New Frontier report confirms renewable liquid gases as a scalable pathway for Europe’s energy transition

A new white paper by Frontier Economics, commissioned by DCC Energy and SHV Energy,  strengthens the case for renewable liquid gases as part of Europe’s decarbonisation pathway. The analysis shows that renewable liquid gases can complement electrification in rural and off-gas-grid settings, where infrastructure constraints, affordability concerns and technical limitations often make a single-track approach difficult.

The report highlights that liquid gases will remain structurally relevant in rural and off-grid Europe. By 2040, renewable liquid gas production could reach between 2.3 and 7.5 million tonnes, with the potential to meet up to 70–80% of Europe’s LPG demand for energy. This demonstrates the scale to which renewable liquid gases can contribute to decarbonisation, particularly in regions where practical, immediate solutions are most needed.

Frontier also shows that renewable liquid gases can deliver real value at the household level. In representative single-family homes in Germany, Poland and Italy, rLG-based heating systems are broadly cost-competitive with heat pumps on a total cost of ownership basis. They also require much lower upfront investment than heat pumps, which is particularly relevant for older rural buildings where renovation costs and installation barriers remain significant.

The system benefits are equally important. Fully electrifying current LPG demand would increase annual electricity consumption by around 4.1% and raise winter peak demand by around 4.4%. Meeting that additional peak would require major investment in firm power capacity, estimated at between €11 billion and €56 billion depending on the chosen technology pathway, with further distribution grid reinforcement likely in constrained areas. Renewable liquid gases can ease that pressure by providing a storable, low-carbon alternative that works within existing infrastructure.

This is exactly the kind of practical, technology-neutral solution Europe needs. The report confirms that a fair transition must reflect territorial realities and provide rural communities and regional businesses with viable ways to decarbonise now.