The Potential Of Renewable Natural Gas (RNG) To Complement Conventional Natural Gas

Essay By Marco Brun | CEO & Chief Commercial Officer | AleAnna  

Renewable natural gas (RNG), also known as biomethane, is emerging as a key component of Italy’s energy transition strategy,  complementing conventional natural gas in reducing greenhouse gas emissions and enhancing energy security. RNG is produced by upgrading biogas derived from organic waste, such as agricultural residues, municipal waste, and wastewater treatment plants. Italy,  with its advanced natural gas infrastructure and strong agricultural sector, is uniquely positioned to scale RNG production and  integrate it seamlessly into its energy system. 

Current Status of RNG in Italy  

As of 2023, Italy is a European leader in biogas production, with over 1,600 biogas plants producing approximately 2.5 billion cubic  meters (bcm) of biogas annually. Of this, 0.6 bcm is upgraded to RNG, representing about 1% of Italy’s total natural gas consumption.  However, Italy’s National Energy and Climate Plan (NECP) targets a tenfold increase in RNG production to 10 bcm annually by 2030,  equivalent to 15% of current natural gas consumption. Key regions driving RNG production include Lombardy, Emilia-Romagna, and  Veneto, where agricultural residues and livestock manure provide abundant feedstocks. These regions account for 70% of Italy’s biogas  plants, supported by strong policy incentives and technological expertise.

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Economic Benefits of RNG  

RNG production is a significant economic driver, particularly in rural areas. The sector currently supports over 14,000 jobs, with  projections indicating an additional 8,000 jobs by 2030 as production scales. RNG plants generate revenue from both energy sales  and waste management services. For example, a single 1-megawatt RNG facility can generate annual revenues of €1.5 million, while  simultaneously reducing waste disposal costs for local municipalities. 

Export opportunities for RNG-related technologies, such as anaerobic digesters and biogas upgrading systems, are also expanding.  In 2022, Italian companies exported €800 million worth of biogas and RNG technologies, a figure expected to grow as international  demand for sustainable energy solutions rises. 

Environmental Advantages of RNG  

One of the most compelling arguments for RNG is its potential to reduce greenhouse gas emissions. RNG is carbon-neutral or even  carbon-negative when derived from waste that would otherwise emit methane during decomposition. In 2022, Italy’s RNG and biogas  sectors prevented the release of 3.8 million tons of CO₂ equivalent, contributing significantly to the country’s climate goals. 

Blending RNG with conventional natural gas further reduces emissions across sectors. Italy’s national gas grid has already begun  integrating RNG, with 50 injection points operational as of 2023. By replacing 10% of conventional natural gas with RNG, Italy can  cut annual emissions by an additional 6 million tons of CO₂. 

Integration with Existing Infrastructure  

Italy’s well-developed natural gas infrastructure provides a strong foundation for RNG integration. The country’s 33,000-kilometer  gas pipeline network and 20 bcm of storage capacity are being adapted to handle increasing volumes of RNG. Snam, Italy’s leading  gas infrastructure operator, plans to invest €3 billion by 2030 to expand RNG injection points and ensure compatibility with hydrogen  and other renewable gases. 

The ability to inject RNG into the existing gas grid eliminates the need for expensive new infrastructure, making RNG a cost-effective  solution for decarbonizing the natural gas supply chain. By 2030, Italy aims to have 80% of its gas infrastructure ready to handle  renewable gases, including RNG. 

Sectoral Applications of RNG  

RNG has diverse applications across Italy’s economy: 

• Transportation: RNG is a clean alternative to diesel for heavy-duty vehicles. Italy has Europe’s largest fleet of compressed natural  gas (CNG) vehicles, with over 1.2 million vehicles on the road. By replacing CNG with RNG, Italy can reduce transportation  emissions by up to 85%. 

• Power Generation: RNG can supplement natural gas in power plants, particularly during periods of low renewable energy output. Hybrid systems combining RNG and solar or wind power are being piloted in southern Italy, demonstrating a 15% improvement  in overall efficiency. 

• Industrial Use: Energy-intensive industries, such as ceramics and chemicals, are exploring RNG as a replacement for conventional  natural gas. The ceramics industry in Emilia-Romagna, which consumes 3 bcm of natural gas annually, plans to substitute 10%  of its energy needs with RNG by 2030.

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Challenges and Solutions  

Despite its potential, RNG faces challenges such as high production costs and limited feedstock availability. Producing RNG costs  approximately €70-80 per megawatt-hour (MWh), compared to €30-40/MWh for conventional natural gas. However, ongoing  technological advancements are expected to reduce costs by 20% by 2030. 

Feedstock limitations can be addressed by diversifying sources, including non-food crops, algae, and industrial waste. Italy’s €4.7  billion allocation from the EU Recovery and Resilience Facility is funding research into alternative feedstocks and improving the  efficiency of anaerobic digesters. 

Future Prospects  

Italy’s ambitious targets for RNG production position it as a leader in Europe’s renewable energy transition. By 2050, the country aims  to produce 15 bcm of RNG annually, meeting 20% of its total gas demand. Integration with hydrogen production and carbon capture  technologies will further enhance the sustainability of RNG systems. 

Collaboration with international partners will also play a role in scaling RNG production. Italy is actively participating in the European  Biogas Association, promoting cross-border knowledge sharing and investment in renewable gas projects. 

Conclusion  

Renewable natural gas has significant potential to complement conventional natural gas in Italy, offering economic, environmental,  and energy security benefits. With strong policy support, advanced infrastructure, and a commitment to innovation, Italy is well positioned to lead the development of RNG as a cornerstone of its energy strategy. By scaling production, diversifying feedstocks,  and integrating RNG into the national grid, Italy can achieve its climate goals while fostering economic growth and sustainability.