Global bio-LNG market set to reach $3.6bn by 2032

The global bio-LNG market was valued at $618.4 million in 2022 and is anticipated to reach $3.6 billion by 2032, witnessing a CAGR of 20.3% during the forecast period 2023-2032.

The demand for bio-LNG is anticipated to grow with the increasing demand from end-use industries such as automotive, ships, and others. Furthermore, it is anticipated that during the projected period of 2023-2032, there will be an increasing adoption of bio-LNG in the automobile industry, and several governments are expected to implement policies and incentives to encourage the production and use of bio-LNG in various regions. For instance, the European Union has been setting targets to increase the use of renewable energy in the transport sector. In addition, the European Union has introduced the Alternative Fuels Infrastructure Directive, which aims to support the development of infrastructure for alternative fuels such as bio-LNG. However, the high cost of bio-LNG as compared to LNG is anticipated to hinder market growth in the future.

Market Lifecycle Stage
The global bio-LNG market is in the growth phase. Rising sales of vehicles and increasing focus on decarbonization and controlling pollutants are expected to boost the market growth. Furthermore, the increasing numbers of LNG trucks and rising environmental concerns are creating significant growth opportunities for bio-LNG. Bio-LNG is an inexhaustible substitute for conventional fuel and is one of the best options to meet the rising need for energy while reducing greenhouse gas emissions. Therefore, owing to the aforementioned factors, its demand is increasing. Moreover, the global bio-LNG market is expected to benefit from favorable government policies, which are expected to promote market expansion. The requirement for bio-LNG is being stimulated by ships as well.

Industrial Impact
Growing demand for decarbonization is the main driving force behind the growing consumer interest in bio-LNG. As a result, these fuels are getting prominence in a variety of industries, including buses, trucks, ships, and others. One area where their implementation has been significantly greater is trucks and ships, which is expected to create opportunities for both existing market participants and market entrants.

Furthermore, bio-LNG has a moderate to high impact on end-user industries; however, in the upcoming future, with increased production of automobiles, ships, and other applications, the impact is anticipated to increase.

Market Segmentation

Segmentation by Application
Based on application, automotive led the global bio-LNG market in terms of value in 2022.

Segmentation by Source
The global bio-LNG market was led by agriculture residues in terms of source by value in 2022.

Segmentation by Region
In the global bio-LNG market, Europe dominates the market owing to several bio-LNG production facilities already operational and more in the pipeline. This is due to several factors, including the strong regulatory support for renewable energy and decarbonization in the region, the availability of feedstocks for bio-LNG production, and the high demand for low-carbon fuels in the transportation and shipping sectors.

Recent Developments in the Global Bio-LNG Market

• In February 2023, GREEN CREATE built manure-fed biomethane production facilities in Wijster, Netherlands. The plant produces renewable natural gas (RNG) from agricultural waste, specifically manure that can be further upgraded to bio-LNG, which can then be used as a low-carbon fuel in the transportation sector.
• In February 2023, Liqvis announced migration to bio-LNG for heavy-duty transportation starting in 2023 as it broadens its range of bio-LNG suppliers. Beginning in mid-2023, Liqvis would gradually migrate to CO2-neutral bio-LNG and sell it as a substitute fuel at its refueling facilities.
• In April 2023, the U.K.’s largest owner of bio-CNG and bio-LNG plants, Nottingham-based Roadgas, recently transferred its assets to Pretoria Energy Group, which is funded by Mercuria Clean Energy Investments. Roadgas provides customized on-site fuelling options using biomethane made in the U.K. Within five years, the firm aims to power more than 2,500 gas-fuelled trucks annually.

Demand Drivers and Limitation

The following are the demand drivers for the global bio-LNG market:

• Rising environmental concerns
• Increasing number of LNG trucks
• The market is expected to face some limitations as well due to the following challenges:
• Limited availability of feedstocks
• High Price of Bio-LNG as compared to LNG

Source: GlobeNewswire