BioLPG: An Emerging Opportunity from SAF Production
Leveraging Co-Products to Advance Europe’s Decarbonization Goals
Image source: SAF Path
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Summary: As Europe scales up Sustainable Aviation Fuel (SAF) production under ReFuelEU and RED III, BioLPG emerges as a valuable co-product, particularly from the dominant HEFA/HVO pathway. While Neste already monetizes BioLPG, high separation costs limit broader adoption. With SAF output set to rise, strategic investments could unlock BioLPG’s potential to decarbonize heating and transport alongside aviation.

BioLPG and SAF Synergy
01/04/2025

BRUSSELS — Europe’s push to decarbonize aviation through Sustainable Aviation Fuel (SAF) is gaining momentum, propelled by the Renewable Energy Directive (RED III) and ReFuelEU Aviation initiative. A lesser-highlighted benefit of this shift is the co-production of BioLPG, a renewable propane that could extend decarbonization efforts beyond the skies. Predominantly generated via the Hydroprocessed Esters and Fatty Acids (HEFA) and Hydrotreated Vegetable Oil (HVO) pathways, BioLPG accounts for approximately 5% of total output, offering a scalable byproduct as SAF production ramps up.

 

Natural Gas Ship

 

The HEFA/HVO route, which processes waste oils, fats, and vegetable oils into SAF and renewable diesel, remains the most commercially mature SAF pathway in Europe. Neste, a frontrunner in this space, extracts BioLPG at its Porvoo refinery in Finland, integrating it into its renewable product portfolio. Yet, as the NNFCC’s 2024 review notes, “many SAF refineries in Europe do not extract BioLPG due to high separation costs,” opting instead to combust it as process fuel or convert it to hydrogen for hydrotreating. This internal use, while practical, restricts opportunities to scale innovative green hydrogen technologies and limits BioLPG’s availability for external markets like heating and transport.

Other SAF pathways present varied BioLPG potential. Fischer-Tropsch (FT) synthesis, which gasifies biomass into syngas for SAF, could yield 3–7% BioLPG, though its infrastructure demands remain a hurdle. Alcohol-to-Hydrocarbon processes, converting bioethanol to SAF, offer up to 9% LPG potential, contingent on plant designs prioritizing extraction over recycling. Power-to-Liquid (PtL) e-fuels, blending renewable hydrogen with captured CO₂, produce smaller eLPG volumes, as seen in Gasco Chile’s pilot. HEFA/HVO, however, leads today, with the NNFCC affirming it as “the only established pathway generating BioLPG as a co-product.”

 

“Unlocking BioLPG’s full potential requires targeted investments in separation technologies and policy incentives to ensure it reaches end users.” — Ewa Abramiuk-Lete, Liquid Gas Europe

 

Europe’s SAF refineries are already showcasing this synergy. TotalEnergies’ La Mède and Grandpuits facilities in France produce HEFA-based SAF and BioLPG, though much remains internal. Repsol’s Cartagena and Puertollano projects in Spain target co-production for transport markets, while SkyNRG and SHV Energy’s Delfzijl plant in the Netherlands aims for 15,000 tonnes of BioLPG annually alongside 100,000 tonnes of SAF. As ReFuelEU mandates drive SAF growth—targeting 6% SAF by 2030—BioLPG volumes could surge, provided separation technologies improve.

Ewa Abramiuk-Lete, General Manager of Liquid Gas Europe, underscores the stakes: “As Europe’s SAF production scales up under ReFuelEU, BioLPG output will naturally increase as a co-product of HVO/HEFA refineries. However, unlocking its full potential requires targeted investments in separation technologies and policy incentives to ensure BioLPG reaches end users instead of being burned as process fuel.” The NREL’s 2022 analysis supports this, estimating recovery payback periods as short as 14 months for small plants (3.5 million gallons/year) with U.S.-style incentives, dropping further with scale. Europe lacks such credits, but policy alignment could shift the economics.

Looking ahead, gasification advancements in FT and PtL diversification could broaden BioLPG sources. For now, enhancing HEFA/HVO recovery offers the fastest route to market, aligning SAF’s aviation focus with broader decarbonization goals across multiple sectors.

Liquid Gas Europe’s recent report, Outlook for the Production of Renewable Liquid Gases in 2040 and 2050, highlights BioLPG’s broader potential. The study projects Europe could produce up to 27.4 million tonnes of renewable liquid gases annually by 2050—equivalent to 350 TWh—replacing most current LPG demand with low-carbon alternatives. Leveraging waste-based feedstocks like agricultural residues and used cooking oils, renewable liquid gases could cut GHG emissions by over 80% compared to conventional LPG, offering a scalable solution for off-grid heating, transport, and industry, provided strong policy support materializes.

Liquid Gas Europe
Looking ahead, gasification advancements in FT and PtL diversification could broaden BioLPG sources. For now, enhancing HEFA/HVO recovery offers the fastest route to market, aligning SAF’s aviation focus with broader decarbonization goals across multiple sectors.

Source:

NNFCC Literature Review 2024; NREL “Techno-Economic, Feasibility, and Life Cycle Analysis of Renewable Propane” (2022); industry statements from Liquid Gas Europe

Liquid Gas Europe