NW Natural Increases Renewable Natural Gas Procurement, Expands Clean Energy Portfolio for 2026
NW Natural, Oregon’s largest natural gas utility and one of the state’s longest-serving energy companies, has reported another year of significant growth in its renewable natural gas (RNG) program, underscoring its ongoing commitment to reducing greenhouse gas emissions while maintaining reliable and affordable energy service for customers. The company recently submitted its annual renewable natural gas report to the Oregon Public Utilities Commission (OPUC), detailing continued progress in expanding the share of renewable gas supplied through its distribution system.
According to the filing, renewable natural gas accounted for 3.35% of NW Natural’s total natural gas purchases in 2025, representing a notable increase compared with the volumes secured in 2024. The latest figures demonstrate the company’s continued investment in renewable fuels despite changing market conditions and the completion of several existing supply projects.
Building on this momentum, NW Natural has already secured renewable natural gas contracts that will increase the renewable portion of its gas supply to approximately 4% in 2026. Company officials also confirmed that efforts are underway to further expand RNG procurement in 2027, reflecting a long-term strategy to steadily increase renewable energy sources within its natural gas system.
The annual filing provides regulators and stakeholders with an overview of the utility’s renewable natural gas activities, procurement strategy, and compliance with Oregon’s renewable natural gas program. The report also highlights how the company continues to identify new sources of renewable gas while balancing environmental objectives with customer affordability.
Renewable natural gas has emerged as an increasingly important component of Oregon’s broader climate and clean energy strategy. Unlike conventional natural gas extracted from underground reserves, RNG is produced by capturing methane generated from decomposing organic materials such as agricultural waste, food scraps, wastewater treatment facilities, and landfill operations. Once collected and processed to pipeline-quality standards, the renewable fuel can be transported through existing natural gas infrastructure and used in the same manner as conventional natural gas.
Because methane that would otherwise escape into the atmosphere is captured and utilized, renewable natural gas offers significant opportunities to reduce greenhouse gas emissions while making use of existing energy delivery systems. The technology has attracted growing interest among utilities, policymakers, and customers seeking practical pathways toward lower-carbon energy solutions.
Chris Kroeker of NW Natural emphasized the strategic importance of renewable natural gas in helping Oregon achieve its long-term emissions reduction objectives.
According to Kroeker, renewable natural gas is expected to play an increasingly significant role in the state’s decarbonization efforts. He noted that despite the conclusion of certain renewable gas supply projects, the company successfully increased its renewable natural gas volumes again during the past year while remaining focused on keeping energy costs affordable for customers.
He also highlighted another important milestone for the utility—the purchase of renewable natural gas produced within Oregon. This marks the first time NW Natural has sourced renewable gas from an in-state producer, representing a meaningful step toward supporting local renewable energy development while strengthening regional supply chains.
The addition of Oregon-produced renewable natural gas not only contributes to environmental objectives but also supports local economic activity by encouraging investment in renewable energy infrastructure and waste-to-energy projects within the state.
NW Natural’s renewable natural gas portfolio has grown steadily over recent years through long-term supply agreements with renewable fuel producers located across North America. These partnerships provide the utility with diversified sources of renewable gas while helping stabilize future supply availability as demand for lower-carbon fuels continues to expand.
The company’s procurement strategy focuses on securing reliable supplies through contracts that balance environmental benefits with cost considerations. This approach is intended to ensure that customers can benefit from cleaner energy options without experiencing unnecessary increases in energy costs.
Affordability remains a central element of NW Natural’s renewable energy strategy. While renewable natural gas typically carries higher production costs than conventional natural gas, the utility has sought opportunities to increase renewable volumes through competitive procurement and long-term planning.
Maintaining affordable energy service has become increasingly important as utilities across the United States navigate rising infrastructure costs, evolving environmental regulations, and growing customer demand for cleaner energy alternatives.
NW Natural indicated that its renewable natural gas expansion demonstrates that environmental progress and affordability can advance together when supported by thoughtful procurement practices and long-term investment strategies.
One of the most notable aspects of the company’s latest report is the scale of its renewable natural gas program relative to other utilities nationwide.
Based on reported contract volumes, NW Natural’s renewable natural gas supply as a percentage of total customer gas deliveries ranks among the highest levels publicly reported by natural gas utilities in the United States.
The planned increase to approximately 4% renewable natural gas in 2026 represents an important benchmark for the company and provides perspective on the pace of renewable fuel adoption within the natural gas industry.
To illustrate the significance of that figure, NW Natural noted that a 4% renewable natural gas share is roughly comparable to the percentage of total solar electricity expected to be delivered to Oregon’s electric grid in 2026 after decades of sustained investment in solar generation across the state’s electricity sector.
This comparison highlights the substantial progress made by the utility in integrating renewable fuels into its gas supply portfolio over a relatively short period of time.
Renewable natural gas continues to attract growing attention as governments, utilities, and industries seek multiple pathways for reducing carbon emissions. While electrification remains an important strategy in many sectors, renewable gaseous fuels offer an additional solution for applications where natural gas infrastructure already exists or where direct electrification may be more difficult.
Industries, commercial facilities, and residential customers can all utilize renewable natural gas without modifying existing appliances or pipeline infrastructure, making RNG an attractive option for reducing emissions while preserving energy reliability.
The renewable fuel also supports broader waste management objectives by converting methane emissions from organic waste streams into usable energy rather than allowing them to enter the atmosphere, where methane has a significantly greater short-term warming impact than carbon dioxide.
Across North America, renewable natural gas production capacity continues to expand as additional landfill gas recovery systems, dairy digesters, wastewater treatment facilities, and agricultural waste projects begin commercial operation.
These developments are increasing the availability of renewable gas supplies while creating new opportunities for utilities to diversify their energy portfolios.
For NW Natural, expanding renewable natural gas procurement aligns with both state policy objectives and customer interest in lower-carbon energy solutions. Oregon has established policies encouraging the development and use of renewable natural gas as part of broader efforts to reduce greenhouse gas emissions while maintaining reliable energy service.
The company’s ongoing investments demonstrate how regulated natural gas utilities are adapting to changing energy markets by incorporating renewable fuels into traditional distribution systems rather than relying exclusively on conventional fossil gas supplies.
Looking ahead, NW Natural plans to continue pursuing additional renewable natural gas contracts beyond 2026. The company’s objective of increasing RNG volumes again in 2027 reflects confidence in the expanding renewable gas market and the growing availability of new production projects throughout the region.
As renewable natural gas production technologies continue to mature and additional facilities come online, utilities are expected to gain access to larger supplies that could support further emissions reductions over the coming years.
With its latest regulatory filing, NW Natural has reinforced its position as one of the nation’s leading adopters of renewable natural gas, demonstrating continued progress toward integrating cleaner fuels into its energy portfolio while emphasizing affordability, reliability, and long-term environmental sustainability.
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