Global Bio LNG Market to Reach US$2.3 Billion by 2030
The global market for Bio LNG estimated at US$883.6 Million in the year 2024, is expected to reach US$2.3 Billion by 2030, growing at a CAGR of 17.7% over the analysis period 2024-2030. Agriculture Residues, one of the segments analyzed in the report, is expected to record a 19.9% CAGR and reach US$1.0 Billion by the end of the analysis period. Growth in the Industrial Waste segment is estimated at 14.5% CAGR over the analysis period.
The U.S. Market is Estimated at US$240.7 Million While China is Forecast to Grow at 23.6% CAGR
The Bio LNG market in the U.S. is estimated at US$240.7 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$530.1 Million by the year 2030 trailing a CAGR of 23.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.9% and 16.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.1% CAGR.
Global Bio LNG (Liquefied Natural Gas) Market – Key Trends & Drivers Summarized
Why Is Bio LNG Emerging as a Strategic Low-Carbon Fuel in Global Energy Transition Pathways?
Bio LNG, or liquefied biomethane, is rapidly gaining strategic significance as an advanced biofuel capable of decarbonizing hard-to-abate sectors such as heavy-duty transport, shipping, and off-grid industrial operations. Produced by upgrading biogas derived from organic waste and then liquefying it at cryogenic temperatures, Bio LNG offers comparable energy density and handling characteristics to fossil LNG—while delivering a significantly lower carbon footprint. As global energy policies intensify their focus on renewable fuels and circular economy principles, Bio LNG is emerging as a viable alternative to diesel and conventional LNG in both road mobility and maritime transport.
Its ability to leverage existing LNG infrastructure—such as fueling stations, transport tankers, and bunkering terminals—enables seamless integration into current fuel supply chains, reducing transition friction and capital expenditure. Coupled with rising biomethane production from agricultural waste, wastewater treatment, and landfill gas, Bio LNG is well positioned to support both climate goals and waste valorization strategies. This dual advantage makes it an attractive energy vector for governments, fuel providers, and logistics operators seeking rapid decarbonization wins.
How Are Technological and Policy Enablers Accelerating Bio LNG Production and Market Integration?
Advancements in anaerobic digestion, biogas upgrading, and cryogenic liquefaction technologies are improving the efficiency, scalability, and geographic feasibility of Bio LNG production. Modular biogas plants with integrated CO2 separation and methane purification systems are being deployed near agricultural, municipal, and industrial waste sources, supporting decentralized Bio LNG production. Liquefaction systems are being adapted for small and mid-scale deployment, enabling local fueling hubs for transport fleets and regional bunkering operations.
On the policy front, carbon pricing mechanisms, renewable fuel mandates, and green procurement frameworks are creating a strong regulatory pull for Bio LNG adoption. Incentives such as Renewable Transport Fuel Certificates (RTFCs) in the UK, the Renewable Energy Directive II (RED II) in the EU, and Low Carbon Fuel Standards (LCFS) in California are supporting commercialization. Certification schemes for greenhouse gas reduction and traceability—such as the ISCC and CertifHy—are also enhancing supply chain transparency and buyer confidence. These enablers are converging to move Bio LNG from pilot projects to industrial-scale rollouts.
Where Is Bio LNG Demand Accelerating and Which End-Use Segments Are Leading Adoption?
Europe leads global Bio LNG adoption, with strong policy backing, established biogas infrastructure, and growing deployment across heavy-duty truck fleets and shipping corridors. Countries such as the Netherlands, Germany, France, and Italy are scaling up production and distribution networks in alignment with EU climate targets and emissions reduction mandates for transport fuels. North America is also gaining momentum, with waste management operators, dairy cooperatives, and logistics companies investing in renewable natural gas (RNG) supply chains that include Bio LNG as a key component.
Primary demand is concentrated in long-haul trucking, inland waterways, and short-sea shipping—segments where electrification remains challenging due to energy density constraints. Bio LNG is also being explored in off-grid industrial power generation and as a transition fuel in mining and construction sectors. The fuel’s ability to deliver lifecycle carbon reductions of up to 80% compared to diesel, combined with ultra-low particulate and NOx emissions, is reinforcing its role in fleet sustainability roadmaps and ESG-driven procurement decisions.
What Is Fueling the Global Growth of the Bio LNG Market?
The global growth of the Bio LNG market is fueled by rising climate accountability, demand for renewable fuels in logistics, and the convergence of waste management and clean energy strategies. The transition to cleaner fuels in heavy-duty transport is becoming non-negotiable, and Bio LNG offers an immediately deployable, infrastructure-compatible pathway to emissions reduction. As sustainability-linked financing, corporate decarbonization commitments, and emissions disclosure requirements intensify, Bio LNG is moving from a niche solution to a scalable commercial fuel.
Strategic investments by energy majors, biogas developers, and transport operators are driving infrastructure build-out and supply chain integration. Co-investment models, vertical integration, and public-private partnerships are unlocking the economics of Bio LNG production at regional scale. Against this backdrop, a defining question guides future trajectory: Can Bio LNG scale fast enough—technologically, logistically, and economically—to serve as a cornerstone renewable fuel for high-emission sectors, while supporting circular resource flows and climate-neutral energy systems?
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