02/04/25
Q&A: LGE still pushing EU for RLG concessions
London, 2 April (Argus) — European LPG association Liquid Gas Europe (LGE)
continues to push to secure EU and member state support for renewable liquid
gases (RLG) such as bioLPG and renewable DME (rDME) while protecting customers
of LPG and autogas from policies intended to transition away from fossil fuels.
Argus' Dafydd ab Iago and Matt Scotland spoke to LGE general manager Ewa
Abramiuk-Lete: What is the EU's latest position on CO2-neutral fuels in road
transport? The European Commission's 2023 regulation proposes a framework for
registering vehicles after 2035 that operate solely on CO2-neutral fuels in
accordance with EU law and climate neutrality objectives. Since then, the
commission has been tasked with developing a definition of what CO2-neutral
fuels are, but no official information has been released yet. Meanwhile, as part
of the broader fuels industry, we've collaborated in a technical group to
formulate a definition that encompasses all renewable fuels in line with the
EU's renewable energy directive [RED III]. The group's report frequently makes
reference to renewable LPG and DME. But will the commission consider anything
other than e-fuels? Certain EU commissioners and commission president Ursula von
der Leyen have emphasised the need for technological neutrality when revising
CO2 standards for cars. The devil is in the details. At this point, there is
talk, but we've yet to see any concrete proposals or indications from the
commission. We are closely monitoring the current developments in the
commission, primarily to determine whether the concept of technological
neutrality is being practically implemented and if there is potential for more
than just e-fuels and hydrogen. But the push for this concept should originate
from member states. Failing to broaden the scope would be a missed opportunity
to support a broader range of cost-effective, immediately deployable renewable
solutions like RLGs and rDME. When could we find out what fuels are included? A
decision may come later this year. Any initiative to reopen or amend EU
legislation must come from the commission. Recent intense discussions in the
European Parliament about the state of the automotive sector, as well as growing
pressure from member states, could be enough to persuade the commission to act.
What has been the reaction to the EU's clean industrial deal and state aid
rules? We are still reviewing the new state aid proposals. At first glance, RLGs
seem to be included. The commission indicates that all fuels compliant with [RED
III] — such as bioLPG, biomethane and rDME — are eligible for support. Fossil
fuels are generally excluded, with limited exceptions for natural gas under
strict conditions. The justification for this is that natural gas is deemed
cleaner than more polluting alternatives — an argument that equally applies to
LPG. In which direction is the EU discussion on energy taxation heading? The
European Council is still finalising the energy taxation directive. The matter
lies with EU member states, which must vote unanimously on energy taxation.
Progress is being made slowly. The current Polish Presidency of the Council of
the EU will need to determine the next steps on critical issues before a
consensus can be reached. For LPG, what is at stake is whether RLGs are fairly
treated under the new tax framework — and whether the directive allows for
differentiation between renewable and conventional fuels, and between business
and non-business uses. How will the energy performance of buildings directive
(EPBD) affect LPG? A lot is quite technical, but also vital for the sector. One
key issue is the inconsistent implementation of the EPBD across EU member
states. Guidance documents provide definitions of what constitutes a fossil fuel
boiler, which is essential as several member states are preparing to phase out
such boilers between 2035 and 2040. A significant question [is whether there
will be] recognition of renewable-ready or renewable-compatible boilers,
particularly those using bioLPG or rDME. We are analysing how member states are
interpreting and implementing these provisions. In Italy, there is strong
support for the continued use of bioLPG in heating, but this level of
recognition varies significantly between member states. What is the latest on
the EU's proposed restrictions on PFAS ? The European Chemicals Agency is
conducting a socio-economic assessment as part of the EU's proposed restriction
on PFAS under Reach, covering many industrial uses. In the LPG sector, PFAS —
particularly fluoropolymers such as PTFE — play a critical role in cylinders,
tanks and valves. These materials are essential for preventing leaks in systems
that store and transport flammable gases. Some alternatives are being tested —
including PFAS-free sealing techniques used by certain companies in Spain — but
they are not yet widely adopted or validated across the EU. Promising
developments are being made but require further testing to meet safety
standards. Your recent RLG Outlook models European RLG output reaching 27.4mn
t/yr by 2050 under the policy conditions. Is that not too optimistic given
limited progress in the past two years and the dissolution of rDME joint venture
Dimeta? While the dissolution of Dimeta was a setback, it does not change the
long-term outlook for rDME. Our 2050 modelling shows that Europe could produce
up to 27.4mn t/yr of renewable LPG equivalent, of which up to 40pc could come
from rDME. The industry continues to see strong potential in rDME, and essential
work is progressing on technical standardisation, and safety and blending rules.
Our analysis also indicates that sustainable feedstocks are sufficient to fulfil
this production potential. Out of 22 production pathways, we examined nine in
detail based on a multi-criteria analysis. Only two are fully commercialised at
present. This is why we are advocating for co-ordinated policy action — to
accelerate commercialisation and mitigate investment risks. Will rDME be a core
focus at LGE's Congress in Katowice over 20-22 May? RDME will be one of many key
topics at the congress. The event will take place in Poland, drawing strong
participation from central and eastern European markets, as well as from further
afield, with delegates expected from the US, South America, Africa, Australia
and Asia. [LGE] plans to present the RLG Outlook and explore opportunities for
scaling up RLG production. In addition, sessions will focus on the role of LPG
in agriculture, transport and heating — all critical sectors for the energy
transition. Central Europe and Poland will be a core point of discussion, given
its significant autogas market and ongoing energy security challenges. We will
also address the impact of Russian sanctions on the Polish LPG market, with
high-level representatives from the Polish presidency and industry ministry in
attendance. Send comments and request more information at
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