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Developing the BioGLP Market From Vegetable Oil and Waste. Renewable Product With Lower Carbon Emissions for Thermal Generation.
Ultragaz has acquired the first commercial load of BioGLP produced at the Riograndense Refinery (RS). The distributor’s goal is to test the performance of this less polluting product in the market. The load, weighing 140 tons, was produced from soybean oil, with estimated carbon emissions up to 80% lower than traditional liquefied petroleum gas (LPG).
BioGLP, also known as compressed biomethane, is a more sustainable product that can be produced from vegetable oil and agro-industrial and urban waste, resulting in a lower carbon emission version of LPG, the ‘cylinder gas’. This renewable product has the same properties as conventional fossil fuel, which eliminates the need to adapt existing infrastructure. Additionally, the use of BioGLP contributes to reducing the carbon footprint and promoting a greener economy.
Global Expansion of BioGLP Production
BioGLP is a more sustainable product that has been gaining recognition in recent years. Currently, global BioGLP production is 300,000 tons per year, with a concentration primarily in Europe. It is estimated that the Riograndense Refinery (RPR) will expand its capacity in the next two years to deliver up to 30,000 tons annually, further boosting the market for this renewable product. The growing demand for energy options with lower carbon emissions has fueled the development of the BioGLP market in various regions around the world.
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Growth of BioGLP in the Industry
The first volumes of BioGLP are being directed to customers in the textile and food industries, which use the product for thermal generation, served by Ultragaz with traditional cylinders. Ultragaz’s director of marketing and customer experience, Aurélio Ferreira, believes that the expansion of BioGLP could also reach other industries that work with thermal processes, such as metallurgy and ceramics. This diversification of application shows the growth potential of BioGLP in different industrial segments.
Challenges and Prospects for BioGLP
BioGLP still faces challenges, such as the price of the vegetable oil derivative, which is higher than that of traditional LPG. However, the increase in production scale and the advancement of commercial negotiations tend to improve the competitiveness of BioGLP. Additionally, the reduction of carbon emissions has been an important differential of this more sustainable product, attracting consumers seeking solutions for decarbonization in their industrial processes. Ultragaz is also looking for alternatives to decarbonize the transportation of cylinders, considering the use of compressed biomethane in trucks and even discussing the application of BioGLP in vehicles in partnership with the National Agency of Petroleum (ANP).
Exploring New Applications
Ultragaz has been betting on innovation and exploring new applications for BioGLP, seeking to understand customer needs and expand the range of possibilities for the use of this more sustainable product. Entering the residential market is also a prospect, mixing a percentage of BioGLP with conventional cylinder gas, offering a more sustainable solution for domestic consumers. Expansion into other markets and complementarity with traditional LPG are strategies that should drive the growth of BioGLP in the coming years.
Initiatives and Partnerships for the Development of BioGLP
The Riograndense Refinery has adapted its catalytic cracking units to use soybean oil instead of petroleum in BioGLP production, demonstrating significant effort to boost the production of this more sustainable fuel. Participation in international discussions and partnerships with research and development institutions show Ultragaz’s commitment to seeking innovative and technologically advanced solutions for the BioGLP market. This engagement is essential for the growth and consolidation of this product in the global energy market.
Source: EPBR
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