Northwest Natural Holding Co. is expanding its role in the growing renewable natural gas (RNG) market with the formation of a subsidiary focused on supplying renewable fuels to utilities and commercial, industrial, and transportation sector customers across the U.S.

The utility operator on Nov. 5 announced the new nonregulated business line, NW Natural Renewables, would provide fuels processed from existing waste streams and renewable energy sources. The company said it would lean into the insights and capabilities that it has developed through its energy transition initiatives.

Northwest Natural, which does business as NW Natural, has previously entered into deals to invest in RNG facilities and purchase the fuel, leveraging a nation-leading RNG tariff, which the company helped develop alongside Oregon lawmakers and regulators. The company has also pioneered the use of voluntary carbon offsets and decoupling mechanisms to encourage energy efficiency, NW Natural President and CEO Dave Anderson told investors during a Nov. 5 conference call.

“All of that work has culminated in the firm belief that there’s a large and long-term need for renewable natural gas,” Anderson said. “In the midst of a historic energy transition, the demand for renewable fuels is only going to continue to grow.”