Chile Inaugurates South America's First Bio-LNG Plant, Marking Major Clean Energy Leap

Chile has recently inaugurated South America's first Bio-LNG (liquefied biomethane) plant in its Ñuble region, a significant stride towards cleaner energy and decarbonization. This pioneering facility, located near Chillán, is set to transform biogas into liquid biomethane for widespread distribution across the country, as reported by BioEnergy Times on December 2, 2025.

The new plant represents a crucial step in Chile's commitment to transitioning away from fossil fuels, leveraging a modular "plug and play" system for efficient installation and operation. Bioenergy Insight stated on December 2, 2025, that the facility will convert biogas into liquid biomethane, which will then be distributed to transport companies and industries throughout Chile.

Developed through a partnership between Spain's HAM Group and its Chilean subsidiary, HAM Chile, alongside Empresas Lipigas, the project underscores international collaboration in renewable energy. lngprime reported on November 28, 2025, that this collaboration has brought the first Bio-LNG plant to the South American continent.

The facility's primary function involves processing organic waste from the pork industry, converting it into a valuable, carbon-neutral fuel. According to Mobility Plaza on November 28, 2025, the biogas feedstock originates from an anaerobic co-digestion facility that processes organic waste from Chilean agribusiness Maxagro.

In its initial phase, the plant boasts a processing capacity of 7,500 cubic meters of biogas per day, with ambitious plans for expansion to 16,500 cubic meters daily. BioEnergy Times confirmed these capacity figures on December 2, 2025, highlighting the project's scalability.

The resulting Bio-LNG will be supplied to Lipigas service stations, primarily fueling heavy-duty truck fleets across Chile and extending into a "green corridor" connecting to Peru. Miningreporters.com noted on November 29, 2025, that this initiative aims to supply 270 heavy-duty trucks with 100% renewable fuel.

This innovative project is expected to significantly reduce greenhouse gas emissions, cutting over 35,500 tonnes of CO₂ annually. Esteban Rodríguez, Head of LNG and Biofuels at Lipigas, emphasized that the plant marks a "before and after" in the energy transition for freight transport in Chile and South America, as reported by miningreporters.com.

• Background and Global Significance of Bio-LNG: Bio-LNG, or liquefied biomethane, is a renewable fuel produced by upgrading biogas, which is generated from organic waste through anaerobic digestion. This process involves separating methane from carbon dioxide and other impurities, then liquefying it at cryogenic temperatures, as explained by Molgas on September 23, 2025. Bio-LNG offers a nearly carbon-neutral alternative to fossil fuels, significantly reducing greenhouse gas emissions and particulate matter, making it ideal for heavy-duty transport and industrial applications.

• Specifics of the Ñuble Plant and Technology: The newly inaugurated plant in Chile's Ñuble region utilizes a modular, container-based "plug and play" system comprising six interconnected units. Bioenergy Insight detailed on December 2, 2025, that three units handle biogas treatment, including cleaning and liquefaction, while the other three manage auxiliary services like water and dry air supply. This design facilitated rapid installation and commissioning, demonstrating an efficient approach to deploying renewable energy infrastructure.

• Chile's Broader Energy Transition Goals: Chile has set ambitious targets to become a leader in clean energy, aiming for 70% renewable energy generation by 2030 and carbon neutrality by 2050, according to fastmarkets on August 14, 2025. This Bio-LNG plant aligns with the country's broader strategy, which also includes significant investments in green hydrogen and renewable diesel production, as highlighted by ENAP's efforts in January 2025 to produce renewable diesel from used cooking oil.

• Economic and Environmental Implications: The Bio-LNG plant represents an investment exceeding US$8 million and is projected to reduce CO₂ emissions by over 35,500 tonnes annually, according to miningreporters.com. This reduction is crucial for decarbonizing the road transport sector, where Bio-LNG can cut CO₂ emissions by more than 80% compared to diesel, as noted by Mega Czech Republic. The project also promotes a circular economy by converting agricultural waste into valuable energy, creating rural jobs, and returning nutrients to the soil.

• Impact on Transport and Distribution Network: The Bio-LNG produced will be distributed through Lipigas' existing network of LNG service stations, which already forms a "green corridor" connecting Chile and Peru. miningreporters.com reported on November 29, 2025, that this network allows for the immediate adoption of Bio-LNG by existing LNG-powered trucks without requiring vehicle modifications. This seamless transition is vital for accelerating the decarbonization of heavy-duty freight transport across the region.

• Key Stakeholders and Future Outlook: The project is a joint venture between Spain's HAM Group and Chile's Empresas Lipigas, with HAM Group expanding its presence in Latin America with further projects underway, BioEnergy Times reported on December 2, 2025. The success of this plant could serve as a model for other South American nations looking to integrate renewable gases into their energy matrices and manage organic waste sustainably, contributing to regional energy independence.