The feasibility of liquefied biomethane as alternative fuel: a comparison between European and Chinese markets

ABSTRACT

Natural gas is considered the alternative fuel that, in the short-medium term, can best substitute conventional fuels, in order to reduce their environmental impact. The purpose of this paper is to outline the feasibility of liquefied natural gas (LNG), especially from biogas (LBG), as vehicle fuel in Europe and in China. Firstly, the analysis presents the difficulty of methane supply in some regions and the need for feasible ways of producing LNG. For this purpose, biogas recovery and its upgrade are presented as an interesting source to produce such alternative vehicle fuel, being also a renewable source with a reduced environmental impact. Secondly, an economic analysis is performed for a specific European country (Italy): it takes into account technical aspects, costs, the foreseen market price for the new fuel and the necessary incentive policy. The latter aspect has been revealed to cover a major role for the feasibility of such projects.