.
North America dominates the global renewable natural gas market. However, Asia Pacific is expected to witness the fastest CAGR during the forecast period due to the high solid waste generation and growing focus on clean energy in China and India. Countries in Europe and Latin America are also actively supporting the production and use of renewable natural gas through incentives and mandates.
Market Key Trends
The trend of co-processing Renewable Natural Gas Market Demand with conventional natural gas is gaining traction. Blending renewable gas with pipeline quality fossil gas allows distribution through existing natural gas infrastructure and helps reduce carbon footprint. Pilot projects of higher blending are ongoing.
Porter's Analysis
Threat of new entrants: Low capital requirements reduces barriers to entry. However, incumbents receive subsidies and have established distribution channels.
Bargaining power of buyers: Large utility companies and industries are major buyers. They can negotiate lower prices due to their purchasing power.
Bargaining power of suppliers: Gas producers and farmers supplying biomass have little influence over prices due to many alternatives.
Threat of new substitutes: Other clean energies and natural gas pose a threat. However, RNG provides renewable attributes and can be injected into existing infrastructure.
Competitive rivalry: Competition is intense with numerous small and large companies. Companies compete on cost, supply agreements and distribution networks.
Geographical Regions
North America accounts for over 50% of the global Renewable Natural Gas Market Regional value due to supportive policies and waste sources. The United States leads the world in RNG production from landfills, dairy farms and wastewater treatment plants.
Asia Pacific is the fastest growing regional market stimulated by rising energy demand, government targets for renewable energy and efforts to reduce pollution. Countries like China and India are investing heavily in RNG infrastructure to utilise agricultural and urban waste.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191) Report this page