Heavy goods transport: despite the boom in sustainab-le bio-LNG, politicians are putting the brakes on

• The share of bio-LNG in total LNG sales in the transport sector rose to 75 per cent in 2024 - a massive increase compared to the previous year.
• Total LNG sales fell by ten per cent. This is due to a lack of incentives and restrictive political framework conditions.
• Kehler: "Many haulage companies have opted for LNG in recent years to make their fleets more climate-friendly. But without a reliable political framework, road freight transport will continue to fall short of its climate targets in the future."

The use of bio-LNG in heavy goods transport reached a new high in 2024. Three out of four litres of liquefied natural gas (LNG) now come from renewable sources - a huge leap from 17 percent in the previous year to 75 percent now. Nevertheless, the sector is struggling with political obstacles: According to Die Gas- und Wasserstoffwirtschaft, a lack of incentives, unfair toll regulations and one-sided EU regulation are slowing down the decarbonisation of road freight transport.

Sales of LNG in the German transport sector fell by around 10% year-on-year to 132,534 tonnes in 2024 (2023: 146,734 tonnes). At the same time, the share of bio-LNG rose sharply to 75 per cent in 2024 as a whole. In the second half of the year, it was even around 90 per cent. Hauliers in Germany are showing that they want to drive in a climate-friendly way. Last year, a greenhouse gas reduction of around 300,000 tonnes of CO₂ equivalent was achieved.

"The figures show a pleasing 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, Chairman of Die Gas- und Wasserstoffwirtschaft. "Without a reliable political framework, the switch to climate-friendly fuels in heavy goods transport is stalling."

Political mismanagement hinders climate-friendly drives

LNG is currently the only technologically mature, climate-friendly and competitive alternative drive technology for road freight transport. When using LNG, i.e. liquefied natural gas, instead of diesel, trucks already save around 20 per cent CO₂. If bio-LNG is refuelled, the vehicles are almost climate-neutral.

However, instead of promoting low-emission alternatives such as bio-LNG, the current EU regulation of CO₂ fleet limits favours battery or hydrogen-electric drives exclusively. This lacks a decisive incentive for haulage companies to increasingly rely on this sustainable fuel. At the same time, bio-LNG-powered lorries remain at a financial disadvantage, as they have to pay the same toll as diesel lorries despite their considerable CO₂ reductions. A targeted toll reduction or a complete exemption for low-emission fuels would be necessary to further increase the attractiveness of Bio-LNG.

There is also a complete lack of tax incentives for the use of biofuels. Many haulage companies are therefore hesitant to invest. "Many companies lost confidence after the extreme LNG price fluctuations in 2022. However, the market is now more stable - now would be the right time to specifically promote bio-LNG," says Kehler.

New GHG quota as an opportunity - clear signals are needed now

LNG sales fell particularly sharply at the end of 2024 - an effect of the change in the GHG quota and the long public holidays. But this could turn around again in 2025. "The adjustment of the GHG quota could boost demand for bio-LNG again, provided politicians set the right framework," explains Kehler.

The Association Die Gas- und Wasserstoffwirtschaft is calling for open-technology solutions for a successful transformation of heavy goods transport. "Bio-LNG is already making a measurable contribution to reducing emissions and can defossilise heavy goods transport in the short term. Now we need clear political signals to further accelerate the ramp-up," concludes Kehler.