Producing bio-LNG locally from biogas requires careful planning across several key areas: biogas feedstock quality and quantity, proven liquefaction technology, adequate power supply, regulatory permits, secured offtake contracts, and a viable business case. Understanding these requirements upfront is essential for developing a successful onsite bio-LNG production project.
To set up a local bio-LNG plant you need:
- Suitable biogas quantity and quality (stable flow, low contaminants)
- A proven bio-LNG production system (upgrading + liquefaction)
- Required permits and safety compliance
- Secured offtake contracts for bio-LNG (and optionally CO₂)
- A bankable business case and financing
Below we explain each requirement in detail to help you assess the feasibility of bio-LNG production at your site.
What kind of biogas do I need to produce bio-LNG?
Stable biogas supply
The foundation of any bio-LNG project is a reliable biogas supply with sufficient volume and quality. You need a stable biogas flow over the long term—typically secured through dedicated feedstock contracts or ownership of the biogas source itself.
Biogas quality matters
The methane concentration and contaminant levels (H₂S, siloxanes, moisture, particulates) directly affect your upgrading and liquefaction system design. Higher contaminant levels require more intensive pre-treatment, which impacts both capital and operating costs.
Feedstock type drives value
Advanced feedstocks such as agricultural residues, manure, and organic waste (Annex IX Part A under the EU Renewable Energy Directive) produce bio-LNG eligible for higher sustainability premiums and incentives. Understanding your feedstock’s sustainability status is essential when building your business case.
What plant design and technology do I need for a bio-LNG installation?
The complete process chain
A complete bio-LNG production system includes:
- Biogas pre-treatment to remove contaminants
- Upgrading to biomethane (typically >95% CH₄)
- Liquefaction of biomethane into bio-LNG at cryogenic temperatures (below -150°C)
- Storage and truck-loading infrastructure
CO₂ as a co-product
Many bio-LNG plants also capture and liquefy biogenic CO₂, turning it into a valuable co-product for industrial use (food & beverage, greenhouses, dry ice) rather than venting it. This CO₂ valorisation can significantly improve project economics.
Proven, modular technology
The technology you select must be proven and tailored to your specific biogas composition, production scale, and site conditions. Nordsol’s modular bio-LNG systems are designed specifically for decentralised, onsite biogas sites, with field-proven designs based on operational plants across Europe.
Automation and remote monitoring capabilities minimize on-site operational burden and ensure reliable, continuous production.
What power grid connection does a bio-LNG plant require?
Reliable electricity is essential
Bio-LNG production—particularly the liquefaction step—requires a reliable electricity supply. The exact power demand depends on plant capacity and technology efficiency.
Low-voltage connections preferred
Wherever possible, low-voltage grid connections are preferable because they simplify permitting, reduce upgrade costs, and shorten project timelines.
Energy efficiency reduces costs
Highly energy-efficient liquefaction technology substantially reduces both power requirements and operating costs. Typical Nordsol installations require around 30% less power than conventional bio-LNG plants, reducing grid connection complexity and ongoing electricity expenses.
In some cases, part of the power demand can be met by on-site renewable electricity or CHP units fueled by biogas.
What permits, offtake, and financing are required for a bio-LNG project?
Permits and compliance
You will need environmental and construction permits for biogas upgrading, liquefaction, and LNG storage. Once your onsite LNG storage exceeds certain thresholds (e.g., 10 tonnes in the EU), additional safety regulations such as the Seveso Directive may apply.
Early engagement with local authorities and safety officials is essential to avoid permitting delays.
Involving the local community
Informing and involving the local community early is a smart move. A bio-LNG installation is clean and low-impact, but it is still an industrial facility with truck movements, safety protocols, and visibility. Proactive communication with local stakeholders, and where possible, inviting them to participate in the planning process, helps build support, address concerns, and avoid objections that could delay permits or project approval.
Offtake agreements
Securing long-term offtake contracts for your bio-LNG (and liquid biogenic CO₂) is critical to project bankability.
Typical offtakers include transport companies (heavy-duty trucking, shipping), fuel suppliers, industrial users, and LNG bunkering operators. Understanding your target market’s certification requirements, such as ISCC certification, and renewable fuel pricing mechanisms is essential when negotiating contracts.
Financing and business case
A viable bio-LNG project requires a clear understanding of capital costs versus expected revenues from bio-LNG sales, renewable fuel certificates, and co-products like liquid CO₂.
Many projects benefit from government support schemes, subsidies, or green financing linked to renewable fuels and advanced feedstocks. A bankable business case includes sensitivity analysis on key variables such as feedstock price, electricity costs, and policy incentives.
