Poop is hot: Renewable natural gas made from livestock manure fetches higher prices, prompting Shell and BP to invest more.
In the past, livestock manure was highly shunned due to its stench and methane emissions. However, in recent years, it has become a hot commodity, both as a source of biogas for power generation and as a purified form of renewable natural gas (RNG). Besides being sold as regular natural gas, RNG also offers environmental subsidies for reducing methane emissions, making manure what foreign media describe as "brown gold." However, climate experts and advocates worry that this transformation will incentivize ranches to expand, defeating the original purpose of reducing methane emissions. Claiming to be more sustainable, RNG has become a popular energy source, with oil companies increasing their investment. The Guardian reports that investment in converting manure into energy has increased rapidly in the United States in recent years. This growth has been particularly pronounced in states with strong livestock production, such as California, Wisconsin, and New York. This business has become even more popular after the passage of the Inflation Reduction Act (2022), which introduced several incentives for renewable energy and carbon reduction measures. Taking California as an example, by the end of 2022, more than 100 publicly funded anaerobic manure digestion facilities were under construction and would soon be put into operation. In 2021, the number of RNG equipment (including those in planning and already in operation) in the livestock and agricultural sectors in the United States increased by more than 36% compared to the previous year. Methane emissions are one of the problems in the livestock industry. Animal burps and decomposition in manure storage tanks release methane, which is the second largest greenhouse gas causing global warming, with a warming potential 28-36 times that of carbon dioxide. In the past,