Despite boom in sustainable Bio-LNG in Europe, politicians are putting the brakes on traffic

A lack of incentives, unfair regulations on tolls and unilateral EU regulation are holding back the decarbonization of road freight transport.

February 22, 2025. The use of bio-LNG in heavy transport reached a new high in 2024. Three out of four litres of liquefied natural gas (LNG) now come from renewable sources – a massive jump from 17 percent last year to 75 percent now. However, the sector is facing political hurdles: According to the gas and hydrogen industry, a lack of incentives, unfair regulations on tolls and unilateral EU regulation are holding back the decarbonization of road freight transport.

LNG sales in the German transport sector fell by around 10 percent to 132,534 tonnes in 2024 compared to the previous year (2023: 146,734 tonnes). At the same time, the share of Bio-LNG increased significantly in the full year 2024: it reached 75 percent. In the second half of the year, the figure was even around 90 percent. Hauliers in Germany are showing that they want to drive in an environmentally friendly way. A greenhouse gas reduction of around 300,000 tonnes of CO2 equivalent was achieved last year.

“The figures show a positive development in the use of Bio-LNG. The situation is much more difficult for the alternative fuel market as a whole,” explains Dr. Timm Kehler, President of the Gas and Hydrogen Industry Association. “Without a reliable political framework, the transition to climate-friendly fuels in heavy-duty transport will stagnate.”

LNG is currently the only technologically mature, climate-friendly and competitive alternative propulsion technology for road freight transport. However, instead of promoting low-emission alternatives such as Bio-LNG, the current EU regulation on CO2 limits for fleets relies exclusively on battery- or hydrogen-powered electric drives. At the same time, trucks powered by Bio-LNG are still financially disadvantaged, as they have to pay the same toll as diesel trucks, despite their significant CO2 reductions.

Tax incentives for the use of biofuels are also completely missing so far. This is why many hauliers are hesitant to invest. “Many companies have lost confidence after the extreme fluctuations in the LNG price in 2022. But now the market is more stable – it would be the right time to specifically promote Bio-LNG,” says Kehler.

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