Natural Gas Vehicles (NGV) and

Sustainable Transport

2

Bord Gáis Networks

● Bord Gáis Networks develop, operate and maintain natural gas network in the Republic of Ireland

● Provide a gas transportation service to over 650,000 customers in the Republic of Ireland in more than 150 population centres

● Networks consists of 13,150km of pipelines

● Bord Gáis Networks connect all customers to the natural gas network regardless of supplier

3

Bord Gáis Pipeline Network

4

Ireland’s Gas Consumption by Sector

Source: Bord Gáis Eireann, 2010

5

EU Gas Share of Primary Energy

Source: Eurogas, 2009

6

Final Energy Demand – Ireland & EU

Source: Eurogas, 2009

Transport in Ireland

● Fastest growing sector in terms of energy demand

and CO2 emissions

● 36% of Primary Energy Demand

● 43% of Final Energy Demand

● Consumes twice as much energy as industry

● Responsible for 36% of Ireland‟s energy-related CO2

emissions, higher than any other sector

● 99% dependent on oil

Source: SEAI Energy in Transport 2009 Report

8

Transport Energy Demand Growth of 181%

9

Transport CO2

Emissions Growth of 178%

Transport Targets

● Overall Greenhouse Gas Emissions reduction of 20%

by 2020 from 1990 levels

● Non-ETS Sectors (inc Transport) Greenhouse Gas

Emissions reduction of 20% by 2020 (from 2005

levels)

● 10% of Transport Energy from Renewables by 2020

Private Passenger Transport

● Modal Shift – Journey Elimination & Alternatives to

Car Journeys like Walking, Cycling, Public Transport

● Electrification of Private Passenger Transport

● Short Range Journeys

● Low Cost Fuel

● High Efficiency Vehicles

● Vehicles & Battery Costs will reduce over time

Commercial & Public Transport

● Vehicle Range

● Vehicle Performance - Payload

● Vehicle Cost

● Reliability & Maintenance

● Refuelling Time

● Convenience

13

Vision for the futureBiomethane

Kitchen, catering waste Municipal &

household waste

Sewage sludge

Parkland Grass Livestock manure

Anaerobic Digestion

Vehicles

Infrastructure - Fill up in forecourts, at base or at home

How do we get there?

15

Natural Gas Vehicle (NGV)

● Provides a real alternative to petrol and diesel

● Natural Gas stored in concealed cylinders

● Proven vehicles & technology

● Over 12million NGVs worldwide (Sept. 2010)

● Vehicle manufacturers have proven options available

● Purpose built - directly off the production line

● No payload restrictions

‘Normal’ refuel process

Purpose built –> under floor

cylinder storage retains full space

Vehicles – Production Line Options

16

17

Natural Gas Vehicles – Options Commercially Available

VW Caddy Eco-Fuel

Mercedes-Benz Sprinter NGT

Iveco NGV Refuse truck

MB Econic TractorSprinter - Ambulance

VW Scirocco GT24-CNG race

– Nürburgring,May 2010

CNG Vehicles

● Dedicated CNG

● spark ignited and largely similar to petrol

engines

● Bi-fuel

● engine can run on either petrol or CNG

● Uses one of the fuels at any given time

● Can automatically change to petrol using a

switch within the vehicle

● Dual Fuel technology

● engine can run on either diesel or CNG

● No change to diesel engine

● Substitutes 60-85% gas (average)18

LNG as a Transport Fuel

● 16 LNG Ships in Norway

consuming equivalent to

80,000 Cars

● US Heavy Duty Trucking

likely to offer most potential

● LNG Iveco Stralis launched

in UK & Ireland this month

19

Natural Gas Vehicles – Electric Hybrids

● San Diego Metropolitan Transit System

(MTS) Launched CNG Hybrid-Electric

drive system in 2008

● Tata Motors ran 4 CNG-Electric Hybrid

Starbuses for Delhi Commonwealth

Games, October 2010

● Landi Renzo hybrid vehicle retrofit kit

project (SIER)

20

Natural Gas Vehicles – Hydrogen Blend

● HCNG – Blend of 80% CNG and 20% Hydrogen

21

● Pathway to Hydrogen fuelled transport?

22

INTERNATIONAL GROWTH IN NGVS

GROWTH IN NGVS (WORLDWIDE)

1990 – 2020, Millions

GROWTH IN NGVS (EUROPE)

2000 – 2020, Millions

Huge growth in NGV numbers worldwide due to implementation

of supportive policies by world governments

* Source: International Gas Union, 2009

0

10

20

30

40

50

60

0

0.5

1

1.5

2

2.5

1990 1995 2000 2005 2010 2015 2020 2000 2001 2002 2003 2004 2005 2006 2008 202020092007

AVERAGE GROWTH SINCE 2000 OF

29% PER ANNUM

TREBLED BETWEEN 2000 AND 2009

EXPECTED TO DOUBLE AGAIN BY 2020

23

Benefits of CNG

● Reduce tailpipe emissions

● Nitrogen Oxide (NOx)

● Particulate Matter (PM)

● Sulphur Oxide (SOx)

● Reduce Greenhouse Gas emissions

● Improve quality of air and health benefits

● Reduce noise

● Provide Transport Fuel diversity / Increase Security of Supply

● Lower Fuel Costs

● Pathway to a renewable fuel source – Biomethane

Emissions: Diesel v CNG buses

24

% Change compared to current bus fleet

Pollutant Euro V - 2008 standard CNG Bio-CNG

CO2 -2 -11 -64

N2O 311 -100 -100

CO -89 -71 -71

VOC -93 62 62

SO2 -2 -100 -100

NOx -65 -83 -83

NO2 -72 -100 -100

PM2.5 -60 -87 -87

PM10 -53 -77 -77

Transport Research; Trinity College Dublin; 2010

● CNG is future proof:● CNG already meet Euro 6 limits

25

Emission Reduction

NGV VS. DIESEL

0

10

20

30

40

50

60

70

80

90

100

Nitrogen

oxides

Carbon

monoxide

Carbon

dioxide

Hydro-

carbons

Sulphur

dioxide

Soot

particular/

particulate

matter

-70% -50% -12% -80% -80% -99%

* Source: Mercedes-Benz Sprinter Van Technical Specifics

http://www.erdgas.lu

MERCEDES-BENZ SPRINTER VAN

0

10

20

30

40

50

60

70

80

90

100

NGV VS. PETROL

Nitrogen

oxides

Carbon

monoxide

Carbon

dioxide

Hydro-

carbons

Sulphur

dioxide

Soot

particular/

particulate

matter

-20% -75% -20% -59% -40%

26

Reduced Noise by up to 7dB

Enhances Security of Supply

● Reduces dependency on oil

● Creates transport fuel diversity

● Reduces risk to potential shocks in oil market

● Natural gas - different supply sources via different

infrastructure

27

28

Who has the oil?

Natural Gas & Oil Reserves

29

Diversity of Gas Supply Sources to EU-27

30

Source: Eurogas, 2010

Shale Gas – A Game Changer

31

Unconventional Gas Potential

32

33

Reduced Fuel Costs by 30% to 60%

Source : NGV Europe, From IEA Working Paper 2010

Gas price consistently lower than oil

34

NOMINAL

-

2

4

6

8

10

12

14

16

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

$/M

MB

tu

Crude

Oil

U.S.

Natural

Gas

Diesel Price Indexed to Natural Gas Price

35

Diesel

Natural Gas

36

CNG provides pathway to Biomethane – Renewable Transport

● National target: RES-T -> 10% by 2020

● Biomethane can form part of the solution for RES-T

● Sweden: 58% of gas used in transport comes from biomethane

● Germany: Focus on bio-methane and investing in the CNG infrastructure

“Green gas”

Vehicle fuel

Biomethane - Linkoping Sweden

Bord Gáis Networks37

● 100% of buses in the urban transport fleet use biomethane as fuel

● Biomethane also used in CNG cars, taxis and distribution vehicles

● Feedstock = Organic, animal & household Waste

38

Refuelling Options – Commercially in Service

Private station Public station

Home fill

39

600 Cars required per Public Filling Station - IGU

40

European NGV & Stations

Source: NGVA Europe and the GVR

CountryTotal

NGVs

Cars and

Commercial

vehicles

BusesTrucks /

Lorries

Others (including

Forklifts, Road

Sweepers)

Total

Refuelling

stations

Public

stations

Private

stations

Italy 698,500 695,000 2,300 1,200 0 770 725 45

Russia 100,052 72,800 1,400 25,800 52 284 244 40

Germany 88,500 82,815 1,550 3,650 485 900 813 87

Sweden 28,093 26,492 1,120 480 1 142 110 32

France 13,307 10,000 2,300 1,000 7 125 15 110

Switzerland 9,279 9,028 135 56 60 126 123 3

Austria 4,983 4,936 41 6 0 216 168 48

Netherlands 3,502 2,800 552 150 0 66 49 17

Spain 2,539 506 989 1,001 43 42 2 40

Norway 521 280 198 22 21 9 6 3

United Kingdom 220 20 0 150 50 5 2 3

41

CNG competitive in all scenarios of Transmission &

Distribution grid presence - IEA

CNG Fast Fill Refuelling Station

42

Fast Fill - Basic Operation

● Compressor pumps from pipeline into intermediate

storage at 250BarG / 300BarG

● Storage comprises three banks of pressurised

cylinders

● Dispenser uses pressure drop between storage

bank and vehicle (200BarG maximum) to fill

vehicle cylinder

43

Refuelling Station Design

● Meet Operations / Fleet Requirements

● Fast Fill vs Slow Fill

● Type of Vehicles

● Number of Vehicles

● Average Mileage

● Refuelling Frequency

● Dispenser Requirements

44

Mobile CNG Refuelling Station

45

● Supply 130 Cars or 15 Buses approx

● On Board Gas Fired Generator based on Iveco engine

● No gas or power connection required

● Pilot Projects, Emergency Use, Race Tracks, Agriculture

CNG Cylinders – Four Types

46

● Type 1 - All Metal

● Aluminium or Steel

● Type 2 - Hoop Wrapped

● Metal liner reinforced by composite wrap (glass or carbon fiber) around middle

● Type 3 - Full Wrapped Metal

● Metal liner reinforced by composite wrap around entire tank

● Type 4 - Full Wrapped Plastic

● Plastic gas-tight liner reinforced by composite wrap around entire tank

Vehicle Cylinder Testing

47

● Subject to International Standards

● Drop Test

● Crash Test

● Bullet Test

● Bonfire Test

● Drag Test

Bord Gáis Networks48

Steel City steps on the gas in pursuit of

greener fleets

Sheffield City Council unveils UK’s largest

fleet of gas-fueled vehicles

49

Italy

● NGVs = 698,500 on the road

● Refuelling stations = 770

● In 2009, NGVs accounted for ~7% of new

car sales

Sample incentives

Low tax on CNG

Purchase incentives for NGVS

- Initially €5,000

- Based on CO2 (<120 gr/km) €2,000

Support for infrastructure development – filling stations

– in the form of grants

Government partner with gas companies to promote

NGVs

Subsidy of €650 for conversions= NGV refuelling station

50

Case Study: Madrid

● In the 1990s Madrid Municipality reviewed local services

and defined as a priority severe reduction in exhaust

emissions and noise

● Forward-thinking, innovative and environmentally friendly

review resulted with buses changing to NGVs

● Aim to have up to 650 CNG buses by the end of 2011

● Mayor of Madrid preparing regulation to ban purchase of

new buses running on diesel (Announced March 2010)

● Similar approaches in other leading European cities

including The Hague, Paris, Verona, Barcelona & Rome

Case Study: Madrid - EMT

Bord Gáis Networks51

YearCNG

Buses bought

CNG Bus Total Compression equipment Refuel

1994 1 1 Pilot equipment 60 m3(n)/h. For 1 bus

1995 15 152 compressors of 750 m3(n)/h. = 1.500 m3(n)/h

20 buses

1996 14 29

1997 3 32

1998 18 50

2001 20 70Additional compressor of 750 m3(n)/h. Total compression now = 2.250 m3(n)/h

2002 40 110Additional compressor of 750 m3(n)/h. Total compression now = 3.000 m3(n)/h.

2003 15 125

2004 30 155

2005 24 165

2006 53 201Installed 5 additional compressors of 2500 m3(n)/h

Each bus can refuel in 3 minutes

2007 150 351

9 ‘streets’ forrefuelling

Capacity: 410 CNG buses

Main building & Maintenance.

Access

● CNG specific refuelling facility – „state-of-the-art‟ – now in operation

Case Study: Madrid – EMT - San Chinarro

53

Case Study: Madrid – FCC (Waste Collection)

● In the 1990s Madrid Municipality, began changing

refuse trucks to NGVs

● IVECO (vehicle manufacturer), FCC (company

providing services) and Gas Natural S.A. (the major

Spanish gas company) involved in the development

project

● Currently have ~700 CNG refuse collection trucks

● Significant savings:

● Fuel costs: 30%

● Emissions: NOx, PM & CO2

● Noise: 7db

IVECO CNG trucks, Madrid -2003

IVECO CNG Refuse collection fleet

54

Bord Gáis Networks NGV activities

● Undertaking significant research into technology and current markets

● Assessing feasibility and economic potential

● Learning lessons from Europe / Joined NGVA Europe

● Meetings with potential industry players

● Potential customers

● Vehicle manufacturers

● Infrastructure & fuel station equipment providers

● Establish a commercial prototype

● Assessing feasibility within our own fleet

● Installed a refuelling facility

● Purchased NGV

55

Refuelling facility and Bord Gáis Networks NGV

● Installed a refuelling facility - Feb. „10

● 6-8 hours to refuel NGV (from

empty)

● Analysing performance of NGV

● Planning „fast-fill‟ refuelling facility

● Refuel in 2-5mins

Stakeholders in Development of CNG

CNG Customer

Bord Gáis

Networks

CNG refuelling

station

Shipper

Vehicles

CER, Departments & Local Authority

56

57

NGV ROADMAP

Fuel Supply Processing Transmission Fuelling Vehicles Customers

Biogas

Natural Gas

Agricultural

Waste

Local and

household waste

Water

purification

Grass

Bio-digestion

Transportby vehicle

Private Station

Public station

Home station

Bus

Truck

Van

Car

Fleet

Government

Local Authority

Commercial

Fleet

Government

Local Authority

Commercial

Commuter

Transportby pipeline

Phase 1: Develop the market, NGVs and

refuelling infrastructure

Phase 1: Using existing Natural Gas infrastructure

Phase 2: Introduce renewable source

57

Transport Fuel - Consumer Requirements

● No Loss in Performance - Range & Payload

● No Loss in Pocket - Vehicle & Fuel Price

● No Loss in Sleep

● Security of Fuel Supply

● Confidence in Technology (Vehicle & Refuelling)

● Reliability in supply of parts, service and maintenance

● CNG & NGVs meet these requirements globally today

Thank you

59

Appendix

60

61

European NGV & Stations (September, 2010)

Source: NGVA Europe and the GVR

CountryTotal

NGVs

Cars and

Commercial

vehicles

BusesTrucks /

Lorries

Others (including

Forklifts, Road

Sweepers)

Total

Refuelling

stations

Public

stations

Private

stations

Italy 698,500 695,000 2,300 1,200 0 770 725 45

Russia 100,052 72,800 1,400 25,800 52 284 244 40

Germany 88,500 82,815 1,550 3,650 485 900 813 87

Sweden 28,093 26,492 1,120 480 1 142 110 32

France 13,307 10,000 2,300 1,000 7 125 15 110

Switzerland 9,279 9,028 135 56 60 126 123 3

Austria 4,983 4,936 41 6 0 216 168 48

Netherlands 3,502 2,800 552 150 0 66 49 17

Spain 2,539 506 989 1,001 43 42 2 40

Norway 521 280 198 22 21 9 6 3

United Kingdom 220 20 0 150 50 5 2 3

62

Austria – CNG Refuelling Network Expansion

63

Austria – NGV & filling station growth

Announcement:

200 Filling stations

by 2010

Bio-gas,

NGVs with turbo engine,

EEV (Euro6)

64

Country Policy Incentives

Sweden

Investment support (~ 30%) for filling stations

Free municipal parking for NGVs in many cities and priority lanes for NGV taxis at airports, railway stations and ferry terminals

40% reduction of income tax paid for the use of a NGV company car

No tax on biogas

Biogas production support: Ministry of Enterprise, Energy and Communication (2009-2011) approx. 5million/year

• Ministry of Agriculture (2009-2013) approx 4 million Euro/year

GermanyReduced tax rates for NGV up to 2018

CNG fuel vouchers between €500 & €1,500, and subsidies for fleets

France

Set targets for number of vehicles running on NG, by 2010 including:

• 3,000 CNG urban buses, 1,200 CNG urban services trucks and 100,000 CNG cars and light duty vans

Subsidy: Bus: €7,500/bus (>23 seats) (up to 20 busses/year/owner)

Garbage truck: € 7 500 / truck (up to 20 trucks/year/owner)

Switzerland

Receive a subsidy on purchase of a private NGV (range from €600 to €9,040)

Reduced tax on CNG

Promotion of NGV by National Energy Agency

Regional incentive program for subsidies on purchase of Heavy Duty Vehicles (e.g. buses, refuse collection trucks)

AustriaSince 2008, a €500 tax bonus for registering a new NGV

Set target of opening 200 CNG refuelling stations by 2010

SpainLower tax: 0.4140 eurocents / kWh (6.5 times lower then diesel)

Filling station grants (from €25,000 up to €60,000 dependent on station type and size)

Netherlands €600,000 subsidy for installing filling station

SUPPORTIVE POLICY MEASURES