EcoEngineers held an renewable natural gas (RNG) webinar on May 14, 2026, titled Evaluating RNG Assets: Where Traditional Energy Diligence Falls Short. During the presentation, experts Dave Lindenmuth and Sean Gassen walked through the unique diligence considerations that influence RNG project performance and value. They spoke about why compliance systems, data integrity, and third‑party verification are central to preserving asset value and highlighted practical diligence red flags investors should identify before committing capital.

The presentation was rich with information for investors, financiers, and strategic buyers evaluating RNG acquisitions or portfolio investments, and there was minimal time for questions at the end of the hour. Below is a listing of some of the questions we received during the webinar and our experts’ answers. 

Q: How common are “put or pay” requirements in pipeline-connected landfill gas-to-RNG (LFG-to-RNG) projects, where the producer is required to compensate the pipeline operator for the value of the gas that is unable to be delivered during unscheduled downtimes?

A: It is rare to have a “put or pay” requirement with the pipeline or pipeline operator. However, it is relatively common, especially in fixed price offtake agreements, to have volume minimums, where if the producer falls below that minimum, then they are responsible for compensating the offtaker or purchasing replacement gas. We typically advocate for producers to negotiate the minimum to be as low as possible to mitigate that risk as much as possible. Those delivery minimums are subject to force majeure though, so if the unscheduled outage can be attributed to force majeure, then you can also mitigate replacement risk in that manner.

Q: What are the near-term and long-term level of policy-related risks to LFG to RNG projects that depend on RIN credits from the U.S. Renewable Fuel Standard (RFS)?

A: We don’t see many policy-related risks from the USEPA in relation to LFG-to-RNG projects, either near term or long term. The space the RNG occupies within the RFS is well established, and there hasn’t been much in the way of efforts to undermine that space. The bigger risks to LFG projects are the limited compressed natural gas (CNG) dispensing capacity and the growing trend of organics diversion laws. With limited CNG dispensing capacity, RNG projects will have a harder time matching production to dispensing and separating RINs, the energy credits for the RFS. Organics diversion laws would limit the amount of organics being landfilled, thus reducing RNG production potential from the landfill and making long-term economics of the project tighter.

Q: Do you see any meaningful amount of RNG going to data centers for power production today and in five years?

A: There is a high likelihood of RNG being consumed at data centers, but some of that will depend on how strict greenhouse gas (GHG) emissions rules are for data centers. RNG can provide a stable supply of low-carbon energy to data centers and can help fill the gaps from wind and solar. However, the main issue with RNG will be its cost of acquisition for, which can be five times that of fossil natural gas. GHG emissions regulations can help drive the purchase of RNG for use at data centers.

Q: Can you discuss the Japanese RNG demand from the U.S.?

A: Despite the absence of a formal regulatory framework, Japanese utilities already begun securing U.S. RNG and are using leveraging existing liquid natural gas (LNG) export terminals capacity to ship it to Japan. While still a pilot scale stage, this is a typical first move by Japanese companies to demonstrate commercial feasibility and build the evidence for ongoing policy discussions with the Government. Japan imports roughly 9Bcf/d of LNG (2025 numbers), making it the second largest LNG importer and, potentially, a significant market for RNG. Japan’s major utilities committed to sourcing RNG and/or e-methane equivalent to 1% of their direct city gas sales by 2030, which is about 8 to 9 Bcf/year. The market potential extends beyond that, as this commitment covers only the city gas utility sector.

For more information on EcoEngineers’ RNG services or for additional questions related to this topic, email Dave Lindenmuth, Sr. Director, Growth & Development, at dlindenmuth@ecoengineers.us.