By Baroruchi Mishra, Group CEO, Nauvata Energy Transition (NET) Enterprise Private Limited
Biogenic liquefied natural gas (bioLNG) offers immense promise as a direct replacement of LNG in all its applications, while achieving net-zero emissions through its use. Derived from agricultural and municipal organic waste, bioLNG is a more promising end-product of the compressed biogas (CBG) pathway. For India, its transformative potential lies, especially in two of the hardest-to-abate sectors, long-distance road and marine transportation, and the manufacture of green steel. The technology used for the manufacture of bioLNG has a direct applicability for the monetisation of stranded natural gas discoveries in areas that are not served by gas pipelines.
Drawing lessons from global project developers, particularly in Europe, we believe bioLNG can be a key contributor to India’s energy transition, besides reducing our forex burden of LNG imports. Biogas is produced through the anaerobic digestion of organic waste; it is rich in methane and carbon dioxide and has traces of hydrogen sulphide and other impurities. After upgrading the biogas to extract nearly pure biomethane and making it bone dry, it is liquefied at -162°C, increasing its energy density by 600 times. It can then be transported in iso-containers by road or rail to demand locations. Its total compatibility with existing LNG infrastructure further strengthens its commercial viability.
Learnings from Europe’s bioLNG policy – scale and simplicity
Europe has witnessed a tremendous momentum in the bioLNG space, guided by strong policy frameworks such as the Renewable Energy Directive II and the Fit for 55 package. By 2030, Europe plans to build over 100-150 bioLNG plants, collectively producing about 1 to 1.5 mtpa, or 12 to 16 TWh of energy annually. It has ambitions to increase the fleet of LNG-fuelled trucks to 250,000 from the current fleet of about 30,000. It is pertinent to note that China has an estimated 1 million LNG-fuelled trucks on the road and is expected to reach more than 1.2 million by 2030.
Technology
Availability of methane volumes is a big challenge for bioLNG manufacturing. Multiple technologies are available for the upgrade of biogas to remove impurities and moisture and achieve more than 97 per cent methane. Volume constraints mean that most of the liquefaction plants are nano-scale (~0.005-0.05 metric tonnes per annum [mtpa]), operating in the range of 5–20 tonnes per day (tpd), using up 0.4 to 1.5 million standard cubic feet per day (mmscfd) of methane. These are often situated near farming clusters, far from LNG demand locations. The ability to transport LNG in iso-containers ensures that the molecules can reach potential customers and thus, replace conventional LNG.
While nano-scale plants (5-10 tpd) using liquefaction technologies from Ecospray, Galileo and Stirling Cryogenics and Norsdo, among others, have relatively lower capex (~$6 million-$10 million) and the plants do not need to be shut down due to lack of feedstock, they might suffer from lower liquefaction efficiency, needing higher power for liquefaction ( 800-850 kWh per tonne). This has a direct impact on the cost per tonne of the LNG produced.
One of the ways to solve this problem is to generate higher amounts of biogas from multiple CBG plants located in a cluster, where the availability of organic feedstock is high and then set up a single micro/mini scale gas-treatment and liquefaction plant (>=0.1 mtpa) that uses all the available natural gas in the region. This will be more efficient – specific power use will be in the range of 400-500 kWh per tonne. If capacities are greater than 20 tpd, the number of technology choices increases – Linde’s StarLNG, Air Liquide’s Turbo Bryton, Wartsila technology, among others, are some examples. If the capacities can be increased further to 300 tpd (~13 mmscfd), small-scale LNG technologies such as the Black and Veatch Prico process, Linde’s small-scale LNG technology, Siemens LNG and other steam methane reforming (SMR) and dry reforming of methane processes become available as choices for technology selection.
Technology providers for nano-scale to mini/micro/small-scale have standardised modular plants, which reduce capital and operational expenditures and speed of construction. European bioLNG projects currently achieve a unit capacity cost between $1,500 per tpa to $2,000 per tpa, which is significantly higher than LNG from petroleum natural gas ($700 to $1,100 per tpa). However, when the carbon cost of 80-100 Euros per tonne is factored in, the bioLNG becomes competitive. With greater research and development geared towards cost reduction, bioLNG manufacturing should be able to overcome the diseconomies of small scale.
India’s transport sector
India’s transport sector accounts for nearly 18 per cent of the total greenhouse gas (GHG) emissions, with projections estimating oil demand in transport to double by 2030. While the government aggressively promotes electric vehicles, especially in urban and two-wheeler segments, heavy-duty applications such as trucks, trains and ships require alternatives, where battery technology is impractical. The groundwork is already being laid through the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, which supports CBG production. Extending this infrastructure to include bioLNG would allow cleaner, high-density fuels to power long-haul freight.
BioLNG-powered trucks can reduce carbon emissions by up to 90 per cent, along with a dramatic decline in particulate matter and nitrogen oxides. This has the potential to revolutionise India’s logistics industry, improve urban air quality and reduce oil imports. BioLNG’s lifecycle GHG emissions are dramatically lower than diesel, and with noise emissions of 72 dB(A) – as quiet as a regular car – it is a win-win for environment and public health.
However, challenges remain – infrastructure for LNG refuelling is scarce and bioLNG production is still absent in India. Financial viability, standardisation of certification systems, and incentives such as carbon credits and viability gap funding are critical to scale.
Greening the steel industry
India is the second-largest steel producer globally and its current reliance on coal through blast furnace-basic oxygen furnace routes makes it a carbon-intensive sector. With mechanisms such as the European Union’s (EU’s) Carbon Border Adjustment Mechanism set to penalise high-emission imports, the urgency for cleaner alternatives has never been greater.
BioLNG offers a pragmatic solution for achieving green-steel manufacturing. Regasified LNG (methane) can partially replace coke in the blast furnace and petroleum natural gas in the manufacturing of steel through the direct reduced iron (DRI) process. It serves as a reducing agent for DRI through the SMR process that produces hydrogen and carbon monoxide. Given its compatibility with existing LNG systems, bioLNG can be integrated in all applications of LNG without the need for massive capital overhauls. Eventually, when the cost of bioLNG comes down to levels similar to the fossil fuel-based LNG, it could become a great source of green hydrogen for various other applications.
BioLNG and India’s climate goals
Energy independence, emission reduction and rural economic growth are the cornerstones of India’s energy vision. BioLNG aligns with all three.
Energy independence: As a domestically produced fuel from agricultural and urban waste, bioLNG reduces India’s dependence on oil and gas imports. Given that India imports ~30 mtpa of LNG for about $15 billion-$17 billion, a bioLNG target of 5 mtpa production would reduce our import bill by $2 billion-$3 billion. Given that Europe targets 1 to 1.5 mtpa by 2030, a 5 mtpa target for India should be credible and hence, achievable
Emission reduction: Lifecycle emissions are significantly lower than fossil fuels. As part of India’s Nationally Determined Contributions and its net-zero target by 2070, bioLNG could play a key role. BioLNG produces significantly less carbon dioxide when combusted. The carbon dioxide reduction when using bioLNG compared to using other fossil fuels (gasoline/diesel) is ~80 per cent; it is ~20 per cent reduction when using conventional LNG.
Rural development: BioLNG supports the circular economy by converting farm waste into energy, creating jobs and decentralising energy production.
Policy gaps and the road ahead
India has taken remarkable steps with policies such as the Bio-Energy Mission, SATAT and the Ethanol Blending Programme. However, bioLNG-specific regulation is lacking. Unlike the EU, India does not yet have national blending mandates for bioLNG in fossil LNG or carbon credit systems linked to gaseous biofuels. Dedicated infrastructure investments for LNG vehicles and LNG fuelling stations are also minimal. A green certification framework for bioLNG will also be needed in due course. To harness its full potential, India must bridge these gaps. Collaboration with Europe – through joint ventures, technology transfer, and pilot projects – can catalyse faster adoption.
BioLNG lies at the intersection of India’s greatest challenges and aspirations: clean air, energy self-sufficiency, rural development and international competitiveness. While still nascent (or absent) in India, the global momentum, particularly from Europe, offers a clear blueprint for success in bioLNG. With strategic policy support, robust public-private collaboration and a clear vision, bioLNG can evolve from a transitional fuel into a transformational one. At NET Enterprise, we are committed to building that future. As a starting point, we plan to create a basic design engineering package for a 20 tpd bioLNG plant by making the most optimal technology selection and by scope optimisation to create a credible case for achieving a Unit Technical Cost (capex + opex + abex) of less than $12/mmbtu of bioLNG, ex-works.
