deploying an alternative fuels infrastructure for...

Mobility and Transport

Deploying an Alternative fuels infrastructure for Transport in

the EU

Radisson Blue Plaza Hotel, Ljubljana, Slovenia

Brussels, 14th November

[email protected]

Transport Investment (Unit B2)- DG Mobility and Transport

mailto:[email protected]

mailto:[email protected]


Clean Power for Transport

• A strategy for the long term substitution of oil in all transport modes

A coherent policy framework that guides investments, brings

sustainability and competitiveness

• Directive 2014/94 on AF infrastructure

• EC Low emission mobility strategy 2016

Emphasize the role of the AF infrastructure on the TEN-t

network


Directive 2014/94 on AF infrastructure

Up to date: NPF received from: Czech Republic and Slovakia


The Connecting Europe Facility for Transport

SRCR

RRI&SRCR

Structure, state of play and green credentials

Total CEF Transport budget: €24.05 billion

€22.4 billion for grants (blending with FIs)

€1.55 billion for Financial Instruments (CEF-Debt Instrument)

Regulation (EU) on TEN-T guidelines 1315/2013:

• Article 33 (a-d) defines what CEF can fund in the area of "innovation and new technologies", notably: "(a) support and promote the decarbonisation of transport through transition to innovative and sustainable transport technologies.

REGULATION (EU) No 1316/2013 establishing the CEF:

• Article 4 -2 (b) "ensuring sustainable and efficient transport systems in the long run, with a view to preparing for expected future transport flows, as well as enabling all modes of transport to be decarbonised through transition to innovative low- carbon and energy-efficient transport technologies, while optimising safety. "

Connecting Europe Facility (CEF - Transport) for transport decarbonisation

Deploying sustainable and efficient transport

More than €300 million in CEF funding, which resulted in a total investment of more than €600 million in 2014-2015.

€187 million invested to deploy 650 additional supply points for alternative fuel along the TEN-T road network by 2020. CEF funding : €107 million

175 rail projects EU investment n: €14.6 billion for 2014-2020. 75% of the CEF transport funding awarded.

SRCR

RRI&SRCR

Synergies with H2020

Pilot demonstration projects under TEN-T/CEF

to be scaled up with financial instruments


Funding opportunities: 2016 CEF Transport Calls


2016 calls: indicative budget available

2016 CEF Transport Calls

Multi-Annual Work Programme (MAP) :

€1 449.5 million €650 million under the General envelope €849.5 million under the Cohesion envelope

Annual Work Programme (AP)

€440 million €190 million under the General envelope €250 million under the Cohesion envelope

CEF synergy work programme

€40 million

Blending CEF grants and financial instruments

Funding Objective 2: Innovation and New Technologies

Point 3.2.1. in the work programme: Deployment of innovation and new technology actions in all transport modes, according to the TEN-T Guidelines, Art.33 (a to d).

MAP 2016 call (no annual call, only Core Network eligible!)

Budget:

• Cohesion: €59.5 million

• General: €80 million

Support rate:

• Studies with Pilot deployment (no paper studies): 50%

• Works: 20%

• Cohesion Countries (Studies & Works!) : 85%


Points of attention!

• Mobile equipment (i.e. concerning vehicles)- Only for studies with integrated pilot deployment! :

• financial difference between a conventional solution and the use of a new technology in a vehicle (ship, car, truck, plane, train…)

• priced separately in the grant application

• up to 10% for road equipment, 30% for ships and rail mobile equipment

• 5 years in the EU

• Scrubbers are not eligible

• Mobile infrastructure (i.e. concerning moving parts of infrastructure: e.g. innovative cranes, innovative reach-stackers, innovative fuel supply vehicles, etc…

• Interface between infrastructure and vehicles: e.g. the telematics link, the charging cable, adaptors, etc


Indicative timetable



EU projects financed under innovation priority in TEN-T and CEF


Alternative fuels in Slovenia

CEF remaining 4.12 billion

FI 1.35

billion

Grants 2.77 billion

Call BLENDING

• 1 billion

Calls 2016

• 1.9 billion

Grants remaining

870 million FI remaining

350 million

Transfer of 1b from FI to Grant

budget

• Across the EU, the demand for investments is much higher than the available funding : EUR 700 bn investment needed on the TEN-T until 2030.

• Promoters must find new ways to finance infrastructure-> financial instruments (CEF debt, EFSI…)

EU's investment needs in transport


Solutions

• More systemic use of innovative financing • EIB target: at least 40% of EFSI 2.0 financing environmentally-

friendly modes (e.g. railways, alternative fuels…)

• CEF & EFSI financial instruments should be considered for projects with potential revenues

• Advisory Hub for advisory and technical support

• Blending EIB tools and CEF grants (or ESI Funds) is a possibility, with CEF grants to support the remaining funding gap


2016 CEF Blending Call (1/3)

Context and objectives

Boost the EFSI transport pipeline and attract private

finance

Approach (timeline, duration, processes, criteria etc.)

Blending €1 billion of CEF grants with EFSI financing

Expected launch before end 2016, with a longer

submission period




Project preparation:

A reasonable level of development will be expected

Associated documentation should be submitted as part

of the call

Technical support to be available

DO NOT WAIT: begin preparing now




Eligibility of projects:

Works, not studies

Grant eligibility and amount in line with the CEF Regulation

Projects will need to be structured to receive EIB/private finance,

with:

Identified borrower

Solid business case

Revenue stream to support loan repayment

Grant level to be justified through cost-benefit analysis


Transport

Example : Port of Calais - combined use of CEF grants and financial instruments


European Fund for Strategic

Investments


Driver for Financial Instruments

• A financial instrument is a mechanism to address specific risks that are deterring promoters and investors from investing in projects

• Instruments allow the public sector to encourage private sector involvement

• Projects need to be conceived to involve private sector

• Laws and regulations need to be clear

• Main approvals should be in place

• Specified in output terms

• Risk allocation clear

• Not just PPPs. Regulated concessions; Sector interventions


Identifying Projects for Financial Instruments

• Project identification:

• Focused on project maturity/readiness/level of preparation

• Key features of financeable projects:

• Revenue-generating potential

• Affordability of the project to users/public authority

• Performance based outputs

• Project where the commercial, legal and political risks are quantifiable

• Bankable project based on realistic projections of both costs and revenues

• Technical assistance to projects with potential

• Transport sector

• Sector: Airports, roads, rail, ports, locks and canals, logistic platforms, alternative fuels, fleets

• Activities: Construction, rehabilitation, efficiency improvements, vehicles

RRI&SRCR

Clean Transport Facility (CTF)

To be officially launched 01/12/2016

Current bus fleets and plans (3IBS survey)

• Paris Declaration on Electro-Mobility and Climate Change and call to action:

• Call for joint efforts – at least 20 percent of all road vehicles to be electrically powered by 2030

• European Strategy for Low-Emission Mobility

• Underlines relevance of speeding up clean (alternative fueled) buses

• From demonstration to deployment: the new Clean Transport Facility

• The Commission is willing to push forward a deployment initiative on clean (alternative fuels) buses and related infrastructures in urban areas, by:

• Supporting work on major procurement principles between cities, operators & manufacturers and create a platform for matching supply and demand;

• Supporting a pipeline of projects through better use of existing funds (European Structural Investment Funds), Technical Assistance Facilities (European Investment Advisory Hub, Jaspers and ELENA)

• Accelerating Investment: Setting up a Clean Transport Facility jointly with the EIB, with emphasis on clean (alternative fuels) buses.

CLEAN ALTERNATIVELY FUELLED BUSES

SRCR

RRI&SRCR

Innovative and clean transport projects (under CTF)

Name of the project RIGA TRANSPORT COMPANY SMT ARTOIS GOHELLE - PROJET BHNS

BULLES

Promoter RP SIA RIGAS SATIKSME Syndicat Mixte des Transports Artois-Gohelle

Project location Latvia

FRANCE

Project description Purchase of 20 new low-floor tram units to

operate in the city of Riga, and modernisation of

tramway infrastructure and depot. Purchase of

10 hydrogen fuel cell (HFC) buses and 10

Hytrolleys with HFC range extenders.

Construction of hydrogen fuel production and

storage facility.

Deployment of the H2 nodes 2014 TEN-T pilote

project: building and real life testing of HRS in

Riga, Pärnu and Arnhem with FCH buses. EUR

14,5 million Max. EU contribution.

Réalisation par le Syndicat Mixte des Transports

Artois-Gohelle (SMT Artois-Gohelle) d'un projet

de transport en commun comportant la création

de six lignes de bus à haut niveau de service

ainsi que l'acquisition de bus hybrides articulés

de type BHNS, avec une expérimentation

hydrogène (sur 6 bus). Le but étant de

promouvoir une mobilité solidaire et durable

favorisant les modes alternatifs à l'automobile

Proposed EIB finance

Approximate amount

EUR 75 million

EUR 210 millions

Total project cost

Approximate amount

EUR 195 million

EUR 450 millions


THANK YOU FOR YOUR ATTENTION

MORE INFORMATION AVAILABLE AT

http://ec.europa.eu/transport

http://ec.europa.eu/invest-eu

http://www.eib.org/invest-eu

https://ec.europa.eu/inea

#InvestEU

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