Evaluating Market Conditions for Renewable Natural Gas and Clean Hydrogen

Abstract

Our client, Leyline Renewable Capital, provides early-stage capital for renewable energy ventures ranging from solar to renewable natural gas (RNG) projects. RNG is pipeline-quality methane produced from renewable sources such as landfill gas, digested organic waste, animal manure, and biomass. RNG enables deep decarbonization alongside electrification by displacing conventional natural gas consumption in hard-to-abate sectors and managing methane emissions from existing sources. This report examines 1) the resource potential of landfill gas, animal manure, and organic waste in the US, 2) key CAPEX estimates for the feedstocks, and 3) green hydrogen as partnering and competing technology to RNG in order to prepare our client for the evolving clean energy investment ecosystem. RNG can feasibly displace up to 20 percent of natural gas usage while hydrogen has the potential to serve 14 percent of end-use energy in the US. This report integrates interviews with industry experts alongside a comprehensive literature review to produce a resource potential dashboard, CAPEX indicator assessment, and a hydrogen project pro forma template to aid our client moving forward.