How Big Global Companies Are Using RNG to Decarbonize

Will we look back on the 2020’s as the Decade of Corporate Decarbonization Pledges? According to McKinsey & Company, over 6,000 companies have pledged to achieve an average reduction of 49 percent in Scope 1 and 2 emissions and 28 percent in Scope 3 emissions by 2030. That’s just six years away.

These are excellent goals. But making good on those commitments is a major challenge. And while large multinational companies increasingly include renewable natural gas (RNG) in their decarbonization plans, the benefits of using RNG to replace conventional gas remains largely untapped.

RNG is one of the most potent tools to decarbonize because emissions are reduced in making it and using it, often making it carbon negative. RNG is the methane component of biogas which is made from recycling decomposable wastes—manure, wastewater solids, food waste, crop residues, and the like—using biogas systems. So the emissions from the waste are captured and also fossil fuels are displaced. It would be like if solar panels made electricity and also eliminated methane emissions whenever the sun shines. There’s a double benefit. And companies can claim that benefit if they buy RNG instead of conventional gas.

RNG also has the advantage of being transportable in existing natural gas pipeline systems and delivers the same efficient, thermal energy that natural gas provides. The benefits are numerous, and the number of biogas systems that make RNG has grown by about 28% over the past 10 years. But that’s nothing to solar energy’s 800% growth over the same period.

What’s more, when considering the vast quantities of methane emissions that will continue if we don’t build more biogas systems, it’s clear how much RNG production needs to grow. At the American Biogas Council, we estimate the U.S. could have a total of more than 17,000 anaerobic digestion or landfill gas collection systems. As of today, there are 2300, a paltry 14% of the potential.  

Building out these systems would not only provide carbon-negative renewable fuel to help companies decarbonize, meeting the potential would cut total net U.S. methane 13.6%! This would thus the U.S. more than a third of the way to its Global Methane Pledge of reducing methane emissions by 30% by 2030, according to the non-profit Energy Vision.

The benefits of RNG are no secret to a few forward-thinking multinationals. For example:

Until other companies follow these leaders, and more fully leverage the potential of recycling decomposable wastes, those looking to decarbonize will be missing out on a valuable tool for environmental compliance and sustainability.

As companies navigate the complex landscape of sustainability, RNG emerges as a powerful solution in the decarbonization journey. By leveraging biogas-derived RNG, businesses can achieve significant emissions reductions, support a circular economy, and demonstrate environmental stewardship. Embracing RNG is not only a strategic move for environmental compliance and commitment but a tool to power a sustainable future.