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.

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

Renewable Natural Gas (RNG) offers diverse applications across Italy’s economy, contributing to both environmental sustainability and energy efficiency. In the transportation sector, RNG serves as a clean alternative to diesel for heavy-duty vehicles. Italy, boasting Europe’s largest fleet of compressed natural gas (CNG) vehicles with over 1.2 million on the road, can achieve significant emissions reductions by transitioning from CNG to RNG. This shift has the potential to lower transportation-related emissions by up to 85%.

In power generation, RNG complements natural gas in power plants, particularly during periods of low renewable energy output. Hybrid systems that integrate RNG with solar or wind power are being piloted in southern Italy, demonstrating a 15% improvement in overall efficiency. These systems highlight RNG’s role in enhancing grid reliability and supporting the transition to renewable energy.

Industrially, energy-intensive sectors like ceramics and chemicals are exploring RNG as a substitute for conventional natural gas. In Emilia-Romagna, the ceramics industry, which consumes 3 billion cubic meters of natural gas annually, plans to replace 10% of its energy needs with RNG by 2030. This transition not only reduces emissions but also aligns with Italy’s broader decarbonization goals, showcasing RNG’s versatility and impact across multiple sectors.

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.