Market potential for the use of LNG & L-CNG 4 LNG/S4_001...Edinburgh. June 2011 1 Market potential for the use of LNG & L-CNG Gas Infrastructure Europe - Annual Conference Edinburgh,

Edinburgh. June 2011

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Market potential for the use of LNG & L-CNG Gas Infrastructure Europe - Annual Conference Edinburgh, 23-24th June 2011 Jaime del Álamo Technical Manager


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• Natural Gas. General aspects

• Existing and foreseen NGV park

• Why Liquefied Natural Gas?

• LNG availability in Europe. Synergies with other transport modes

• Technical developments/needs

• Legislative developments/needs

• Conclusions

Index


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Abstract: Natural Gas is an energy product that mainly consists of methane (CH4). It’s originated from the decomposition of organic matter under many layers of sediment deposits.

Characteristics:

• Abundant (recent findings on shale gas)

• Reliable and affordable (known related

technology, already existing infrastructure, etc)

• Allows a clean combustion

• Serves for many different applications (domestic, electricity generation, vehicle fuel)

Natural Gas. General aspects


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Environmental behaviour: due to its molecular advantage (75% carbon in weight, compared to 86,5% from gasoline and diesel) CO2 related emissions are particularly favourable. PM and NOx are also reduced, especially when comparing to Diesel engines

Best available technology

Introduction of biomethane

Reduction of oil dependence

Same chemical composition than NG no blending limitation

Natural Gas. General aspects


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Europe: 6% growth between 2009 - 2010

1 M NGVs in EU

2800 filling stations (EU+EFTA)

1,34 M NGVs in Europe

Existing and foreseen NGV park


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When talking about NG ability to be used for different transport applications, the most critical aspect to consider is the energy density.

Note: liquefied natural gas needs a temperature of -162 ºC to maintain its state

Why Liquefied Natural Gas?


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Diesel oil

1 litre

CNG 5 litre

LNG 1,8 litre

The next figure represents in a very graphic way the energy/volume equivalence between diesel, CNG and LNG

200 bar

-162 ºC LNG opens the way for NG to the long distance road transportation

LNG on-board tanks present holding times ranging between 5-10 days with the vehicle parked and the tank capacity at 90%. In fact SAE J 2343 calls for a minimum 5 days holding time.



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Main fuel alternatives per

vehicle category

CNG

Gasoline/Diesel/LPG

E-Hybrids/(Full electric)

(CNG)-LNG

Gasoline/Diesel/LPG

E-Hybrids

LNG

Kerosene/Diesel

LNG

Electric

*Note: whilst liquid biofuels have clear

limits with regard to blending capability, biomethane can be

used at any blending ratio due to having the same chemical

composition than NG



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LNG availability in Europe. Synergies

There is already a good number of LNG terminals along Europe. This panoramic is quickly changing due to new projects appearing

LNG offers the possibility of bringing NG as a vehicle fuel where there is no grid access.


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It should be taken into account that LNG could feasibly be of use for maritime, and also for Heavy Duty long distance road transportation

Liquefaction terminals: 21 in operation 47 planned/being built

Regasification terminals: 62 in operation 127 planned/being built

World Total

A LNG ferry could consume as much fuel as 20.000 LD cars


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The L-CNG station concept has proven to be very effective when linking the big infrastructures at port terminals with inland availability.

LNG terminals built to supply LNG to bunkering barges servicing LNG powered ships can be the base for supply of LNG to inland L-CNG refuelling stations. With an operating range of 500 km or more for LNG fuelled trucks there is no need of huge investments in order to build a satisfactory LNG refuelling network. Strategically well chosen sites at truck stops along the major European highways would open the market opportunities.


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More and more we are experiencing the great momentum that LNG is taking in the maritime sector.

2015

2015

2015

Emission Control Areas: two sets of emissions and fuel quality requirements were defined by MARPOL Annex VI. These areas can be designated for SOx and PM, or NOx, or all three types of emissions.



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Thanks to the strong push in Europe for less polluting vehicles (GHG, local pollutants and noise), for the reduction of oil dependence and because of the security of energy supply, we are experiencing an increased interest in NGV technology

Reasonable good offer of CNG LDVs engine downsizing, turbochargers, dedicated catalysts… Really low emitting vehicles

Increasing offer of CNG/LNG HDVs dedicated CNG/LNG for urban and medium distance transportation; dedicated LNG/Dual fuel for long distance

There is a substantial gap in NG powertrain development. OEMs spent huge quantities of money for achieving EURO 6 / VI, and seem to have “forgotten” about NGVs

Technical developments/needs


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Recently we are experiencing an increasing interest from OEMs. These are just two examples of recent developments in the Heavy Duty side:

Volvo has launched the FM Methane-Diesel Dual – Fuel Truck with up to 75% substitution of diesel fuel by NG. They’ll produce 100 units for three main markets: The Netherlands, U.K. and Sweden. They expect sales to take-off in 6-8 countries during the next 2 years.

IVECO already has a 270 hp LNG Stralis. The 330 hp will be ready for 2012, and they’re working via CRF on the 450 hp for 2014-2015.

Technical developments/needs


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NGVA Europe is directly involved in the technical field:

• UNECE: GRPE, GFV, EFV, DF-TF, LNG-TF

• CEN: TC 326, PC 408

• EC: MVEG

• ISO: TC 193, TC 22/SC 25, PC 252

• NGVA Europe TC

Legislation for Compressed Ignition Dual Fuel engines using NG

Legislation for LNG components

Legislation for Spark Ignited engines using NG

Legislation for CNG components

Biomethane fuel quality specification

Lack on LNG quality designation. Minimum methane number needed, since it describes the combustion behaviour / anti-knock properties

Legislative developments/needs


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Taxation has demonstrated to be a point of outmost importance, especially for the entrance into the market of new alternatives.

The European Commission has stressed in many occasions the need to reduce oil dependence and increase security of energy supply

Why submit a proposal for a huge increase to minimum level of taxation for NG by 400% to a fuel that reduces oil dependence, is much more widespread over the territory, and opens the possibility of introduction of an alternative fuel that has proven to be more efficient when reducing GHG emissions than other liquid biofuels

Legislative developments/needs


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Conclusions

LNG makes the use of NG a feasible option for Heavy Duty transportation

Technology for LNG vehicles and infrastructure is ready, and has proven its economic feasibility. Some aspects related with gas quality must be addressed

Natural Gas is a clean, abundant, versatile fuel that opens the door to one of the most interesting renewable fuels: biomethane

Some legislative developments permitting the correct introduction of LNG technology into the EU market are under way. At the moment the market is pushing mainly with national legislation

There is a need for favourable taxation of this emerging option


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“It is a matter of when, not if, LNG will be a commonly selected fuel source” – Christopher J. Wiernicki, American Bureau of Shipping, CEO


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Documents

Market potential for the use of LNG & L-CNG 4 LNG/S4_001...Edinburgh. June 2011 1 Market potential for the use of LNG & L-CNG Gas Infrastructure Europe - Annual Conference Edinburgh,