Bio-LNG Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source (Agricultural Residues, Industrial Waste, Household Waste, Others), By Application (Transportation Fuel, Power Generation, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.01 Billion
CAGR (2026-2031)	5.75%
Fastest Growing Segment	Transportation Fuel
Largest Market	Asia Pacific
Market Size (2031)	USD 4.21 Billion

Market Overview

The Global Bio-LNG Market will grow from USD 3.01 Billion in 2025 to USD 4.21 Billion by 2031 at a 5.75% CAGR. Bio-LNG, or liquefied biomethane, is a renewable fuel produced by processing organic waste into gas and liquefying it for use as a direct, low-carbon substitute for conventional liquefied natural gas. The market’s growth is fundamentally supported by stringent decarbonization mandates in the heavy transport and maritime sectors, coupled with the fuel's seamless compatibility with existing global LNG infrastructure. According to SEA-LNG, in 2025, LNG dual-fueled vessels accounted for 70% of alternative-fueled tonnage ordered in 2024, underscoring the robust industrial demand for compatible fleet technologies.

However, market expansion faces a significant challenge in the form of high production costs relative to fossil-based alternatives. The economic viability of Bio-LNG is often constrained by the fragmented availability of organic feedstock and the capital-intensive nature of liquefaction facilities, which can limit scalability and adoption in price-sensitive markets without sustained regulatory incentives.

Key Market Drivers

The Increasing Demand for Compliant Low-Carbon Fuels in the Maritime Industry serves as a critical growth engine for the bio-LNG market. As shipping operators face tightening decarbonization mandates, such as the EU Emissions Trading System (ETS) and FuelEU Maritime, they are rapidly transitioning to drop-in renewable fuels that require no engine modifications. This regulatory pressure has translated into immediate commercial uptake, as bio-LNG offers a compliant pathway to reduce carbon intensity without stranding existing assets. According to Gasum, March 2025, in its annual financial review, the company recorded a 41% year-on-year increase in LNG bunker sales in 2024, driven significantly by the maritime sector's preparation for stricter emissions limits and the need for immediate abatement solutions.

Simultaneously, the Expansion of LNG Refueling Infrastructure and Distribution Networks is removing logistical barriers to widespread adoption. Energy providers and port authorities are heavily investing in liquefaction capacity and bunkering facilities to ensure security of supply for global trade routes. This scaling of the supply chain is essential to convert regional biomethane production into a globally traded commodity. According to the European Biogas Association, December 2024, in the 'Statistical Report 2024', installed biomethane production capacity in Europe expanded to 6.4 bcm per year by the first quarter of 2024. Furthermore, the accessibility of this fuel has improved drastically; according to SEA-LNG, in 2025, LNG bunkering services became available in 198 ports worldwide, ensuring that vessels can reliably refuel across major international shipping hubs.

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Key Market Challenges

The Global Bio-LNG Market faces a substantial hurdle due to the high production costs of liquefied biomethane relative to conventional fossil-based natural gas. This cost disparity is primarily driven by the fragmented nature of organic feedstock supply chains and the capital-intensive requirements for developing advanced liquefaction infrastructure. Because the collection and processing of organic waste do not yet benefit from the economies of scale associated with fossil fuel extraction, the final unit cost of Bio-LNG remains prohibitively high for many price-sensitive operators. Consequently, this economic disadvantage limits the fuel's immediate adoption in the heavy transport and maritime sectors, where operating margins are often tight and fuel costs constitute a major expense.

This pricing differential creates a direct impediment to market scalability, preventing Bio-LNG from becoming a primary fuel source despite regulatory pressures to decarbonize. Fleet operators are often reluctant to commit to long-term renewable fuel contracts when the price premium is significant. According to SEA-LNG, in July 2024, the price of bio-LNG ranged between USD 21 and USD 60 per gigajoule depending on the feedstock and greenhouse gas savings, while conventional LNG bunker fuel traded at approximately USD 12 per gigajoule. This data illustrates a two-to-five-fold cost increase for the renewable alternative, highlighting the severe economic friction that currently hampers the broader commercial expansion of the global market.

Key Market Trends

The deployment of decentralized liquefaction systems is reshaping the market's supply structure by enabling the on-site conversion of biogas into high-density fuel at the point of feedstock generation. This trend allows agricultural and municipal hubs to function as direct energy suppliers, minimizing the logistical inefficiencies and costs associated with transporting raw organic waste to centralized processing facilities. By integrating advanced liquefaction technology directly into local production sites, operators can unlock significant regional capacities that were previously stranded due to grid limitations. According to Bioenergy International, September 2025, St1 Biokraft inaugurated its new Mönsterås production plant in Sweden, which leverages this localized model to reach an annual production capacity of approximately 138 GWh of liquefied biomethane.

Simultaneously, the formation of strategic offtake alliances between producers and logistics fleets is mitigating commercial risks and accelerating market maturation. These long-term partnerships provide producers with the revenue certainty needed to secure final investment decisions while guaranteeing fleet operators access to compliant, traceable fuel volumes for strict decarbonization mandates. This shift from volatile spot trading to committed contractual frameworks is essential for scaling the adoption of renewable fuels in the maritime sector. For instance, according to Titan Clean Fuels, March 2025, the company executed a significant operation under a new multi-delivery contract with Mitsui O.S.K. Lines (MOL), delivering 500 tons of bio-LNG to the vehicle carrier Celeste Ace in the Port of Zeebrugge.

Segmental Insights

The Transportation Fuel segment is currently positioning itself as the fastest-growing area within the Global Bio-LNG Market, driven by the urgent need to decarbonize heavy-duty logistics and maritime shipping. This segment is expanding rapidly because Bio-LNG serves as a high-density, drop-in renewable solution that functions seamlessly with existing liquefied natural gas infrastructure and vehicle engines, addressing range limitations inherent in electric alternatives. Furthermore, regulatory pressure from institutions such as the European Union, through its Renewable Energy Directive (RED II), is enforcing strict emission targets, thereby accelerating the adoption of this sustainable fuel in the commercial transport sector.

Regional Insights

Asia Pacific stands as the leading region in the Global Bio-LNG Market, driven by an accelerating shift toward renewable energy in the heavy transport and industrial sectors. This dominance is underpinned by rapid industrialization and the aggressive adoption of bio-LNG to decarbonize heavy-duty trucking fleets, particularly in major economies like China. Furthermore, the maritime sector plays a pivotal role, with institutions such as the Maritime and Port Authority of Singapore actively establishing regulatory frameworks to scale up bio-LNG bunkering infrastructure. These strategic government initiatives and the region's expanding energy needs position Asia Pacific at the forefront of global market development.

Recent Developments

• In July 2025, NYK Line announced the commencement of continuous bio-LNG usage for its fleet of LNG-powered car carriers, facilitated by a supply arrangement with Titan. The initiative began with fuel deliveries to the vessels Daisy Leader and Sumire Leader at the port of Zeebrugge, reinforcing the shipping company's strategy to decarbonize its operations. The fuel provider supplied mass-balanced bio-LNG, which allowed the shipping firm to track environmental attributes and credit emission reductions against its sustainability targets. This development was described as a highly effective option for reducing greenhouse gas emissions in the shipping industry while utilizing existing infrastructure.
• In March 2025, Titan and Mitsui O.S.K. Lines successfully completed their first joint bio-LNG bunkering operation at the Port of Zeebrugge in Belgium. Under a new multi-delivery contract, Titan deployed its bunkering vessel to deliver a blend of bio-LNG and conventional LNG to the Japanese company’s vehicle carrier, the Celeste Ace. The bio-LNG used in this operation was certified as being produced from waste and residue, offering substantial emission reductions. This event marked the commencement of a broader partnership intended to reliably supply lower-carbon fuel solutions to the shipping operator’s expanding fleet of LNG-fueled vessels.
• In December 2024, United European Car Carriers and Titan Clean Fuels finalized a significant agreement to supply liquefied biomethane to the shipping company’s multi-fuel vessels for the remainder of the year and throughout 2025. This collaboration aimed to ensure that the vast majority of the liquefied gas supplied to the carrier's fleet would be renewable bio-LNG. The deal built upon a previous commitment, with the companies projecting that the increased use of this clean fuel would avoid over 75,000 tonnes of greenhouse gas emissions in 2025 alone, supporting compliance with stringent European maritime regulations.
• In September 2024, Nordsol and Attero officially inaugurated their new bio-LNG production facility, FirstBio2Shipping, located in Wilp, the Netherlands. This plant was designed to convert biogas derived from organic waste into high-purity bio-LNG specifically for the maritime industry. The facility was expected to produce approximately 2,400 tons of bio-LNG annually, which was to be supplied to the maritime sector through a partnership with Titan. The companies stated that the locally produced fuel would significantly reduce greenhouse gas emissions compared to conventional maritime fuels, marking a key development in the decarbonization of heavy transport.

Key Market Players

• TotalEnergies SE
• Linde plc
• Makeen Energy A/S
• BoxLNG Pvt. Ltd.
• Flogas Britain Ltd.
• DBG Group Ltd
• Gasum Oy
• RUHE Biogas Service GmbH
• LIQVIS GmbH
• Andion Global Inc.

By Source	By Application	By Region
Agricultural Residues Industrial Waste Household Waste Others	Transportation Fuel Power Generation Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Bio-LNG Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Bio-LNG Market, By Source:

• Agricultural Residues
• Industrial Waste
• Household Waste
• Others

• Bio-LNG Market, By Application:

• Transportation Fuel
• Power Generation
• Others

• Bio-LNG Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE