Whitepaper

How to serve a bigger environmental and

economic purpose with biogas.
The European Union (EU) has set itself the ambitious objective of being carbon neutral by 2050. And as 2030
climate-related targets increase, so does the urgency for the transport sector to accelerate its decarbonization.
This is not an easy challenge. Electrification of long-haul, heavy-duty road and maritime transport is impractical
and hydrogen technology and infrastructure are immature. Bio-LNG, a 100% carbon neutral fuel made from bio-
gas, is the only viable option to drastically cut greenhouse gas (GHG) emissions from heavy-duty transport in
the foreseeable future. This presents an opportunity for biogas producers to increase the economic, social and
environmental value of their biogas.

What is bio-LNG?

Bio-LNG is a biofuel made by processing organic waste flows, such as organic household waste, organic industri-
al waste, manure, and sewage sludge. When anaerobic digestion of organic waste occurs, biogas is emitted in
the process. The main components in this biogas are methane (CH4) and carbon dioxide (CO2). To make bio-LNG,
the methane is separated from the carbon dioxide and other critical components, and then liquefied. This lique-
faction, which is very complex, increases the energy density 600 times and makes the biofuel economically viable
for long-haul road and maritime transport.

Advantages of bio-LNG?

As bio-LNG is made from renewable sources, it is a carbon neutral biofuel. In addition, as a replacement for fossil
LNG (Liquefied Natural Gas), bio-LNG offers similar advantages as LNG does versus diesel, including:

• Reduced CO2 emission

• Lower engine sound
• Lower nitrogen oxide emission
• Significantly less pm (particulate matter) emission

As the chemical composition is the same, bio-LNG can be blended at any ratio with fossil LNG. Therefore it can
make use of the LNG fueling infrastructure that already exists and which is growing rapidly. This makes bio-LNG
the best biofuel to decarbonize the heavy-duty, long-haul transport sector, today.

Bio-LNG, LBM or LBG

Bio-LNG is sometimes called liquefied biomethane (LBM) or liquefied biogas (LBG). These are three different
names for the same product. So where do these names come from?

LNG stands for liquefied natural gas. Natural gas is composed of about 95% methane, whereas LBM and bio-LNG
are composed of about 99,8% methane. Therefore, technically the name liquefied biomethane is the most accu-
rate description of the product. However, as this liquefied biomethane is a biofuel for LNG engines and used to
replace fossil LNG, bio-LNG is the most used name.
What makes bio-LNG carbon neutral?

Bio-LNG is composed of methane. When methane is burned, CO2 is emitted and released into the atmosphere. So
what’s the difference with a fossil fuel?

Burning fossil fuels releases carbon that has been locked up in the ground for millions of years, while burning bio-
LNG emits carbon that is part of the biogenic carbon cycle. In other words, fossil fuel use increases the total
amount of carbon in the atmosphere, while combustion of bio-LNG simply returns the carbon that was absorbed
from the atmosphere as the plants grew. So, in addition to tailpipe emissions, the source of the fuel is a critical
factor when assessing the carbon intensity of a fuel over its complete life cycle.

But there is a third factor: the energy it takes to produce the fuel. Depending on the source of this energy (fossil
or renewable) the production of fuel adds to the carbon intensity of the fuel. In the production of bio-LNG, the CO2
emissions that result from energy consumption in the production process can be compensated by capturing and
reusing CO2 from the biogas during the same process. As mentioned before, biogas is composed of methane and
CO2. To produce bio-LNG, methane is separated from the CO2. By capturing and liquefying the CO2, and reusing
this biogenic CO2 in the industry to replace CO2 from fossil sources, bio-LNG becomes carbon neutral. In fact,
over its complete lifecycle (well-to-wheel ) bio-LNG can even result in negative carbon emissions.

Bio-LNG is supported by the EU

The EU Renewable Energy Directive (REDII) establishes a policy for the production of energy from renewable
sources. Bio-LNG obtained from 100% organic waste complies with this policy. The EU recognizes bio-LNG as an
important tool to reduce methane emissions from the agriculture and waste sector.

The “Fit for 55 package”, a set of 13 proposals adopted by the EC in 2021, also accommodates bio-LNG. In fact,
one of the first projects to receive funding from the Fit-to-55 package was the FirstBio2Shipping project. This
project, initiated by Nordsol, Attero and Titan, will help decarbonize maritime transport through bio-LNG produc-
tion at the site of Attero in Wilp, The Netherlands.

Market experts forecast fast growth of bio-LNG production

Bio-LNG is essential in achieving the goal for decarbonization of the heavy-duty transport sector in 2050. Road
trucks, inland ferries, freight barges and oceangoing ships are technically hard to electrify. While hydrogen and
hydrogen-derived fuels are still in early development, bio-LNG is the only available carbon neutral fuel that is
available today. As a result, market experts believe that production and use of bio-LNG will grow fast in coming
years. This trend is already visible in the current and future development of the number of bio-LNG plants and
total bio-LNG production capacity in Europe (TWh/yr), from 2018 to 2024.
 Source: EBA Statistical Report 2021

Long-haul road transport

Several studies forecast steep growth of the number

of LNG trucks in Europe. For example, the Natural &
bio Gas Vehicle Association (NGVA) Europe esti-
mates that the amount of LNG trucks in Europe will
grow from 12,000 in 2020 to 280,000 trucks in 2030.
These vehicles will use approximately 100 TWh of
fuel. At least 40% of that amount is expected to be
bio-LNG. That is 2.8 Mton bio-LNG.

Maritime transport sector

In a recent report, DNV stated that the shipping indus-

try has accelerated the shift from conventional fuel to
alternative fuels. In 2021, about 12% of newbuild ships
were ordered with alternative fuel systems, versus 6%
in 2019. More than 50% of these alternative fuel sys-
tems are LNG engines.

Biomethane production

Gas for Climate projects that biomethane production will ramp up to 1170 TWh in 2050, from 20 TWh in 2020.
50% of that biomethane will be used as bio-LNG for the heavy-duty transport sector. That is about 40 Mtons of
bio-LNG per year.

Source: Gas for Climate — Gas Decarbonisation Pathways 2020—2050 — April 2020
Feedstock availability is sufficient

Agriculture and waste are the two largest potential feedstocks for biomethane production, which is the basis of
bio-LNG. Studies show that there is enough feedstock available to fuel fast growth of bio-LNG. In 2020, annual
biomethane production in Europe provided 20 TWh in energy. With the available sustainable feedstock, the ener-
gy supply from biomethane production in 2050 is estimated at about 1170 TWh. This is twice the estimated
amount of biomethane needed to service the demand for bio-LNG in 2050.

* Source: EBA report: “BioLNG in Transport: Making Climate Neutrality a Reality”

How is bio-LNG an opportunity for biogas producers?

Converting biogas into bio-LNG can be an attractive alternative to biomethane grid injection and combined heat
and power production (CHP). The transport sector offers attractive prices for bio-LNG. This is a result of an ur-
gent need for this sector to become more sustainable, and bio-LNG being the best option to do so. Bio-LNG pric-
ing is also largely determined by carbon intensity, which creates significant value to the business case.

By contrast, business cases for biomethane grid injection and CHP are often based on rigid incentive programs,
which do not account for dynamics in feedstock and energy pricing.

Bringing biogas to the high-value fuel market and capturing the biogenic carbon dioxide can lead to:

• Long-term financial certainty independent from government incentive programs

• A stronger business case
• A smaller CO2 footprint
• An opportunity to create a local circular economy

Routes to bio-LNG

Biogas producers that explore the different possibilities of biogas valuation will learn that there are several routes
to bio-LNG production. One possible route is to purchase a bio-LNG installation from Nordsol, develop the neces-
sary market expertise and relationships in the transport fuel market, and close contracts. Following this route, the
biogas producer becomes a bio-LNG producer.

Another route is to collaborate with a bio-LNG expert like Nordsol that can help a biogas producer enter the
transport fuel market. Taking advantage of existing expertise about the fuel market, the regulations and carbon
credits can lead to a much better business case and speeds up project development significantly.
At Nordsol, we utilize our bio-LNG expertise in two ways. We build, operate, and maintain our own bio-LNG plants.
We also collaborate with biogas producers and bio-LNG offtakers to support tailored routes to bring bio-LNG to
the market. This is a unique concept in the market that, besides the use of Nordsol’s progressive iLNG technology,
offers several additional benefits. For example, biogas producers have the possibility to outsource the organiza-
tion of the full value chain from biogas to bio-LNG offtake. But they can also get access to the specific expertise
that they need to develop the most attractive business case and a long-term offtake contract.

The benefits of the Nordsol Concept are:

• Highest value for biogas

• Use of high-class fit to scale technology
• Access to expertise like bio-LNG valuation, certification, regulations, financing, carbon credits, etc.
• Guaranteed long-term offtake contracts
• Realization, maintenance and operation by specialists from Nordsol
• Optional project financing and SPV

Setting up a bio-LNG plant

Four distinct steps are necessary for a profitable plant. Building a bio-LNG plant becomes attractive starting from
about 500 Nm3/h of raw biogas and requires between 18-30 months from idea until first bio-LNG.

In the first phase, the feasibility and economic attractiveness of bio-LNG production in the specific situation is
determined. Considerations include:

• Amount and composition of the biogas

• Valuation of the bio-LNG
• Carbon Intensity (CI) and Carbon Capture Utilization (CCU) calculations
• Available physical space
• Location type (agricultural, industrial, municipal)
• Permits
• And more

In this first phase, the form of cooperation between the biogas producer and Nordsol is also defined. The activi-
ties in the second, third and fourth phase are dependent on the first phase and not covered in this whitepaper.
iLNG technology

The iLNG technology from Nordsol is essentially the use of conventional and proven technologies integrated into
a less complex process scheme. While the technology for large-scale LNG production has been around for dec-
ades, it cannot be used for small-scale, decentralized production of bio-LNG. Nordsol has reinvented the process
of making LNG by carefully considering the key differences between natural gas and biogas:

• Required capacity of the installations

• Fluctuations in biogas composition and flow
• Complexity of the biogas composition
• Importance of energy management for economic viability

The result is a compact, highly integrated system of biogas treating and liquefaction that makes small-scale bio-
LNG production economically viable.

Biogas treatment

Step one is to remove contaminants from the feed gas. iLNG solely utilizes membrane technology to remove CO 2
and water. To obtain ultra-pure biomethane, this separation process is enhanced by sweeping the membrane with
flash gas (“Flash-2-Sweep”). The key advantage of this separation process is that no amine treatment with its
high heat demand or pressure-swing adsorption units are needed. The removed CO2 can be liquefied for easy
transport and reuse as biogenic CO2.

Liquefaction

The second step is the liquefaction. iLNG uses already produced, high-purity biomethane as refrigerant. The ther-
modynamical properties of methane make it the best refrigerant in the temperature range down to –100oC. Also,
by creating conditions under which the methane has supercritical properties, the temperature in the heat exchang-
ers can be higher than usual. This leads to less chance of residual CO 2 (or other residual contaminants) freezing
out at this stage. Gas that flashes off during this second step in the process is used to sweep (or purge) the mem-
brane in the first step.

Key advantages of iLNG technology

• High-energy efficiency through smart integration • No heat demand

• Zero methane slip to atmosphere • Low equipment count
• Integrated CO2 liquefaction • Optional heat recovery for digester
• Highest bio-LNG purity • Robust process avoiding freeze up issues
The bio-LNG plant in Amsterdam, The Netherlands

In October 2021, Nordsol has opened the first Dutch bio-LNG plant in close collaboration with Renewi and Shell.
This bio-LNG plant, located on the site of Renewi in Amsterdam Westpoort, is in part subsidized by the EU, as part
of its strategy to decarbonize road transport.

The three initiators each have their own part in the production of bio-LNG. Renewi collects organic waste, such as
expired products from supermarkets. The recycler then processes the waste and converts it into biogas in its own
fermenters. Nordsol’s bio-LNG plant upgrades and liquefies the biogas into bio-LNG. Shell makes this bio-LNG
available for its customers at LNG service stations in the Netherlands. In addition, during the production of bio-
LNG, CO2 is removed from the biogas and liquefied for reuse in the industry.

The installation was operational within a year, as the standardized modules were produced elsewhere and con-
nected on the Renewi site. The installation produces 3.4 kilotons of bio-LNG per year. This allows for more than
13 million kilometers of carbon dioxide neutral driving. By replacing fossil fuel, the bio-LNG will prevent the emis-
sion of more than 14.3 kilotons of fossil CO2.

The expertise in terms of technology and project de- Project in figures:

velopment that was gained during this first bio-LNG Start project June 2020
initiative is critical to expand the number of bio-LNG
Start onsite construction February 2021
installations and reduce emissions in the transport
Operational October 2021
sector.
Supply of organic waste 44,0 kton/yr

The bio-LNG plant is a joint initiative of: Input from crude biogas: 8,0 M Nm3/yr

Expected bio-LNG production: 3,4 kton/yr

Expected bio-CO2 production: 6,3 kton/yr

About Nordsol

We envision that sheer market force will drive the energy

transition towards more sustainable fuel sources. Our
mission is to strategically enable this transition.

Nordsol believes that in a sustainable future, unnecessary

transport of waste and gas should be avoided. Therefore,
we envision fit-to-scale bio-LNG installations to be co-
located with the biogas plants where local organic waste
is digested.

Also, there should be minimal infrastructure for distrib-

uting the bio-LNG. The product will be picked up regularly
and delivered locally and directly to the nearest LNG filling
station.

Nordsol’s focus on offering the lowest possible total cost

of plant ownership will make it possible to set up a network
of small producers supplying bio-LNG to local sales points
at sites along our main highway routes.

These producers also help maximize CO2 abatement by

supplying the captured biogenic CO2 to the food industry or
agricultural sector to displace fossil CO2.

Bio-LNG is clean, convenient, and cost-competitive.

For updates about bio-LNG and Nordsol, follow Nordsol on:

linkedin.com/company/nordsol-solutions/

Address: Kosterijland 70
3981AJ Bunnik
The Netherlands
Phone: +31 30 202 96 70
Email: info@nordsol.com