Examples of using LNG as fuel to meet EU goals for transports

presented at the Logistics Autumn Evening 2015

dedicated to product security and quality

Luxembourg, October 21st 2015 Dr. Antonio Nicotra

Gasfin SA – Director, Bus-Dev. ILNAS – delegate to CEN/TC326

Convenor WG5, LNG vehicles 1

LNG is the most sustainable fuel for mobility !

In the IXX° Century, it was Coal sustaining the industrial revolutions

in the XX° Century, it was Oil sustaining the growth of world mobility

in this XXI° Century, it is Gas sustaining the powering of clean mobility

in the next Century, it will be Hydrogen sustaining galactic connectivity

Why LNG now? What does it mean sustainable?

sustaining mobility

Which Mobility?

2

What does it mean sustainable?

Do I already have a success story to show?

How can I facilitate to make it happen?

Sustainability must satisfy 5 main prerequisites

LC3: a success story of LNG as fuel for HD vehicles

Provide LNG fueling stations Provide tanks system for HD engines to LNG Provide support for LNG EU standards Provide LNG @ sustainable prices !

LNG is the most sustainable fuel for mobility

CONTENTS:

3

Available: widely accessible, for security of supply

Clean: low GHG emissions, friendly to health & environment

Economic: cost competitive, for sustainable growth

Efficient: high energy density, for lightweight and long range

Safe: safe operation & easy handling, for overall acceptance

... for a sustainable mobility, a modern fuel must possess

5 key pre-requisites:

... Oil fulfilled these prerequisites in the 20th Century ...

what is sustainable ?

4

comparing Gas vs Oil

OIL

18%

NG

18% Hard

Coal

47%

Lignite

12% U+Th

5%

Tot. Reserves

10 670 TWH

OIL Conv.

1%

OIL non-conv 3%

NG Conv.

1%

NG non-conv. 9%

Hard Coal 71%

Lignite 14% U+Th

1%

Tot. Resources

144 640 TWH

… AVAILABLE … … CLEAN …

55

74

40

50

60

70

80

LNG Diesel-Kero

CO2 gr/MJ

46

348

0

100

200

300

400

LNG Diesel-Kero

NOx mgr/MJ

0,1

2,3

0,0

1,0

2,0

3,0

LNG Diesel-Kero

SO2 mgr/MJ

0,1

7,7

0,0

2,0

4,0

6,0

8,0

LNG Diesel-Kero

PMx mgr/MJ

-25% -85%

-99% -95%

… SAFE …

…EFFICIENT …

Gas >3 times more abundant than Oil

Gas ≈ 50% less GHGs emissions than Oil

Gas is not toxic

Gas is less flammable

Gas is lighter than air

Gas allowed in our homes

Gas 15% higher energy density than Oil (by weight)

CNG

5

Batteries > 50

comparing Gas vs Oil

-

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

100,00

2-J

an-0

3

2-J

ul-

03

2-J

an-0

4

2-J

ul-

04

2-J

an-0

5

2-J

ul-

05

2-J

an-0

6

2-J

ul-

06

2-J

an-0

7

2-J

ul-

07

2-J

an-0

8

2-J

ul-

08

2-J

an-0

9

2-J

ul-

09

2-J

an-1

0

2-J

ul-

10

2-J

an-1

1

2-J

ul-

11

2-J

an-1

2

2-J

ul-

12

2-J

an-1

3

2-J

ul-

13

2-J

an-1

4

2-J

ul-

14

2-J

an-1

5

2-J

ul-

15

US$/MWht Fuels Prices History EU terminal

BRENT Gasoil HFO LPG LNGH.H

… AND AFFORDABLE LNG is 50% of Gasoil at terminal

6

. gas

In China since 2004: TGE – CIMC - ENRIC

LNG success stories

LNG as fuel for mobility - SUCCESS STORIES

Solbas 12 trucks since 2010

7

LNG success story

B.E.S.T. Better Environment and

Sustainable Transport

LC3 is a brand of Logicompany3 Srl operating in the Italian transport sector since 2009. LC3 is specialist in refrigrated agri-food transports with a fleet of over 100 trucks, alwyas striving for innovative efficient solutions.

In mid February 2012, LC3 launced “B.E.S.T. - Better Environment and Sustainable Transport” a project aiming at a new sustainable and responsubile logictic way based on 3 fundamental pillars.: Human and Technical Resources and Strategic Views.

The target of B.E.S.T. is reducing the overall GHGs emissions of the fleet by over 50% in a 6 years period from 2012 to 2018!

8

B.E.S.T. Partners

From the inception in 2012, B.E.S.T. started operation in early 2015 with the collaboration of 4 partners: LC3 purchasing initial 30 Iveco Stralis for the transportation of food products to Lidl, with ENI providing LNG fueling in the 1st LNG Station located in Piacenza.

9

Up

da

tin

g p

arc

o m

ezzi

Euro 4 80% Euro 5 20%

Euro 4 100%

Feb

bra

io 1

2

Sett

emb

re 1

2

Euro 5 100%

Ap

rile

13

Euro 5 89% Euro 6 11%

Sett

emb

re 1

3

Euro 5 63% Euro 6 11% LNG 26% A

pri

le 1

5

Euro 5 81% Euro 6 14% LNG 5%

Giu

gno

14

B.E.S.T. accomplisment

10

Up

da

tin

g p

arc

o m

ezzi

Euro 5 63% Euro 6 11% LNG 26% A

pri

le 1

5

Euro 5 39% Euro 6 10% LNG 51%

Ap

rile

17

Euro 5 49% Euro 6 10% LNG 41% A

pri

le 1

6

Euro 5 9% Euro 6 18% LNG 73% A

pri

le 1

8

Inizio ricerca partner per la costruzione di

distributori LNG

Costruzione di distributori LNG in

prossimità dei minihub

B.E.S.T. target

11

L’im

pa

tto

am

bie

nta

le

- 2,8 % - 11,2 %

- 2,0 %

CO2

NOx PM

- 21,1 % - 70,1 % - 39,6 %

CO2

NOx PM

- 33,6 % - 91,2 % - 85,5 %

CO2

NOx PM

2012 2015 2018

B.E.S.T. GHGs reduction

12

Tipologia Consumo medio (1) CO2 (2) NOx (3) PM (4)

EURO 4 0,379 1,060 3,350 22,1

EURO 5 0,334 0,914 1,477 19,9

EURO 6 0,308 0,855 0,295 6,6

LNG 0,257 0,641 0,148 0,3

Pre

sta

zio

ni “

am

bie

nta

li”

dei

mez

zi

(1) litri/km per mezzi a gasolio - kg/km per mezzi a LNG; (2) kg/km; (3) g/km; (4) mg/km

Sources: Sistema satellitare Transics - Schede tecniche IVECO Stralis LNG - Handbook Emission Factors for Road Transport 3.1 - Mercedes-Benz Econic

B.E.S.T. performances

13

Pre

sta

zio

ni “

am

bie

nta

li”

dei

mez

zi

Grafico1-Valoremedioinquinanteperkmpercorso

2012_02 2012_09 2013_04 2013_09 2014_06 2015_04 2016_04 2017_04 2018_04

CO2 1,060 1,031 0,914 0,907 0,892 0,836 0,796 0,769 0,704

NOx 3,350 2,976 1,477 1,347 1,245 1,001 0,814 0,681 0,294

PM 22,100 21,658 19,890 18,424 17,046 13,338 10,537 8,581 3,211

0,700

0,750

0,800

0,850

0,900

0,950

1,000

1,050

1,100

2012_02

2012_09

2013_04

2013_09

2014_06

2015_04

2016_04

2017_04

2018_04

CO2(kg/km)

0,200

0,600

1,000

1,400

1,800

2,200

2,600

3,000

3,400

2012_02

2012_09

2013_04

2013_09

2014_06

2015_04

2016_04

2017_04

2018_04

NOx(g/km)

3,000

7,000

11,000

15,000

19,000

23,000

2012_02

2012_09

2013_04

2013_09

2014_06

2015_04

2016_04

2017_04

2018_04

PM(mg/km)

B.E.S.T. GHGs reduction

14

kg/km

gr/km

mg/km

Pre

sta

zio

ni “

am

bie

nta

li”

dei

mez

zi

Grafico2-Riduzione%inquinanteperkmpercorsovs.stepiniziale

2012_02 2012_09 2013_04 2013_09 2014_06 2015_04 2016_04 2017_04 2018_04

CO2 0 -2,8% -13,8% -14,4% -15,9% -21,1% -24,9% -27,5% -33,6%

NOx 0 -11,2% -55,9% -59,8% -62,8% -70,1% -75,7% -79,7% -91,2%

PM 0 -2,0% -10,0% -16,6% -22,9% -39,6% -52,3% -61,2% -85,5%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

2012_02

2012_09

2013_04

2013_09

2014_06

2015_04

2016_04

2017_04

2018_04

CO2

-100%

-80%

-60%

-40%

-20%

0%

2012_02

2012_09

2013_04

2013_09

2014_06

2015_04

2016_04

2017_04

2018_04

NOx

-90%

-75%

-60%

-45%

-30%

-15%

0%

2012_02

2012_09

2013_04

2013_09

2014_06

2015_04

2016_04

2017_04

2018_04

PM

B.E.S.T. GHGs reduction

15

Co

ncl

usi

on

i

Message from Mario Ambrogi (MD) and Dario Cingolani (Com. Dir)

dario.cingolani@logicompany.it

LC3 was born in Umbria, the green heart of Italy

and aims at keeping green the heart of all Italy !

B.E.S.T. conclusion

16

How can we help?

EU Parliament and Council: Directive 2014/94/EU of 22.Oct. 2014

on the deployment of alternative fuels infrastructure

EU Commission several Programs co-financing “green” transports including LNG

EU Commission Decision C2015-1330 of 12.03.2015) requesting the European

Committee for Standardization (CEN) to draft the EU Standards for alternative

fuels infrastructures (CEN/TC 326)

National/Regional Governments providing regulations and support to

alternative fuels projects development and implementation (including LNG)

INSTITUTIONS

17

... to support and expedite more LNG projects aimed at keeping green the land of Europe...

and healthy the lungs of the European citizens !

How can we help?

Provides LNG supply logistics and fueling stations

Provides LNG tanks system for conversion of HD engines to LNG

Provides support for relevant LNG EU standards (CEN)

Provides LNG @ sustainable prices !

antonio.nicotra@gas-fin.com cel: +352 691 701 351

Gasfin – Director, business development ILNAS - delegate for CEN-TC326 – convenor WG5

NGVA.Europe – coordinator WG LNG / L-CNG Stations 18

... to make LNG the most sustainable fuel for mobility !