OMV Refining & Marketing

Natural Gas as Automotive Fuel for Europe ? UN ECE Geneva - Round Table Peter Seidinger, Jan. 18th, 2011

2 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna 2  

Data source: The Gas Vehicle Report , 01/2011

Canada 12.140

USA 110.000

Venezuela 43.000

Colombia 315.405

Bolivia 140.400

Argentina 1.891.186 (share 21%)

Brazil 1.614.955 (share 6%)

Egypt 139.804 China 500.000 (share 1%)

Russia 100.052

Japan  39.623  

Italy 676.850 (share 1,5%)

Pakistan 2.500.100 (share 50%)

India 1.100.000

(share 4%)

Iran 2.070.930 (share 9%)

Ukraine 200.019 Germany 91.890

Bulgaria 60.236

Australia 2.825

Austria 5.325

2010: Europe (incl. RUS) ~1.453.0001) - Worldwide ~12.500.0002) 16.300 (+2.600 planned)

1) share 0,3% 2) share 1,1%

Natural Gas as Fuel: International success story …and in Europe?

NGV for Europe = ?

3 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna

Key issues on „(alternative) mobility in Europe“   Small size of countries/markets in CEE (and Europe)   Different legislation/taxation/incentives

  CNG/LNG filling stations   Taxation of CNG/LNG vs. Diesel/Gasoline/LPG   Tax systems for PC/LDV, HDV, busses (CO2-emissions, EURO5/6,…)   Incentive systems on subsidies for alternative mobility

(monetary/ non-monetary)

  Different customer behaviour/mobility markets   CNG OEM PC/LCV in Western Europe   Mostly CNG PC/LDV retrofits in eastern parts of Europe (taxi,…)   Potential for HDV/trucks (LNG/Dual Fuel)

  Open „Race on Mobility 2050+“ (incl. H2-/E-Mobility,…)   Gasoline/Diesel > 90-95 % in individual mobility till 2050+   New alternatives add complexity >> define „roadmap to future“ (for CNG/LNG)   Natural Gas: a bridging technology for CO2-free mobility ? (H2-/E-Mobility)

  Gas Industry supporting CNG/BioCNG developments   Stainability + Long Term „security of Natural Gas demand“

4 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna

Can „> 5%“ market share for CNG/LNG be achieved in Europe“?

5 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna

CNG = the most cost efficient technology to cut emissions today

6 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna

CNG at filling stations: best service & performance …

Best Performance OMV CNG   Best availability: > 971)(99,92))%

  High refill Pressure > 220 bar (gives add. milage/per CNG fill3))

  Shortest time for CNG refill4)

  ~2 min for 20kg CNG  High booster to shorten filling time

  Safe Handling (filling/car)   LPG detection

1) Benchmark for first quarter Europe) 2) Midium-/Long term target (Diesel/Gasoline) 3) Benchmark for Millage/fill is Diesel 4) incl. time forLPG test

Best Service   Full integration of CNG/LNG

(0-24h/7 days, Shop/Gastro, Integration Gasoline/CNG …)

  Acceptance of all credit-/fuel cards for CNG

7 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna

  Diesel/Gasoline setting “Benchmark” for CNG/LNG fuel retail   Existing, well developed Infrastructure worldwide ( > OEM market)   Highly efficient logistic in distribution (from refineries to retail sites)

(outsourced, private, flexible)   Easy/cheap storage at site   Low investment (fuel tanks/fuel pumps)   Lowest operation costs (power, maintanance)

  Targets for CNG/LNG fuel retail > Techologies needed   Lowest Grid costs (Legal Frameworks, High pressure grids,..)   Reduce energy demand for compression

(CLNG, high pressure grid, slow fill?,..)   Reduce maintanance costs significantly

  (New) CNG/LNG infrastructure to be challenged by “Benchmark Diesel/Gasoline”

* Target price is 90% of Diesel price (energetic)

130%

31%

…at production/filling costs of „benchmark liquid fuel“

8 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna

Full Energy Integration at CNG site (Pilot 2010) Overall Energy Optimization / Cost reduction for CNG retail site

Use of Lost Heat ? (Car Wash)

Hot Water Conditioning ? (Heating)

Power Production ?/Supply Cooling

Up to 10 years: 200.000 € energy savings / site

seem to be possible („best practice“)

By- product : Heat

+ Energy

Storage*

*Energy Storage: Using cheap power (during night) to produce and store CNG

CNG

Start E-Mobility?

9 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna

CNG/LNG – key issues for success in CEE/Europe….   Agree on a vision on CNG/LNG within (Gas) Industry in Europe,

e.g.

5 % market share for Natural Gas as automotive fuel till 2020/25?

  Promote this Vision to all stake holders (politics (EU/national), fuel retailers, OEM´s,…)   Do one common study „how to achieve for Europe“

  Demonstrate contribution to EU environmental goals   Pilot of Hybrid with CNG and Range extender ?   H2 fuel cell car with H2 produced from methane at site ?   Bio-CNG, LNG, CLNG, Bio-CLNG,

  Dedicate investment for CNG/LNG-Infrastructure   Mobility „will go, where investment goes“   Long term story, no „quick wins“ (> Road Map)

  Commitment of all Stakeholders („Road Map“) Gas Industry – Politics – OEM´s – Automotive Fuel retailer

10 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna

Mobility changes slowly. Natural Gas is available today.

Thank you for your attention.

11 | UN ECE Geneva, Jan. 18th, 2011 – Natural Gas as Automotive Fuel for Europe ? – Peter Seidinger/OMV Vienna

Appendix   Dipl.-Ing. Dr. Peter Seidinger

c/o OMV Refining & Marketing GmbH Trabrennstraße 6-8

A-1020 Wien Tel. +43/1/40440/28760

Fax. +43/1/40440/628760 peter.seidinger@omv.com