Reform of the current European regulatory environment is needed to help boost renewable liquid gas production, writes Peter Wilton
European production of renewable LPG and dimethyl ether (DME) — often referred to collectively as renewable liquid gas (RLG) — could reach 27.4mn t/yr by 2050 under a supportive policy scenario, a report from European LPG association Liquid Gas Europe finds.
This level of output is around 80pc of Europe's current annual consumption and would be 100pc of demand by 2040 under a forecast from Argus Consulting. The RLG Outlook report, conducted by consultancies NNFCC and Frazer-Nash, also provides a "baseline" and "moderate" scenario where RLG output hits 6.3mn t and 12.4mn t, respectively, by 2050. The "high" scenario that projects 27.4mn t rests on strong policy support and feedstock availability.
This high scenario will require simplicity and certainty in regulatory frameworks, the harmonising of EU legislative definitions, adoption of a lifecycle emissions approach, the recognition of RLGs as sustainable investments, and reformed energy taxation, the report says. RLG's multiple production pathways also means that feedstock availability will not constrain output. This will initially mainly be in the form of bioLPG from hydrotreated vegetable oil (HVO) plants, but dedicated bioLPG and renewable DME production pathways utilising gasification will play a larger role later in the timeframe.
Europe is to produce around 220,000t of renewable LPG this year, climbing to about 380,000 t/yr by 2030 based on planned additional capacity, Argus estimates.
