Renewable Natural Gas Seen as Pathway to Low-Carbon Hydrogen
Using renewable natural gas (RNG) as a feedstock offers hydrogen producers a shortcut to claiming the full federal tax credit created by the Inflation Reduction Act (IRA) to incentivize hydrogen production.
That translates into a tax credit of $3/kg of clean hydrogen produced, or 2.6 cents/kWh of power generated using that clean hydrogen as fuel.
RNG is made from landfill gas or from biogas produced by anaerobic digesters that process municipal sewage or animal manure. Indistinguishable from fossil-based natural gas, RNG is also now more valuable as a fuel itself because the IRA expanded the federal production tax credit (PTC) to include biogas projects that begin construction before 2025. Previously, the PTC applied to only wind and solar projects.