The North America biomethane market was valued at USD 4.5 billion in 2025. This market is expected to reach USD 15.0 billion by 2036, growing from USD 5.0 billion in 2026, at a CAGR of 11.6% from 2026 to 2036.

The market covers biomethane, also known as renewable natural gas, which is biogas from anaerobic digestion or thermal gasification upgraded to natural gas quality for pipeline injection, vehicle fuel, and power and heat. It is produced from landfill gas, animal manure, wastewater, food and organic waste, and agricultural residues. Demand is driven by federal and state low-carbon fuel policy, principally the Renewable Fuel Standard and the California Low Carbon Fuel Standard, by tax credits including the Section 45Z Clean Fuel Production Credit, and by corporate decarbonisation and methane-reduction goals. The United States accounts for the large majority of regional production and demand, landfill gas is the dominant feedstock, and North American RNG capacity has grown rapidly.

Key Highlights – North America Biomethane Market

• The North America biomethane market is expected to reach USD 15.0 billion by 2036, at a CAGR of 11.6% from 2026 to 2036, driven by low-carbon fuel policy, tax credits, and methane-reduction goals, with economics shaped by credit values.
• Capacity is scaling quickly. North American RNG capacity grew about 35% since 2023, reaching about 604 million cubic feet per day in 2025 from about 385 million in 2023, on policy support and investment.
• Landfill gas dominates the feedstock mix. Nearly two-thirds of renewable natural gas marketed in the United States is generated at landfills, with dairy manure, wastewater, and food waste making up the rest.
• Dairy manure earns exceptional credit value. RNG from dairy manure, which removes methane from the atmosphere, can earn LCFS credit values sometimes more than 15 times the price of fossil natural gas, and under the 45Z credit, manure pathways may retain negative carbon-intensity scores.
• Policy is being reshaped in 2026. In February 2026 the Treasury and IRS published proposed 45Z regulations, and under recent law animal-manure RNG is exempt from the credit cap and may keep negative emissions rates, a major boost for dairy and swine projects.
• Leading producers are growing. bp, through Archaea Energy, is the largest U.S. RNG producer, and OPAL Fuels and Montauk Renewables continued to grow production and bring landfill and dairy projects online.
• Key companies include Archaea Energy (bp p.l.c.), OPAL Fuels Inc., Montauk Renewables, Inc., Clean Energy Fuels Corp., and Waste Management, Inc.

Report Overview

The North America biomethane market covers renewable natural gas produced by upgrading biogas from anaerobic digestion or thermal gasification to natural gas quality, from feedstocks including landfill gas, animal manure, wastewater treatment, food and organic waste, and agricultural residues. It spans use as vehicle fuel through compressed and liquefied natural gas, pipeline injection into the gas grid, and power and heat generation. Conventional fossil natural gas is outside the scope. Demand is concentrated in the United States, particularly where transportation fuel policy rewards it, and the market is shaped by the Renewable Fuel Standard, the California Low Carbon Fuel Standard, the 45Z tax credit, and methane-reduction goals. This report examines the size, drivers, segmentation, countries, pricing, competition, recent developments, and outlook of the market, and provides recommendations for participants. Sizing is built bottom-up from production capacity, output, and the value of the fuel and its credits.

Key Market Dynamics

Market Drivers

The main drivers of the North America biomethane market are federal and state low-carbon fuel policy, tax credits, and methane-reduction and decarbonisation goals. Low-carbon fuel policy is the central driver: the federal Renewable Fuel Standard generates RIN credits for RNG used as transportation fuel, and the California Low Carbon Fuel Standard generates state credits, with dairy-manure RNG earning exceptionally high LCFS credit values, sometimes more than 15 times the price of fossil natural gas, because it removes methane from the atmosphere. Tax credits add support, and the Section 45Z Clean Fuel Production Credit, with proposed regulations issued in February 2026, benefits RNG producers and, under recent law, allows animal-manure pathways to keep negative carbon-intensity scores and be exempt from the credit cap. Methane-reduction and decarbonisation goals drive demand, as capturing methane from landfills and manure both produces energy and cuts a potent greenhouse gas, and RNG offers a drop-in renewable gas for hard-to-decarbonise uses. These factors, low-carbon fuel policy, tax credits, and methane reduction, are the main drivers.

Key Opportunities

The market offers opportunities in dairy-manure RNG, in landfill and organic-waste projects, and in RNG for transportation. Dairy-manure RNG is the highest-value opportunity, because its negative carbon intensity earns exceptional LCFS credits and, under 45Z, retains negative emissions rates and exemption from the credit cap, making dairy and swine projects economically attractive. Landfill and organic-waste projects are a large opportunity, as landfills already supply about two-thirds of U.S. RNG and food-waste diversion and organics rules add feedstock. RNG for transportation, used as compressed and liquefied natural gas in heavy trucking, is a strong opportunity where RIN and LCFS credits reward it, and producers are building fuelling capacity. These areas, dairy-manure RNG, landfill and organic-waste projects, and RNG for transportation, are the main opportunities, alongside pipeline injection and power and heat.

Market Trends

Current trends include rapid capacity growth, policy reshaping, consolidation and portfolio change, and feedstock diversification. Capacity is growing quickly, up about 35% since 2023, as producers bring landfill and dairy projects online. Policy is being reshaped, with proposed 45Z regulations, the carve-out allowing negative carbon intensity for manure pathways, CARB amendments to LCFS biomethane pathways, and Canadian Clean Fuel Regulations changes, all of which alter the economics. Consolidation and portfolio change continue, illustrated by bp's decision to explore a sale of its Archaea Energy landfill RNG business even as it remains the largest U.S. producer, and by growth at OPAL Fuels and Montauk Renewables. Feedstock is diversifying beyond landfill gas to dairy manure, food waste, and wastewater. These trends indicate a market growing quickly but sensitive to policy and credit values.

Report Summary

Segmental Analysis

Market by Feedstock

By feedstock, the market comprises landfill gas, animal manure, wastewater, food and organic waste, and agricultural residues. Landfill gas holds the largest share, at about 60% of the market in 2026, with the remaining share divided across animal manure, wastewater, food and organic waste, and agricultural residues. Landfill gas is the dominant feedstock because nearly two-thirds of U.S. RNG is generated at landfills, using established gas-collection infrastructure, and it anchors the portfolios of producers such as Archaea Energy, OPAL Fuels, and Montauk. Animal manure, principally dairy and swine, is the highest-value feedstock because its negative carbon intensity earns exceptional LCFS and 45Z credits, and it is the fastest-growing segment. Wastewater treatment gas, food and organic waste, and agricultural residues provide additional feedstock, supported by organics-diversion rules and food-waste bans in several states.

Market by Technology

By technology, the market comprises anaerobic digestion and thermal gasification. Anaerobic digestion holds the largest share, at about 90% of the market in 2026, with thermal gasification accounting for the remaining share. Anaerobic digestion, in which microbes break down organic matter to produce biogas that is then upgraded to biomethane, is the dominant and established technology for landfill gas, manure, wastewater, and food waste, and it underpins nearly all current RNG production. Upgrading technologies, including membrane, pressure-swing adsorption, and amine systems, purify the biogas to pipeline quality. Thermal gasification, which converts woody and other biomass to synthesis gas and then to biomethane, is an emerging technology that broadens feedstock but is at an earlier stage. The dominance of anaerobic digestion reflects its maturity and its fit with the main waste feedstocks.

Market by Application

By application, the market comprises transportation, pipeline injection, and power and heat. Transportation holds the largest share, at about 55% of the market in 2026, with the remaining share divided between pipeline injection and power and heat. Transportation, using RNG as compressed and liquefied natural gas in heavy-duty trucking and fleets, is the leading application because RIN and LCFS credits are generated when RNG is used as a transportation fuel, which drives the economics, and producers are building RNG fuelling stations. Pipeline injection delivers RNG into the natural gas grid for utility and building use, supported by utility procurement and voluntary programs. Power and heat generation uses biogas and RNG at or near the production site. The concentration in transportation reflects the value of transport-fuel credits, though pipeline injection is significant and growing.

Geographic Analysis

United States Biomethane Market

The United States is by far the largest market in the region, accounting for the large majority of production and demand. The scale reflects strong policy support, with the Renewable Fuel Standard generating RIN credits, the California LCFS generating high-value credits especially for dairy manure, and the 45Z tax credit supporting production, and U.S. RNG capacity reached about 604 million cubic feet per day in 2025. Landfill gas supplies about two-thirds of U.S. RNG, and dairy manure is the fastest-growing feedstock. Supply is led by Archaea Energy, the largest U.S. producer, together with OPAL Fuels, Montauk Renewables, Clean Energy Fuels, Waste Management, and Republic Services, which brought nine RNG projects online in 2025. The United States sets the pace for production, policy, and technology across the region.

Canada Biomethane Market

Canada is a significant and growing market, driven by the federal Clean Fuel Regulations, which require reductions in the carbon intensity of transport fuels, and by provincial policy and utility renewable-gas targets. In September 2025 the government announced a CAD 370 million biofuel production incentive and proposed amendments to the Clean Fuel Regulations to increase domestic low-carbon fuel content, and the market is watching how these changes develop through 2026. Demand is met by domestic production from landfill, agricultural, and wastewater feedstock and by utility procurement, and Enbridge and others are active. The country's policy framework and agricultural and waste feedstock support growth.

Pricing Analysis

Pricing in biomethane is determined less by the energy value of the gas than by the value of the environmental credits it generates, because the economics depend on stacking federal and state credits on top of the commodity gas price. RNG used as transportation fuel generates RIN credits under the Renewable Fuel Standard and LCFS credits in California and other programs, and dairy-manure RNG earns exceptional LCFS values, sometimes more than 15 times the fossil natural gas price, because of its negative carbon intensity. The 45Z tax credit adds further value, with a bespoke advantage for animal-manure pathways. The commodity value of RNG is modest, so the credits are what make projects viable.

Several factors set the effective economics. Policy credit values are central, since RIN, LCFS, and 45Z credits determine project returns, and their variability is the main source of risk, as swings in LCFS and RIN prices directly affect margins. Feedstock carbon intensity drives credit value, so dairy and swine manure, with negative carbon intensity, earn far more than landfill or wastewater gas. Feedstock availability and project scale affect cost, with large landfill projects benefiting from established gas collection. Location matters, since access to LCFS markets such as California and to pipeline or fuelling infrastructure shapes value. The trajectory of pricing and investment depends heavily on the stability and design of policy, including the 45Z regulations and LCFS amendments, which is the defining variable for the market.

Competitive Landscape

The competitive field combines dedicated RNG producers, waste companies, and energy majors. Archaea Energy, owned by bp, is the largest U.S. RNG producer, built around landfill gas, and produced 1.3 million MMBtu in the third quarter of 2025, though bp has moved to explore a sale of the business. OPAL Fuels Inc. develops landfill and dairy RNG and RNG fuelling stations and grew RNG production strongly, and Montauk Renewables, Inc. produces RNG from landfill and agricultural feedstock. Clean Energy Fuels Corp. supplies RNG as vehicle fuel, and waste companies Waste Management, Inc. and Republic Services, Inc. produce RNG from their landfills, with Republic bringing nine projects online in 2025.

Among energy and infrastructure companies, Chevron Corporation participates in dairy RNG through joint ventures, DTE Vantage and Kinder Morgan, Inc. develop and transport RNG, Vanguard Renewables and California Bioenergy focus on dairy manure, and Enbridge Inc. is active in Canada. Competition turns on feedstock access and carbon intensity, project development and scale, access to credit markets, and infrastructure, and dairy-manure projects with negative carbon intensity are especially valuable. Policy reshaping, including the 45Z regulations and LCFS amendments, and consolidation, including the potential sale of Archaea, are shaping the field, and producers with low-carbon-intensity feedstock, scale, and access to credit markets are best positioned.

Key Players

The active producers in the market as of September 2026 include:

• Archaea Energy (bp p.l.c.)
• OPAL Fuels Inc.
• Montauk Renewables, Inc.
• Clean Energy Fuels Corp.
• Waste Management, Inc.
• Republic Services, Inc.
• Chevron Corporation
• DTE Vantage
• Kinder Morgan, Inc.
• Vanguard Renewables
• California Bioenergy LLC
• Enbridge Inc.

Voice of Customer

Fleet manager, trucking company (United States, California): "Renewable natural gas lets us run our existing natural gas trucks on a low-carbon fuel and capture the LCFS and RFS value, which is what makes it work economically. Our exposure is to the credit markets and to supply, so we sign supply agreements with producers and watch the policy changes closely."

Dairy operator (United States): "Turning manure into renewable natural gas both reduces our methane and creates a revenue stream, and the value is high because of the negative carbon intensity credits. The economics depend on the LCFS and the 45Z rules, and the recent recognition of negative emissions for manure is a big deal for projects like ours."

Utility renewable-gas program manager (United States): "We procure RNG to offer customers a lower-carbon gas option and to meet decarbonisation goals, and pipeline-injected RNG fits our existing infrastructure. Supply, cost, and the durability of the environmental attributes are what we evaluate, and policy stability matters for long-term contracts."

Analyst Perspective

North American biomethane is a fast-growing market whose economics are made by policy rather than by the energy value of the gas. Capacity has grown about 35% since 2023, landfill gas supplies about two-thirds of U.S. RNG, and dairy manure is the highest-value and fastest-growing feedstock because its negative carbon intensity earns exceptional credits. The market is anchored by the Renewable Fuel Standard, the California LCFS, and the 45Z tax credit, and it delivers a genuine dual benefit of energy and methane reduction, particularly for manure.

The defining feature, and the honest caution, is policy dependence. Project returns depend on stacking RIN, LCFS, and 45Z credits, and swings in credit values directly affect margins, so the market is exposed to policy design and enforcement; the proposed 45Z regulations, the carve-out for manure pathways, LCFS amendments, and Canadian Clean Fuel Regulations changes are all reshaping the economics in 2026. The decision by bp to explore a sale of Archaea Energy, even as the largest producer, illustrates that even leading players are recalibrating amid policy and market change. Dairy-manure RNG is the clear winner under current policy, given its negative carbon intensity and the 45Z carve-out, while landfill projects remain the volume base. The market should be assessed on policy stability, feedstock carbon intensity, and access to credit markets rather than on capacity alone, and producers with low-carbon-intensity feedstock, scale, and infrastructure access are best positioned.

Key Strategic Developments

• February 2026: The U.S. Treasury and IRS published proposed regulations for the Section 45Z Clean Fuel Production Credit, and under recent law animal-manure RNG pathways may retain negative emissions rates and are exempt from the credit cap, a significant boost for dairy and swine projects and a defining policy development for the market.
• 2026: bp moved to explore a sale of its Archaea Energy landfill RNG business, the largest U.S. RNG producer, even as Archaea produced 1.3 million MMBtu in the third quarter of 2025 and expected positive cash flow, reflecting portfolio recalibration amid policy and market change.
• 2025-2026: OPAL Fuels Inc. and Montauk Renewables, Inc. grew RNG production and advanced landfill and dairy projects, and Republic Services brought nine RNG projects online in 2025, expanding the production base.
• September 2025: The Canadian government announced a CAD 370 million biofuel production incentive and proposed amendments to the Clean Fuel Regulations to increase domestic low-carbon fuel content, with the changes under review through 2026.
• 2026: The California Air Resources Board advanced amendments to LCFS pathways for biomethane used as transportation fuel, adjusting the credit framework that underpins RNG economics.

Strategic Recommendations

For producers, the priority is to prioritise low-carbon-intensity feedstock and manage policy exposure, because the economics depend on environmental credits and dairy-manure RNG, with its negative carbon intensity and 45Z carve-out, is the highest-value opportunity. Companies should develop dairy and swine manure projects to capture negative-carbon-intensity credits, continue to build the landfill volume base, secure access to LCFS and RIN markets and to pipeline and fuelling infrastructure, and structure projects to manage the risk of credit-price swings. Diversifying feedstock and building fuelling and pipeline offtake strengthen the position.

For fleets, utilities, and buyers, the recommendation is to use RNG where policy supports it, securing supply through agreements while managing exposure to credit-market and policy risk, and to value the durability of the environmental attributes in long-term contracts. For policymakers, the evidence shows that stable, well-designed policy is essential, since the market's economics and investment flow directly from credit values and rules, and clarity on the 45Z regulations, LCFS amendments, and Canadian Clean Fuel Regulations would support continued investment. For investors, this is a market to evaluate on policy stability, feedstock carbon intensity, and access to credit markets rather than on capacity growth alone, recognising that a genuine energy-and-methane-reduction benefit is tempered by the policy dependence that defines the economics.