Since 2021, the use of liquid biogas (LBG) has skyrocketed in the transport and industrial sectors, with strong growth for 13 consecutive quarters. In 2022, the Swedish self-sufficiency rate was around 40%, which means that liquid biogas has had to be imported.
- In the transport sector, a major shift is taking place, with Volvo and Scania leading the way in LBG-fuelled vehicles, which is a greener alternative to compressed gas. With the electrification of buses and taxis, compressed gas is facing challenges, opening the way for increased use of LBG with its longer range for long-distance vehicles.
- Today, industry consumes 60% of Sweden's energy gases, of which only 20% is renewable. With increased requirements and implementation of CSRD reporting, the industry's low share of renewable energy is in the spotlight where stakeholders are pressured to reduce emissions. This opens up for increased demand for liquid biogas.
- Shipping today uses almost exclusively fossil-based liquefied natural gas (LNG). With new rules on emission allowances and a reduction obligation, the industry must now adapt and include liquid biogas in its fuel mix to reduce emissions. Swedish shipping companies are leading the way with investments in ships fuelled by liquid biogas.
Given the changes taking place in the market, producers and users of compressed gas will need to review their strategy. To arrive at a good economic and sustainable calculation, a transition to liquid biogas is the right way to go to neither lose market share nor compromise on sustainability. Based on this, we know that our plants have a major impact on the climate transition.