New report highlights future role of Renewable Liquid Gases

Tuesday 6th August 2024

Commissioned by Liquid Gas UK, the report has found that gasifying waste-based feedstocks, such as municipal solid waste (MSW), to produce biogases is an effective method to decarbonise properties that are not connected to the gas network.

A new report from energy consultancy Gemserv, commissioned by Liquid Gas UK, has found that gasifying waste-based feedstocks, such as municipal solid waste (MSW), to produce biogases is an effective method to decarbonise properties that are not connected to the gas network.

The Gemserv report compared several waste-treatment and recycling options for MSW and found that the ‘best use case’ was to produce renewable liquid gases (RLGs), via gasification for use in renewable boilers. It found that this approach, provides the highest carbon savings and the lowest levelized cost of heat for complex to decarbonise rural homes.

Renewable liquid gases produced which can be produced from MSW already provide an 80% emission intensity reduction versus heating oil – a figure which is projected to increase to 92% by 2040 based on modelling work and future transition to new production processes and feedstocks.

The UK Government estimates that at least 20% of off-grid homes are not suitable for a heat pump. This is due to the combination of poor fabric efficiency and the low flow temperature of heat pumps, which makes it difficult to maintain a comfortable indoor air temperature due to the properties’ high levels of heat loss.

Liquid Gas UK has consistently advocated for a mixed-technology approach and called for RLGs such as bioLPG and rDME to be used in rural, off-grid home heating - a position that is supported by rural consumers.

Recent polling of over 2,500 rural consumers, carried out on behalf of Liquid Gas UK, found that over 77% of people would be supportive of a policy that allows them to use their existing boiler, running on renewable fuels, beyond 2035.

George Webb, CEO of Liquid Gas UK commented: “Heating accounts for around 18% of the UK’s emissions, so decarbonising the way we all heat our homes will play a significant role in the UK meeting its net zero targets.

“While heat pumps will undoubtedly play a significant role in this transition, we need a mosaic of different technologies to ensure solutions are the right ones for different localities and take into account specific local challenges which may mean electrification is not a suitable approach.

“The industry has shown its commitment to reaching net zero, investing over £600 million by 2025 into the development of renewable liquid gases and now just needs greater clarity and policy support from Government to grow production pathways.”

James Higgins, Partner at Gemserv commented: “In 2023 the UK Biomass Strategy[i] set out a future role for renewable liquid gases in heat decarbonisation, recognising that heat pumps will not work everywhere. It also noted the need to build evidence base around alternative approaches and we are therefore delighted to share the findings of our recent research looking into exactly this topic. Producing RLGs using domestic, waste feedstocks such as MSW not only supports the decarbonisation of heat and meeting net zero targets but also contributes to a circular economy, helping decarbonise the waste lifecycle, whilst supporting the decarbonisation of complex-to-decarbonise homes.”

The Gemserv study also assessed feedstocks, production processes, and carbon intensities, providing valuable insights for policymakers, industry stakeholders, and environmental advocates. Further findings from the report include:

  • Feedstocks: RLGs can be produced from a range of different feedstocks, and while the UK may be unlikely to experience significant challenges with acquiring feedstock, an appropriate market mechanism stimulating investment into RLG feedstocks is needed to further increase availability and enhance resilience.
  • Processes: There are several different production pathways for RLGs. The most mature of these pathways is hydrotreatment, which is commercially available today. The UK Government has provided grant funding for other processes, including gasification, power-to-liquid, and Fischer-Tropsch as it looks to grow the sector. Growth in other production pathways will therefore also require policy support.
  • Sustainable Aviation Fuel co-production: BioLPG can be produced as a co-product of Sustainable Aviation Fuel (SAF). In a high-feedstock scenario there could be 200,000 tonnes of bioLPG produced per annum as a co-product of SAF, or 74,000 tonnes in a low-feedstock scenario. This would be between 20 and 55% of the total bioLPG demand in the UK. A strong UK SAF industry alongside incentives for SAF producers to sell more bioLPG onto the market will maximise the availability and security of supply of bioLPG within the UK.

To find out more about Liquid Gas UK, visit www.liquidgasuk.org or read the report here

[i] Biomass Strategy 2023 - GOV.UK (www.gov.uk)

The trade association for the LPG and bioLPG industry in the UK