Areas of use where biogas is the most sustainable alternative

Light vehicles

Compressed biogas (CBG) for light vehicles is a key segment. The number of small lorries in Europe will increase from 9,000 in 2018 to 190,000 in 2030. Together with heavy transport, this segment is expected to constitute 25 per cent of the European natural gas market by 2030.

In Sweden, this market is currently dependent on policy instruments and is limited by the supply of gas cars and filling stations. Filling stations are mainly concentrated in metropolitan areas, along the natural gas pipeline on the country’s west coast, and in Bergslagen. It is today possible to drive a gas vehicle throughout Göta- and Svealand and along the entire Norrland coast. There are currently 26 Bio-LNG filling stations in Sweden, nine more than in early 2019. In total, there are more than 200 public filling stations for vehicle gas, including compressed and liquid biogas².

Buses

Public transport is a strong market for biogas and will remain a key driver in the industry due to a well-functioning infrastructure and other factors. In 2020, approximately 21 per cent of Sweden's entire bus fleet was comprised of gas-powered buses. According to NGVA statistics, the European market share is expected to be 33 per cent in 2030.

Municipalities in Sweden are often responsible for both sewage treatment plants as well as public transport, which has provided opportunities for local cycles that utilise waste. In Sweden, Stockholm Public Transport (SL) and its operators have historically used the most biogas. Looking forward, it is notably Skånetrafiken and Västtrafiken that have identified biogas as an important step towards fossil-free public transport going forward.

Heavy transport

An increasing number of heavy vehicles are powered by alternative fuels such as Bio-LNG. This also applies to long-haul traffic. Volvo, Scania, MAN, Mercedes, and Iveco are some of the companies that have invested heavily in developing efficient, sustainable fuel solutions. The Euro 6 gas engine is essentially as effective as a diesel engine. Meanwhile, interest in gas trucks and lorries is on the rise in several European countries. In 2021,

Amazon announced that it will be using gas lorries in Europe. Since freight transport is normally done across national borders, this also affects conditions for biogas use in Sweden and Norway. Renewable alternatives such as biogas also benefit from the expected rise in oil prices in the long term. Bio-LNG production and access to filling stations are factors that are currently limiting the use of biogas as a fuel in this segment.

Industry

Industry is currently the single largest market for fuel gas. Swedish industries, from heavy steel production to chemical processes and food production, use fuel gases as fuel and raw material. The type of fuel gas used is determined primarily by the industry’s geographical location. Natural gas and biogas are the main types used in western Sweden, where there is a gas network, while industries in other parts of the country choose between LPG, Bio-LPG, LNG and Bio-LNG. Industries on the west coast of Sweden increased their use of biogas 2021 due to increased imports of biogas from Denmark ¹.

In addition to reducing climate impact, the transition to gas from oil and other fossil fuels enables more precise process control. The food industry is therefore particularly interested in gas as a fuel. Stronger financial incentives and increased Bio-LNG production would enable biogas to achieve an impact in industry. Several industrial companies and steel manufacturers – including Sandvik, SSAB and HYBRIT – are expressing greater interest in biogas.

Shipping

The shipping sector has increased its use of gas as fuel in recent years. A 2017 review of newly ordered vessels with links to Sweden showed that half of all new vessels were built to run on gas. Although mainly liquid natural gas is being used, biogas can easily be blended with natural gas, or can replace it entirely.

This trend has its origin in the sector’s environmental ambitions and tough new sulphur emissions standards for the Baltic Sea. According to the United Nations International Maritime Organization (IMO), greenhouse gas emissions from shipping should be reduced by at least 50 per cent by 2050. Investments in gas is playing an important role in this. Neither natural gas nor biogas give rise to sulphur emissions. Carbon dioxide emissions can be reduced by around 30 per cent using natural gas instead of heavy oil, and by a full 120 per cent using biogas².

 Supplying the shipping sector’s needs, however, requires large quantities of gas. As the supply of Bio-LNG increases, several shipping companies are ordering gas-powered vessels. And as more and more vessels are powered by gas, the need for Bio-LNG also increases dramatically.

The shipping sector is of great interest for the future and is expected to be a major market for Bio-LNG. Destination Gotland has gradually begun blending in biogas for their ferries; according to the shipping company’s 2020 climate roadmap, it will use a biogas blend of at least 30 per cent by 2030. Other examples include Viking Line, which has been running its cruise ship Viking Grace on liquid gas since 2013. Viking Line has built a new gas-powered ship, Viking Glory, which is among the world’s most climate-smart vessels and operates on the Stockholm-Åbo route since March 2022. The company’s goal is to switch from LNG to Bio-LNG in future.

In Sweden, the newly started shipping company Wallenius SOL intends to run its vessels on liquid natural gas. Another example is Gothia Tanker Alliance, which currently has thirteen vessels that can be run on biogas or natural gas³.

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