PROCURA Hitting the Road in Green Mode Local Renewables 2007 Freiburg, June 14, 2007 Marieke Reijalt Dissemination Coordinator

PROCURA

Hitting the Road in Green Mode

Local Renewables 2007 Freiburg, June 14, 2007

Marieke Reijalt Dissemination Coordinator

This product is a result of the PROCURA project EIE/05/102/SI2.419855 www.procura-fleets.eu

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Project and Objective

Procura is a General Action project of the Intelligent Energy for Europe programme of the Directorate General Transport and Energy.

The project started the beginning of February 2006 and will last three years. The total budget is Euro 1.748.546.

PROCURA aims at contributing to the EU

objective of 20% substitution of oil-based

motor fuels by 2020, by overcoming

market barriers for large-scale

procurement of Alternative Fuel Vehicles

(AFVs).


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Problems and Solutions

The problem

lack of infrastructure (chicken-egg problem) lack of maintenance and repair facilities

lack of knowledge of fleet owners and consumers lack of economics

The solution

lack of second-hand market.

PROCURA’s strategy consists of developing and testing models for centralised AFV procurement via:

buyer pools (permitting centralised infrastructure and servicing); certification systems for AFVs.

a focus on private fleet owners (e.g. Greenlease);the start-up development of second hand

markets


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The Target Groups

Local authorities; Private fleet owners Regional and national agencies. Maintenance and repair shop Infrastructure developers Branch organisations (automotive) Automotive manufacturers

The deliverables

manuals developed in collaboration with, and to be applied by fleet owners in 5 pilots in the Netherlands, Italy, Portugal, Poland and Spain.;

200 Alternative fuelled vehicles, AFVs will be procured;

150 fleet scans will be carried out,

1500 relevant stakeholders will be involved in events


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Procura Partners

Ecofys b.v. FAST Federazione delle associazioni scientifiche e tecniche

.

Terberg Leasing bvEuropean Natural Gas Vehicle Association

ETA Renewable Energies

.

Municipality of Nijmegen.

Krajowa Agencja Poszanowania Energii S.A

Instituto Superior Tecnico

Ford Motor Company Europe

NTDA Energia

.

Empresa Municipal de Tranportes de Valencia

.

University Utrecht


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Alternative motor fuels?

Compressed

natural gas [CNG]

Bioethanol (will cost Euro 2,00 t o2,25

per gallon)

Vegetabel oil

Biodiesel

EU target of target 5,75 % in 2010

France target 7% in 2010

UK Target 3,5% in 2010


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Deliverables

Preparation material (WP2-3)AFV-manuals / training guidelines for different target groups (WP2)Fleetscan toolProcurement models

Pilot cases (WP4-8)Applied by fleet owners in 5 pilots in the Netherlands, Italy, Portugal, Poland and Spain

150 fleet scans carried out 200 Alternative fuel vehicles procured1500 relevant stakeholders involved in events

5000 relevant stakeholder informed

Deliverables:


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Workpackage progress: WP2: Manuals

Current status: WP2 rounded off

Three manuals delivered, Market barriers overview, Incentive systems overview (best practices)

Some conclusions

- Great deal of market information available – now integrated and customized

- Great deal of incentives available – opportunity for procurement model

- Limitations in availability AFVs (differences per country)

- Chicken-egg problem prominent focus on fleets logical


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Workpackage progress: WP3: Procurement

Current status: Rounding off WP3

Economic and ecologic tool developed

In dvt: Set up of a Certification system green vehicles

In dvt: Greenlease concepts

Some conclusions:

Tool provides insight for fleet owners

Procurement Models: Combinations of (i) type of fleet, (ii) type of fuel,

(iii) incentive systems (compensation),

(iv) 3rd party involvement (ownership, exploitation)

Certification is important, but requires great efforts

GreenLease provides opportunities


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Workpackage progress: WP3: Procurement

Procurement models- example 1:

Taxi company with >50 vehicles in fleet

CNG option higher initial cost + lower fuel cost

Financed by third party (ownership)

Option: Incentive systems – particular lane usage.

Procurement models- example 2:

Large fleetowner: central operation, city logistics

Biofuel interest – but higher costs

Compensation through incentive systems: access to city centers + local subsidies

Own tank station


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Workpackage progress: WP4.1 Nijmegen

Status: in progressFocus on CNG procurement: buses and cars (200 AFV)Municipality as partnerSeveral workshops with relevant partiesFleet scans with interested fleet owners

Some conclusionsCondensed knowledge valuable (manuals) for municipalities and stakeholdersRelevant to include complete supply chain: e.g. bus companies, end users, concession authorityIntegration on public tender processMunicipality to regional level to increase leverage


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Workpackage progress: WP4.2 Greenlease

(Green)LEASE: A fixed long-term commitment to rent an asset, e.g. a vehicle

Why is vehicle lease relevant for the AFV market penetration?• Main market barriers become irrelevant when leasing those vehicles • Full service lease contract, including maintenance & repairs • Risk reduction for customer, with lease company providing the service • Leasing cars indirectly stimulates the second hand market • Both vehicles as infrastructure can be leased• No initial capital expenditures (but higher lease costs)• Vehicle availability increased through lease company• Knowledge of incentives and technology


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Workpackage progress: WP5: Lisbon

Current status: In progress

Municipality of Lisbon fleet

11 urban transport companies targeted + 3 municipal fleets

First workshops with stakeholders held

Some conclusions

Market barriers large: vehicle availability + high costs of fuel

No infrastructure available municipality takes the lead


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Workpackage progress: WP6: Italy

Current status:

Focus on biofuels

CNG is well integrated in Italy

Florence is integrated as pilot

Some conclusions

Political difficulties

Limited fleet owner interest

High fuel prices and infrastructure availability

(success CNG largely explained through lower fuel prices)


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Workpackage progress: WP7: Poland

Current status: In progress

Focus on CNG buses

> 20 bus operators were contacted

7 letters of intent for AFV procurement

Seminars held with complete supply chain

Some conclusions:

Buses form an attractive AFV market

Infra, volume, central logistics

Interest in CNG for lower fuel prices


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Workpackage progress: WP8: Valencia

Current status: in progress

Supply chain analysis Valencia region

identification 200 stakeholders (leasing, fleetowners, car dealers, maintenance services etc)

Focus on FFV and biofuels

Spain is target market for Ford FFV

First fleet scans performed

Some conclusions:

Local support OEMs of large influence (vehicle availability)

Incentive systems as cost compensation method envisioned to be crucial


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Workpackage progress: WP9 - Evaluation

An evaluation of all pilots is taken into account at the end of the project

Based on the evaluation a last version of manuals will be produced where necessary.

Not applicable at this point.


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Workpackage progress: WP10 Dissemination

Current status: Up and Running

Website set up

Seminars organized in Brussels

Participation in internationl events (mobility week, fleet forum, other EU projects (e.g. BEST), Green Purchasing Conference)

Meetings with dissemination partners

Set up of contact database

Some conclusions

Large interest to provide information on AFVs

Many events

Growing interest of end users – but large barriers


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Conclusions PROCURA M16

- Despite growing interest, large barriers exist for large-scale AFV procurement

- Cost of fuels

- Vehicle availability limited

- Chicken egg problem: infra-vehicle

- Limited push and incentives

- Limited environmental motivation

Second order barriers:

- 2nd hand market

- repair&maintenance


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Conclusions PROCURA M16

Possible strategies

Tax exemption (e.g Germany-biodiesel, Sweden-ethanol, CNG-Italy)

Large-scale procurement focus

Buses, large fleets

Cross-border (logistics companies)

Supply-chain approach

Incentive systems can compensate, but with limitations

AFV-mandate for fleet owners

Mandating a certain percentage for fleet owners

Learn from US example

PROCURA

Outline for successful GreenLease concepts

Deliverable D 3.4

Michaela Mönter NTDA Energía


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GREENLEASE

Reconditioning & second-hand

vehicle auctioning

Label

Fleet Analysis

Maintenance & Repairs

Fleet Management

Green Vehicle Rental

Ecodriving

Greenlease Concept


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Fuel saving measures which can be applied by any fleet owner & driver

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2

3

4

5

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Reduction of:• noise • CO2 • local air

quality pollutants

• number of accidents

BA

SIC

EC

OD

RIV

ING

RU

LE

S

Enhance driver awareness for energy consumption, e.g. no use of air conditioning as a fan

Assure that tires have the correct pressure & possibly get low-rolling-resistance (LRR) replacement tires.

Stick to moderate speed & drive foresighted to diminish unnecessary braking / sudden acceleration.

Drive in high gear & shift soon into next gear to avoid a high engine speed

Apply a fuel management programme, e.g. a fleet fuel card

Eliminate superfluous weight, e.g. unnecessary things in the trunk

1 Switch of engine, when waiting at a traffic light / railway crossing / picking someone up

7 Schedule maintenance to increase fuel economy due to constant clean air filters, etc.

Greenlease concept

PROCURA

Procurement Models

Michaela Mönter NTDA Energía


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Bulk Procurement


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Bulk Procurement


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Bulk Procurement


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Fleet scan tool

Calculation+ output

tables/ graphs

Vehicle inputBaseline +scenarios

Parameter inputVehicle database

Calculation+ output

tables/ graphs

Vehicle inputBaseline +scenarios

Parameter inputVehicle database

InputPer vehicle:•Vehicle type•#km/ year•Purchase costs•Age•Deprec period

Future purchase preferences

OutputTotal fleet costs + cost difference•Conventional scenario•CNG, biofuel scenario

Available AFV models

Fleet emissions:•PM10, NOx•CO2

Step 1: analysis current car parkStep 1: analysis current car park Step 2: Vehicle matching (AFV-scenarios)

Step 2: Vehicle matching (AFV-scenarios)

Step 3: CalculationStep 3: Calculation Step 4: Analysis of outputsStep 4: Analysis of outputs

AFV-Quick Scan tool


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AFV-Quick Scan tool screenshot 1

Country Buttons: By clicking onto country buttons the tool selects pre-set country data for vehicles are (tax, fuel price, etc). In case that the country of interest is not represented, it can be created manually by clicking onto the “Custom” button!

Exit Button: Allows user to close the interface

Create Vehicle Button: This button allows user to include vehicles currently not inserted in the data base


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AFV-Quick Scan tool screenshot 2


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Results: province of Gelderland (2) Economics & CO2 emissions

Jaarlijkse kosten (incl. afschrijving) per brandstofvariant (x €1000)

600

650

700

750

800

850

900

2007 2008 2009 2010 2011 2012 2013

Benzine/diesel CNG Bioethanol (E85)

Biodiesel (B100) PPO Roetf ilterHybride

Jaarlijkse uitstoot CO2 (ton)

0

100

200

300

400

500

2007 2008 2009 2010 2011 2012 2013


Biodiesel (B100) PPO Roetf ilter

Hybride

Yearly costs (incl depreciation)

Per AFV option (x € 1000,-)

CO2 emissions (ton/year)


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Jaarlijkse uitstoot PM10 (kg)

0

10

20

30

40

50

60

70

80

90

2007 2008 2009 2010 2011 2012 2013


Biodiesel (B100) PPO Roetfilter

Hybride

Jaarlijkse uitstoot NOx (kg)

0

500

1000

1500

2000

2007 2008 2009 2010 2011 2012 2013


Biodiesel (B100) PPO Roetfilter

Hybride

Results: province of Gelderland (3) Local air quality

PM10 emissions (kg/year) NOx emissions (kg/year)


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AFV-Quick Scan tool

Current status

>40 fleet scan performed

Mostly in Netherlands

Logistics companies and fleet owners with different size

Early outcomes

For some fleetowners AFVs are attractive economically

Taxation is leading in economic attractiveness

Further work

Make quick scan tool internationally available (including national taxation schemes)

Report on type of fleet owners eligible for AFVs


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For more information please visit

www.procura-fleet.eu

or contact:

Menno Chang, project coordinator,

[email protected],

+31 30 2808 449

Marieke Reijalt, dissemination coordinator,

[email protected],

+39 340 791 4751

Contact Information

Documents

PROCURA Hitting the Road in Green Mode Local Renewables 2007 Freiburg, June 14, 2007 Marieke Reijalt Dissemination Coordinator