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Japanese firms, SHV partner on bio-LPG production

  • : Biofuels, LPG
  • 26/08/24

Japanese engineering firm Furukawa Electric, Japanese LPG importer Astomos Energy and Dutch LPG distributor SHV Energy reached an agreement to develop a new synthesis technology for bio-LPG production using biofuel.

The three firms have been worked on developing "millions of tonnes" of annual bio-LPG production overseas using manure-derived biogas since 2023. The new agreement was driven by regional differences in the availability of biogas feedstock used to produce bio-LPG, Furukawa Electric told Argus on 24 August.

Geographical constraints on raw material procurement pose a challenge to commercialisation and widespread adoption of bio-LPG, Furukawa added.

The three companies are turning to biofuel, a promising renewable feedstock alternative to biogas, owing to its potential for expanded future supply. Furukawa is considering the use of renewable alcohol as a feedstock for bio-LPG production.

Biofuel is easier to transport and store given that it is a liquid fuel, so it is expected to be easier to purchase as a feedstock compared with biogas.

The three companies are currently discussing details regarding the biofuel feedstock — specifically, whether it will be produced overseas, imported, or procured domestically.

But competition for biofuels is expected to intensify given the growing interest for use in transportation fuels, chemical feedstocks, and sustainable aviation fuel (SAF) production.

Japan aims to reduce CO2 emissions by 16pc by its April 2024-March 2035 fiscal year compared with the 2023-24 fiscal year. It aims to achieve full carbon neutrality by the 2049-50 fiscal year.


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