U.S. Renewable-Gas Demand Seen Jumping in Push to Cut Emissions

(Bloomberg) -- U.S. demand for natural gas that can be produced from waste and other renewable sources could jump 45-fold over the next two decades as utilities seek to reduce their carbon emissions, according to BloombergNEF. 

Consumption of so-called renewable gas, which so far has been mostly used to replace diesel in truck and bus fleets, could reach as much as 3.15 trillion cubic feet per year by 2040 as it becomes a “key decarbonization tool” for gas utilities, BNEF analyst Jade Patterson said in a report Tuesday. That would compare with about 70 billion cubic feet in 2021. 

Renewable gas could potentially substitute as much as 12% of current U.S. demand, up from less than 1%, if technologies still in early stages of development are implemented in a commercial scale, according to the report. That includes the ability to convert wood residues into gas through a process known as thermal gasification. 

“Renewable natural gas has the potential to provide significant emissions reductions in hard-to-abate sectors, such as heating and transportation,” Patterson said. 

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