restart of cng (compressed natural gas) in europe

RESTART OF CNG (COMPRESSED

NATURAL GAS) IN EUROPE

Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska

14th European Forum on Eco-innovation

CONTENT

• PRESENTATION OF COMPANY MOTOR JIKOV

• CNG ADVANTAGES, ECOLOGICAL BENEFITS OF CNG

• FUEL COST COMPARISON AND OTHER BENEFITS

• EU TARGETS, ACTUAL SITUATION • NATURAL GAS VEHICLES (NGVs) • REFUELING TECHNOLOGIES

• SWOT ANALYSIS, SUMMARY AND GOALS


COMPANY MOTOR JIKOV YOUR PARTNER IN CNG

FILLING TECHNOLOGIES

The tradition 114 years of the machinery production

It achieved sales of EUR 51 mil. (2012), 800 employees, worldwide export to 26 countries

• expert consulting in CNG business

• case study of CNG filling technology according to customer needs

• calculation of return on investment

• production of vehicle refuelling appliance CNG JIKOV

• construction of filling stations, including all project activities and engineering

• service of filling technology

• we founded the Association NGVA. It is the NGVA Europe member – we realize the

project Strategic research agenda (cooperation of leading R&D representatives with

• technology suppliers and engineers from the Czech Republic)

• with the Ministries of the Czech Republic cooperate in the creation of the National

Programme for clean mobility

We also use CNG meanwhile in 50 % of the fleet of our company vehicles:

• saving for the year 2012 in the fuel cost is EUR 59,000.-

• 1 kilometer = 0.035 EUR

• forklift-trucks = 50% savings


CNG ADVANTAGES

• environmental (lower emission of CO2, particles, CO, HC, NOx etc.),

• economic (due to tax policy it is the cheapest fuel in Czech republic now)

• strategic (alternative fossil fuel, increasing resources compared to oil, the

possibility of using biogas)

• safe (CNG is lighter than air - vehicles are safer, parking in underground

parking is possible)


ECOLOGICAL BENEFITS


Well-to-Wheel – CO2 emission


FUEL COST COMPARISON*

VW Passat Variant 1,4 TSI EcoFuel 1,4 TSI 2,0 TDI BMT

Power kW 110 118 103

Fuel CNG Gasoline diesel

Fuel consumption combined kg, l / 100 km 4,3 6,2 5,2

Fuel price average € / kg, l 0,99 1,34 1,32

Fuel cost € / 1 km 0,043 0,083 0,069

Fuel cost per year € / 50.000 km 2 150

4 150 3 450

Saving per year € / 50.000 km - 2 000 - 1 300

CO2 emission g / km 119 144 135

CO2 emission per year kg / 50.000 km 5 950

7 200 6 750

CO2 emission saving per year kg / 50.000 km - 1 250 - 800

New car price (Highline, DSG)** € 33 420

31 270 32 115

Price increase € + 2 150 + 1 305

* in Czech republic ** basic pricelist


OTHER BENEFITS OF CNG

• Using CNG in transport can further achieve:

• increase of the state energetic independence

• use of power source - there are double global resources compared to oil

• a way to further development of bio-CNG (same technologies – vehicles, filling)

• support of european industry (producers of NGVs, compressors, cylinders,

conversion kits…)

• Using biomethane in transport industry then can achieve:

• further reduction of emissions compared to CNG (e.g. CO2 neutral balance)

• own production of biogas station power source, which means:

• fully renewable power source (using biomass, wastes, manure…)

• reduction of dependency on oil import and consequently natural gas

• creation of jobs in Europe (agriculture, industry)


EU TARGETS

EC implemented a program for use of alternative fuels with the target to replace the

traditional fuels in 2020 in the volume of 20 %. Among alternative fuels, which can

replace over 5% consumption of motor fuels in the next 20 years it includes:

• biofuels – already used, e.g. biomethane;

• natural gas – application in medium-term horizon. Not LPG;

• hydrogen and fuel cells – application in long-term horizon.

Czech Republic joined this target in 2005 in form of Government Decree No. 563

dated 11 May 2005 (Alternative fuel transportation program – natural gas) and

Government Decree No. 1592 dated 16 December 2008 (Fleet replacement program

of public administration as "environmentally friendly" vehicles).


EU TARGETS

Implementation based on voluntary agreement between the state and gas

companies dated 16th March 2006. Building of one hundred CNG filling stations

worth CZK 1 billion by 2020 on economically advantageous conditions belongs

among the commitments of gas companies.

It further results from the Agreement that the transport company, which decides to

change its fleet fuel to CNG, will be provided building of CNG filling station at the

expenses of a gas company plus a “marketing” allowance.

Support of ecological fuel vehicles (urban transport) is also a part of Regional

Operation Programs. Building of accompanying infrastructure may be also

accentuated.


CNG IMPLEMENTATION IN EU

COUNTRIES - SUPPORT

Concept of gas implementation in transport area is a part of transport and eco-policy.

Programs of gas implementation in transport area initiated and supported by state or

municipalities. They are usually a part of system support of urban transport development.

Tax benefit of natural gas considering a fuel is guaranteed for longer period (road and

consumer tax) or there exists a long-term guarantee of the tax difference for natural gas and

oil. Reduction of income tax of companies; zero tax on natural gas.

Subsidies for infrastructure development of CNG filling stations.

Direct subsidies for extra costs related to operation of gas buses.

Direct subsidies for purchase of gas vehicles no older than 3 years.

Gas implementation in transport is supported by legislation, research and development,

promotion.

Gas vehicles in city centers are privileged (green zones; parking; preferential lanes; TUT

project in Berlin).


EU TARGETS?

Contrary to that is a preparation of new Directive 2003/96/EC, which would

mean an essential power taxation within EU (from 2018 there would be

paid tax of EUR 0,4 per every 1 m3 of natural gas used in transport).

Consumer tax in the Czech Republic:

• 2007 – 2011 tariff 0 CZK/t (0 CZK/m3);

• 2012 – 2014 tariff 500 CZK/t (0.36 CZK/m3);

• 2015 – 2017 tariff 1.000 CZK/t (0.7 CZK/m3);

• 2018 – 2019 tariff 2.000 CZK/t (1.4 CZK/m3);

• from 2020 – tariff 3.355 CZK/t (2.36

CZK/m3), or minimal level according to EU.

dddddddddddddddddddddddddddddddddddddd

dd


ACTUAL SITUATION

EC action plan (2001) – replacement of „fossil“ fuels, 3 technologies with

such potential – biofuels, natural gas, hydrogen / fuel cells

European development scenario by 2020

• 23.5 million vehicles using natural gas

• 47 billion m3 of natural gas as motor fuel

• 200 thousand of natural gas filling stations

Year 2012

• total NGVs in EU 985,000

• 2,371 public CNG stations in EU


CUSTOMER PREFERENCE


NGVs available


1 compressor

5 m3/hour

15.000 m3/year

20 - 200 thous. km/year

1 – 5 pas. Car

Direct (slow) filling

MJ COMPACT 05 MJ VARIANT MJ COMPACT PLUS MJ SAT

Fast filling

2 - 4 compressors

Storage capacity up to

980 l

Dispenser

Building

10 - 20 m3/hour

20 - 60.000 m3/year

200 – 800 thous.km/y

5 - 20 pas. cars

1 - 2 compressors

Storage capacity 1680 l

Dispenser

Compact product

20 - 40 m3/hour

60 - 180.000 m3/year

800 – 2.400 thous.km/y

20 – 60 pas. cars

1 - 2 compressors

Storage

Dispenser

Payment terminal

> 70 m3/hour

> 200.000 m3/year

public station

buses

RANGE OF CNG REFUELLING

TECHNOLOGIES


SWOT ANALYSIS

Strengths Weaknesses

• ecologic and economic benefits • current EU goals vs. goverment policy and realization

• NGVs produced by strong OEMs • car buyers are not informed about CNG - no real PR

• turbocharged engines optimal for CNG (not for LPG) • weak range of car models

• filling technologies are available (small and big compressors) • vehicles with "short" driving range

• nationwide gas network • poor volume of public filling stations

• valid standards for vehicles and filling stations • energy agents are not motivated for selling of CNG

• fuel resources are growing • unilateral support of the E-mobility

• still problematic underground parking

Opportunities Threats

• growing market • driver scepticism/conservatism

• bio-methane availability • oil lobby (LPG incl.)

• natural gas and bio-methane are part of EU reduction targets • equal tax treatment for CNG and LPG

• further vehicle launches are expected (Skoda, Audi) • energy tax appreciation

• further expansion of public filling station • marginalization of well to wheel analysis

• home VRAs and small filling stations in companies

• close cooperation of vehicle manufacturer, gas company and

supplier of filling technology

• win-win effect for environment and health of inhabitants,

support for competitiveness, science and research and also

savings for drivers


SUMMARY AND GOALS

• CNG is worldwide, well proven, ecological friendly and ecomonic alternative for

oil fuels. It is solution which can quickly contribute for the sustainable mobility.

• customers look for savings of fuel costs and they are getting to interest in

environmental aspects of transportation => improve marketing of CNG

• insufficient refueling infrastructure and poor portfolio of NGVs constrain potential

customers => extension of the number of vehicles; increase of running range.

• Extension of all sizes of filling infrastructure (home, company, public), increase of

CNG production and vehicle filling efficiency is needed.


SUMMARY AND GOALS

• general support from public sector (not only for busses and in named regions)

is crucial factor for extension of CNG and BIO-CNG in this phase (using NGVs,

legislation, taxes, infrastructure, direct support, temporary compensation of higher

purchase prices of NGVs etc.)

• reduction of legislation limitations; research support

• assessment of fuels according to “well-to-wheel“ potential

• closer cooperation of vehicle, filling technology manufacturers, gas companies

and R&D subjects is needed

• verify biomethane effect on CNG technologies


WWW.JIKOVCNG.CZ WWW.NGVAEUROPE.EU WWW.NGVA.CZ

Kral Vaclav

member of the board of Czech NGV Association

CNG sales manager of MOTOR JIKOV Strojirenska

mobile: 00420 606 964 440

email: [email protected]

restart of cng (compressed natural gas) in europe

Documents