Methane as a vehicle fuel in Europe Zagreb, 28 November 2014 Matthias Maedge Deputy Secretary General NGVA Europe

Methane as a vehicle fuel in Europe

Zagreb, 28 November 2014

Matthias MaedgeDeputy Secretary GeneralNGVA Europe

Zagreb, 28 November 2014 2

European Association for gas in transport

LNG

• Main objective is the promotion of Natural Gas & biomethane as fuels for transport• We represent more than 150 manufacturers and associations (21 Board members)


Croatia new EU family member (11 MEPs)

LNG

Source: Fleishman Hillard

11x

5x2x

2x1x

1x


• Reduce the EU transport systems oil dependence in order to diversify and secure energy supply.

• Reduce EU GHG emissions in line with the 20-20-20 Climate and Energy Package, 2030 framework (40-27) and the 2011 White Paper on Transport.

• Improve the air quality in urban areas in order to meet EU air quality obligations.

• Enhance the competitiveness of the European industry, boost innovation and generate economic growth.

The European alternative fuels strategy

Source: European Commission

5

372,400

84,400

248,800

480,100

1,719,800

153,200

233,200

Australia

Asia

South America

North America

Europe

147,7006,300

16,200

25,1009,400

31,200

World

Middle East

Africa

Worldwide gas reserves (Unit = 109 m³) + new discoveries in Asia & Africa

Conventional NG

Unconventional NG

World 3.350 billion m³

EuropeTotal 472 billion m³NGVs ~ 2 billion m³

ReservesWorld 513 yearsEurope 179 years

NG consumption & reserves (2013)


35,400

Source: BP statistical review, BGR, graph works NGVA Europe

240,600

117,100


Natural Gas as a competitive alternative

Jan-

07

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-07

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-07

Jul-0

7

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7

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-08

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-08

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-09

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-10

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-10

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U.S. Henry Hub (USD/mmBtu) EU Import (USD/mmBtu) Japan LNG (USD/mmBtu) Brent Crude oil (USD/mmBtu)

Source: LNG spot market


Natural Gas pipelines and terminals

Source: GIE

LNG terminals keepexpanding…

- 20 operating- 7 under construction- ca. 30 new projects

8Zagreb, 28 November 2014

ACER (Agency for the Cooperation of Energy Regulators) study (30/10/2014)

Source: http://www.acer.europa.eu/Media/News/Pages/Road-transport-expected-to-lead-the-new-uses-of-gas-up-to-2025.aspx

9

Gas in transport is the way forward


Source: European Commission, NGVA Europe

• Available, reliable, economical, integration of renewable sources

• Reduced emissions of NOx, Particles, GHG and Noise

• Only real alternative to oil available today!


Vice President & Commissioner in charge of transport, Siim Kallas: “Gas will play a major part as the most attractive option to replace oil-based fuels such as diesel. While the technologies are already mature, it is the lack of infrastructure that is holding up a broader uptake of gas as a vehicle fuel.”

„NGV Brussels 2014“ (8-10 July)

Source: European Commission, NGVA Europe

Director General of DG MOVE, J. Aguiar Machado: “The transition to alternative fuels is urgent. Natural gas has a very important role to play, as does biogas.”

11

28 October 2014: Directive on deployment of alternative fuels infrastructure (2014/94/EU)



Detailed provisions for CNG and LNG:

- CNG in cities and densely populated areas by 2020.

- CNG & LNG at least on TEN-T core network by 2025. (150 km + 400 km indic. distances).

- LNG in sufficient TEN-T seaports by 2025.

- LNG in sufficient TEN-T inland ports by 2030.

- Common technical standards by 2016.

- Consumer information: "1 petrol litre equivalent" for better comparability of fuel prices shall be used.

Member States have to develop National Policy Frameworks until 18 November 2016

LCNG station, Gasrec, UK

CNG station, Bohlen & Doyen, Germany


Overview of deadlines



European standards CNG/LNG filling stations

European standards for natural gas supply shall contain interoperable technical specifications with a single solution for each of the following:

• LNG refuelling points for maritime and inland waterway vessels compatible with ISO/TC 67 (31/12/2017)

• LNG and L-CNG refuelling points for motor vehicles compatible with ISO/DIS 16925 (31/12/2016)

• CNG refuelling points for motor vehicles compatible with ISO/DIS 16923 (31/12/2016)

• LNG connectors and recetables for motor vehicles compatible with UN ECE Regulation 110 and referring to ISO/DIS 12617 (31/12/2016)

• CNG connectors and recetables Improve compatible with UN ECE Regulation 110 and referring to ISO 14469, parts 1 and 2 (31/12/2016)

- Member States (CEN 1025/2012) approval on 23rd Oct.

- Will be submitted to the ESOs by end November.

- NGVA & members shall play an active role to support the process in compliance with ISO PC 252.


0 50 100 150 200 250

121

178

182

267CNG

LPG

Diesel

Gasoline

Fuel pricing and range for 10 € fuel costs

Cost advantage of natural gas today not transparent

Ass: Fiat Panda 0,9 Natural Power ( average consumption and fuel price German example)

Figure: Fuel prices Germany April 2014. CNG price 0,70 € on litre eq. basis.


Energy Taxation Directive

• No agreement on proposal to introduce harmonised taxes on fuels at EU level. • Motivation tax CO2 and energy content: only 15% of the tax related to CO2.• Need for lower taxes on natural gas and biomethane to trigger investments and

use: 16 EU Member States tax NG below set minimum recommendation of 2,60 €/GJ (EU average 2.15 €/GJ, weighted average 0.75€/GJ).

• NG vs Diesel: average Diesel tax 11,60 €/GJ => Council proposal 11,09 €/GJ


European NGV Market development

LNG

NGV growth 2013-20141.2 million NGVs mid 2014 (market share < 1%)

Croatia: +52.8%Belgium: +51.6%Finland: +26.6%Greece: +29.2%Czech Rep.: +26.5%Hungary: +20.6%Netherlands: 11.7%Slovakia: +9.9%Poland: +5.7%Spain: +5.2%Sweden: +5.12%Italy: +4.3%

Source: NGVA Europe statistical update mid 2014


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

5,000

10,000

15,000

20,000

25,000

30,000

35,000

NGVs * 1000 NG Demand, Mcmpa Filling Stations

NGV development last decade - 18% NGV growth/year- 18 Mio NGVs worldwide (thereof 7% in Europe)

NGV market share by 2020- World: 65 million NGVs

= 6% market share- Europe 10 million NGVs

= 5% market share

(conservative NGV Global/NGVA Europe est.)

Worldwide NGV market development

Source: NGVA Europe, Worldwide share in vehicle market


CNG vehicles – low emissions champions

New Audi A3 TCNG. Cleanest combustion engine with e-gas

Skoda Octavia g-tec. Downiszing & turbo chgarging + CNG is ideal

Fiat 500 L & Mercedes-BENZ B-ClassFamily Vans 800-1000 km range (upt to 500 km on CNG)

Golf VII TGIBest selling car of its class


Vehicle typeReference model VW city car Up!

ElectricE-Up (60 kw)

GasEco Up (68 PS)

Petrol Up 1.0 (75 PS)

Price Euro 26.900,- 12.950,- 11.375,-

Consumption per 100km

12,7 kWh 3,0 kg 6,5 L

Energy costs Euro / Km

3,43 3,03 9,69

CO2 g/km - 79 108

Insurance costs Basic Part Full Full

Euro

237,-65,-

406,-

248,-51,-

319,-

231,-53,-

264,-Monthly costs Based on 10.000 Km/Year Based on 15.000 Km/Year Based on 20.000 Km/Year

Euro

578,-/94,-611,-/114,-649,-/140,-

276,-/91,-306,-/111,-340,-/136,-

289,-/140,-343,-/188,-403,-/240,-

Leasing Advanced PaymentRate

Euro

5.380,-347,-

2.750,-112,-

2.275,-

92,-

Total cost of ownership electric vs CNG


CO2 emission targets passenger cars

LNG


NGVs & CO2 WTW emissions

164*

100

174

156

5

8

141

114

75

124

95

5

Petrol

Diesel

LPG

CNG

BIO-CNG(20%)

BIO-CNG(100%)

Ethanol(Basis: Wheat)

Biodiesel(Basis: Rape)

Hydrogen Fuel Cell(Basis: EU-Mix)

Hydrogen Fuel Cell(Basis: Wind energy)

E-Mobility(Basis: EU-Mix)

E-Mobility(Basis: Wind energy)

-97%

-39%

-24%

Best CO2 potential

> 130 octane

Fossil fuel:

Biogenic fuel:

Electricity:

CNG

*Basis: (Petrol, naturally aspirated engine), Fuel-consumption: 7l/100km

THG-Emission WTW in gCO2 äq/km

Source: DENA, JEC


Renewable electricity stored in the gas grid with power-to-gas technology.


Reducing CO2 emissions from HDVs

Commission Communication published in May, legislative proposal for 2015:http://ec.europa.eu/clima/policies/transport/vehicles/heavy/documentation_en.htm

+Principal sources of biomethane

Source: European Commission, CNH

http://ec.europa.eu/clima/policies/transport/vehicles/heavy/documentation_en.htm


CNG buses & garbage trucks – a European success story (main countries 22.000 units)

Source: NGVA Europe statistical update mid 2014

CNG buses: 2.300CNG trucks: 3.000

CNG buses: 1.609CNG trucks: 1.322 (incl. 320 LNG)

CNG buses: 2.400CNG trucks: 1.100

CNG buses: 1.735CNG trucks: 176

CNG buses: 2.160CNG trucks: 755 (incl. 70 LNG)

Others (HD NGV): Netherlands (1.070, inlc. 300 LNG), Greece (720), UK (700, inlc. 630 LNG), Czech. Rep. (600), Norway (540), Poland (450), Portugal (440), Slovakia (325), Bulgaria (320), Lithuania (300), Switzerland (300), Austria (220)

Mercedes Econic NGT, Athens

Iveco Bus CNG, Barcelona


Air pollution & Noise – CNG and LNG improve the quality of life

Source: NGVA, CNH, EEA

-95% vs EUR VI limit (10 mg/kWh)

EUR VI CNG/LNG

-5 dBA noise+


NGVs in the focus of research: Horizon 2020

€70 billion for research and technical development 2014-2020

Open calls

CALL ‘CLEAN VEHICLES’ • Future natural gas powertrains and components for cars and vans• Future alternative fuel powertrains and components for heavy duty vehicles CALL ‘SMART CITIES AND COMMUNITIES’ • Alternative fuels for Smart Cities



CEF: CNG/LNG infrastructure funding

More info: http://inea.ec.europa.eu/en/home/

• New legislation: Regulation (EU) No 1315/2013 • Focus on decarbonisation, pollution and noise reduction, safe

and secure infrastructure (incl. CNG/ LNG)• Develop core and comprehensive networks• Create cross-sector synergies & synchronise investments• Projects must involve one or more Member States• €26 billion available for funding period 2014-2020

Ongoing call 11 September 2014 - 26 February 2015

http://inea.ec.europa.eu/en/home/

http://inea.ec.europa.eu/en/home/


0,1 % sulphur limit marine fuel as of 1/1/2015


1 Liter

Diesel

CNG and LNG trucks

Diesel vs. CNG / LNG

CNG5 litre

LNG/LBG1,8 litre

200 bar

LNG opens the way for the medium and long distance road transport

-162ºC at 1 bar

-125ºC at 10 bar

Two technologies are available for heavy engines:

• Dedicated, using 100% natural gas

• Dual fuel, using diesel injection for ignition and natural gas as the main fuel

SourceNGVA Europe, LNG Blue Corridor


LNG trucks for long distance transport

The LNG Blue Corridors Project

Large scale project to demonstrate the LNG as a real alternative for medium and long distance transport, as complementary fuel first, and substitute of diesel in the future.

- 27 partners from 11 countries

- 100 Heavy Duty vehicles running on LNG

- 14 new fuel stations

- Total investment: 14.33 M€

- EC funding: 7.96 M€

- 4 years


LNG

Roadmap of the LNG Blue Corridors

Source: LNG Blue Corridor

32

Current European LNG vehicle fleet

> 200

> 25

< 10

None

Spain318 trucks

Sweden69 trucks

Netherlands291 trucks

Italy7 trucks

UK638 trucks

Source: NGVA Europe, 13.03.2014

1.500 LNG Vehicles 50 LNG filling stationsUK leader, then NL & Spain

Turkey2 trucks

Switzerland1 trucks

Belgium33 trucks

Finland1 truck


Poland11 buses

33

LNG


Source: NGVA Europe

http://map.ngva.eu


Comprehensive set of actions to support methane as a vehicle fuel

Directive 2014/94/EU deployment alternative fuels infra-structure

R&D:Horizon 2020

Demonstration of HDV running of liquefied methane

CEF transport:

TEN-T regulation & guidelines

1

23

4


NGVA Europe

Secretariat Address: Avenida de Aragón 40228022 Madrid, Spain

Brussels Liaison Office:Avenue de Cortenbergh 1721000 Brussels, Belgium

[email protected]

Documents

Methane as a vehicle fuel in Europe Zagreb, 28 November 2014 Matthias Maedge Deputy Secretary General NGVA Europe