PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320228
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320228
Bio-LNG Market size was valued at USD 810.7 million in 2022, expanding at a CAGR of 40.6% from 2023 to 2030.
Bio-LNG is a biofuel produced by processing organic waste flows such as organic household and industrial waste, manure, and sewage sludge. The primary components of this biogas are methane (CH4) and carbon dioxide (CO2). Biogas is processed and liquefied into Bio LNG, which is virtually entirely methane. This gas is a renewable source of energy, and liquefying it boosts the gas's value. Bio LNG (also known as liquefied biomethane) is perfect for energy-intensive manufacturing, industrial firms, and the transportation industry. Bio LNG can be delivered using the current LNG infrastructure with no additional technological modifications or expenditures. As a result, LNG infrastructure support is critical to the future viability of bio LNG.
Transportation is a major driver of bio-LNG consumption. This includes heavy-duty vehicles and also maritime transport, as bio-LNG can offer a high-energy, low-emission alternative to diesel and heavy-fuel oil. It is also seen as a possible fuel for aircraft in the future. Hanze University of Applied Sciences Results show that the market share of bio-LNG in transport energy consumption could be between 1.7 and 21.7% in 2050. Furthermore, technological advances can make bio-LNG production more efficient and cost-effective, offering new market expansion prospects. However, the initial expenditure necessary to establish bio-LNG production facilities might be significant which may restrict some potential market participants.
The Global Bio-LNG Market is segmented on the basis of Source Type, Application, and Region.
The market is divided into three categories based on Source type: Organic household waste, Organic industrial waste, and Municipal waste. The Organic household waste sector dominates the market. Organic household waste, such as food scraps and yard trash, are high in organic material, making them ideal biomass sources for Bio-LNG generation.
The market is divided into two categories based on application: Transportation Fuel and Others. The Transportation Fuel segment dominates the market growth. Bio-Liquefied Natural Gas (Bio-LNG), also known as renewable natural gas or liquefied biomethane, is a fuel that can be used in transportation. It is a more environmentally friendly alternative to fossil-based liquid natural gas (LNG) and diesel, especially for heavy-duty vehicles and marine transportation.
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. Europe is expected to dominate the growth of the Bio-LNG Market, due to Growing Adoption in Transportation and Industrial Sectors. The use of bio-LNG in heavy-duty road transport, maritime, and industrial applications is increasing, creating new market prospects. the European Commission (EC) has set a target to include at least 14% of renewable energy in the transport sector by 2030, from which at least 3.5% has to be powered by advanced biofuels. One of these advanced biofuels is bio-LNG. Bio-LNG is a currently available and sustainable fuel that is equivalent to fossil liquefied natural gas (LNG) and can therefore make use of the existing and mature infrastructure. The market in Asia Pacific is expected to grow significantly in the coming years. Asia Pacific countries are investing in clean energy technologies to meet their energy demand and reduce their greenhouse gas emissions.
Bio-LNG competes with both renewable and nonrenewable fuels. Other biofuels, such as biodiesel and bioethanol, as well as fossil-based LNG, diesel, gasoline, and, increasingly, electric power choices, compete in the same space. The cost, efficiency, and availability of these fuels will have a substantial impact on the market's competitive dynamics. The availability of infrastructure for delivering and utilizing LNG is a major issue in market competition. Wherever this infrastructure is built, it can be used for Bio-LNG, giving a competitive edge. The overall dynamics of the energy market, like swings in fossil fuel costs, can have an impact on Bio-LNG demand. Furthermore, economic development, industrialization, and population growth can all boost overall energy demand and, as a result, demand for Bio-LNG. Some of the primary techniques used by corporations to strengthen their reach and expand their market share include new product launches, distribution network development, R&D spending, and mergers and acquisitions. For example, In 2020, Renewi, Nordsol, and Shell agreed upon building a Nordsol plant at a Renewi site at Amsterdam Westpoort. It opened in 2021 and it is the first bio-LNG installation in the country.
In November 2022, Nordsol, Attero, and Titan collaborated on the FirstBio2Shipping project for the production of bio-liquefied natural gas (bio-LNG) to support sustainable maritime transport.
The scope of this report covers the market by its major segments, which include as follows: