Europe BioLPG Market Report and Forecast 2024-2032

Europe BioLPG Market Outlook

The Europe bioLPG market size reached around 391.05 KMT in 2023. The market is estimated to grow at a CAGR of 19.8% during 2024-2032 to reach a volume of 1,879.12 KMT by 2032.

Key Takeaways

• The European Union (EU) has a 2030 target of a 55% net reduction in greenhouse gas emissions, which is driving the adoption of green alternatives like BioLPG.

• The EU Commission has published a REPowerEU plan to reduce dependency of Russian fossil fuel by 2030 and cut gas imports.

• The EU has set forth an ambitious proposal to significantly increase the presence of Solid Aviation Fuel (SAF) in aviation fuel sales. The aim is to raise it from 2% in 2025 to over 70% by 2050.

BioLPG serves as a green substitute for fossil-fuel-based LPG, aiding the decarbonisation of transportation, residential, industrial, and petrochemical sectors. BioLPG is presently manufactured in France, Italy, Spain, Sweden, and the Netherlands.

Due to its identical chemical composition to conventional LPG, bioLPG possesses the ability to be stored, blended, and utilised just like traditional LPG. It acts as an efficient drop-in replacement for existing LPG applications, such as transportation fuel, which is leading to the Europe bioLPG market expansion.

Strategic bioLPG supply partnerships in Europe aimed at decarbonising the economy aid the availability of bioLPG across the region.

The shifting economic landscape in the UK and EU towards biofuels and sustainable aviation fuels is propelling HVO-based pathways to the forefront as a key market driver for bioLPG production.

Figure: European Union Green House Gas Emission (2000-2021); MMT (Total emissions excluding LULUCF (MMT of CO2 equivalent)

Table: Strategic Alliances in the Europe BioLPG Market

Key Trends and Developments

Increasing importance of decarbonisation; rising number of initiatives for environmental safety and security; rising research and development activities; and existing building stock for bioLPG production  are impacting the Europe bioLPG market growth

Europe BioLPG Market Trends

As the HVO (Hydrotreated Vegetable Oil) process is currently the dominant method for commercial bioLPG production, manufacturers are actively investing in research and development efforts. These initiatives aim to investigate alternative sources for bioLPG procurement, such as exploring the potential of microbial synthetic pathways for biopropane production through fermentation.

Rural property owners who reside off-grid and seek eco-friendly heating solutions might discover substantial initial cost savings by transitioning to LPG/bioLPG, in comparison to other low-carbon alternatives like heat pumps or biomass boilers.

Over the last five years, commercial bioLPG production via hydroprocessing has experienced steady double-digit growth, driven by a growing number of refinery conversions and the emergence of greenfield biofuels initiatives.

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Market Segmentation

“Europe BioLPG Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Based on application, the industrial sector accounts for a significant Europe BioLPG market share

Substituting oil with LPG and bioLPG in low-temperature industrial processes, like vehicle manufacturing and the food industry, can provide cost-effective and lasting emission savings. A combination of bioLPG and electric motors within hybrid systems offers a dual advantage by not only enhancing air quality but also establishing a reliable solution for the reduction of emissions.

For businesses like rural hotels and restaurants, transitioning from heating oil to bioLPG provides a simple and effective method to reduce emissions without the need for extensive building renovations. Further, replacing oil consumption with bioLPG can offer a cost-effective solution for old and historic buildings.

BioLPG is the ideal cost-effective heating solution for rural homes in EU, where over 40 million rural households lack access to the gas grid. With fossil fuels and wood being their primary heating sources, bioLPG has the potential to drive decarbonisation.

The applications of bioLPG in the transportation sector are expected to increase in the coming years. Autogas leads as the top alternative fuel in the EU, comprising 3% of all alternative fuels and serving 8 million vehicles. With 250 million passenger cars on the road, which have an average lifespan of 11 years (up to 17 years in Eastern Europe) and considering that EU legislation primarily focuses on emissions from new cars with delayed effects, converting existing vehicles to Autogas is a cost-effective means to expedite the reduction of emissions from road transport.

Competitive Landscape

The market players are differentiating themselves through diverse raw material sourcing, advanced technologies, and customer-centric activities for superior customer value

Other notable players operating in the Europe bioLPG market include Compañía Española de Petróleos, S.A. (CEPSA), and ENI Spa, among others.

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Europe BioLPG Market Analysis by Country

Liquefied petroleum gas produced from biomaterials has held legal recognition as a green compliance option in the German heating sector. Furthermore, the German government aims to replace fossil-based raw materials with renewable alternatives to the greatest extent possible by 2050. In September 2023, Germany's lower house of parliament successfully passed a bill to phase out oil and gas heating systems, aligning with the nation's goal to achieve climate neutrality by the year 2045.

The Dutch central government supports the development of technologies for producing biomass energy through its Stimulation of Sustainable Energy Production and Climate Transition (SDE++) grant scheme.

The National Energy and Climate Plan (NECP) is Belgium’s main energy and climate policy document that focuses on increasing the use of renewable energy in transportation and electricity generation. The NECP approved the Belgian government’s plans to increase the share of biofuels in the transportation sector from an average of 5.5% in 2017 to 13.9% in 2030 in the NECP for 2021 – 2030.

Key Highlights of the Report

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Europe BioLPG Market Report Snapshots

Europe BioLPG Market Size

Europe BioLPG Market Trends

Europe BioLPG Companies

Europe BioLPG Market Regional Analysis