Research shows RNG industry consolidating, as major players announce new or completed projects

Despite seeing rapid growth over the past few years, 90% of the potential for landfill gas to renewable natural gas projects in North America remains untapped, according to a new report from WoodMackenzie.

Researchers at the energy analytics company estimate that RNG production capacity has nearly doubled over the last five years to about 0.3 billion cubic feet per day. But that’s still just a fraction of the 2.2 bcfd that they predict could be produced by 2050.

“Landfills are everywhere, but landfill-to-RNG development isn't everywhere,” Dulles Wang, director of WoodMackenzie’s Americas Gas and LNG research team, said in an interview. “We do think there are probably still areas or regions that could need more support or more investments for the development.”

The report also highlighted how the industry has consolidated. Today, seven developers are responsible for about 60% of the RNG market. That consolidation could lead to operational efficiencies, Wang said, as developer-operators become more familiar with how to start up and run their facilities.

He predicted those developers with increasingly large and sophisticated portfolios could be better positioned to make plays on the landfills where RNG isn’t produced today, thanks to falling costs and additional expertise.

This month, some of those major players like WM, BP’s Archaea and more made progress on their plans to add RNG capacity.

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Archaea opens RNG plant at Waste Connections landfill in Pennsylvania

Archaea Energy, a division of BP, completed an RNG production facility adjacent to Waste Connections’ Bethlehem Landfill in Lower Saucon Township, Pennsylvania, the companies announced. The newly completed facility will be able to process up to 3,500 standard cubic feet of landfill gas per minute.

This is the partners’ fourth landfill-gas-to-RNG partnership. They’ve also collaborated on landfill-gas-to-electricity projects in Washington, Colorado and Oregon. Archaea Energy boasts collaborations with some of the largest landfill owners in the United States, including a joint venture with Republic Services to develop 39 landfills to produce RNG. That partnership remains ongoing.

WM to build its first RNG facility in Alabama

WM is moving forward with a $57 million landfill-gas-to-RNG facility after receiving a tax abatement from the Lee County Commission in Alabama, the Opelika-Auburn News reported. The new RNG facility would take gas from the Salem Waste Disposal Center.

A WM representative said at a county meeting that WM plans to begin construction in November and have the facility complete by the end of 2025. The company plans to use the RNG in its vehicles and may also "use it for commercial purposes," according to the report.

WM is currently building out a portfolio of 20 landfill-gas-to-RNG assets, with several actively under construction this year. CEO Jim Fish said on the company's earnings call in July that some projects were facing slight delays but WM was still committed to investing in the portfolio, and may consider further facilities once the initial 20 are complete.

Ameresco selected for Utah landfill-gas-to-RNG project

The Wasatch Integrated Waste Management District selected Ameresco to design, build, own and operate a landfill-gas-to-RNG project at a landfill in Layton, Utah. The district has previously contracted Ameresco to handle the landfill's gas.

"After commissioning the first landfill gas to energy project in Utah almost 20 years ago, we are looking forward to updating the project to a modern RNG plant to supply the current energy market,” WIWMD Executive Director Nathan Rich said in a statement.

Ameresco estimates the new facility will be able to produce more than 8 million Btus of RNG annually once completed. The company has expanded its portfolio of biogas projects in recent years. As of June 30, its RNG asset portfolio was generating the equivalent of 49 megawatts of energy, or 7% of the company's overall energy portfolio. The company also said 21% of its energy assets in development were biogas projects producing either RNG or electricity.

Anaergia expands California wastewater partnerships

Anaergia struck an agreement with Riverside, California, to upgrade a wastewater treatment plant to produce RNG. The new technology supply contract is valued at $13 million (Canadian), according to an Aug. 6 release. The company also announced on Aug. 23 an expanded contract with the East Valley Water District in California, its eighth operations and maintenance contract in the United States.

Anaergia, which produces RNG through anaerobic digestion at several locations in North America, is transitioning to a "capital-light strategy" where it focuses on service contracts over hard assets. Also in August, the company reported a quarterly net loss of $13.4 million, an 89% improvement from its net loss in the second quarter of 2023. Revenues were down 45% year over year, due in part to Anaergia's asset sale campaign in Italy boosting revenues in the second quarter of last year.

The company’s board of directors also confirmed that CEO Assaf Onn and CFO Gregory Wolf, originally announced as temporary appointees, will permanently fill their respective roles.