A business case for the development of a BioLPG supply chain in the UK

Following the results of an analysis conducted by NNFCC to determine the feasibility of establishing a deployment pathway to support a full switch from fossil-derived to BioLPG in the UK by 2040, Liquid Gas UK, the trade association for the Liquefied Petroleum Gas (LPG) industry, launched its 2040 Vision outlining an industry ambition for a 100% BioLPG transition.

In support of its ambition, Liquid Gas UK commissioned NNFCC to perform a further study, to build a business case examining the potential for establishing an indigenous BioLPG supply chain in the UK. NNFCC’s report provided an assessment of the following key aspects:

  • The key role for BioLPG in helping the UK meet its net-zero carbon target
  • The scale of the opportunity for domestic production
  • Review of policies that incentivise BioLPG production in the UK
  • Identification of the most promising BioLPG production technologies and their current development status
  • Opportunities to valorise domestically available feedstock for LPG production
  • BioLPG production potential in UK and individual devolved regions
  • Identification of a credible route to development of a domestic BioLPG supply chain in the UK
  • Potential strategic plant locations
  • Investment requirements for the development of BioLPG production facilities
  • Economic benefits for supply chain actors
  • Potential GHG savings and social benefits
  • The priority actions required to support development of a domestic BioLPG sector

This report will help UK Liquid Gas and LPG suppliers attract investment in the UK, and inform UK energy policy to ensure that the decarbonisation potential of BioLPG is recognised and considered, particularly in the heating sector, where the non-inclusion of BioLPG as an eligible fuel for receiving payments, as part of renewable heat support schemes, is a missed opportunity.

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