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A Golden Opportunity for America's Heartland

New research from Vanguard Renewables has illuminated a significant opportunity for the heartland of America, highlighting untapped renewable natural gas (RNG) resources that could bolster the U.S. economy while enhancing energy independence. The Midwest, often regarded as the agricultural backbone of the nation, may have the key to not only sustaining American agriculture but also expanding U.S. dominance in the burgeoning maritime fuel market.

The Potential of Midwestern Agricultural Waste

According to the analysis, utilizing agricultural waste from the Midwest—particularly crop residues and food waste—has the potential to generate roughly 1,580 trillion Btu of renewable natural gas. This figure exceeds the current market cap for RNG by more than eightfold. When processed and liquefied, RNG can transform into bio-LNG, offering a seamless transition for conventional LNG to comply with low-carbon mandates without necessitating new vessels or infrastructure upgrades.

The timing could not be more crucial. The worldwide sustainable marine fuel market is projected to escalate from $13 billion in 2024 to an impressive $836 billion by 2034. As the maritime industry steadily shifts away from traditional diesel fuels and as lifecycle emissions standards tighten globally, bio-LNG is becoming increasingly vital for maintaining the competitiveness of U.S. LNG in international markets. America's heartland is strategically positioned to seize a profitable share of this industry, thus generating substantial economic benefits for rural communities and farmers.

A Critical Policy Gap

However, amid this substantial potential lies a significant challenge—an unresolved policy gap. Currently, ocean-going vessels are excluded from accessing Renewable Fuel Standards (RFS). This lack of inclusion means that bio-LNG utilized in marine applications does not qualify for the renewable fuel credit benefits that other fuels do receive. The absence of these credits may thwart investment opportunities and threaten the long-term competitiveness of U.S. LNG on the global stage. Fortunately, bipartisan legislation has been proposed to rectify this issue and to ensure equitable competition with European regulations.

Mike O'Laughlin, CEO of Vanguard Renewables, stated, "The Midwest is sitting on a production advantage that can strengthen rural economies and extend U.S. energy leadership for decades. The region boasts the necessary feedstock, land, and existing infrastructure to scale production quickly, but targeted policy action is critical to unlock this generational opportunity."

The Benefits of Harnessing RNG Potential

Tapping into this potential could yield transformative infrastructure investments that will result in a clear win-win for America:
1. Rural Prosperity: Farmers could see an additional $1.1 billion to $2 billion in annual revenue, leading to a cumulative economic boost of $105 billion to $185 billion by 2050, effectively reducing farm losses during challenging years by nearly a third.
2. Infrastructure Investment: Estimated investments in production capacity and delivery infrastructure for U.S. RNG and other advanced fuels may range between $120 billion to $220 billion.
3. Job Creation: The initiative could generate between 390,000 to 680,000 jobs spanning farming communities, energy infrastructure, and maritime operations.

The comprehensive analysis conducted includes state-level insights demonstrating where this opportunity is concentrated and how current infrastructure can be enhanced. For example, Ohio could increase its RNG output approximately sevenfold by integrating agricultural residues into its feedstock mix.

The total economic potential of this initiative translates to a cumulative GDP growth ranging from $2 trillion to $3 trillion by 2050. To capture the extensive value at stake, collaborative actions amongst policymakers, farmers, agricultural organizations, private investors, and local communities are essential. Successful implementation will amplify both production and export capacity, granting the U.S. a lucrative avenue to extend its global LNG leadership.

Conclusion

The full white paper titled Harnessing the Untapped Energy Potential of America's Heartland, complete with detailed economic assessments and state-specific data, is available for download at Vanguard Renewables.

About Vanguard Renewables

Vanguard Renewables, headquartered in Weston, Massachusetts, is a leading environmental services firm focused on producing biomethane from organic waste. The company constructs, owns, and manages on-farm anaerobic digesters that turn food, beverage, and agricultural waste into renewable natural gas ready for pipeline use. With active operations across the Northeast, Midwest, and Southeast—and plans for expansion throughout the nation—Vanguard Renewables is dedicated to reducing greenhouse gas emissions and supporting sustainable agriculture while bolstering domestic energy infrastructure.