A growing part of our energy portfolio is composed of bio-based fuels. One of our specialised companies is a leading biomass supplier and we have recently signed a long term agreement with Neste to produce Bio LPG.
Biomass is a non-fossil solid fuel, usually natural or processed wood, used in individual heaters or central heating boilers. Good-quality biomass from sustainable local sources has a role to play in the future rural energy mix.
Solid biomass is suitable for use in remote areas that are not connected to the gas grid, where it can be deployed as a lower cost alternative to oil. Biomass is particularly attractive in rural areas where the biomass is readily available.
The amount of CO2 that is released into the atmosphere after combusting the biomass is equal to the amount of CO2 that has been absorbed from the atmosphere during its lifetime. Although solid biomass could potentially be termed “carbon neutral”, some greenhouse gas (GHG) emissions will always occur during its cultivation, production and distribution. If locally sourced and used, greenhouse gas emissions will be substantially lower.
SHV Energy is set to become the first energy company ever to distribute Bio LPG to its customers. SHV Energy plans to sell the Bio LPG in several European markets which will be produced by Neste at its Rotterdam refinery. A recently signed agreement cover the supply of 160,000 tonnes of Bio LPG over a four-year period is the first of its kind anywhere in the world.
Bio LPG is propane created from renewable feedstocks such as plant and vegetable waste material. In use, it is identical to conventional propane and therefore has the benefit of being able to be blended and used by all existing appliances.
SHV Energy is always looking at ways to reduce the carbon footprint of our products and activities. LPG is already a low-carbon fuel, but we believe that the production and distribution of Bio LPG can really help to reduce the environmental impact even more. In addition, Bio LPG is a great opportunity for SHV Energy to lead the LPG business towards a more sustainable future.
Bio-based fuels are produced from a range of renewable sources. Biomass is mostly wood, but can include residues like straw and crops such as switch grass or elephant grass. Bio LPG is made from vegetable oils as well as an increasing proportion of waste materials and residues.
Biomass is used for heating or electricity generation. Bio LPG is identical to normal propane and can thus be used for thousands of applications.
Stationary heating is the main use of biomass at present. Wood-fuelled heaters and boilers have a firm niche in residential and commercial markets, and are playing an ever-expanding role in power generation. Since Bio LPG is identical to normal propane its use is the same as well.