Bio LPG Market Synopsis

Bio LPG Market Size Was Valued at USD 434.93 Million in 2023, and is Projected to Reach USD 7341.16 Million by 2032, Growing at a CAGR of 36.89% From 2024-2032.

Bio LPG, also called renewable propane or bio propane, is made from renewable sources such as plant and vegetable residue. It is produced incidentally when biodiesel is made, with 50 kg created for each ton of biodiesel. Following the process of purification, bio-LPG becomes indistinguishable from traditional propane. Due to increasing traditional gas costs, bio-LPG provides a more environmentally friendly, cleaner, and cost-effective option.

• For industrial, agricultural and commercial businesses that fuel their processes, space heating and vehicles with oil or coal, switching to LPG can present an immediate win. LPG is a lower-carbon alternative to oil and coal, with an emission intensity approximately 20%-30% and 30-40% lower respectively. As well as lowering carbon emissions, LPG can improve local air pollution since it is a clean burning fuel that produces almost zero particulate matter (PM) when combusted. LPG is a gaseous fuel, but it is often stored under pressure that turns it into a liquid. This makes it very easy to transport and to store, an advantage over other lower emission energy options.
• The fuel has therefore been used widely by businesses who value its flexibility and ease of use in a variety of processes and across urban and remote, rural areas. For commercial business (or industrial plants) that are situated in rural areas, switching to LPG can be economical and convenient due to its versatility and portability, and as such it is accessible to even the most remote parts of a region. This report includes several specific industry case studies which show the economic and environmental value of fuel switching away from heating oil to LPG.
• Developing a robust LPG market can provide a platform to sustainably transition to bio-LPG, a chemically indistinct yet renewable form of conventional LPG. Bio-LPG is increasingly coming to market across to direct renewable replacement for LPG in growing volumes, with several of the largest companies having defined 100% renewable targets. Bio-LPG has a carbon intensity that is around 70-80% lower than oil and can be used in existing LPG appliances and storage units, allowing for a cost-effective pathway to decarbonisation for industrial and commercial businesses.

Bio LPG Market Trend Analysis

Increasing concerns Regarding Carbon Emission Boosting

• There is an urgent requirement for transition to better sustainable bioeconomy techniques due to global worries about the depletion of the fossil fuel supply in the world. Alternative fuels have gained interest as the world strives to create sustainable energy sources and reduce greenhouse gas emissions. Bio-LPG, a renewable shape of Condensed Petroleum Gas [LPG], has emerged as an attractive option in response to energy demands and environmental concerns. Using biomass feedstocks, such as agricultural residues, forestry waste, and waste cooking oil, bio-LPG is a carbon-neutral alternative to traditional LPG.
• Compared with conventional LPG, bio-LPG offers several benefits, including reduced net greenhouse gas emissions and lower carbon intensity. Moreover, bio-LPG production can utilize multiple biomass feedstocks and maximize waste value. Bio-LPG, identifies critical challenges and issues, and presents potential solutions for the broad adoption of bio-LPG. Bio-LPG’s footprint varies and depends on the feedstock and situation. However, it is often eligible for government support through financial credits and meets biofuel requirements under the Renewable Energy Directive.
• Governments are introducing rules to decrease carbon emissions, such as carbon pricing and compulsory reduction goals. Businesses are adopting bio-LPG to adhere to policies aiming for reduced carbon emissions. Businesses are meeting consumer and investor expectations for sustainability by establishing their own objectives. The use of bio-LPG in the energy sector is aiding companies in decreasing their carbon emissions, especially in industries with high energy consumption. Advancements in bio-LPG production technologies are making them more affordable and able to be scaled up. As efficiency rises, so does the expectation of decreased cost, making it a strong rival to traditional LPG, but with increased availability and reliability.

Opportunity

Growing Demand for Renewable Energy

• Increasing need for bio-LPG due to decreased reliance on fossil fuels, providing a more environmentally friendly choice for various sectors like industries, households, and transportation. Nations and entities around the world are working towards increasing the usage of renewable energy, and Bio-LPG supports these objectives through providing options for production, distribution, and consumption. Increased need for clean energy is prompting both public and private sectors to invest in renewable resources. Governments provide funding and support through grants, subsidies, and policies, while private investors fund innovative projects to drive growth in the bio-LPG market.
• Businesses embrace sustainability due to both regulations and customer expectations. Bio-LPG aids in decreasing carbon footprint and enhancing environmental image. The increase in renewable energy is driving innovation in bio-LPG production to improve efficiency, scalability, and market potential. Governments encourage the use of renewable energy by implementing supportive rules, pricing carbon emissions, and enforcing adoption of bio-LPG. The increasing number of environmentally conscious consumers is leading to a higher demand for more sustainable energy options such as Bio-LPG, which is being embraced by different industries.
• Diversifying energy sources by incorporating bio-LPG enhances security, decreases reliance on imports, and enhances energy resilience within nations. Electrifying heating, cooking, and industrial processes is challenging; bio-LPG provides a renewable option for reducing carbon emissions. Bio-LPG derived from waste materials encourages waste-to-energy projects by utilizing agricultural residues, food waste, and biomass to advance renewable energy and circular economy practices. Expansion of the Bio-LPG market supports the economy by generating employment opportunities in manufacturing plants, supply chains, and associated sectors.

Bio LPG Market Segment Analysis:

Bio LPG Market is Segmented on the basis of Feedstock Coverage, Application, Form, Distribution Channel, and Region.

By Feedstock Coverage Type, Cellulosic Organic Waste Segment Is Expected to Dominate the Market During the Forecast Period

• Plant-based materials different organic waste including agricultural and forestry residues are plentiful and dependable resources for the production of bio-oil, as they are widely accessible. Agricultural and forestry cellulosic waste is abundant and ideal for producing sustainable bio-oil. Cellulosic waste utilized for bio-oil production helps manage waste, lower greenhouse gas emissions, support circular economy, and decrease pollution. Bio-oil made from cellulosic waste contributes to carbon neutrality by being a part of the natural carbon cycle, whereas fossil fuels emit additional carbon into the atmosphere.
• Progress in pyrolysis, gasification, and enzymatic hydrolysis technologies have improved the efficiency, cost-effectiveness, and yield when converting cellulosic biomass into bio-oil. Enhanced technology enhances the production of bio-oil from cellulosic waste, leading to a rise in investment and development possibilities. Governments provide financial assistance in the form of subsidies and grants to support the development and investment in renewable energy sources such as bio-oil derived from cellulosic waste. The US Renewable Fuel Standard requires the use of renewable fuels, which has led to a rise in the need for bio-oil from cellulosic sources in the energy blend.
• Cellulosic waste is an economical source of bio-oil because it is both plentiful and inexpensive. The growing need in the market for eco-friendly fuels is pushing the production and adoption of bio-oil made from cellulosic waste. Agricultural and forestry residues are increasingly used for biofuel, including bio-oil, due to availability and environmental advantages. Progress in biomass technology, such as gasification and fermentation, has improved the efficiency and cost-effectiveness of producing bio-LPG from cellulosic waste, leading to higher rates of adoption.

By Application, Commercial Segment Held the Largest Share In 2023

• Businesses in the manufacturing and industrial industries utilize LPG for heating, drying, and powering machinery. Their energy requirements are high, and they can take advantage of bio-LPG to reduce their carbon footprint, achieve sustainability targets, and guarantee a steady energy source. Food service establishments frequently opt for LPG as a cooking fuel due to its efficiency and convenience. Changing to bio-LPG demonstrates dedication to environmental sustainability, appealing to environmentally aware consumers and helping meet stringent regulations.
• Retail and distribution businesses that sell LPG have the potential to increase the demand for bio-LPG by promoting it as a more environmentally friendly option for their commercial customers. Highlighting its environmentally friendly benefits can make them unique and draw in eco-conscious clients. Government assistance, such as subsidies, tax incentives, and regulations, can encourage the commercial sector to adopt bio-LPG. Growth in the commercial bio-LPG market is due to factors such as energy efficiency, environmental sustainability, regulatory compliance, and corporate responsibility.
• Raising awareness about climate change and environmental concerns could result in a higher number of businesses opting for bio-LPG. This can help lower greenhouse gas emissions and encourage the use of renewable energy sources in businesses. Businesses choose to implement CSR programs in order to promote environmental sustainability and decrease their carbon footprint. Transitioning to bio-LPG demonstrates dedication to stakeholders such as customers, investors, and employees.

Bio LPG Market Regional Insights:

Europe is Expected to Dominate the Market Over the Forecast Period

• European countries place a strong emphasis on renewable energy policies and sustainability initiatives, with the EU's Renewable Energy Directive (RED) establishing goals for higher utilization of renewable energy sources. Bio-LPG, a sustainable option to LPG, is in line with these objectives, backed by incentives such as feed-in tariffs, subsidies, tax credits, and renewable energy certificates. Europe implements stringent regulations to reduce greenhouse gas emissions and promote the use of cleaner fuels.
• Bio-LPG, produced from sustainable sources such as biomass and organic waste, lowers emissions considerably in comparison to traditional fossil-based LPG. Rules such as ETS and carbon pricing increase the market for bio-LPG by recognizing the value of carbon emissions. European nations have prioritized research and development in order to enhance the efficiency and cost-effectiveness of bio-LPG production technologies. Collaborations among academia, industry, and government have fuelled growth in the European bio-LPG market through innovation in biomass conversion, biorefining, and bioenergy.
• Increased consumer knowledge about environmental concerns and sustainable lifestyles is fuelling the need for eco-friendly energy options, such as Bio-LPG. Businesses, industries, and institutions are also searching for cleaner alternatives to fossil fuels in order to decrease their carbon footprints. Europe's current LPG infrastructure can easily accommodate the introduction of bio-LPG, as the existing networks and stations can be readily adapted. Collaborations among manufacturers, distributors, and sellers facilitate entering and growing in the market.
• The consumption data for 2023 reflects the growth trend, with countries like Sweden, Germany, and Italy showing significant consumption volumes, indicating a growing acceptance and adoption of bio-LPG as a viable alternative fuel for transportation. As the demand for sustainable energy solutions continues to rise, it is expected that the bio-LPG market will continue to expand, offering opportunities for further growth and development in the coming years.

Bio LPG Market Active Players

• SHV Energy (Netherlands)
• Neste (Finland)
• Total Energies (France)
• Repsol (Spain)
• AvantiGas (United Kingdom)
• Renewable Energy Group, Inc. (USA)
• Irving Oil (Canada)
• Preem AB (Sweden)
• Diamond Green Diesel (USA)
• ENI (Italy)
• Shell (Netherlands)
• Ekobenz (Poland)
• Phillips 66 (USA)
• BP (United Kingdom)
• Calor Gas (United Kingdom)
• UCO Lukoil (Russia)
• PKN Orlen (Poland)
• Cosmo Oil (Japan)
• SK Gas (South Korea)
• ENOC (UAE)
• Pertamina (Indonesia)
• CNPC (China)
• Gazprom (Russia)
• Petrobras (Brazil)
• Sinopec (China)
• Indian Oil Corporation (India)
• Total SE (France) and other active players.

Key Industry Developments in the Bio LPG Market:

• In April 2024, Repsol enters biomethane production with acquisition of 40% stake in Genia Bioenergy. Investing in a biomethane company will help grow the renewable gas industry, a priority for the European Union. The partnership involves 19 plants in Spain and Portugal, generating renewable gas from agricultural and livestock waste. Total capacity is 1.5TWh/year.
• In Nov 2023, SHV Energy, through its new business unit Futuria Fuels, has signed a partnership agreement for the international development of solutions for Bio-LPG production routes. The collaboration, with Japanese partners Furukawa Electric Co., Ltd. and Astomos Energy Corporation, will focus on leveraging a proprietary process and catalysts to convert carbon dioxide and methane from livestock manure into millions of tonnes of renewable bio-LPG.
• In July 2023, GAIL (India) Limited, India’s largest natural gas company and LanzaTech Global, Inc., an innovative carbon capture and utilization (“CCU”) company that converts waste carbon into products that people use in their daily lives have entered a partnership to explore innovative technology solutions that advance GAIL’s Net Zero 2040 goals and have the potential to support wider decarbonization applications globally.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. Bio LPG MARKET BY FEEDSTOCK COVERAGE (2017-2032)
   1. Bio LPG MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. BIO-OIL
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. CELLULOSIC ORGANIC WASTE
   5. WET WASTE
   6. INDUSTRIAL AND AGRICULTURAL WASTE
   7. LIVESTOCK WASTE
   8. FORESTRY BIOMASS
7. BIO LPG MARKET BY APPLICATION (2017-2032)
   1. BIO LPG MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. RESIDENTIAL
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. COMMERCIAL
   5. INDUSTRIAL
   6. AGRICULTURAL
   7. TRANSPORTATION
8. BIO LPG MARKET BY FORM (2017-2032)
   1. BIO LPG MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. LIQUID
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. GASEOUS
9. BIO LPG MARKET BY DISTRIBUTION CHANNEL (2017-2032)
   1. Bio LPG MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. BULK DISTRIBUTION
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. CYLINDER EXCHANGE
   5. RETAIL SALES
   6. ONLINE SALES
10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
       1. Competitive Benchmarking
       2. Bio LPG Market Share by Manufacturer (2023)
       3. Industry BCG Matrix
       4. Heat Map Analysis
       5. Mergers & Acquisitions
    2. SHV ENERGY (NETHERLANDS)
       1. Company Overview
       2. Key Executives
       3. Company Snapshot
       4. Role of the Company in the Market
       5. Sustainability and Social Responsibility
       6. Operating Business Segments
       7. Product Portfolio
       8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
       9. Key Strategic Moves and Recent Developments
       10. SWOT Analysis
    3. NESTE (FINLAND)
    4. TOTAL ENERGIES (FRANCE)
    5. REPSOL (SPAIN)
    6. AVANTIGAS (UNITED KINGDOM)
    7. RENEWABLE ENERGY GROUP, INC. (USA)
    8. IRVING OIL (CANADA)
    9. PREEM AB (SWEDEN)
    10. DIAMOND GREEN DIESEL (USA)
    11. ENI (ITALY)
    12. SHELL (NETHERLANDS)
    13. EKOBENZ (POLAND)
    14. PHILLIPS 66 (USA)
    15. BP (UNITED KINGDOM)
    16. CALOR GAS (UNITED KINGDOM)
    17. UCO LUKOIL (RUSSIA)
    18. PKN ORLEN (POLAND)
    19. COSMO OIL (JAPAN)
    20. SK GAS (SOUTH KOREA)
    21. ENOC (UAE)
    22. PERTAMINA (INDONESIA)
    23. CNPC (CHINA)
    24. GAZPROM (RUSSIA)
    25. PETROBRAS (BRAZIL)
    26. SINOPEC (CHINA)
    27. INDIAN OIL CORPORATION (INDIA)
    28. TOTAL SE (FRANCE)
11. GLOBAL BIO LPG MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Feedstock Coverage
       4. Historic And Forecasted Market Size by Application
       5. Historic And Forecasted Market Size by Form
       6. Historic And Forecasted Market Size by Distribution Channel
       7. Historic And Forecasted Market Size by Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Brazil
          2. Argentina
          3. Rest of South America
12. INVESTMENT ANALYSIS
13. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies
       1. 1. Thailand
          2. Vietnam
          3. The Philippines
          4. Australia
          5. New-Zealand
          6. Rest Of APAC
    3. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    4. SOUTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Brazil
          2. Argentina
          3. Rest of South America
14. INVESTMENT ANALYSIS
15. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies