Quick answer: Renewable natural gas (RNG) — pipeline-quality gas produced from organic waste — is a growing part of the energy mix. Its prices, incentives, and environmental attributes differ from conventional gas, adding new dimensions that hedging strategies must account for as RNG scales.

What is renewable natural gas?

RNG is captured from landfills, farms, and wastewater and upgraded to pipeline quality, making it interchangeable with conventional gas but with a lower carbon profile. It sits at the intersection of gas markets and the energy transition affecting natural gas hedging.

What makes RNG different to hedge?

RNG carries environmental attributes and incentives — credits and standards — that can be worth more than the gas itself, and its pricing reflects those. This links to the broader impact of ESG factors and carbon pricing.

How does RNG affect hedging?

Firms may hedge the commodity, the environmental attributes, or both, managing their separate price dynamics. Mobius Risk Group's carbon and ESG analytics and hedging services help firms manage RNG-related exposure.

Frequently asked questions

What is renewable natural gas?

Pipeline-quality gas produced from organic waste sources such as landfills and farms, with a lower carbon profile than conventional gas.

How is RNG priced?

Its value combines the commodity price with environmental credits and incentives, which can dominate the total.

How is RNG hedged?

By hedging the commodity, the environmental attributes, or both, each with its own price dynamics.