Bio-LNG Market Size, Share, and Industry Analysis by Feedstock Source (Household Waste, Industrial Waste, Manure, Sewage Sludge, and Agricultural Waste), By Production Process (Anaerobic Digestion, Biogas Purification, Methane Separation, and Liquefaction), By End User (Transportation Industry, Power Generation Industry, Manufacturing Industry, Maritime Shipping Industry, and Others), and Regional Forecast, 2026-2034

The global bio-LNG market size was valued at USD 3.61 billion in 2025. The market is projected to grow from USD 5.12 billion in 2026 to USD 83.15 billion by 2034, exhibiting a CAGR of 41.69% during the forecast period.

The global bio-LNG market is expected to witness robust growth due to the growing adoption of renewable energy across the globe. Governments are implementing programs to encourage the use of renewable fuels. Biogases are becoming a more attractive alternative to diesel and gasoline as companies look to reduce their carbon emissions. Moreover, strategic initiatives by renewable energy market players are also contributing to the market dynamics.

• In November 2024, Wärtsilä Gas Solutions announced a supply contract of biogas upgrading and liquefaction solutions to Gasum for their bio-LNG plant. The plant is expected to produce high-quality bio-LNG sourced from organic household waste and agricultural waste.

Bio-LNG Market Driver

Rising Adoption of Renewable Energy to Foster the Market Growth

The growing prominence of renewable energy as a power source is expected to have a positive impact on the market. As governments across the globe are implementing several measures to reduce carbon emissions, the demand for bio-LNG is increasing. Moreover, continuous technological advancements in bio-LNG production technology will also contribute to market growth.

• In September 2024, Nordsol announced the development of a bio-LNG production plant that utilizes fruits, garden waste, and fermented vegetables as feedstock for bio-LNG production.

Hence, the growth of the renewable energy industry is expected to propel the market over the forecast period.

Bio-LNG Market Restraint

Limited Feedstock Availability May Restrain the Market Growth

The market faces growth restraints due to the limited availability of feedstock such as household waste, industrial waste, manure, sewage sludge, agricultural waste, and landfill gas. The availability of organic waste materials used to produce biogases can be seasonal and vary by location, which creates challenges for market players in increasing their production capacity.

Bio-LNG Market Opportunity

Rising Emphasis on Reduction of Carbon Emissions to Create Lucrative Market Opportunities

Government inclination toward reduction in carbon emissions and growing emphasis on sustainable biotechnology will create lucrative opportunities for market players. Most prominently, regions such as North America and Europe will emerge as major regions for market players owing to the favorable government initiatives.

• In November 2024, the Government of Germany announced greenhouse gas emissions reduction and energy transition. The country aims to reach carbon neutrality by 2045 and cut at least 65% by 2030.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in the Bio-LNG Market
• Key Industry Trends
• Regulatory Landscape for the Market
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

Analysis by Feedstock Source

Based on feedstock source, the market is segmented into household waste, industrial waste, manure, sewage sludge, and agricultural waste.

The household waste segment is expected to dominate the market. Household waste is waste generated from daily household activities. It can include food scraps, packaging, paper, and others. Bio-LNG is a biofuel made from organic waste, including household waste, and is a renewable alternative to Liquefied Natural Gas (LNG).

• In June 2024, Gruner Renewable Energy announced plans to develop Asia’s largest biogas plant with an investment of USD 26.3 million with a capacity of 44 tonnes of biogas per day and an annual production of 16,000 tonnes. The plant will utilize feedstocks such as paddy, cane trash, and municipal solid waste (MSW) due to their cost-effectiveness.

Moreover, other feedstock sources such as industrial waste, manure, sewage sludge, agricultural waste, and landfill gas are used for heavy-duty and maritime transportation. The process involves anaerobic digestion of sewage sludge to produce biogas, which is then separated into methane and liquefied.

Analysis by Production Process

Based on production process, the market is segmented into anaerobic digestion, biogas purification, methane separation, and liquefaction.

Anaerobic digestion (AD) is a biological process that breaks down organic waste to produce biogas, which can be liquefied to create bio-LNG. Anaerobic digestion is the most commonly used production process for biogas. However, biogas purification involves removing impurities from biogas to produce biomethane, which is then liquefied. The process can include water scrubbing, membrane separation, and cooling.

• In September 2023, Nordsol announced a collaboration with RenEco to develop a bio-LNG production facility in the U.K. This collaboration involves the utilization of organic waste to produce biogas and organic fertilizers. Such initiatives are supporting the growth of the anaerobic digestion segment.

Furthermore, methane separation for bio-LNG is a process that removes methane from biogas to create biogas in liquid form. Bio-LNG is a biofuel that can be used in heavy-duty and maritime transportation.

Analysis by End-User

Based on end-user, the market is segmented into transportation, power generation, manufacturing, maritime shipping, and others.

The transportation segment is expected to dominate the market due to technological advancements in the automobile industry, which are allowing the adoption of sustainable fuels over conventional fuels.

• In February 2023, Volvo Trucks announced the launch of high-power trucks powered by bio-LNG to support emissions control initiatives and targets of governments across the globe. Hence, such developments by end users will also contribute to driving the market growth.
• In August 2023, the Mediterranean Shipping Company collaborated with SEA-LNG to assess the long-term adoption of bio-LNG in the shipping industry to support decarbonization targets.

Hence, the rising adoption of bio-LNG in end-user industries will drive market growth over the forecast period.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is expected to emerge as a key market owing to the rapid adoption of renewable energy and the presence of favorable government initiatives in the region. Moreover, an increase in the usage of alternate fuels for power generation to control and reduce greenhouse gas emissions will propel the market growth over the forecast period.

• In December 2024, the U.S. Government announced targets to reduce greenhouse gas by 61% to 66% below 2005 levels by 2035. The government's strategies will leverage investments from the Bipartisan Infrastructure Law, federal renewable energy standards, and the Inflation Reduction Act.

Europe is expected to emerge as the dominant region due to the increasing demand from the transportation and power generation industry in major countries such as the U.K., Germany, France, and the U.K. Robust demand for renewable energy, owing to the stringent EU regulations for emission control, is expected to drive the regional market.

• According to the European Commission, renewable energy accounts for 50% of EU electricity production.

Hence, the high integration of renewable energy in electricity production in the region is expected to propel the market growth over the forecast period.

The Asia Pacific region is expected to witness significant growth owing to the increasing demand for electricity and increasing awareness of sustainable fuels. Moreover, the governments of major countries such as China, India, Japan, and Australia are taking measures to promote the adoption of renewable energy, which will drive the market growth over the forecast period.

• In December 2023, the Indian Biogas Association (IBA) announced the proposal of 5% biogas blending in natural gas supplies to reduce LNG imports worth USD 1.17 billion.

Latin America is expected to grow at a significant rate owing to the growing prominence of biofuels and increasing investment in renewable energy in the region. Moreover, the increasing demand for electricity is also expected to boost the market growth.

• In October 2024, Repsol announced a supply contract of 60 tons of bio-LNG to Brittany ferries in Spain. Such an initiative signifies the commitment of end users toward the adoption of renewable energy.

The Middle East & Africa market is expected to grow at a considerable rate owing to the rising emphasis on the integration of renewable energy in power generation. Moreover, companies engaged in the development of sustainable energy technologies are expected to play a vital role in the region's market.

Key Players Covered

The global bio-LNG market is fragmented with the presence of a large number of market players. The report includes the profiles of the following key players:

• Nordsol (Netherlands)
• Linde plc (Ireland)
• Flogas Britain Ltd. (U.K.)
• Titan LNG (Netherlands)
• DBG Group B.V. (Netherlands)
• EnviTec Biogas AG (Germany)
• BIOKRAFT INTERNATIONAL AB (Sweden)
• AXEGAZ T&T (France)
• MEGA a.s. (Czech Republic)
• Shell Plc (U.K.)

Key Industry Developments

• In November 2024, Keppel, BBGI, and Keppel announced a strategic partnership to develop bio-LNG project in Thailand. The three companies aim to develop the project for expansion in Thailand over the next 3 to 5 years.
• In September 2024, Gasum partnered with Hapag-Lloyd to supply Bio-LNG over a year's tender period to adhere to the requirements of the Zero Emission Maritime Buyers Alliance tender.