LCFS and RNG Dynamics

LCFS serves as a pivotal tool in California aimed at reducing transportation sector emissions, allowing for various fuels to earn credits. As renewable natural gas (RNG) becomes increasingly valuable due to its low carbon intensity, it raises questions about market dynamics—particularly whether the focus on transportation is stifling RNG's use in other sectors. With prices for qualifying RNG reaching up to $1.50 per MMBtu, the landscape is shifting, prompting a closer look at how these incentives impact overall market growth.