Bio LPG

Global Bio LPG Market to Reach US$2.3 Billion by 2030

The global market for Bio LPG estimated at US$819.1 Million in the year 2024, is expected to reach US$2.3 Billion by 2030, growing at a CAGR of 19.1% over the analysis period 2024-2030. Bio Oil Feedstock, one of the segments analyzed in the report, is expected to record a 17.6% CAGR and reach US$1.2 Billion by the end of the analysis period. Growth in the Cellulosic Organic Waste Feedstock segment is estimated at 23.5% CAGR over the analysis period.

Global Bio LPG (Liquefied Petroleum Gas) Market – Key Trends & Drivers Summarized

Why Is Bio LPG Emerging as a Key Renewable Fuel in the Decarbonization of Residential, Commercial, and Off-Grid Energy Use?
Bio LPG is gaining traction as a renewable, drop-in alternative to fossil-based LPG, offering a low-carbon solution for heating, cooking, transportation, and industrial energy in both urban and off-grid applications. Chemically identical to conventional LPG, Bio LPG is produced through various renewable pathways—most notably via the hydroprocessing of bio-oils, waste fats, and used cooking oils, or as a co-product in bio-refinery operations. Its compatibility with existing LPG infrastructure makes it a pragmatic, scalable option for immediate emissions reduction without requiring changes to end-user appliances or distribution systems.

As the global energy transition moves beyond electricity and targets the decarbonization of gaseous fuels, Bio LPG offers a renewable energy vector for sectors where electrification remains costly or impractical. It plays a critical role in rural energy access, off-grid hospitality, agricultural operations, and mobile energy services. With a significantly lower lifecycle carbon footprint compared to fossil LPG and the ability to be blended or used standalone, Bio LPG is gaining strategic relevance in government policy, industry transition planning, and household energy resilience frameworks.

How Are Technology Pathways and Production Models Expanding Bio LPG Supply Potential?
Bio LPG production is advancing through multiple technology routes, including hydrotreated vegetable oil (HVO) processing, biomass gasification with Fischer-Tropsch synthesis, and microbial conversion of industrial waste streams. HVO biorefineries—already producing renewable diesel—are the primary commercial-scale source of Bio LPG, with propane emerging as a co-product. Process optimization and feedstock diversification are enhancing output yields and improving cost competitiveness. R&D efforts in thermochemical conversion, algae-based synthesis, and power-to-gas approaches are also unlocking new frontiers in sustainable Bio LPG generation.

Refiners and energy companies are leveraging existing LPG logistics—bottling plants, cylinders, storage depots, and distribution fleets—to integrate Bio LPG seamlessly into supply chains. Blending strategies are being implemented to allow for gradual substitution in residential and commercial markets, while traceability and sustainability certification systems (e.g., ISCC, RSB) are being adopted to validate carbon reduction claims. These developments are lowering the barrier to entry for producers and accelerating Bio LPG’s commercialization across geographies and use cases.

Where Is Demand for Bio LPG Growing and Which Applications Are Leading Market Uptake?
Europe is currently the epicenter of Bio LPG demand, driven by stringent emissions targets, green energy incentives, and active LPG market reform across countries such as the UK, Netherlands, France, and Sweden. North America is showing early momentum, with regional propane suppliers and biofuel producers forming partnerships to supply renewable propane for rural heating and transport fuel applications. Asia-Pacific is positioned for medium-term growth, particularly in countries like Japan, South Korea, and India, where LPG is widely used in residential cooking and clean energy policies are evolving rapidly.

Leading demand is emerging from residential heating and cooking, particularly in off-grid and rural communities seeking cleaner energy options without electrification. Bio LPG is also gaining interest in hospitality, mobile catering, and small-scale industrial heat applications where portability and low emissions are crucial. Fleet operators in logistics and agriculture are exploring Bio LPG as a low-emission vehicle fuel alternative under renewable transport mandates. The blend-ready nature of the fuel and its drop-in compatibility across multiple use cases are making it an attractive transition option for both utility providers and consumers.

What Is Fueling the Global Growth of the Bio LPG Market?
The global Bio LPG market is expanding rapidly on the strength of decarbonization mandates, circular economy initiatives, and the increasing need to green gaseous fuels without overhauling infrastructure. Government support in the form of biofuel blending mandates, tax credits, and renewable energy certification is driving supply-side investments, while demand is rising among end-users seeking low-carbon, reliable, and scalable energy alternatives. Public-private partnerships and co-located biorefineries are optimizing production economics and supply logistics.

With the dual benefit of carbon savings and infrastructure compatibility, Bio LPG is gaining favor among energy distributors, policymakers, and ESG-focused enterprises. As green molecules gain parity with green electrons in the energy transition dialogue, a pivotal question emerges: Can Bio LPG production scale rapidly and sustainably to meet growing global demand—while ensuring feedstock availability, lifecycle integrity, and competitive pricing for wide-scale adoption across urban and off-grid energy markets?

SCOPE OF STUDY:

The report analyzes the Bio LPG market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Feedstock (Bio Oil, Cellulosic Organic Waste, Municipal Solid Waste, Other Feedstocks); Application (Residential Heating, Industrial Heating, Cooking & Catering, Transportation, Power Generation, Other Applications); End-Use (Residential, Commercial, Industrial)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 36 Featured) -

• AvantiGas
• BioLPG LLC
• Cavagna Group
• Diamond Green Diesel
• Eni S.p.A.
• Irving Oil
• Linde plc
• Neste Corporation
• Oberon Fuels
• Preem AB
• Primagas GmbH
• Puxin Biogas
• Renewable Energy Group, Inc.
• Repsol S.A.
• SHV Energy
• Shell plc
• TotalEnergies SE
• Ultrapar Participações S.A.
• UGI International
• Westfalen AG

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