Energy Transitions and Financial Measures
RNG Market Opportunity
U.S. RNG PRODUCTION bcfd
expect landfills to drive growth
3.0
10.6
0.4
1.0
1.6
2.3
KINDER MORGAN
3.6
RNG DEMAND MARKETS
transportation market
RNG-based vehicles
emit up to 75% less
GHG emissions than
diesel vehicles (a)
Fleets with
decarbonization goals
may choose to
purchase RNG
Typically, prices near
traditional natural gas
price, like Henry Hub
for example:
$2.76/M M Btu HH
spot price
If RNG volumes are
consumed by fleets
in the transportation
market, then RIN
credits may be
earned, which are
then purchased by
RFS-obligated
parties (like refiners)
in order to comply
with federal
requirements:
$35.77/MMBtu
D3 RIN value (b)
voluntary market
Parties interested in
voluntarily decarbonizing
(like LDCs, utilities,
universities, industrial) are
increasingly interested in
RNG, despite the premium
price relative to traditional
natural gas
2022 2025 2030
2035
2040
2045 2050
government program incentivizes RNG
production, provides margin for producer
slimmer margin but fixed-
price, 10+ year contracts
Sources: U.S. RNG production per Wood Mackenzie, North America Gas Strategic Planning Outlook, March 2023. Includes all forms of RNG production.
a) Emissions data per the EPA.
b) $3.05 2023 D3 RIN price (per Argus) multiplied by 11.727 to convert to $/MMBtu. Pricing as of 7/20/2023.
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