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BIOLPG A RENEWABLE PATHWAY TOWARDS

© 2021 LIQUID EUROPE, ALL RIGHTS RESERVED 2050 Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Liquid Gas Europe. All information in this report is verified to the best of the author’s and publisher’s ability. However, Liquid Gas Europe does not accept any responsibility for any consequence arising from reliance on the information contained herein.

LIQUID GAS EUROPE - EUROPEAN LPG ASSOCIATION

RUE BELLIARD 15-17 B - 1040 BRUSSELS BELGIUM

[email protected] WWW.LIQUIDGASEUROPE.EU @LIQUIDGASEUROPE

1 BIOLPG A RENEWABLE PATHWAY TOWARDS 2050 from renewable electricity and CO and potentially sources, biological from produced gaseous adrop-in is BioLPG The Challenge 2 . BioLPG isBioLPG acost-effective solution available on the European market segments such but not as, limited rural areas. Launched in 2018, it is itrural in is areas. 2018, Launched performance to conventional 80% lower carbon footprint. 80% lower footprint. carbon in small, but growing, quantities. on the development the on of new to, transport as well as industry, heat generation cooking and in In the long run, bioLPG has has bioLPG run, long the In LPG and gives and LPG today to up carbon neutral depending carbon neutral depending the potential to become to become potential the It is identical in use and and use in identical is It to the decarbonisations in production processes. production ...... transition. sector the in play can bioLPG role the about policymakers as well as producers amongst awareness of lack by ageneral exacerbated is concern industry’s LPG The needed. is climate investment attractive and apredictable bioLPG, to produce technologies the develop To scale. further demonstration or development and research the grow from to resources and time require still They today. available commercially and mature fully not pathways are These But bioLPG. technologies available to produce There are several other promising required by industry. the volumes bioLPG deliver to needed Additional production pathways are ...... by 2050. commitment industry’s the to meet volumes bioLPG to supply enough be not would alone HVO/HEFA capacity European The Sustainable Aviation Fuel. in (HEFA) resulting acids fatty and variation – hydroprocessed esters its or (HVO) oils diesel vegetable ofhydrotreated aco-product as bioLPG Europe: in commercialised is process Today production one only

2 BIOLPG A RENEWABLE PATHWAY A RENEWABLE TOWARDS 2050 BIOLPG TABLE OF CONTENTS Our Vision

The ambition of the European Union is to be climate neutral by 2050. The European LPG industry is 03 OUR VISION committed to support this ambitious goal. 05 INTRODUCTION 06 LPG TODAY IN EUROPE

07 TRANSITION TO BIOLPG

08 BIOLPG PRODUCTION

Our industry truly believes 09 LPG AND BIOLPG FOR THE EU that LPG and bioLPG, as GREEN DEAL clean-burning, versatile, and 11 BIOLPG AND ITS BENEFITS resource-efficient gaseous 13 PATHWAYS TO BIOLPG This report offers a potential pathway are perfectly placed to for the European LPG market to 17 THE EUROPEAN BIOLPG MARKET IN 2050 immediately help to reach become 100% renewable by 2050. 19 POLICY RECOMMENDATIONS these goals especially in rural To get there, several critical policy areas and in road transport. interventions and industry actions will 21 LPG INDUSTRY’S PLEDGE be necessary: 23 ANNEX Nowadays bioLPG is already available in small, but growing, quantities. • BioLPG must be recognised within European policy We are ready to continue dialogue with frameworks and regulations European and national policymakers, sustainable liquid fuel and biogas • European and national policies THIS PUBLICATION IS DISTRIBUTED BY LIQUID GAS EUROPE. COPIES CAN producers as well as other stakeholders should offer incentives for BE ORDERED DIRECTLY FROM: across Europe to develop the necessary consumers to switch to LPG and stable policy framework for new in the short-term and bioLPG in the future LIQUID GAS EUROPE investments in production facilities RUE BELLIARD 15-17 / B - 1040 to increase bioLPG volumes. • European and national policies BRUSSELS / BELGIUM [email protected] should provide incentives for WWW.LIQUIDGASEUROPE.EU low-carbon liquid fuel and @LIQUIDGASEUROPE renewable gas producers to produce and valorise bioLPG

3 4 LPG Today TODAY LPG AND BIOLPG ARE ONE OF THE FEW COST-EFFECTIVE SOLUTIONS IMMEDIATELY In Europe BIOLPG 2050 TOWARDS A RENEWABLE PATHWAY AVAILABLE TO DECARBONISE AND LOWER POLLUTANT EMISSIONS FROM OFF-GRID HEATING IN HOMES, LOCAL BUSINESSES AND LPG is a co-product of... INDUSTRIES, TRANSPORT AS WELL AS FROM STOVES AND BBQS...... OR It is a gaseous fuel that contributes to cleaning the air in Europe’s 60% countryside and cities. With the right policy environment in place for Oil Production of all LPG produced the producers to secure the necessary feedstock and sustain a stable globally derives from business model, the entire European LPG market can become 100% and thus resource efficient by its very nature natural gas extraction renewable by 2050. Our industry will be thriving to deliver on this ambitious objective...... Energy-users of LPG* IT IS A HIGHLY VERSATILE ENERGY SOURCE IMPORTANT APPLICATIONS IN THE Industrial HOME, IN INDUSTRY, power & heat IN ROAD TRANSPORT Residential heating, Road generation AND . industrial power transport and heat generation 19% Currently, LPG covers the Road heating needs of more than 20 million EU citizens Improving LPG have Boilers using LPG emit Transport and 700,000 businesses, air quality almost no pollutant 80-99% less PM and with LPG emissions. They 50-75% less NOx than 33% predominantly in areas emit 98% less NOx solid and liquid fuels Residential where the natural gas than diesel cars and boilers (such as coal, Heating network is not available. 90% less PM than heating oil, peat) (LPG as gasoline cars in real transport fuel) fuels a driving conditions** 48% current fleet of over 8 million vehicles and a network of 32,000 Reducing LPG well-to-wheel LPG is a lower carbon stations across Europe.** carbon carbon intensity as alternative to liquid emissions in the Fuel Quality and solid fuels for with LPG Directive is also purposes. significantly lower Switching from an oil than diesel (-23%) or coal boiler to an and petrol (-21%) LPG one can reduce *40% of European LPG demand is used as feedstock emissions respectively by chemical industry by 25% and 50% **Measuring emission performance of Autogas cars in Real Driving Conditions (2016) Liquid Gas Europe

5 6 BIOLPG A RENEWABLE PATHWAY A RENEWABLE TOWARDS 2050 BIOLPG TRANSITION BIOLPG TO BIOLPG PRODUCTION

IN MOST CASES, BIOLPG Some of them are still at an early stage of ONE OF THE PATHWAYS FOR THE INDUSTRY development in Europe. Therefore, Liquid IS A CO-PRODUCT OF Gas Europe looks into a potential pathway TO OFFER FURTHER EMISSION REDUCTION for the European LPG market to become BIOLPG 2050 TOWARDS A RENEWABLE PATHWAY SEVERAL TECHNOLOGIES. IS TO GROW THE SUPPLY OF BIOLPG. 100% renewable by 2050......

In 2018, it was estimated that consumption of branded bioLPG, a product available on the market explicitly labelled as such, was at about 100 kilotonnes a year.*

Location: Sweden The rest of the produced bioLPG, another 100 kilotonnes Location: Finland Capacity: 180 kt a year, is used today internally as a process fuel. Sometimes Capacity: 100 kt

bioLPG is also put on the market without being labelled Location: USA Location: Finland Capacity: 80 kt Location: Netherlands as such. Capacity: 1000 kt Capacity: 260 kt

Nevertheless, the available volumes are still growing. Location: Netherlands The following operators are currently producing (under construction) Capacity: 100 kt bioLPG in Europe:

• ENI (ITALY) Location: France • GLOBAL BIOENERGIES (FRANCE) Capacity: 500 kt • NESTE (THE NETHERLANDS)

Location: USA • PREEM (SWEDEN) Spain Capacity: 125 kt Location: Capacity: 80 kt • REPSOL (SPAIN) Location: Spain • TOTAL (FRANCE) Capacity: 180 kt

Location: Spain 125 kt Location: USA Capacity: Capacity: 250 kt

Location: Italy BIOGAS CONVERSION TO BIOLPG IS (two locations) Capacity: 550 kt Capacity: 580 kt POTENTIALLY ATTRACTIVE TO ‘STRANDED’ Location: USA Capacity: 500 kt BIOGAS PRODUCERS (expansion to 800 kt) ...... Location: Brazil Capacity: 230 kt Less than 1% of biogas produced in Europe is injected to the gas grid. Majority of biogas is currently produced in remote locations which are unlikely to make biomethane injections in the future. It is reasonable to presume that significant amounts of biogas will still be stranded from the grid. Other US projects in Multiple producers Conversion to bioLPG and distribution using the existing development capacity app. in China capacity: LPG infrastructure would in many cases be most attractive 1,000 kt 320 kt economically, if a biogas-to-bioLPG process were commercialised. This process is being pursued by several

technology suppliers. Source: Atlantic Consulting: NB. The above refinery capacity figures represent capacities for HVO . Most of these plants produce bioLPG as a co-product at approx. 5-7% by weight of the biodiesel output. These capacities * Process Technologies and Projects for reflect the rated amount that a given plant can manufacture per year, actual production can be lower. BioLPG (2018) E. Johnson

7 8 LPG AND BIOLPG FOR THE EU GREEN DEAL

Liquid Gas Europe sees a significant role for the European LPG industry in meeting the EU Green Deal ambition and achieving climate neutrality by 2050.

Our renewable pathway will help European The gradual, seamless and national policymakers understand the transition to bioLPG can be potential of bioLPG for decarbonisation of off-grid residential heating, local businesses done in existing appliances and industries as well as for road and without any additional costs maritime transport. of modifications

ADDED VALUE POLICY BENEFITS OF BIOLPG

Smart Sector BioLPG helps reducing carbon Synergies with the Integration Strategy footprint of off-grid residential decarbonisation of and the Renewable heating, local industrial and rural aviation, maritime and Energy Directive business. In rural areas, there is a road transport fuels greater role for LPG and bioLPG in gas-powered heating combined with renewable thermal systems and hybrid systems

Renovation Wave BioLPG can turn the existing Scaling up the uptake of Initiative rural building stock into ‘future- solar thermal and hybrid proofed’ homes using readily solutions available, well-established and affordable heating solutions. LPG heating solutions also offer rural communities an opportunity to invest in common small LPG networks

Strategy for Autogas (LPG as transport fuel) Improving air quality Sustainable and is Europe’s leading alternative road in cities by tackling Smart Mobility transport fuel with a good network emissions from today’s of filling stations already in place. park Converting existing vehicles to Autogas or purchasing a new LPG vehicle is affordable for the consumer, and a cost-effective solution to accelerate road transport emissions reduction efforts

9 10 BIOLPG WITH THE RIGHT VOLUMES, SWITCH TO BIOLPG COULD HAPPEN OVERNIGHT AND ITS BENEFITS BioLPG is a direct renewable replacement of conventional LPG, making it a drop-in gaseous, liquified fuel. Therefore, it can be used pure or blended in the very same applications ranging from vehicles to boilers. This means that when available in sufficient volumes all users of LPG appliances

BIOLPG 2050 TOWARDS A RENEWABLE PATHWAY can seamlessly switch to bioLPG.

COST-EFFICIENT SOLUTION TO UPTAKE The growing availability of bioLPG means that today’s investments in LPG supply chain and appliances are future-proof as they can operate BioLPG1 is the on bioLPG without any additional upgrading costs. commonly used Switching to bioLPG saves households and businesses term to describe any the budget and hassle from changing to appliances or vehicles now running on conventional LPG. molecules of 2 and produced FLEXIBLE PARTNER WITH RENEWABLE from biological TECHNOLOGIES AND HYBRID SYSTEMS sources or renewable In rural areas, there is a greater role for bioLPG as BIO a gaseous fuel for gas-powered heating combined electricity and CO2. LPG with renewable thermal systems, for , To reap the benefits, LPG and fuel cells and hybrid systems (an electric bioLPG must be recognised within with an LPG boiler, for cold days). Hybrid heating policy frameworks and regulations. systems are the enabler for affordable renewable The producers need to be able to residential heating and an improvement in the overall secure the necessary feedstock energy efficiency in Europe. Further, Autogas-electric and sustain a stable business model hybrids offer bigger environmental benefits than backed by a supportive, clear and petrol hybrid systems. predictable EU legal framework. DECARBONISATION AND BETTER AIR QUALITY WITH BIOLPG BioLPG is a renewable solution that can provide up to 80% emissions reduction compared to conventional LPG. However, these GHG savings are expected to increase when production processes will move towards further use of waste or cellulosic materials as feedstocks. With the same molecular structure, bioLPG is a clean-burning fuel that produces

very low concentrations of particulate matter and NOx.

1 In some European markets bioLPG is better known as biopropane

2 BioLPG might also contain molecules of isobutane, propene, and butenes

11 12 In most cases, bioLPG is produced as a co-product, a minor output of a multi-product process. All possible synthesis routes to bioLPG (and their development status): conventional and advanced PATHWAYS TO BIOLPG chemical processes, biological processes, and other, are described below. Only one process is already commercial: the HVO diesel production.

FEEDSTOCK TECHNOLOGY AND PROCESS PRODUCT SECONDARY PROCESS TYPE OF LPG

VEGETABLE OIL ANIMAL FATS TALLOW LIPID HYDROTREATMENT HVO DIESEL JET FUEL CO-PRODUCT BIOLPG USED BIOREFINING TRANSESTERIFICATION FAME DIESEL GLYCERINE GYCERINE-TO-BIOLPG

SUGAR AND STARCH FERMENTATION OLIGOMERISATION (ALCOHOL-TO-JET) (FROM CELLULOSE)

PYROLYSIS OIL CATALYTIC CRACKING PYROLYSIS

LIGNOCELLULOSIC

WOOD AND RESIDUES FROM FORESTRY THERMAL OF BIOMASS (TO SNG) SYNTHESIS (FOLLOWED BY ) WASTE-WOOD FROM INDUSTRY

AGRICULTURAL RESIDUES FISCHER-TROPSCH (FT) SYNTHESIS (, , ) GASIFICATION OF SYNGAS FOLLOWED BY DIESEL JET FUEL CO-PRODUCT HYDROCRACKING BIOLPG ENERGY-CROPS METHANOL SYNTHESIS METHANOL-TO-GASOLINE OF SYNGAS METHANOL (ORGANIC FRACTURE) AND BIOLPG

SEWAGE BIOGAS OLIGIMERISATION OF BIOGAS UPGRADING OF BIOGAS BIOMETHANE

SYNGAS SYNTHESIS

RENEWABLE ELECTRICITY, POWER-TO-X AND CAPTURED CO2 FT SYNTHESIS OF SYNGAS DIESEL JET FUEL CO-PRODUCT RENEWABLE LPG METHANATION OF CO2 SYNTHETIC SYNTHESIS BY ELECTROLYTICALLY OBTAINED

13 14 POTENTIAL BIOLPG TECHNOLOGY EXAMPLES OF EXISTING TECHNOLOGIES & PROCESS YIELD (OF TOTAL FUEL) READINESS PRODUCERS OR PROJECTS*

BIOREFINING

Eni (Italy), Global Bioenergies transform biomass into a wide spectrum of products and energy carriers. Demonstration/pilot (France), Neste (the Lipid hydrotreatment In biorefineries producing ethanol, sugars are fermented. Such alcohol can be further 7% phase Netherlands), PREEM (Sweden), converted into drop-in jet fuels. BioLPG is a by-product of this process. Repsol (Spain), Total (France)

Most bioLPG today is produced as a co-product of the hydrogenated vegetable oil (HVO) process, Transesterification 70% Commercial phase Hulteberg (Sweden) where vegetable oils are treated with hydrogen to produce renewable diesel or aviation fuel.

FAME biodiesel and glycerine can be produced through transesterification of oils. Glycerine Byogy (USA), Gevo (USA), UOP Fermentation 100% Pilot phase can be used as a feedstock and reacted with hydrogen to yield bioLPG and water. (USA), Vertimass (USA)

PYROLYSIS

Pyrolysis is a process of thermal decomposition in the absence of . In fast pyrolysis, biomass BTG (the Netherlands), rapidly decomposes to generate vapours, aerosols, , including bioLPG, and some charcoal. 5% Demonstration phase Gas Technology Institute At the next step, after cooling and collection, a dark brown mobile liquid is formed, pyrolysis oil. (India), UPM (Sweden) Through catalysis cracking, it can be transformed into bioLPG.

GASIFICATION

Gasification is a complete thermal breakdown of the biomass particles into syngas, volatiles and Thermal gasification of biomass ash in an enclosed reactor (gasifier) in the presence of any externally supplied oxidizing agent 20% (followed by methanation) (air, O2, H2O, CO2, etc.). Syngas through methanation is transformed to SNG, which can be futher synthesised to bioLPG. BioTFuel project by Total (France), Alternatively, syngas goes through a cleaning stage to remove impurities before the gas can be used Commercial Cadent (UK), in Fischer-Tropsch (FT) synthesis. The FT process means producing liquid fuels from syngas using /demonstration Fischer-Tropsch (FT) synthesis of Enerkem (the Netherlands), catalysts. The intermediate product is a solid mixture of hydrocarbons, known as FT wax. It then goes 5% phase syngas followed by hydrocracking Fulcrum (USA), through a process of catalytic cracking to produce drop-in fuels such as petrol, diesel and jet fuel, as Red Rock (USA) well as LPG.

Syngas can be also synthesised to methanol. In the next step, methanol can be used to produce Methanol synthesis from syngas 8% gasoline. BioLPG would be a co-product in significant quantities of this process.

ANAEROBIC DIGESTION

Anaerobic digestion is a fermentation process, which takes place in a closed airtight digester where Research Oligimerisation of biogas Alkcon (USA), organic raw materials such as manure, food waste, sludge and organic industrial waste are 90% & development PlasMerica (USA) converted into biogas and as products. phase

POWER-TO-X

Methanation of CO2 by Power-to-x is a technology that converts captured CO2 and hydrogen made from water by electrolysis electrolytically obtained hydrogen using renewable electricity into gas or, after further synthesis, fuel. Both syngas and synthetic methane 10% Research [Nordic Blue Crude (Norway), can be further synthesised to renewable LPG. & development Sunfire (Germany), Synhelion phase (Switzerland), Repsol (Spain)] Renewable LPG would also be a co-product of Fischer-Tropsch synthesis of syngas for synthetic FT synthesis of syngas 10% fuels (e-fuels).

Methanol synthesis from syngas Synthetic methanol can be produced using hydrogen made with renewable electricity and captured Pilot/demonstration Carbon Recycling 10% CO2. Further it can be used as a feedstock to produce gasoline and bioLPG as a co-product. phase International (CRI) (Iceland)

15 *Process Technologies and Projects for BioLPG (2018) E. Johnson 16 BIOLPG A RENEWABLE PATHWAY A RENEWABLE TOWARDS 2050 BIOLPG

THE EUROPEAN European 2050 supply of bioLPG (by process) BIOLPG MARKET 14 IN 2050 12 3,962 Based on existing, authoritative scenarios and forecasts, 10 Atlantic Consulting for Liquid Gas Europe concludes that the

European LPG market can become 100% renewable by 2050. 8 3,175

Potential future This forecast does not consider the KT/YEAR possibility of LPG displacing competing 6 demand for LPG fuels, thereby gaining market share. In the next 30 years, the non-chemical However, the European Commission European LPG demand* will decline by projects heating oil and coal demand in 4 3,258 25-50% from today’s some 16 million building heating to decline by about 70% tonnes. This drop can be explained from 2020 to 2030. Further decarbonisation by overall trends in European energy of rural commercial and industrial heating demand leading to 2050: needs could be achieved with LPG. 2 • Final energy consumption will decline One can imagine that in the short to 2,501 by around one-third medium term, LPG could displace heating oil and coal in off-grid homes, businesses, • Electrification will rise almost as 0 and industries, due to its lower carbon sharply, mainly displacing liquid fuels in BIOREFINING GASIFICATION, POWER-TO -X BIOGAS footprint and lower air pollutant emissions. (LIPIDS) PYROLYSIS (OPERATED BY CONVERSION transport and space heating and cooling But for consumers to be able to accept and REFINERS) • Gaseous fuels’ consumption will decline, participate in the further energy transition, but not as sharply as liquids they need to have access to renewable LOW LPG DEMAND HIGH LPG DEMAND energy sources at an affordable price. • Solid fuels will mostly disappear

A 2050 pathway by the gas industry, from glycerine-to- propane and alcohol-to-jet pathways Biorefining (lipids) to bioLPG (not mentioned in the analysed reports) Already commercialised today, processing of natural lipids will be a source of or imports The future demand, which should equal around 2.5 million tonnes of bioLPG in 2050 to 8-12 million tonnes of LPG, can be met In the short to medium term, bioLPG entirely by bioLPG produced in Europe from volumes are expected to come mainly from Gasification, pyrolysis the following sources*: the biorefining of lipids, biogas conversion Gasification with Fischer-Tropsch and pyrolysis of biomass routes can bring some and gasification of biomass. Power-to-x • Nearly 9 million tonnes can come from 3 million tonnes of bioLPG to the market technology is expected by the European biorefining, pyrolysis, gasification and power-to-x technologies (operated by Commission to start penetrating the Power-to-x (operated by refiners) refiners) European market only after 2030. This Conversion of captured CO2 and green hydrogen can be integrated into European means that to ensure the right level of • Another 3.5 million tonnes can come refineries to produce more than 3 million tonnes of bioLPG bioLPG supply by 2050, the LPG industry from the conversion of biogas needs all available technologies producing • In case one of the above options fails, sustainable renewable gaseous and liquid Anaerobic digestion (biogas conversion) there are alternatives such as bioLPG fuels to succeed. Even 3.5 million tonnes of bioLPG can come from biogas conversion at a 90% supplied by power-to-x plants operated yield. These volumes will depend on the actual biogas production levels

*Still including the UK *The analysis shows that there should be sufficient feedstocks (biomass and renewable electricity) 17 available for the pathway to be realised. Feedstocks are not double counted 18 POLICY RECOMMENDATIONS

BioLPG must be recognised within European policy frameworks and regulations

...... A holistic view is particularly important. • The revised Renewable Energy Directive The European policymakers are missing an should include a clear definition of bioLPG, European and national opportunity to support the alternative low- the list of default energy content should be policies should provide carbon renewable gas solution in transport extended to various types of bioLPG (Annex incentives for low-carbon and for homes, buildings and processes, III) and default GHG emission savings coming liquid fuel and renewable especially in off the gas grid areas. To from bioLPG production pathways should be recognised in Annex V gas producers to produce encourage decarbonisation of the energy mix and valorise bioLPG used by cars and in rural homes, businesses • If bioLPG is injected together with ...... and industries, the legislation needs to biomethane to meet the calorific value explicitly recognise bioLPG. To fully benefit required for the gas network, it should BioLPG production is an exciting from the lower carbon footprint of bioLPG, be eligible for any incentives offered to opportunity for the EU and regions biomethane in such cases a Well-To-Wheel (WTW) should be the basis which specialise in developing circular to assess car emissions and energy efficiency. economy solutions. Any new production facilities, utilising sustainable local feedstock’s, will create new jobs for the European and national policies should offer local area, contributing to economic incentives for consumers to switch to LPG growth and ultimately creating the in the short-term and bioLPG in the future renewable energy needed to reach the climate-neutrality ambition.

Decarbonising off-grid homes, businesses • The upcoming review of the Energy Taxation • European and national R&D funding and industries, as well as the passenger Directive should continue allowing Member should be made available for low TRL car park with LPG and through the gradual States to exempt from energy and CO2 processes to obtain bioLPG through introduction of bioLPG is the best chance taxation LPG and bioLPG Horizon Europe or the LIFE programme of reaching climate-neutrality cost- • The Commission should carefully consider • The bioLPG production should be effectively. Without having to resort to the impact of any new proposals have on low- subsidised to allow various technologies expensive upgrading or future retrofitting of income households in rural areas, which might to mature the heating systems the European rural areas be disproportionately affected by policies • Renewable and low-carbon fuel can lock-into lower CO2 emissions. BioLPG encouraging expensive retrofits producers should be incentivised to fully complements existing capture or directly produce bioLPG infrastructure, not only for new car sales, but • The revision of the Alternative Fuels also serve to decarbonise and improve the air Infrastructure Directive should maintain the • Generate more research, development and deployment funding for transport quality from the existing fleet. current definition of “alternative fuels”, some of which can easily penetrate the market and modes and alternative fuels if their climate • The Renovation Wave initiative should are compatible with the internal combustion targets become more ambitious encourage providing European and national engine (ICE) technologies incentives for consumers to switch from high carbon fuels (such as coal or heating oil) to LPG and bioLPG in the future

19 20 LPG industry’s Pledge BIO LPG Liquid Gas Europe pledges to transition ...... to 100% renewable bioLPG by 2050. To further grow the bioLPG market, the policymakers’ actions In recent years, the LPG industry has alone are not sufficient. succeeded in commercialising and scaling ...... bioLPG distribution. The industry delivers a new renewable energy source through It is the industry’s ambition to continue advancing both bioLPG uptake and a readily available, well-established and production by: affordable supply chain to energy-users • Advising consumers and businesses who are not connected to the gas grid. on the possibility and advantages of Nevertheless, rural consumers’ choice of flexible and switching to LPG in the short-term and affordable energy sources is still limited. The reality of bioLPG in the future rural private and non-domestic properties is that they • Educating stakeholders and are often old or historic buildings that are difficult to policymakers about bioLPG treat and hard-to-decarbonise. There is no one size fits and its potential all solution to provide sufficient warmth at an affordable • Approaching investors on possible price, avoid expensive retrofitting and keep the visual projects producing bioLPG integrity of a property. • Considering investing in the Liquid Gas Europe advocates a mixed technology production of bioLPG approach to the transport sector and heating technologies in off-grid homes, businesses and • Joining consortia applying for industries. It is the most effective approach to reduce EU funding of research projects their carbon and air pollutant emissions today and in • Sponsoring industry-funded PhD, the future with bioLPG. collaborating with research labs or offering research grants to look into Today Autogas is the number one alternative fuel new technology pathways for bioLPG in the EU, counting 8 million vehicles and 35,000 fueling stations. Further, converting existing vehicles to Autogas is affordable for the consumer, and a cost- effective solution to accelerate road transport emissions reduction efforts from today’s car park. All these efforts are a perfect basis for the segment to increase the uptake of bioLPG.

21 22 ANNEX: TECHNOLOGIES AND PROCESSES FOR THE BIOLPG PRODUCTION Pyrolysis to /biogases

LIGHT FRACTION TO HVO - Hydrogenated Vegetable Oil (WITH LPG) OR TO MARKET

SUBSTITUTE FOR HEAVY FUEL OIL CLEANING PYROLYSIS HVO DISTILLATION OIL BIOPROPANE FLUID CAT CRACKER OVERHEADS GASOLINE LPG BIO-OIL DEDICATED HVO BIODIESEL Grinding HYDROTREATER BIOMASS Drying PYROLYSER BIO-ASPHALT TO MARKET 600-900OC NO OXYGEN HVO BIOPROPANE CHAR

DIESE L MODIFIED FOSSIL DIESEL + HYDROTREATER + BIO-OIL HVO BIODIESEL To oil conditioning < 30% VOLUME ‘bio-char’

Gasification to biofuels/biogases Biogas to LPG

AIR COMBUSTION FOR HEAT AND/OR POWER DIESEL GASOLINE AIR H 2 SE PAR ATION JET LPG

UNIT DIGESTER BIOGAS BIOMASS LPG AND HIGHER O 50% CO2 OLIGOMERISATION WET 35-40 C HYDROCARBONS FISCHE R FT WAXES HYDRO NO OXYGEN 50%CH4 TROPSCH C3-C12 TREATMENT OXYGEN STEAM DIGESTATE

Grinding TO SOIL BIOMASS GAS NATURAL Torrefaction CONDITIONING BIOMETHANE GASIFIER SYNGAS GAS MeOH/DME METHANOL GASOLINE CONDITIONING GAS GRID O H 2 & CO CONDITIONING DME Sorting 600-900 C REACTOR REACTOR WASTE M U NICIPAL Shredding OR Drying WASTE Natural BIOGAS CONTAMINANTS INDUSTRAL LANDFILL Digestion COLLECTOR GASOLINE SLAG CONTAMINANTS LPG PL ASMA OR METHANE CATALYSIS PROPANE

23 24 Power-to-X

LOW- CARBON POWER

WATER ELECTROLYSER

LOW- CARBON POWER

FLUE GAS CO2 HYDROGEN OXYGEN CO2 ABSORBER

TO THE GAS TO BIOMASS GRID OR H2/ GASIFIER GAS GRID

SYNGAS STORAGE GENERATOR

SYNGAS H 2 & CO

SYNGAS GENERATOR

DIESE L GASOLINE JET LPG

25 26