Renewable fuels 101: What are compressed and renewable natural gas?

Chevron offers a portfolio of lower carbon solutions, creating options for fleets nationwide. Compressed Natural Gas (CNG) and Renewable Natural Gas (RNG), a form of CNG, may be a lower carbon solution for your fleet. This article will explain what these fuels are, the benefits of RNG and CNG and infrastructure offered by Chevron to implement these fuels in your operation. Depending on where your fleet operates, these natural gas fuels may be a solution to power your fleet, while helping to reduce your carbon intensity.

What are natural gas fuels?

CNG and RNG are produced from methane — a potent greenhouse gas (GHG). According to the , methane is more than 28 times as potent as carbon dioxide (CO2) at trapping heat in the atmosphere. It accounts for approximately 11% of global GHG emissions. Therefore, fuel solutions that capture, process and utilize methane can be a powerful tool to help lower greenhouse gas emissions.

What is RNG and how is it produced?

RNG is a form of CNG that is produced by processing methane emitted from manure, food, and municipal and solid waste in an . An anaerobic digester is a system that converts waste or biomass into natural gas. Waste is pumped into a covered system, which traps and processes methane gas emitted from the waste materials as they decompose.

Biomethane conversion process example

Benefits of natural gas fuels

RNG offers multiple benefits — methane emissions are reduced from livestock as methane-emitting waste is captured and processed, and fossil fuels are replaced. Material left from digesters after methane is collected is commonly used as farm fertilizer, animal bedding and other products.

RNG can offer additional advantages such as:

  • Domestic availability and distribution networks obtained via connection to public pipelines
  • Lower life cycle carbon intensity
  • Lower engine emissions of nitrogen oxides (NOx) with low NOx certified engine
  • RNG can displace fossil-based natural gas in the pipeline network
  • Capturing RNG to power a vehicle represents about 400% decrease in lifecycle intensity vs. conventional diesel under California fuel standards
  • On average, CNG has a lower retail price compared to conventional diesel

Deploying one low-NOx RNG-powered truck can offset the GHG emissions equivalent to the emissions of about three diesel trucks. Fleets may also see cost benefits — operating RNG trucks that follow original equipment manufacturer recommended maintenance schedules have often reported lower cost-per-mile and total cost of ownership expenses than their diesel counterpart.

What vehicles can be fueled with natural gas?

Natural gas is a fuel option for fleets that have natural gas vehicle (NGV) engines. Heavy- and medium-duty NGVs are available from equipment manufacturers. Qualified system retrofitters may convert traditional vehicles for natural gas operation, as well.

The X15N engine from Cummins Inc. provides technology to make C-RNG fuel options for today. This innovative engine offers:

  • 15L diesel-like ratings and performance — up to 500hp/1850 lb-ft torque
  • Cost effective, lower carbon solution complement to diesel — this is a carbon negative solution with forms of RNG
  • Up to a 10% fuel economy/GHG improvement over previous natural gas engine from Cummins (ISX12N)
  • Helps customers address lower carbon intensity goals by lowering NOx emissions and particulate matter

Fleets aiming to lower their carbon emissions may find natural gas fuels to be a good fit. CNG and RNG can provide a similar fuel range as traditional fuel options in regions supported by reliable CNG fueling stations.

RNG is positioned for growth

According to a 2019 report, there is great potential for growth in the U.S. biogas industry. They estimate over 15,000 sites (i.e., farms, water resource recovery facilities, food scrap systems) are poised for development of anerobic digester systems to potentially produce more natural gas fuel.

Chevron and its subsidiaries are developing their investment in natural gas production to grow the availability of this fuel source. RNG is available to heavy transportation operators at various locations and as more RNG facilities come online, availability is increased.

CalBioGas Hilmar LLC, a joint venture between Chevron and California Bioenergy LLC (CalBio) recently completed a central processing facility for a dairy biomethane project in Merced County, California. The RNG produced through this venture increased the overall supply through a fuel offering that has a lower carbon intensity on a lifecycle basis under California’s Low Carbon Fuel Standard.

Chevron’s joint venture with Brightmark RNG Holdings LLC announced in early 2025 that it has delivered first gas at 10 RNG projects across the Midwest, making it one of the leading dairy RNG providers in the country.

Growth is already being seen in California, which has legislation that supports the development of RNG production sites and RNG use through incentive programs. California’s adoption of CNG and RNG provides a preliminary road map for potential growth.

Additionally, there are over offering fueling reliability through Chevron stations.

Lower your carbon intensity with a strong partner

C-RNG is one of many lower carbon solutions Chevron offers. As fleet managers consider strategies to reduce GHG emissions, a trusted partner can help ease your transition to lower carbon intensity fuel types.

Chevron can work with your business on its lower carbon journey. From understanding and establishing ESG reporting, to finding fuel solutions that fit your fleet, we’re ready to assist. To learn more, contact our team.