Autogas in EuropeState of play and future outlook

Samuel Maubanc General Manager, AEGPL

samuel.maubanc@aegpl.be

WLPGA Regional SummitGold Coast, Australia

18 May 2016

Distribution of LPG demand in Europe

Residential 33%

Agriculture4%

Industry18%

Autogas46%

Total LPG demand in 2014 = 21,1 million tonnes

• Excluding LPG used by petrochemical industry

1. Turkey2. Poland3. Italy4. Ukraine5. Germany6. Bulgaria7. Romania8. Serbia9. Greece 10. Netherlands

Top-10 Autogas markets in EU (in volumes)

7.51

+650%

470222

+112%

8380

+4%

272120

+118%

494380

+30%

3002.2

+13536%

3.50.5

+508%

19701500

+31%

56.317.5

+222%

28462170

+31%

5040

+25%

190185

+3%

13.54

+238%

402

+1331%

4250

-16% 172208

-17%

5662

-10%

0.020.2

-92% 111215

-48%200235

-14%

0.10.4

-73%

144148

-3%

137929821

2009 2014

+40%

FIVE-YEAR EVOLUTION OF THE NUMBER OF AUTOGAS VEHICLES IN EUROPE

The number of vehicles is expressed in ‘000s

2515215840

2009 2014

+62%

16001300

+23%

40772320

+76%

0.42.6

-85%

What will it take to grow LPG use further?

Further recognition of LPG environmentalproperties: condition for incentives and favourable taxation

More engagement from OEM

Ongoing LPG real-driving emission tests

Tests co-funded by the CFBP (French LPG association), the DVFG (German LPG association), and AEGPL (European LPG association)

6 models tested:

Alfa Romeo Mito: Euro 5 homologated; LPG system retrofitted; mileage of 65,000 km

Fiat 500L: Euro 6 homologated; original LPG vehicle from manufacturer; mileage of 6,300 km

Opel Astra: Petrol/LPG + diesel models: Euro 6 homologated; original LPG vehicle from manufacturer

Skoda Octavia: Euro 6 homologated; original LPG vehicle from manufacturer

Huyndai

Dacia Sandero: Euro 6 homologated; original LPG vehicle from manufacturer

Series of 3 tests for each type of fuel (LPG, gasoline) and car

All tests done at comparable speed, weather and altitude conditions

A preview on some of the results

Alfa Romeo Mito Fiat 500LCO

PM

HC

NOx

Euro 6 limitsLPGGasoline

Euro 6 limitsLPGGasoline

CO

PM

HC

NOx

Contrary to gasoline, real driving emissions from LPG vehicles, including from the older converted car, are below the limits set out by the Euro 6 standard for all pollutants, even in the case of aggressive driving

Extrapolating data from a ICCT study on diesel vehicles, we calculated that LPG vehicles emit in average -93% NOx and -76% CO compared to diesel vehicles in similar real-driving conditions

Key results for the autogas fueled vehicles compared to gasoline

CO2 CO NOx HC PM

-17 to -19% -60 to -97% Similar(-54% vs Euro 6)

Similar(-99% vs Euro 6)

-96%

8

Biopropane soon to be a commercial reality in Europe

Several public announcements in the last months, involving the LPG industry (e.g. SHV, DCC Energy, CFBP)

Critical for maintaining authorities’ interestto support LPG

Availability of OEM vehicles

Across Europe, customers can choose out of:

over 90 models from

20 manufacturers

In all vehicle segments

From small city vehicles

To delivery vans

OEM or delayed OEM, with full manufacturer warranty

However:

No pan-European OEM availability (country by country tactical decision)

Limited OEM interest in advanced technology such as Direct Liquid Injection

Development of Dual Fuel (LPG-diesel) technology for trucks but only retrofits available