The Circular Economy of Bio-LNG: Fueling a Sustainable Future for European Transport

The concept of a circular economy has gained significant traction in recent years, as industries and governments alike seek sustainable solutions to the pressing environmental challenges of our time. In the realm of transportation, bio-liquefied natural gas (bio-LNG) has emerged as a promising alternative fuel that aligns with the circular economy principles, aiming to minimize waste and make the most of resources.

How bio-LNG is made

The journey of bio-LNG begins with the collection of organic waste. This waste can come from various sources, including agricultural residues, municipal solid waste, and specifically for this context, waste from restaurants. Once collected, the waste undergoes pre-treatment to remove any inorganic materials and to prepare it for digestion.

The pre-treated organic waste is then placed in an anaerobic digester , where it is broken down by microorganisms in the absence of oxygen. The digestion process produces biogas, primarily composed of methane (CH4) and carbon dioxide (CO2), along with other trace elements.

The raw biogas is then cleaned and upgraded to remove impurities and CO2, resulting in biomethane. The biomethane is subsequently cooled to approximately -162°C, at which point it condenses into a liquid form, known as bio-LNG. The energy consumption for liquefaction can be substantial, but it is important to note that the overall energy balance of bio-LNG is positive?when considering the full lifecycle assessment of the fuel, from waste, through to fuel production. Positive energy balance occurs when energy intake is greater than energy expenditure.

Restaurant waste is one valuable resource in the production of bio-LNG due to its high organic content, which includes food scraps, oils, and fats. This type of waste is particularly potent for biogas production because it decomposes quickly and has a high biogas yield per ton. By diverting waste from restaurants and away from landfills, and into bio-LNG production, the process reduces methane emissions from waste decomposition and contributes to the creation of a renewable fuel.

Restaurants produce a significant amount of food waste daily, and harnessing this would address waste management issues and contribute to the local production of clean energy. In this circular economy model, restaurants can become both the consumers and suppliers of energy, closing the loop on waste and energy production. Companies like Renewi are at the forefront of this.

The Importance of Bio-LNG for European Transport:

The logistics industry stands at a crossroads between increasing demand for transportation and the urgent need to reduce emissions. In Europe, where road freight is integral to the economy, the search for sustainable fuel alternatives has led to the rise of bio-liquefied natural gas (bio-LNG) as a solution to support fleets decarbonise today .

The transport sector, which is responsible for a significant portion of these emissions, is under considerable pressure to transition to cleaner energy sources. Trucks, in particular, have been a focus due to their role in emitting not only CO2 but also nitrogen oxides (NOx) and particulate matter, which contribute to air pollution.

Bio-LNG offers a pathway to support decarbonisation goals. Produced from organic waste, bio-LNG is a renewable fuel that can reduce the carbon footprint of trucks significantly. When compared to diesel, bio-LNG can cut CO2 emissions by up to 88% when the fuel is produced from certain types of waste or agricultural residues and based on a life cycle base. ?

Advantages for Trucks and Logistics:

Reduced Environmental Impact: bio-LNG trucks emit considerably fewer pollutants than their diesel counterparts. This reduction is crucial for logistics companies aiming to meet regulatory requirements and corporate sustainability goals.

Energy Density: bio-LNG has a higher energy density than other alternative fuels like compressed natural gas (CNG) or electricity. This means trucks powered by bio-LNG can travel longer distances between refueling, which is essential for long-haul transportation.

Existing Infrastructure: The LNG infrastructure, which includes filling stations and storage facilities, is already being developed across Europe. bio-LNG can utilize this existing infrastructure, making the switch from conventional LNG to bio-LNG relatively seamless for logistics companies. Shell has LNG stations across Europe and is building more. Within Europe, there are 709 LNG stations and 4184 CNG fueling stations for vehicles.

Economic Incentives: Some European countries offer tax incentives for the use of bio-LNG in transportation. These incentives can offset the initial higher costs associated with transitioning to bio-LNG-powered trucks.

Corporate Image: Utilizing bio-LNG allows companies to enhance their brand image as leaders in sustainability, which can be a significant competitive advantage in a market where consumers are increasingly environmentally conscious.

IVECO has been a front-runner in the adoption of LNG technology for commercial vehicles. The company's foray into LNG-powered trucks began in earnest in 2012 with the launch of the Stralis LNG range. This move was part of a broader vision to provide sustainable transport solutions that do not compromise on performance or efficiency.? The Stralis range was a significant step, as it offered a viable alternative to diesel, reducing CO2 emissions and keeping a competitive total cost of ownership

The new IVECO S-Way truck features the latest technologies and advancements when it comes to engines, range and transport capabilities. The trucks are designed to meet the long-haulage needs of businesses while also addressing environmental concerns, a combination that has positioned the company as a leader in the natural gas vehicle (NGV) market.

Recognizing the potential of bio-LNG, IVECO has been advocating for its increased use in the heavy-duty transport sector. Bio-LNG offers an even greater reduction in carbon emissions compared to conventional LNG and diesel truck, aligning with the stringent environmental standards and goals set by the European Union.

IVECO's strategy involves not just manufacturing trucks capable of running on bio-LNG, but also participating in initiatives and partnerships that promote the production and distribution of bio-LNG. By doing so, IVECO is helping to strengthen a robust ecosystem for sustainable transport, ensuring that the necessary infrastructure and fuel supply will be available to support the growing fleet of bio-LNG trucks.

Sustainability of bio-LNG:

The sustainability of bio-LNG is multifaceted, encompassing environmental, economic, and social dimensions. Environmentally, bio-LNG is considered a lower-carbon fuel because the CO2 released during combustion is roughly equivalent to the CO2 absorbed during the growth of the biomass from which it is derived. Moreover, when organic waste is used as the feedstock, bio-LNG production helps in waste management and reduces methane emissions from landfills.

Economically, the production of bio-LNG can stimulate local economies by creating demand for waste materials and generating employment in the renewable energy sector. It also provides energy security by reducing dependence on imported fossil fuels. A good example of this is BiWi in Vipiteno . They collect organic waste from the region and turn it into bio-LNG. This bio-LNG is used to transport, for example the organic waste to BiWi , thus creating a circular economy.

Socially, the use of bio-LNG can improve air quality, particularly in urban areas, leading to better public health outcomes. Additionally, the circular economy approach of bio-LNG production encourages community participation and awareness about renewable energy and waste reduction.

The Role of Shell in bio-LNG:

Shell's approach to bio-LNG is multifaceted, reflecting the complexity and scale of transitioning to a sustainable energy future. The company's investment in bio-LNG includes the development of production facilities, the expansion of the supply chain, and the establishment of partnerships with other stakeholders across the energy and transport sectors .

Production Facilities: Shell is constructing and expanding its bio-LNG production facilities. These investments are aimed at increasing the availability of bio-LNG in key markets, thereby supporting the growth of an energy ecosystem centered around renewable sources.

Supply Chain Expansion: Recognizing the need for robust infrastructure, Shell focuses on the logistics required to bring bio-LNG to market. This includes upgrading and developing of refueling stations across Europe, which are essential for the widespread adoption of bio-LNG in the heavy-duty transport sector. Nature Energy - Shell has acquired the largest producer of renewable natural gas in Europe, its portfolio of operating plants, associated feedstock supply and infrastructure, its pipeline of growth projects and its in-house expertise in the design, construction, and operation of innovative and differentiated RNG plant technology. The acquisition supports Shell’s ambitions to build an integrated RNG value chain at global scale and to profitably grow its low-carbon offerings to customers across multiple sectors.

Strategic Partnerships: Shell is forming strategic collaborations with technology providers, waste management companies, and biogas producers to streamline the bio-LNG value chain. By collaborating with these partners, Shell is working to ensure that the production of bio-LNG is both efficient and scalable.

Research and Development: Investment in R&D is another pillar of Shell's strategy. The company is supporting innovation in the production and utilization of bio-LNG to improve yields, reduce costs for customers, and enhance the performance of bio-LNG-powered engines.

Furthermore, Shell is building one of the largest bio-LNG production facilities in Wesseling, near Cologne, Germany. This site will increase the availability of bio-LNG in Germany. With the opening of the bio-LNG liquefaction plant ,?customers will benefit from further CO2 reductions (approx. 5,000 LNG trucks)?

Conclusion:

Bio-LNG stands out as a viable and sustainable fuel option that can help Europe transition to a more circular and lower-carbon transport economy. Its compatibility with existing LNG infrastructure and potential for immediate emission reductions make it an attractive option for heavy transport and shipping. As companies like Shell continue to invest and develop the bio-LNG sector, the prospects for a cleaner, more sustainable transport network in Europe look increasingly promising. The circular economy of bio-LNG is not just a vision for the future; it is a practical solution that is taking shape today, driving the continent towards its ambitious environmental goals

Disclaimer: I was part of the road trip promoting Bio-LNG from IVECO and Shell in the summer of 2023 and this article reflects my learnings from this tour.