Fairfield Market Research's latest report highlights that the efforts to reduce dependency on fossil fuels is directing attention to bio liquefied propane gas (LPG). With growing efforts to reduce pollution, the latest report predicts that the global Bio LPG market will surge at a phenomenal CAGR of 47% between the forecast years of 2020-2025.
Investments by energy companies to push for Bio LPG adoption is expected to help the market achieve a valuation of US$1,020.32 Mn by the end of 2025.
The demand for Bio LPG is fast catching up across industries as this energy solution is identical to conventional LPG and promises to cut down CO2 emissions by 80%. Also, known as renewable propane and biopropane, analysts state that its versatility will boost uptake. Today, Bio LPG can be easily used for industrial applications, agricultural uses, and heating and cooking purposes.
Residential Demand for LPG to Create Opportunities for Bio LPG
As urban landscapes change, Fairfield Market Research predicts that they will turn into lucrative business opportunities for players in the Bio LPG market. As Bio LPG is chemically the same as LPG it can seamlessly replace the latter. It requires no additional supply chain or equipment, which makes it an ideal solution for household and commercial use.
Bio-oil to Remain Dominant Raw Material While Cellulosic Organic Waste Demand R&D
Bio LPG is made out of bio-oil, cellulosic organic waste, and other feedstocks such as wet waste, sugar, and glycerine. Out of these, bio-oil feedstock remains the most popularly used raw material and constitutes about a 100% market share. Bio LPG is primarily recovered from biodiesel plant as a by-product.
Analysts anticipate that the dominance of bio-oil will push players to invest in research and development of methods to use cellulosic organic waste to derive Bio LPG. The sheer abundance of agricultural, forest, energy crops wastes, if channelized and commercialized, can yield a great amount of Bio LPG in the forthcoming years. Tapping into the unused amount of municipal waste will also lift the burden off bio-oil feedstock and help other segments make their mark in the market.
Europe Paves the Way with Strong Commitment to Sustainability
Europe is the leading region in the global Bio LPG market as the countries, such as Sweden, allow tax exemption on its use for heating and vehicular fuel. Strong commitment by the governments in the European region towards sustainability is paving the way for commercial usage of Bio LPG.
In recent news, Poland's Ekobenz Sp. z o.o. has agreed to supply Bio LPG to UGI International's facilities in Gothenburg, Sweden. The company will further sell Bio LPG in a business-to-business manner through its subsidiaries in Sweden, Norway, Finland, and Denmark. Thus, strong initiatives to capitalize on the emerging demand in a young market will bode well for the regional market. According to Fairfield Market Research, about 90% of the Bio LPG is produced in Europe. In light of these statistics, the regional market is expected to retain its lead in the forthcoming years.
Players in the global Bio LPG market are focussing on making decarbonizing strategies accessible. For the same purpose, companies are expected to explore new opportunities in the global market. For instance, in 2019, SHV Energy started supplying twice as much Bio LPG to European markets.
Some of the key players operating in the global Bio LPG market are Neste, Total, Eni, SHV Energy, Preem AB., Renewable Energy Group, Inc., AvantiGas, Irving Oil, Global Bioenergies, and Diamond Green Diesel.
Get a sample of the report here: https://www.fairfieldmarketresearch.com/report/bio-lpg-market/
