Developing bio-LNG in France to decarbonise transport

The bio-LNG fuel industry represents a unique opportunity for the French public authorities to both reduce fine particle emissions and greenhouse gas (GHG) emissions related to road freight transport, and to initiate local energy supply chains in the heart of the territories that will benefit the agricultural sector and the national economy.

The Ministry of Ecological and Inclusive Transition (Le ministère de la Transition écologique et solidaire) announced in March 2018, as part of the conclusions of the ministerial working group on methanisation, that "financial support will be set up for the methanisers that power vehicles (buses, trucks)". The objective is to "contribute to the decarbonisation of the transport sector and to develop a new local direct use of biomethane, especially when far from the gas network". This support mechanism for biomethane production facilities that are not injected into natural gas networks will be set up as part of the Orientation of Mobility Law (LOM, Loi d'Orientation des Mobilité), which is expected to be passed by Parliament in the first half of 2019.

The development of a bio-LNG fuel sector will make a significant contribution to:

• Achieve the decarbonisation objectives of the transportation sector. In the framework of the National Low Carbon Strategy, this sector must go from an emissions level of 136 Mt CO2 equivalent (CO2e) to less than 100 Mt CO2e by 2025 (Ministry of Ecological and Inclusive Transition, 2018);

• Achieve the objectives of the Multiannual Energy Program (MEP) regarding clean mobility, in particular the 20% share of bio-CNG in CNG consumption by 2023;

• Achieve the renewable gas consumption (and therefore production) targets set by the Energy Transition Law for Green Growth (LTECV). Enacted on August 18, 2015, it sets a 10% target for renewable gas consumption by 2030;

• Support the French agricultural sector, with the launch of new methanisation projects and the provision of clean fuel, particularly for the needs of farms and cooperatives;

• Respond to the push by local authorities to develop local and traceable energy production and consumption loops to strengthen their energy autonomy and reduce their environmental footprint within a circular economy.

Cryo Pur, InVivo and Primagaz have joined forces to formulate initial proposals to enable the development of a French renewable and low carbon LNG fuel industry, committed to the relevance of developing this industry.

In this context, this study aims to answer three key questions:

1. What role can a bio-LNG fuel industry play in the decarbonisation of the transport sector in France and what is its potential for development?
2. What are the economic, social and environmental benefits of developing this sector?
3. What support mechanism should be put in place to enable the emergence of this sector?

In order to answer these questions, Enea was commissioned to assess the potential and conditions for the emergence of such a sector.

Numerous stakeholders (industries, representatives of the transport sector, professional associations and farmers, project developers, regulators, etc.) were interviewed as part of this study to provide their views on the sector's potential, outline their vision and formulate their proposals.

AFGNV, ATEE Club Biogaz and SER were also involved in the process and were invited to provide their insights on the sector and the results of this study. The complete list of stakeholders interviewed is available in the appendix.