Public Hearing on Clean Power for Transport – the role of Methane (NG/biomethane)

European Parliament, TRAN Committee

Brussels 18th June 2013

Matthias Maedge

EU Affairs Manager & Head of Brussels Office

NGVA Europe

Methane (CH4) has major environmental benefits compared to other fuels

Brussels, 18th June 2013 2

CNG

Used in passenger cars, light duty vehicles, busses

up to heavy duty in medium range applications

Heavy duty vehicles, vessels and

maritime applications

• Significant reduction/avoidance of CO2 emissions when using NG/biomethane

• Almost total reduction of NOx

• Particle emissions are avoided

• Reduction in noise levels by 50%, especially in inner-city applications

• High energy content, 130 octane

LNG

Brussels, 18th June 2013 3

17 October 2012

ILUC (Indirect Land Use Change).

5% cap on 1st generation biofuels

The contribution made by

"renewable liquid and gaseous fuels

of non-biological origin shall be

considered to be four times their

energy content“ and blending of

biofuels (including NG and

biomethane) is expected to be “the

main contributor”.

Biomethane contributes to 10% RES target in transport. ILUC proposal 4x counting

Source:

http://ec.europa.eu/clima/policies/transport

/fuel/docs/com_2012_595_en.pdf

… or make it bio LNG!

Brussels, 18th June 2013 4

Renewable electricity stored in the gas grid with power-to-gas technology.

Methane & CO2 – best performance on WTW basis

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164*

100

174

156

5

8

141

114

75

124

95

5

Petrol

Diesel

LPG

CNG

BIO-CNG (20%)

BIO-CNG (100%)

Ethanol (Basis: Wheat)

Biodiesel (Basis: Rape)

Hydrogen Fuel Cell (Basis: EU-Mix)

Hydrogen Fuel Cell (Basis: Wind energy)

E-Mobility (Basis: EU-Mix)

E-Mobility (Basis: Wind energy)

-97%

-39%

-24%

best values of all fossil fuels CO2, CmHn, > 130 octane

Fossil fuel:

Biogenic fuel:

Electricity:

CNG

*Basis: (Petrol, naturally aspirated engine), Fuel-consumption: 7l/100km

Source:: DENA; EUCAR-CONCAWE

THG-Emission WTW in gCO2 äq/km

Brussels, 18th June 2013 6

PM limits

NOx limts NO2 not measured

Methane improves quality of life!

CNG infrastructure in cities! (Bio) methane - the recommended fuel: avoidance of local pollution & 50% less noise

Year of air quality 2013. Air pollution – the invisible killer

Decoupling of Oil and Gas prices. The economics have to work

7

Growing spread

between oil and gas

Brussels, 18th June 2013

Source: LNG spot market

NG supply to Europe (Pipelines & LNG)

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LNG terminals in Europe. Equipping inland waterways & road transport corridors

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Facts: A significant number of 20 LNG terminals operating, 6 being expanded, 6 new terminals committed or under construction, 32 new terminals under study/planned

Existing LNG terminals

New committed or under construction

planned

Dockside regasification facility

Canary Islands

Source: GIE

Hinterland distribution via Rhine & Danube + mobile solutions

Current European NGV Market. Only 3.350 NG filling stations and 0,5 % market share

10

> 20.000

5.000 – 20.000

1.000 – 5.000

< 1.000

Russia

55.000 LD

21.000 HD

Belarus

4.600 LD

Ukraine

19.400 LD

370.000 HD

Poland

1.500 LD

300 HD Germany

93.500 LD

1.650 HD

France

10.200 LD

3.300 HD

Spain

600 LD

2.600 HD

Norway

300 LD

450 HD

Sweden

39.500 LD

2.300 HD

Moldova

2.200 LD Armenia

192.000 LD

52.000 HD

Switzerland

11.200 LD

250 HD

Czech

Rep.

3.500 LD

400 HD

Netherlands

4.300 LD

870 HD

Austria

6.900 LD

165 HD

Slovac Rep.

775 LD

400 HD

Italy

743.000 LD

3.500 HD

Belgium

335 LD

12 HD

UK

20 LD

500 HD

Finland

1065 LD

85 HD

Bulgaria

61.000 LD

250 HD

Source: NGVA Europe, 01.06.2013

1,7 M NGVs in Europe

1 M NGVs in the EU/EFTA

Brussels, 18th June 2013

New CNG models 2013: Low emission champions. Europe global leader in NGVs

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New Audi A3 TCNG. Cleanest

combustion engine with e-gas

Downsized & turbo charged

engines + CNG is ideal (Fiat Panda)

More attractive OEM models. Range 500 km +

(Opel Zafira Tourer & Mercedes-BENZ B-Class)

Eco up! wins Germany’s

“Green car of the Year”

103

164

167

220

0 50 100 150 200 250

CNG

LPG

Diesel

Gasoline

Range in kilometres for 10 € fuel costs

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Labelling today Energy equivalent

Cost advantage of natural gas today not transparent, due to wrong labelling

Ass: Fiat Punto EVO (comparable motor, 70 to 77 PS),

average consumption and fuel price

1 Liter

Diesel

LNG trucks for long distance transport

Diesel vs. CNG / LNG

CNG

5 litre

LNG

1,8 litre

200 bar

LNG opened the way for the medium and long distance road transport

-162ºC at 1 bar

-125ºC at 10 bar

Two technologies are available for heavy engines:

• Dedicated, using 100% natural gas

• Dual fuel, using diesel injection for ignition and natural gas

as the main fuel

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The LNG Blue Corridors Project. Kick-off 27/05 in Brussels

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Source: LNG Blue Corridor project

Existing LNG stations

Approx. 16 additional LNG fuel stations

FP7 project on European LNG Blue Corridors

The intention is to define at least three initial pan European routes with strategically placed LNG filling stations that would allow the heavy, long distance truck transport throughout Europe:

• Portugal-Spain to France, Netherlands, UK

• Portugal-Spain to France, Germany, Denmark, Sweden

• Mediterranean arch to Italy and Slovenia

The CNG and L-CNG filling station concept Real developments & business cases!

Brussels, 18th June 2013 15

Source: Cryostar, Gasrec, Bohlen & Doyen

400 km

150km

16

CNG station. Brussels,

Belgium L-CNG station. Lleida, Spain

LNG bunkering. Nynashamn,

Sweden

- No double/obsolete investments: Methane from fossil and renewable sources

has no blending limitations

- NGVs are a reality, products are increasingly available and competitive in price

- Intermodality: road, waterborne, rail (non-electrified locomotives on LNG);

infrastructures for Methane refuelling complement each other

Lack of CNG & LNG infrastructure – CH4 for all types of vehicles & transport modes

Brussels, 18th June 2013

60% GHG emission reduction target & NGVs. 2050 fuel mix

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0

50

100

150

200

250

300

350

400

450

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

MTo

e

Final energy consumption - Transport

Hydrogen

Electricity

Biofuels 2nd generation

Biofuels 1st generation

Biogas/biomethane

Natural gas

Oil products

Baseline

0

200

400

600

800

1000

1200

1400

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

MTe

q C

O2

GHG emissions - Transport

Baseline

Eurogas Roadmap

Bio-natural gas

Diesel

0

50

100

150

200

250

300

350

400

450

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

MTo

e

Final energy consumption - Transport

Hydrogen

Electricity

Biofuels 2nd generation

Biofuels 1st generation

Biogas/biomethane

Natural gas

Oil products

Baseline

0

200

400

600

800

1000

1200

1400

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

MTe

q C

O2

GHG emissions - Transport

Baseline

Eurogas Roadmap

0

50

100

150

200

250

300

350

400

450

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

MTo

e

Final energy consumption - Transport

Hydrogen

Electricity

Biofuels 2nd generation

Biofuels 1st generation

Biogas/biomethane

Natural gas

Oil products

Baseline

0

200

400

600

800

1000

1200

1400

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

MTe

q C

O2

GHG emissions - Transport

Baseline

Eurogas Roadmap

- Gas in transport, a real growth

market – it makes sense for both

consumers and investors

- Over 20% market share in 2050

Source: Eurogas

Conclusions

• Significant macro-economic savings when using NG as a fuel

• NGVs is the quickest and most cost-effective way to reduce emissions from

transport (all types of vehicles and transport modes)

• Harmonisation of standards on its way (ISO Committee 252 on CNG/LNG filling

stations, CEN/PC 408 on gas quality, UNECE standardisation of LNG components)

• Infrastructure support for CNG and L-CNG filling stations and LNG bunkering is key

→ support the Clean Power for Transport Package, including the proposed Directive

→ keep the deadline 2020! All fuels have their role to play, but possibly not all

at the same time, as the deployment status and customers acceptance is different.

Brussels, 18th June 2013 18

Thank you for your attention

Brussels, 18th June 2013 19

NGVA Europe

Secretariat Address:

Avenida de Aragón 402

28022 Madrid, Spain

Brussels Liaison Office:

Avenue de Cortenbergh 172

1000 Brussels, Belgium

matthias.maedge@ngvaeurope

www.ngvaeurope.eu