The global renewable natural gas market has been witnessing significant growth in recent years. Renewable natural gas (RNG) or biogas is natural gas that is derived from biodegradable material such as food waste, agricultural residue, human waste, or animal manure through anaerobic digestion. It is a renewable form of energy that can be used as compressed natural gas or injected directly into natural gas pipelines. The increasing demand for cleaner sources of energy along with stringent government policies regarding reduction of greenhouse gas emissions is a key factor driving the adoption of renewable natural gas across industries. Furthermore, awareness about the long term economic and environmental benefits of RNG is encouraging more companies and utilities to invest in RNG infrastructure and supply. With governments around the world strengthening their renewable energy targets, the global renewable natural gas market is expected to grow substantially over the coming years.
Market Dynamics:
The global renewable natural gas market is expected to experience strong growth over the forecast period, primarily driven by growing climate change concerns worldwide and the urgent need to develop renewable alternatives to fossil fuels. Stringent regulations regarding GHG emissions from industries and initiatives like the EU methane strategy are also pushing market adoption. In addition, rising emphasis on circular economy and waste management is boosting biogas production from organic waste. However, high infrastructure and production costs remain a key challenge for market participants. Moreover, availability of cheaper alternatives continues to restrain market growth to some extent. On the positive side, increasing R&D efforts to reduce costs and technological advances in anaerobic digestion are expected to create new revenue opportunities for market players. In terms of opportunity, the market sees rising usage of RNG in transportation sector as a cleaner vehicle fuel.
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