Greenlane Renewables: Capitalizing on RNG Sector Growth with Recurring Revenue Potential

The renewable natural gas (RNG) sector is surging as a cornerstone of the global energy transition, driven by policy tailwinds, infrastructure compatibility, and cross-sector demand. With the global RNG market projected to grow at a 44% compound annual growth rate (CAGR) to reach $446.62 billion by 2033Renewable Natural Gas Market: Hidden Growth Drivers Through …^[1], companies like Greenlane Renewables are uniquely positioned to benefit. Greenlane, a leader in biogas desulfurization and upgrading systems, has demonstrated robust market traction in 2025, with recurring revenue potential and strategic alignment to RNG's accelerating adoption.

Sector Tailwinds: Policy, Infrastructure, and Demand

The RNG market's explosive growth is underpinned by three key drivers. First, transportation decarbonization is a major catalyst. In California, RNG powers over 50% of natural gas used by commercial vehicles, while municipal fleets and freight companies nationwide are adopting it to meet emissions targetsRenewable Natural Gas Market: Hidden Growth Drivers Through …^[1]. Second, government incentives are amplifying demand. The Renewable Natural Gas Incentive Act of 2023, for instance, boosts tax credits for RNG used in vehicles and aviation, directly increasing the economic viability of biogas projectsRenewable Natural Gas Market Size, YoY Growth …^[3]. Third, agricultural waste-to-energy initiatives are expanding, with nearly 40% of such projects leveraging RNG to capture methane from livestock and organic waste, reducing emissions while supporting rural economiesRenewable Natural Gas Market Size, Share & Outlook to 2033^[4].

These trends are creating a virtuous cycle: RNG's compatibility with existing natural gas pipelines and infrastructure lowers deployment costs, making it a cost-effective alternative to conventional gasRenewable Natural Gas Market: Hidden Growth Drivers Through …^[1]. As utilities and power generation companies invest in RNG to meet regulatory mandates, the sector's growth trajectory is firmly entrenched.

Greenlane's Strategic Position: Recurring Revenue and Industry Standardization

Greenlane Renewables has emerged as a critical enabler of this transition, particularly in biogas desulfurization, a process that removes hydrogen sulfide (H₂S) from biogas to meet pipeline and injection standards. The company's proprietary Greenlane™ Cascade H₂S technology is gaining industry-wide adoption due to its low operational costs, ease of installation, and ability to recover elemental sulfur for agricultural useRenewable Natural Gas Market Size, YoY Growth …^[3].

In Q3 2025 alone, Greenlane secured $7.9 million in orders for its desulfurization equipment from three repeat customersRenewable Natural Gas Market: Hidden Growth Drivers Through …^[1], underscoring its recurring revenue model. This trend aligns with the broader market's shift toward standardized, scalable solutions. For example, Greenlane's systems are now the industry standard in Italy, Europe's fastest-growing biomethane market, and are expanding into other European and American regionsGreenlane Announces $7.9 Million in Orders for Biogas …^[2]. The company's focus on repeat business and modular designs positions it to capture long-term value as RNG facilities proliferate.

Challenges and Mitigation Strategies

While high capital costs and regulatory complexity remain hurdles, Greenlane's technology mitigates these risks. Its systems avoid the complications of oxygen-based H₂S removal, ensuring compliance with gas injection specificationsRenewable Natural Gas Market Size, YoY Growth …^[3]. Additionally, partnerships with agricultural stakeholders—via sulfur recovery—create ancillary revenue streams, enhancing project economics for customers.

Investment Outlook: A High-Growth Play in a Transformative Sector

Greenlane's market traction in 2025 reflects its alignment with RNG's structural growth drivers. With the U.S. RNG facility count expected to reach 500 by year-endRenewable Natural Gas Market: Hidden Growth Drivers Through …^[1] and North America securing a 40% market share in 2025Renewable Natural Gas Market: Hidden Growth Drivers Through …^[1], the company's recurring revenue model and technological differentiation offer a compelling value proposition. As RNG becomes a linchpin in decarbonizing transportation, agriculture, and power generation, Greenlane's role in enabling clean gas infrastructure is poised to scale.

For investors, the combination of sector tailwinds, recurring revenue visibility, and Greenlane's industry-leading technology makes it a high-conviction opportunity in the renewable energy transition.