WHAT IS IT?
Bio-LPG (also called biopropane or renewable LPG) is a drop-in renewable alternative to fossil LPG (propane/butane), produced as a co-product of HVO (Hydrotreated Vegetable Oil) production. It is chemically identical to fossil LPG and can be used in existing LPG infrastructure and appliances without modification.
HOW IS IT PRODUCED?
When vegetable oils or animal fats are hydrotreated to make HVO (renewable diesel), three products are formed:
• HVO (renewable diesel) — main product ~80%
• Bio-naphtha — co-product ~10%
• Bio-LPG (biopropane) — co-product ~5–7%
Bio-LPG is a relatively small volume product but commands a significant premium.
KEY PROPERTIES
Chemically identical to fossil propane/butane
Zero change needed for existing boilers, cookers, vehicles
Drop-in replacement at any blend ratio (B20, B100)
Carbon savings: 80–90% vs fossil LPG (UCO-based)
KEY USES
Heating fuel (drop-in replacement for home heating oil / LPG)
Cooking gas (off-grid communities)
Autogas for LPG vehicles
Industrial process heat
Aerosol propellant (bio-based cosmetics)
MARKET DRIVERS
Growing demand from:
Off-grid UK households replacing fossil LPG boilers
Aerosol manufacturers seeking bio-based credentials
LPG distributors needing certified renewable volume
SGB (Supergas Bio), SHV Energy, and Calor Gas are major European buyers.
TRADE CORRIDORS
Major producers: Neste (Finland/Singapore/Netherlands), Diamond Green Diesel (USA)
Major buyers: Europe (UK, Scandinavia, Netherlands), USA
Tetra relevance: Singapore Neste refinery produces bio-LPG — Singapore as trading hub.
CERTIFICATION
ISCC EU certification required for EU market. Each tonne must be accompanied by Proof of Sustainability (PoS) documents tracing feedstock origin.
PRICING
Premium to fossil LPG. Priced bilaterally — no transparent benchmark. Significant premium for UCO-based vs palm-based origin.
SPECIFICATIONS
Same as fossil LPG — propane or butane specs depending on grade. ISCC certificate is the differentiating document.