麻豆传媒

Heavy-duty road transport is a lifeline for the global economy, responsible for delivering nearly everything that modern society relies on - from essential goods like food and medicine to the latest technology, consumer products and equipment for cultural moments. Society鈥檚 reliance on this segment of the supply chain is clear to see, and so perhaps it鈥檚 not surprising that it also accounts for 25% of Europe鈥檚 road transport GHG emissions.¹ As the pressure to meet decarbonisation targets mounts, the transport sector must find sustainable solutions that will keep the world moving in a more sustainable way.

Meeting these targets is no small task, especially with the logistical challenges of long-haul transport. Yet, innovation is paving the way for progress. As infrastructure expands across Europe, bio-LNG is proving itself as a viable solution to help decarbonise heavy-duty road transport today. To delve deeper into how the heavy-duty sector can balance rising freight demands with the pressing need to reduce emissions, Shell brought together a panel of industry experts from across the bio-LNG value chain. Their mission was to help fleets understand how to unlock bio-LNG's potential and accelerate their decarbonisation journey. .

As the pressure to meet sustainability targets mounts, the reasons for exploring alternative fuels in heavy-duty road transport are indisputable. In May 2024, the EU tightened its CO₂ emissions targets for heavy-duty vehicles. This means that fleets will now have to achieve a 45% emissions reduction for the period 2030-2034, 65% for 2035-2039 and 90% as of 2040.¹

However, many heavy-duty fleet managers are at a crossroads. They want to stay ahead of the competition but face uncertainty around how they replace diesel as a fuel within their operations. A range of low- and zero-emission options are already available, such as Renewable Natural Gas and electrification, but each of these are at different stages of commercial readiness. For example, some fleets have been hesitant to adopt Electric Vehicles (EVs) due to the perceived availability of the trucks and the infrastructure to charge them.

Fleet managers are also under pressure to manage and reduce their operational costs while meeting sustainability goals. They need solutions that help to lower their total cost of ownership and their emissions.

So, how can bio-LNG help heavy-duty vehicle (HDV) fleets reduce emissions while managing costs? Watch the webinar for expert insights from an industry-leading OEM, energy producer and distributor, and fleet manager to understand the misconceptions surrounding bio-LNG, and its potential for European fleets.

Shell BioLNG offers heavy-duty road transport fleets an immediate opportunity to reduce their emissions. As a drop-in fuel derived from biofeedstocks², it leads to less CO₂e³ emissions on a life cycle basis compared to liquefied natural gas (LNG)⁴.

For fleets already operating LNG vehicles, the switch to bio-LNG can be seamless, as its chemical properties are nearly identical to LNG, requiring no changes to infrastructure or equipment.⁵ LNG vehicles offer a driving range, engine power and performance similar to conventional heavy-duty diesel fuelled vehicles. ⁶ By switching to bio-LNG, operators can maintain these benefits while adopting a more sustainable fuel option. The industry continues to innovate, with Scania's latest LNG-powered engine offering greater energy efficiency and potential fuel savings of over 5%, depending on the application.⁷

Staying with the idea of cost-per-kilometre, a key factor in this calculation for fleets is their ability to access refuelling stations along their routes. While bio-LNG use is growing across Europe, there is still work to do when it comes to convincing businesses that the alternative fuel might be right for them at this stage in their decarbonisation journey.

Production of the fuel is increasing, making it easier to supply the networks and support the scaling of bio-LNG across Europe. With greater accessibility and more stations, the cost per km will decrease. In 2023, Shell acquired Nature Energy, the largest producer of bio-LNG in Europe, to improve bio-LNG supply and build confidence in the fuel as a long-term solution for HDV fleet decarbonisation. Shell has also invested in the opening of a production facility in Rhineland, Germany, which delivers 100,000 tonnes of bio-LNG every year.⁸ This will help reduce CO₂ emissions equivalent to the long-distance journeys of 4,000-5,000 LNG trucks^.8

As the industry continues to build and scale production and networks, more fleets will have access to bio-LNG across key transport routes.

If fleets fail to incorporate bio-LNG into their solutions mix, they could miss out on a significant opportunity for decarbonisation that is achievable today - especially as regulations evolve to support its adoption. With policies such as Fitfor55, the EU is working with the industry to create an environment in which bio-LNG can be a viable decarbonisation solution.⁹ Other policies, including REPowerEU, have helped to promote the use of bio-LNG across Europe.¹⁰ This will help to improve the security of bio-LNG as a fuel source by supporting increased volumes and greater price stability.

As emphasised by our expert panel, no one company or organisation in the industry can achieve decarbonisation alone. Collaboration between energy providers, OEMs and fleet managers will be essential in developing the supply and demand sides of the market simultaneously. Similarly, working closely with policymakers and regulators will be necessary in establishing the right conditions for increased bio-LNG production 鈥� including incentives.

While there are existing challenges, such as concerns about cost and availability, leaders across the industry are actively working to address these barriers. This effort includes expanding access to LNG trucks, enhancing bio-LNG refuelling networks, and increasing the availability of bio-LNG across various markets. These initiatives are crucial because, as with any fuelling solution, widespread adoption hinges on both access to the fuel itself and an extensive refuelling network.

The moderate level of trust in bio-LNG among fleets, as noted by industry panellists, underscores the need for these developments. Shell's participation in the EuroNet consortium, which aims to put 2,000 more LNG trucks on the road and develop the supporting infrastructure, exemplifies the kind of collaborative effort required.¹¹ With over 65 LNG sites already in operation across eight countries, in Europe, Shell is committed to creating a stronger business case for fleets to help reduce emissions using bio-LNG.

Ultimately, a collaborative effort and collective vision are essential to shift perceptions and increase the adoption of bio-LNG as a viable decarbonisation solution. As the industry continues to invest in overcoming these challenges, the benefits of bio-LNG will only improve over time, presenting a compelling opportunity that fleets cannot afford to overlook.

¹ _{European Parliament. "." 2024.}

² _{The most common feedstocks include solid and liquid manure, agricultural waste and residues, industrial food and beverage waste, and the organic fraction of municipal solid waste.}

³ _{CO鈧俥 (CO鈧� equivalent) refers to CO鈧�, CH鈧�, N鈧侽.}

⁴ _{Baseline LNG GHG emissions are calculated by comparing the LNG Well-to-Wheel emissions for the High-Pressure Direct Injection (HDPI) engine from the 鈥淕reenhouse Gas Intensity of Natural Gas鈥� study by Thinkstep for NGVA Europe (2017). The specific calculation of reduced CO鈧俥 emissions of using Bio-LNG compared to LNG may vary from region to region depending upon feedstocks used and accounting methodology allowed within the market.}

⁵ _{As outlined in the European Biomethane Association Biomethane Factsheet, that after biogas upgrading, biomethane is predominantly methane (>96% by mass). As the chemical composition and energy content of biomethane are similar to natural gas, it can likewise be used in the same way as vehicle fuel. . Always consult your equipment manufacturer鈥檚 manual for guidance before making any fuel changes.}

⁶ _{Based on OEM Data. Applies to all LNG ICE road engines.}

⁷ _{Scania. "" 2024.}

⁸ _{Shell. 鈥�.鈥� 2024.鈥�}

⁹ _{Council of the European Union. "." 2024.鈥�}

¹⁰ _{European Commission. ." 2024.}

¹¹ _{Shell. 鈥�Shell LNG and Shell BioLNG.鈥� N.D.鈥�}

_{Cautionary Note}