I am working on Rails 2.2.2 application. For this I installed rvm with Ruby version 1.9.3p551. There is no Gemfile for this application. So as mentioned in the environment.
I had a similar issue, when running the standalone passenger, it worked fine. However, running it using a systemd service gave the same error as the OP:
undefined method `activate_bin_path' for Gem:Module (NoMethodError)
I've managed to solve it using
env | egrep 'gem|rvm|ruby' > passenger.env
and adding it to the service file using EnvironmentFile=[...]/passenger.env.
Hopefully, this will be useful for other people stuck on this.