| S&P Global Commodity Insights
July 24, 2023
Renewable natural gas and hydrogen: fuels of the future for transportation decarbonization
As a mounting number of companies commit to various decarbonization solutions, renewable natural gas could play an increasingly important role in the transportation sector – both as an outright replacement for diesel and gasoline and as the feedstock for bioproducts used in high-emissions, difficult to abate sectors.
Use as a feedstock in the development of bioproducts such as biohydrogen represents an emerging source of demand for RNG. Bioproducts will play a critical role in enabling the transportation industries’ transition to a low-carbon future, yet challenges such as high costs, limited supply and regulatory uncertainty must be addressed for widespread adoption.