Bio-LNG market is anticipated to grow at a CAGR of 11.1% during the forecast period (2023-2030). BioLNG is used as biofuel for heavy-duty transport, shipping, and internal production processes. Bio-Liquefied Natural Gas technology is an ideal solution to meet sustainable energy demands while supporting the circular economy. The growing adoption of a well-developed LNG filling with an improved network is the key factor supporting the growth of the market globally. Agricultural businesses can produce biogas self-sufficiently in the form of a circular economy using residual materials from their farms and businesses in their region and refine it into bio-LNG. Hence, the market players are also focusing on introducing compact bio-LNG solutions that further bolster the market growth.  For instance, in August 2022, German companies Agrarvereinigung eG Darchau and Ruhe Biogas and Italy's Ecospray teamed up to launch the first compact bio-LNG plant in Germany. The plant in Darchau, Lower Saxony, will produce biogas from manure and dung in the region and liquefy it for use as a heavy-duty transport fuel. It has a capacity of 3 metric tons/day, or around 1,000 mt/year, replacing about 1.3mn litres of conventional diesel. 

Segmental Outlook 

The global bio-LNG market is segmented on the transaction mode, advertisement format, and industry verticals. Based on the source type, the market is sub-segmented into organic household waste, organic industrial waste, municipal waste and agriculture residues. Further, on the basis of application, the market is sub-segmented into transportation fuel (heavy-duty vehicles, shipping), power generation and others. Among the source types, the organic industrial waste sub-segment is anticipated to hold a considerable share of the market owing to the rise in the development of many industries that produce liquid and solid wastes that are suitable for anaerobic digestion, such as food processing, pharmaceuticals, organic chemicals, paper manufacturing and tannery industries.

The Transportation Fuel Sub-Segment is Anticipated to Hold a Considerable Share of the Global Bio-LNG Market

Among the applications, the transportation fuel sub-segment is expected to hold a considerable share of the global bio-LNG market. The segmental growth is attributed to the growing use of biomethane in heavy-duty transport as a fuel alternative that emits significantly less emissions. Bio-LNG can reduce CO2e emissions by approximately 86.0% compared to diesel and thus contribute to reaching the EU’s 2030 climate targets. The aim is to lower the group’s indirect CO2e emissions from the transportation of raw materials and finished products. This is to be achieved through increased cooperation with selected logistics partners that use trucks running on Bio-LNG. For instance, in August 2022, Evonik and Shell are making inroads into de-fossilizing heavy-duty road transport with Bio-LNG. Shell is supplying 100 tons of Bio-LNG made from agricultural waste to Evonik. It is equivalent to the average fuel consumption of three trucks in a year.

Regional Outlook

The global bio-LNG market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, Asia-Pacific is anticipated to hold a prominent share of the market across the globe, owing to the surge in the usage of alternative fuels for energy generation to reduce greenhouse gas emissions is drives the growth of the market.

Global Bio-LNG Market Growth, by Region 2023-2030

The North America Region is Expected to Grow at a Significant CAGR in the Global Bio-LNG Market

Among all regions, the North America regions is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to ongoing initiatives and investments in bio-LNG production facilities that utilize organic waste and biomass as feedstock. Efforts are underway to develop bio-LNG production facilities and infrastructure, enabling its use in transportation and industrial applications. The key market players include Ameresco, Clean Energy Fuels, Linde plc, Nacelle Solutions, Renewable Energy Group and others. For instance, in November 2021, TotalEnergies and its US partner Clean Energy are launching the construction of their first biomethane production unit, in Friona, Texas. Biomethane is used as an alternative fuel for mobility, thus contributing to decarbonising road transportation.

According to the International Gas Union, World LNG Report, in July 2022, Global LNG trade grew by 4.5% from 2020 to 2021, reaching an all-time high of 372.3 MT. About 6.9 million tonnes per annum (MTPA) of liquefaction capacity was brought online in 2021, increasing global liquefaction capacity to 459.9 MTPA1 at the end of the year. The average global utilisation rate in 2021 was 80.4%, compared to 74.6% in 2020. In the first four months of 2022, an additional 12.5 MTPA of liquefaction capacity was brought online, bringing the total global liquefaction capacity to 472.4 MTPA as of April 2022.

Governments provided tax incentives and subsidies to support bio-LNG production and infrastructure development. These financial incentives help reduce the cost of producing and using bio-LNG, making it more economically competitive with conventional fossil fuels. For instance, in January 2023, According to the US Department of Energy, Fueling equipment for natural gas, propane, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20.0% biodiesel, is eligible for a tax credit of 30.0% of the cost or 6.0% in the case of property subject to depreciation, not to exceed $100,000.

Market Players Outlook

The major companies serving the bio-LNG market include EnviTec Biogas AG, Iveco S.p.A., Linde plc, Shell Plc, TotalEnergies, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in November 2022, Attero, Nordsol, and Titan collaborated to achieve a decentralized production of bio-LNG designated for use in the maritime industry. The FirstBio2Shipping project is set to deliver the first bio-LNG in early 2024. The plant will produce around 2,400 tons/year of bio-LNG (or liquefied biomethane).

The Report Covers

• Market value data analysis of 2022 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global bio-LNG market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.