The transportation sector is one of the largest sources of emissions in the United States, responsible for 28% of greenhouse gas (GHG) emissions.¹ The industry recognizes the urgent need to reduce emissions output: recent developments such as the expanding network of renewable natural gas (RNG) plants and fueling stations, as well as the launch of the Cummins X15N natural gas engine, have encouraged adoption and continued use of RNG as an alternative fuel for fleets. Natural gas currently powers more than 135,000 natural gas vehicles across the country.² 

RNG’s role in decarbonizing transportation continues to grow. As of September 2024, there are over 400 RNG projects in the United States³ and more than 1,600 fueling stations across the United States and Canada.² In 2022, RNG made up 69% of all on-road vehicle fuel used in natural gas vehicles, marking a 218% jump from 2018 usage.⁴ With upcoming regulatory changes, the rising trend is expected to continue. 

The time to act is now. Using RNG as a transportation fuel can reduce transportation emissions by up to 95%,⁵ as it is a lower-carbon alternative to other types of natural gas and diesel. With the industry’s goal of reducing emissions by 80% by 2030 and virtually eliminating emissions by 2050,⁶ RNG is a key player in achieving this transformation. 

While RNG brings incredible benefits to fleets, companies can maximize these advantages by leveraging their own private RNG fueling station. With a private station, your company can generate additional revenue through Renewable Identification Numbers (RINs), helping to accelerate the payback period of transitioning to RNG. Typically, fueling stations receive RNG from an RNG producer, and when trucks fill up, RINs are generated. RINs are credits that are marketed and sold to obligated parties such as crude oil refineries. RIN revenues can be split between the RNG producer and the fueling station. By owning your own fueling station, your company can capture a larger share of the RINs profits. 

If your fleet has fewer trucks than the capacity of the fuel station, your revenue opportunities don’t have to stop with RINs - your company can open fueling to third-party fleets too. 

Profits aren’t the only reason to build your own fueling station. By owning your fueling station, your company has more control. Having a private station ensures your fleet is taken care of every day at any time because you can tailor your station to fit your fleet’s day-to-day activities. 

That control doesn’t stop at the operations of the fuel station; when your trucks are filling up with RNG at your company’s fuel station, your company has greater control regarding its reduction of Scope 1 emissions. 

Additionally, natural gas pricing is lower and more stable than diesel pricing. When your fleet works with Kinder Morgan RNG, your company could save up to 91% on fuel costs. Plus, companies using RNG as transportation fuel qualify for tax credits. The Alternative Fuel Excise Tax Credit is a credit of 50 cents per gallon that can be claimed by companies that sell or use alternative transportation fuel.⁷ The $1.00 RNG Motor Fuel Tax Credit was introduced in May of 2024, and if passed, will create a $1.00 per gallon tax credit for dispensers of RNG for transportation fuel.⁸ This was designed to encourage more fleets to convert to RNG. When considering the savings RNG can bring in addition to greater revenue potential, adopting RNG is clearly a great choice. 

By switching your fleet to RNG now, you’ll be ahead of the curve when it comes to regulation. There are plenty of policies mandating the continued adoption of RNG, such as the Clean Trucks Plan which was announced by the EPA in 2021. The Clean Trucks Plan is a strict set of regulations for the transportation sector created to reduce pollution and protect public health while making an effort to curb climate change.⁹ The plan includes regulations for light, medium and heavy-duty vehicles to reduce both GHG emissions and emissions that create smog and soot. President Biden’s Inflation Reduction Act (IRA) is one of the most significant efforts Congress has made to reduce emissions throughout our entire economy. The IRA modifies and extends the clean energy Investment Tax Credit to provide up to a 30% credit for qualifying investments in renewable energy projects.¹⁰

It's no surprise that more regulation will come to further encourage RNG use and advance sustainability efforts. Transportation companies will be mandated to change, and now is the time to make those changes so it benefits your company, customers and communities as well. 

Owning a private RNG fueling station provides significant financial and operational benefits. The team at Kinder Morgan RNG can help you figure out how to start your RNG journey. Learn more about how RNG can positively impact your fleets through our guide, “Driving Sustainability & Growth with RNG,” and our other resources below.