Bio-LNG Market Growth 2025-2034 | Europe's Policy Support, India's Investment Boom, and Global Sustainable Energy Expansion

The Future of Bio-LNG | Market Growth, Investments, and Policy Developments in Europe and India (March 2025)

Europe's Bio-LNG Market | A Surge in Growth and Innovation

As of March 2025, Europe's Bio-LNG sector is witnessing substantial growth, driven by regulatory initiatives, technological advancements, and increasing investments.

Industry leaders and policymakers are focusing on expanding production capacity, enhancing infrastructure, and aligning strategies with sustainability goals to accelerate the adoption of Bio-LNG.

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European Initiatives and Conferences

A landmark event, "The Future of Bio-LNG: Europe 2025," was held in Amsterdam in late January 2025.

Organized by WPL Group, the conference convened stakeholders to discuss regulatory harmonization, market trends, decarbonization strategies, technological advancements, and sustainable feedstock supply.

The event played a pivotal role in shaping policy frameworks and investment strategies for the sector, with industry experts emphasizing the need for cross-border collaboration to scale up Bio-LNG infrastructure.

Production Capacity and Facility Expansion

Europe has seen a sharp increase in Bio-LNG production facilities, reinforcing its commitment to sustainable energy.

By the end of 2022, there were 27 active Bio-LNG-producing plants. This figure is projected to rise to 42 by 2024 and surpass 109 by the end of 2025.

The combined production capacity of these plants is expected to reach approximately 15.4 TWh per year, significantly contributing to Europe's energy transition.

Key market players such as Shell, TotalEnergies, and Gasum are making substantial investments in expanding their Bio-LNG operations.

Market Outlook and Economic Trends

The global Bio-LNG market is poised for rapid expansion. Valued at approximately USD 1.85 billion in 2025, the market is projected to grow to USD 29.67 billion by 2034, representing a staggering compound annual growth rate (CAGR) of 32.0%.

In Europe, the Bio-LNG market is expected to grow with a CAGR of 39.15%.

This growth is attributed to increasing investments, favorable policies, and heightened demand for low-carbon energy alternatives, particularly from the transport and industrial sectors.

Source: MarketDigits, March 2025, 'Bio-LNG Market Analysis and Forecast 2025-2034-Growth Drivers and Investment Trends'

Biomethane Production Growth

Europe's biomethane sector is also expanding rapidly. By 2023, the continent's biomethane production reached 4.9 billion cubic meters (bcm).

As of the first quarter of 2024, installed capacity surged to 6.4 bcm per year, marking the most significant annual increase recorded.

This trend highlights Europe's commitment to increasing renewable gas production and reducing reliance on fossil fuels.

Compared to other regions, Europe leads in biomethane production, outpacing North America and Asia in facility development and capacity expansion.

View the Complete 194 Pages Market Research Report on Bio-LNG Market: https://www.marketdigits.com/bio-lng-market-1700659525

India's Strategic Push for Bio-LNG | Policy and Market Growth

Parallel to Europe's advancements, India has been making significant strides in Bio-LNG development as part of its broader sustainable energy strategy.

The Indian government has implemented policies and investment initiatives to accelerate Bio-LNG adoption, reducing dependence on imported LNG.

Government Initiatives and Mandates

The Ministry of Petroleum and Natural Gas introduced the Compressed Bio-Gas (CBG) Blending Obligation (CBO) scheme, requiring the blending of CBG into the City Gas Distribution (CGD) sector's CNG (transport) and PNG (domestic) supplies.

The progressive blending target is set at 1% for the fiscal year 2025-26, increasing to 5% by 2028-29.

This initiative aligns with India's broader goal of fostering a circular economy and cutting down on LNG imports. Moreover, the mandate extends benefits to industries involved in waste-to-energy conversion and agricultural residue management.

Economic and Environmental Impact

According to a study conducted by the Indian Biogas Association (IBA), achieving a 5% biogas blend with natural gas could result in LNG import reductions worth approximately USD 1.17 billion annually.

This initiative aligns with India's goal of increasing natural gas's share in its total energy mix from 6% to 15% by 2030.

Additionally, blending biogas with natural gas is expected to reduce India's per capita CO2 emissions by 2%, based on 2019 emission levels.

The study also highlights the potential of biogas to create over 75,000 new jobs across production, logistics, and R&D sectors.

Investment and Infrastructure Development

The CBO scheme is projected to attract investments totaling ₹37,500 crore by 2028-29, facilitating the development of at least 750 CBG projects nationwide.

These investments will enhance India's energy security by reducing reliance on imported natural gas while creating new opportunities in agriculture, waste management, and renewable energy sectors.

Major stakeholders, including Reliance Industries, Indian Oil Corporation, and Adani Total Gas, have announced large-scale projects to expand CBG production and distribution networks.

A Global Transition Towards Bio-LNG

Both Europe and India are making significant progress in scaling up their Bio-LNG capabilities through policy support, infrastructure expansion, and market investments.

While Europe is driving Bio-LNG adoption through technological advancements and regulatory frameworks, India is leveraging policy mandates and investment initiatives to position Bio-LNG as a key component of its sustainable energy future.

With a projected global market valuation of USD 29.67 billion by 2034, the Bio-LNG market is on a robust growth trajectory, underscoring its pivotal role in decarbonizing energy systems, enhancing energy security, and supporting economic development worldwide.

Future collaborations between Europe and India, along with innovations in feedstock efficiency and carbon capture, are expected to further accelerate Bio-LNG adoption on a global scale.

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