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Bio LPG Market Expected to Reach US$1,020.32 Million by 2025, Fueled by Growing Demand for Sustainable Energy Sources

The global bio LPG (liquefied petroleum gas) market is experiencing significant growth, with a projected value of US$1,020.32 million by 2025, up from US$153.71 million in 2019. Analysts anticipate a remarkable double-digit CAGR of 47% between 2020 and 2025, driven by rising concerns about carbon emissions and the increasing cost of conventional LPG.

Key Findings from the Report:

  • The global bio LPG market is expected to register substantial growth, driven by the demand for more sustainable and affordable energy sources.
  • Bio LPG, derived from renewable feedstocks such as plant and vegetable waste, is gaining prominence as a greener and cleaner alternative to conventional LPG.
  • Advanced chemical processes and pilot projects are paving the way for increased bio LPG production, potentially covering up to one-third of global LPG production by 2025.
  • Stringent government regulations, availability of substitutes like biogas, and fluctuations in natural gas and crude oil prices pose challenges to the bio LPG markets growth.

Market Insights:

As the world seeks more sustainable energy alternatives, bio LPG has emerged as a viable solution to reduce carbon footprint and enhance affordability. Bio LPG is primarily propane produced from renewable feedstocks, such as plant and vegetable waste materials, and it is gaining popularity as a greener and cleaner substitute for conventional LPG.

Growth Drivers:

Increase in R&D Activities and Pilot Projects: Advanced chemical processes and pilot projects focused on cellulosic and mixed waste feedstocks are expected to drive bio LPG production in the near future. By maximizing bio-oil hydrotreating and bio LPG recovery, it is anticipated that bio LPG could cover a significant portion of global LPG production by 2025.

Prominence of Cellulosic Organic Waste: Cellulosic organic waste, including agricultural and forest residues, as well as energy crops, holds significant potential for increasing bio LPG production. These waste materials are rich sources of biological hydrocarbons, making them a key driver for bio LPG market growth.


Government Regulations and Policy Changes: Inconsistent government policies related to feedstocks used for biodiesel production and biofuels, in general, pose challenges to the bio LPG market. Controversies surrounding issues like food vs. fuel and deforestation have led to restrictions or bans on certain feedstocks, impacting bio LPG production.

Availability of Substitutes: Biogas, derived from wet organic waste, is considered a key substitute for bio LPG. It is environmentally friendly and safer than LPG due to its lower density and pressure, which may hinder the bio LPG markets growth.

Bio-oil Feedstock Dominates, Cellulosic Organic Waste Holds Promise:

Currently, bio-oil feedstock accounts for 100% of the global bio LPG market. Bio-oil is obtained as a by-product of the biodiesel production process. However, the challenge lies in achieving a higher yield of bio LPG through the bio-oil route. Investments in pilot and demonstration projects focusing on converting cellulosic organic waste to bio LPG are gaining traction and are expected to contribute significantly to the markets growth.

Europe Leads in Bio-LPG Production and Marketing:

Europe currently dominates the global bio LPG market, accounting for over 90% of production and marketing. Key bio LPG producers in Europe include Neste Oil, ENI, Total SE, PREEM Group, and Global Bioenergies. The regions strong presence of bio-LPG producers, along with efforts to reduce carbon emissions, has driven the uptake of biofuels. Europes ambitious climate and energy policies further support the adoption of bio LPG.

North America is also witnessing growth in the bio LPG market, with the United States leading in both value and volume in 2019. The region has seen an increase in small and large-scale demonstration projects related to bio LPG recovery from various feedstocks.

Global Bio-LPG Market: Competitive Landscape

Key players operating in the bio LPG market include Neste Oil, Total SE, ENI, SHV Energy, Preem AB, Renewable Energy Group, AvantiGas, Irving Oil, Global Bioenergies, and Diamond Green Diesel. These companies are actively involved in expanding their bio LPG production and marketing efforts.

In 2019, Primagaz partnered with global service station chain Circle K to offer 100% bio-LPG in 297 stores across Sweden. Additionally, SHV Energy doubled its bio LPG supply volume to customers in key European markets in 2019.

Browse Global Bio LPG Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2025 – [2023 UPDATE Available – Forecast 2023-2030*] (By Feedstock Coverage(Bio-oil,Cellulosic Organic waste,Others), End-user Coverage(Residential,Chemical & Petrochemical,Industrial & Others), By Geography, Leading Companies): https://www.fairfieldmarketresearch.com/report/bio-lpg-market

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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sahyadri Times journalist was involved in the writing and production of this article.