Lipigas starts up South America’s first Bio-LNG plant

Lipigas has inaugurated South America’s first Bio-LNG plant in Chile’s Ñuble region, supplying 270 heavy-duty trucks with 100% renewable, carbon-neutral fuel and cutting more than 35,500 tonnes of CO₂ per year, while expanding its green corridor between Chile and Peru.

Lipigas has taken a major step in its 2030 strategy to incorporate renewable gas into its portfolio with the inauguration of South America’s first Bio-LNG (BioGNL) plant – a pioneering project that aims to transform heavy-duty freight transport in Chile and the wider region.

The facility, located in Chillán, in Chile’s Ñuble region, will initially supply 270 heavy trucks with a 100% renewable, carbon-neutral fuel. Its output is equivalent to the daily gas consumption of more than 65,000 households or 260,000 people – roughly the population of Puerto Montt.

These trucks operate in key sectors of the Chilean economy such as salmon farming, food and beverages, mining, retail and forestry, where conventional liquefied natural gas (LNG) has already gained ground as an alternative to diesel.

From agricultural waste to Bio-LNG: a circular economy model

With an investment of more than US$8 million, the plant was built and is operated by European company HAM Criogenia. It has the capacity to process between 5,750 and 11,500 m³ of product per day, under a circular economy model.

The process starts with biogas generated from the decomposition of agricultural waste from Chilean agribusiness Maxagro. This biogas then undergoes purification and cooling, turning it into Bio-LNG. The result is a carbon-neutral fuel that:

• Is chemically identical to conventional LNG.
• Is 100% compatible with existing truck engines and refuelling infrastructure.
• Requires no modifications to vehicles or service stations.

That compatibility means fleets already operating on LNG can switch to Bio-LNG without new capital expenditure or technical retrofits, making the transition to renewable gas simpler and faster.

Emissions cuts: less CO₂, fewer particulates and lower noise

The environmental impact is significant. For a fleet of 270 trucks, switching to Bio-LNG:

• Avoids more than 35,500 tonnes of CO₂ per year.
• Reduces particulate matter emissions by 96%.
• Cuts nitrogen and sulphur oxides by 85%.
• Lowers noise emissions by up to 50%.

These benefits are equivalent to removing 6,000 cars from the road or planting 38,000 trees, directly contributing to decarbonising freight transport in Chile.

“A before and after for freight transport in Chile and South America”

For Esteban Rodríguez, Head of LNG and Biofuels at Lipigas, the start of operations in Ñuble marks a milestone for both the country and the continent:

“With the Bio-LNG plant we’re marking a before and after in the energy transition of freight transport in Chile and South America. With Bio-LNG production we’re putting on the market a carbon-neutral, competitive and accessible fuel that uses the same LNG truck refuelling infrastructure we’ve been rolling out since 2021.

It’s a real solution for companies that already operate LNG truck fleets and want to reduce their carbon footprint without new investments or adaptations. At Lipigas we’re proud not only to lead these alternatives, but also to support companies that are actively seeking cleaner energy for their operations.”

Maxagro and HAM: cross-sector collaboration for decarbonisation

The project is also a showcase of cross-sector collaboration between companies in different industries to advance ambitious environmental goals.

Felipe Saelzer, CEO of Empresas Maxagro, highlighted the sustainable approach that has guided the company’s work for years:

“Since we installed our first biodigester in 2008, our focus has been to produce quality food while taking responsibility for the impacts of our activity – which is key to sustainable management. That’s why it’s so satisfying to work collaboratively with companies like Lipigas that share this circular economy vision. This project shows how much the private sector can contribute to decarbonising transport in Chile.”

From the European side, Grupo HAM CEO Antonio Murugó underlined the project’s contribution to cleaner energy solutions:

“This project reinforces Grupo HAM’s commitment to decarbonisation and sustainability in the transport and industrial sectors, offering clean energy solutions and promoting circular economy by valorising organic waste and boosting local economies.”

Authorities: Ñuble as a showcase for sustainable investment

The initiative has also been welcomed by public authorities.

Dennis Rivas, Regional Energy Secretary (Seremi) for Ñuble, stressed the broader signal the project sends:

“Today we’re witnessing a very important milestone for the Ñuble region, because we’re sending a message not only to the region but also to our country that sustainable investments aimed at decarbonising our energy matrix are possible.”

First carbon-neutral gas trucks and an expanded “green corridor”

The plant’s production will supply more than 270 trucks, making them the first vehicles in Chile to run on carbon-neutral gas.

Bio-LNG will be available through Lipigas’ existing LNG truck refuelling network, which since 2021 has formed a “green corridor” connecting Chile and Peru, from Lima to Puerto Montt.

Today, that network includes nine service stations:

• In Chile: Antofagasta, Tabolango, Paine, Linares, Chillán Viejo and Puerto Montt.
• In Peru: Lima, Nazca and Arequipa.

Looking ahead to 2026, Lipigas plans to open six new stations – two in northern Chile and four in Peru – to complete continuous infrastructure for LNG/Bio-LNG trucks along the entire Lima–Puerto Montt route.

A key step towards Lipigas’ 2030 renewable gas goals

By commissioning South America’s first Bio-LNG plant, Lipigas is reinforcing its commitment to integrate renewable gas into its portfolio by 2030 and positioning itself as a key player in decarbonising heavy-duty transport in the region.

The project not only delivers a 100% renewable, carbon-neutral fuel for truck fleets, it also demonstrates that it is possible to leverage agricultural waste, cut emissions and support local economies through a circular economy model.

In a context of tightening environmental regulations and rising net-zero commitments, Lipigas’ Bio-LNG is emerging as a practical, scalable solution for companies aiming to shrink their carbon footprint without sacrificing competitiveness or operational efficiency.