Strong Renewable Fuel Standard Targets Drive Interest in RNG Projects
Rising blending mandates in the Renewable Fuel Standard are expected to boost demand for renewable natural gas, and several companies have recently announced expansions to their RNG businesses.
RNG projects typically qualify for cellulosic biofuel, or D3, RIN credits under the federal Renewable Fuel Standard, which sets blending requirements for transport fuels. In June, the EPA increased the cellulosic biofuels mandate for 2023 to 840 million gallons, up from 630 million gallons in 2022. The mandate rises to 1.09 billion gallons for 2024 and 1.38 billion gallons for 2025.