Bio-LNG Market Growth, Size, Share, Trends, and Forecast 2032

Bio-LNG Industry Prospective:

The global Bio-LNG market size was worth around USD 1.42 billion in 2023 and is predicted to grow to around USD 32.09 billion by 2032 with a compound annual growth rate (CAGR) of roughly 41.4% between 2024 and 2032.

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Bio-LNG Market: Overview

Bio-LNG is a sustainable and renewable version of LNG, or liquefied natural gas, produced from biomass sources. The primary method of depositing organic resources for the manufacture of bio-LNG is during the biomass feedstock collection process. Sewage sludge, animal manure, energy crops, and food waste are a few examples of organic wastes used as biomass fuel. When biomass feedstock is digested anaerobically—without oxygen—microorganisms break down organic material. Methane and carbon dioxide make up the majority of the biogas that are created during the process. Substances and CO2 are then removed from the biogas after that. It produces a methane concentration increase of more than 90% to match natural gas quality, depending on the intended purpose.

Key Insights

• As per the analysis shared by our research analyst, the global Bio-LNG market is estimated to grow annually at a CAGR of around 41.4% over the forecast period (2024-2032).
• In terms of revenue, the global Bio-LNG market size was valued at around USD 1.42 billion in 2023 and is projected to reach USD 32.09 billion, by 2032.
• The rising government initiatives are expected to drive market growth over the forecast period.
• Based on the source type, the organic household waste segment is expected to dominate the market during the forecast period.
• Based on the application, the transportation fuel segment is expected to grow at a rapid rate during the forecast period.
• Based on region, Europe is expected to dominate the market during the forecast period.

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Bio-LNG Market: Growth Drivers

Growing environmental awareness drives market growth

Global leaders are being forced to act significantly as a result of a growing understanding of the consequences of climate change and the possible threats associated with greenhouse gas emissions. Government agencies and businesses are under intense pressure to find sustainable energy options that can be widely incorporated into the current infrastructure. With a smaller carbon footprint, bio-LNG is a promising energy source. To promote the production and uptake of bio-LNG, governments around the world are offering several regulations and incentives. While numerous laws are also being established for the inclusion of mixed fuel, mostly in the transportation and industrial sectors, these benefits include tax breaks and subsidies. Energy security can be improved by diversifying the energy mix and adding bio-LNG to reduce reliance on imports of fossil fuels and supply chain vulnerabilities. Bio-LNG offers a way to turn agricultural wastes and organic waste into useful energy sources, which helps to improve waste management techniques.

Bio-LNG Market: Restraints

Uncertainty in feedstock availability hinders market growth

Several feedstocks used in the production of bio-LNG, such as energy crops and agricultural waste, have seasonality. Weather patterns and farming cycles impact the availability of these resources, resulting in year-round changes in the supply of feedstock. The same organic waste materials used in the production of bio-LNG may have competitive uses, including composting, animal feed, or other agricultural applications. Competition for resources could have an impact on the consistent flow of feedstocks required to make bio-LNG. The generation of bio-LNG requires waste streams to be available, and changes to waste management policies or practices may affect the quantity and quality of feedstocks. Uncertainty in waste management regulations could affect the feedstock supply's stability.

Bio-LNG Market: Opportunities

Growing collaboration offers a lucrative opportunity for market growth

The growing collaboration is expected to offer a lucrative opportunity for market growth during the forecast period. For instance, in December 2023, the bio-LNG technology leader Nordsol and the developer of circular biofuel production facilities Regazz announced their partnership to build bio-LNG production plants in European agricultural areas. The involved parties will collaborate closely to attain optimum, buildable designs, thereby offering farmers a compelling business case for bio-LNG. Regazz feeds the biogas plants with organic residual flows from farmers, such as manure and plant leftovers. In addition to producing biogas, these plants also yield digestate, a fertilizer rich in minerals and nutrients that may be applied back to the farmer's land who originally "fed" the biogas plant with his waste. Regazz plans to deploy Nordsol technology, which transforms biogas into liquid biogenic CO2 and bio-LNG for long-distance transportation. The Regazz system is a closed loop that benefits farms and unites people.

Bio-LNG Market: Challenges

Competition with other renewable fuel poses a major challenge to market expansion

Alternative sustainable fuels including bioethanol, biodiesel, and biogasoline compete with bio-LNG. The availability of feedstock, compatibility of the infrastructure, and end-use applications are some of the elements that influence the decision between various renewable fuels. Thus, the presence of alternative fuels in the market poses a major challenge for the Bio-LNG industry.

Bio-LNG Market: Segmentation

The global Bio-LNG industry is segmented based on source type, application and region.

Based on the source type, the global Bio-LNG market is bifurcated into organic industrial waste, organic household waste and municipal waste. The organic household waste segment is expected to dominate the market during the forecast period. Recyclables and non-organic materials are sorted from household waste at a waste sorting plant after it is collected. The yard garbage and food waste comprise the organic waste that is gathered for additional processing. Anaerobic digestion breaks down the waste into organic substances without the presence of oxygen. Methane (CH4) and carbon dioxide (CO2) are produced during this process, which yields biogas. Using household garbage to produce bio-LNG is anticipated to result in much better waste management and sustainable energy production solutions. It also supports the development of a circular economy, which uses waste products to produce useful resources, lessening its negative effects on the environment and fostering the development of a more sustainable future. Thereby, driving the segment growth.

Based on the application, the global Bio-LNG industry is segmented into power generation, transportation fuel and others. The transportation fuel segment is expected to grow at a rapid rate during the forecast period. Because fuel produces less pollution, demand for bio-LNG in the power-generating and transportation fuel sectors has been rising. Compared to diesel or gasoline, bio-LNG is a low-carbon fuel that produces a notably smaller amount of greenhouse gases (GHGs). It is a desirable alternative for businesses and governments looking to lessen their carbon footprint because it can cut GHG emissions by up to 90% when compared to diesel. Although in certain situations bio-LNG may be more costly than diesel, the gap is closing as production increases and technology advances. Thus, bio-LNG is getting more and more affordable when compared to conventional fuels, especially in areas where low-carbon fuel consumption is encouraged by laws or other policies. Because bio-LNG can be delivered via the infrastructure and pipes already in place for natural gas, it is very simple to use and distribute. To encourage the use of bio-LNG even further, certain businesses are making investments in infrastructure for its production and transport.

Bio-LNG Market Report Scope

Regional Analysis

Europe is expected to dominate the market during the forecast period

Europe is expected to dominate the market over the forecast period. The regional expansion is owing to the rising government initiatives. Ambitious climate targets have been established by the European Union (EU), which include reaching climate neutrality by 2050 and a minimum 55% reduction in greenhouse gas emissions by 2030. Decarbonizing the transportation industry, which contributes significantly to emissions, is a key priority to achieve these targets. Heavy-duty vehicles, maritime shipping, and aviation are all thought to produce emissions that can be reduced with the use of bio-LNG. Moreover, innovators and investors in the Bio-LNG sector are working together, as do energy firms, transportation operators, technology suppliers, and legislators. To expedite the implementation of Bio-LNG supply chains and infrastructure throughout Europe, joint ventures and public-private partnerships are being established. Thus, this is expected to drive the market growth in the region.

Bio-LNG Market: Competitive Analysis

The global Bio-LNG market is dominated by players like:

• BIOKRAFT INTERNATIONAL AB
• Linde Plc
• Shell Plc.
• TotalEnergies SE.
• BoxLNG Pvt. Ltd.
• EnviTec Biogas AG
• DBG Group B.V.
• Nordsol
• Flogas Britain Ltd.
• Titan LNG

The global Bio-LNG market is segmented as follows:

By Source Type

• Organic Industrial Waste
• Organic Household Waste
• Municipal Waste

By Application

• Power Generation
• Transportation Fuel
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa