Bio-LNG: What is it and what are its advantages and disadvantages compared to diesel?

How can I make my road transport more sustainable? More and more transport companies and shippers are asking themselves this question. In the quest for more sustainable fuel options within the transport sector, Bio-LNG is a term that has been popping up more frequently. But what exactly is Bio-LNG? Where does it come from, and what are its pros and cons for transporters and shippers?

What exactly is Bio-LNG?

Bio-LNG is the liquid form of biogas obtained by fermenting waste and residual materials such as food waste and manure. It is NOT a natural gas; hence it is fossil free.

To produce it, waste and residual material streams are collected in large fermentation plants. Bacteria convert the waste into biogas, which is then cleaned and transformed into biomethane in another facility. Subsequently, the biomethane is cooled, liquefied, and reduced in volume at yet another facility. The next step is to deliver Bio-LNG to filling stations where it can be refuelled.

Where does Bio-LNG come from?

Bio-LNG is produced from waste streams that are mainly collected locally. Rolande strives to produce as close to our filling stations as possible. We are also the co-founders of a Bio-LNG production site in the Netherlands. This facility will open in 2024, allowing us to offer 6 million kilograms of Bio-LNG of Dutch origin, which will be good for 240 million sustainable kilometres. By doing so, Rolande takes another significant step towards achieving our mission: fossil-free net-zero road transport.

The benefits of Bio-LNG for transporters and shippers

1. CO2 Reduction

The most significant advantage of using Bio-LNG is the reduction in CO2 emissions. From the production of Bio-LNG to its combustion in the engine of a truck (well-to-wheel), the emissions are much lower than those of fossil diesel. This is due to the fact that Bio-LNG is not of fossil origin, but is instead made from biological waste

The table below shows the CO2 emissions of various fuels:

Data according to www.co2emissiefactoren.nl  

*  „g CO₂ eq/MJ“ stands for grams of carbon dioxide equivalent per megajoule. This unit is used to quantify the amount of greenhouse gas emissions released during the combustion of a fuel per unit of energy.

If it is your aim to achieve your CO2 reduction targets and make your transport more sustainable, Bio-LNG is a viable option. Choosing Bio-LNG can result in a CO2 reduction of up to 200% compared to diesel. We will explain in detail how this works exactly later, in another blog.

2. Contribution to the circular economy

Producing fuel from waste contributes to a circular economy. All waste streams from, for example, food and industry are reusable as raw materials for Bio-LNG. By fuelling trucks with this Bio-LNG, you make a significant contribution to a circular economy.

3. Fuel that grows with your sustainability ambitions

Bio-LNG has the same energy density as fossil LNG, both containing at least 95% methane. Bio-LNG therefore can be easily integrated into an existing LNG truck. This is often referred to as drop-in-fuel. No modifications are needed to the engines or fuel systems of LNG trucks. Bio-LNG can be used in various blends (mixing ratios). By gradually increasing the proportion of Bio-LNG to LNG, you continuously reduce CO2 emissions. The blend can evolve over time alongside your sustainability goals.

For transporters already fuelling their fleet with LNG, this offers the possibility of a smooth transition to a more sustainable fuel.

4. Fuel Infrastructure

In Germany, Belgium, and the Netherlands, there is a reliable network of Bio-LNG filling stations, which has significantly expanded over the past two years. This means there is usually a filling station nearby.

5. Performance of (Bio-)LNG Trucks

To use Bio-LNG, all you need is an LNG truck. These trucks are available in various types and configurations. LNG trucks are significantly cleaner than Euro-VI diesel trucks and up to 75% quieter than diesel trucks (they are also PIEK certified in the Netherlands). LNG trucks are particularly suitable for long distances and have a range of up to 1700 km (comparable to a diesel truck), depending on the type and brand of truck.

6. Total Cost of Ownership (TCO)

Sustainability requires investment. In the transport world, this is calculated by Total Cost of Ownership (TCO), which includes fuel costs, truck purchase costs, maintenance costs, and other expenses such as insurance costs and subsidies. Except for during the energy crisis in 2021/2022, the TCO of Bio-LNG has been better than diesel. Comparing it to other sustainable fuels like HVO, green electricity or green hydrogen offers a clearer picture. Despite the higher purchase price of a hydrogen or electric truck and higher fuel costs for hydrogen, the TCOs of these trucks are higher than those for Bio-LNG trucks. Another significant advantage is that using Bio-LNG reduces CO2 emissions. With Bio-LNG, you can achieve higher CO2 reductions than with other sustainable fuels. Thus, Bio-LNG not only offers a very favorable TCO, but also allows you to make your entire fleet greener.

Disadvantages of Bio-LNG

Of course, there are also a number of factors you need to consider when choosing Bio-LNG.

The transport world is still predominantly diesel oriented; 95% of all trucks still run on diesel. Many contracts between shippers and transporters include a diesel reference. Switching to Bio-LNG can thus pose a risk. You can mitigate this risk by including a Bio-LNG reference in your contract, in combination with a CO2 reduction target.

Although using Bio-LNG is far less polluting than using fossil fuels, there is still some emission from burning the fuel in the truck, including CO2, NOx, and particulate matter. This makes a Bio-LNG truck less suitable for zero-emission zones in cities. From 1 January 2025, several Dutch cities will introduce zero-emission zones (ZE-zones) for trucks, that only zero-emission vehicles, such as electric or hydrogen-powered trucks, may enter. However, there is a transitional arrangement for existing LNG trucks depending on the emission class of the vehicle. If your existing LNG truck falls under this transitional arrangement, it will have access to zero-emission zones until 1 January 2030. However, from 1 January 2025 all newly registered trucks need to have zero-emission propulsion to access these zones.

In Germany, no toll fee was charged for trucks operating on Bio-LNG until the end of 2023. Currently, Bio-LNG trucks are mistakenly classified as diesel vehicles. As such, they are required to pay the toll rates applicable to these vehicles. Finally, you need an LNG truck to drive on Bio-LNG. Both Bio-LNG or LNG cannot be used in a diesel truck.

Conclusion

Bio-LNG is an excellent option for taking a step towards fossil-free road transport! As a transporter or shipper, if you want to save CO2 today (up to 200%) and meet your CO2 reduction targets for heavy road transport, invest in Bio-LNG.