AIDC Dineshan Moodley Evaluating the Role of LPG in Developing a Green South African Motor Industry

The Role of LPG in the Motor Industry – A Pilot Study Sponsored by In partnership with

The Problem Statement Tsunami – 2004 (Asia) 230,000 lives lost

The Problem StatementHurricane Katrina – 2008 (USA) 1,836 lives lost

The Problem StatementTsunami and Earthquake – 2011 (Japan) 10,000 lives lost and counting

Government’s Response in Action Supporting a ‘low carbon economy’ for Gauteng. Supporting the search for alternative fuels.

What is LPG?• Liquefied Petroleum Gas (LPG)• Primarily a mixture of propane and butane• It is produced as a by-product during the extraction and refining stages of crude oil• Under pressure LPG is a liquid. At normal temperature and pressure it will evaporate• Used in ignition engines since the 1940’s

LPG Vehicles Globally >13 million vehicles globally operate on LPG Country Number of Number of Vehicles dispensing sites South Korea 2,187,066 1,533 Poland 2,050,000 6,700 Turkey 2,000,000 6,853 Italy 1,002,118 2,350 Australia 620,000 3,200 Russia 600,000 2,000 Mexico 550,000 2,500 India 500,000 550 Japan 292,300 1,900 Netherlands 270,000 1,900 South Africa Approx 160* 3* *statistics prior to this project

Benefits of LPG in Vehicles• It is a non-toxic fuel that vaporizes when released from pressurised conditions so it poses no risk to water or soil resources• LPG is lighter than air and will dissipate upwards, whereas petrol and diesel will sink and puddle (no contamination to underground water sources)• Due to less carbon buildup, spark plugs last longer and oil changes are needed less frequently• Less corrosion and engine wear when compared to petrol• Lower harmful gas emissions

LPG OEM Releases In terms of global trends LPG is a tried, tested, stable and reliable vehicle fuel source

Why target road vehicles?• 7.5 million registered vehicles in SA• 3.3 million vehicles in Gauteng• Gauteng is home to 44% of the national vehicle population• Gauteng is 1.4% of SA’s land area

Why the taxi industry?• 32,000 minibus taxis in GP• Largest carbon footprint from this segment• Mileage covered – approx. 100,000 km/year• Most frequent road users – constant movement

Project Methodology • What, Why, When, Where, How ? Scoping and • Research and data gathering planning • SANTACO and Associations • SANERI • SASOL Strategic Partner Engagement • Procurement/tendering process • Highest quality kits procured • Installer selected Procurement of Kits • Emissions testing at SABS East London • Performance testing at Gerotek Testing of Prototype • Applications and selection of minibus taxis • Pre-inspection • Installation and branding Conversion of • Performance and driver satisfaction 70 Taxis monitoring • 1 yr service plan/warranty included with the kit Aftercare

The Conversion KitKits of the highest quality with the latest technology was selected for this project.Supplier : Voltran, Germany and DT Gas, Poland

Getting the taxis …• With the guidance, assistance and support from SANTACO ....

Some convincing required...

The convincing argument ..• Beneficiary of a 100% government funded LPG conversion kit – R 20,000 with 1 yr warranty• Reimbursement of lost profit for the duration of conversion• Cleaner fuel means lower maintenance and servicing costs• Possibly a longer lasting engine• Increased range of the taxi with the additional LPG tank• Lower costs of LPG compared to petrol should be more cost efficient over the long term• Filled tank of LPG on conversion

The LPG Conversions• Toyota Quantum 2.7L VVTi models only• Taxi owners completed an application form• Shortlisted vehicles were pre-inspected by the accredited installer• If successful, vehicle would be converted within 24 hours• Vehicle would be tested, cleaned and filled with LPG• Training material provided in consultation with the owner on LPG safety and kit care – changing the mindset• Briefing on the warranty and aftercare support• Briefing on the location of refuelling stations

Emissions Testing at SABS

Emission Test Results Overall reduction by 30% in CO levels when using LPG Overall reduction by 11% in CO2 levels when using LPG

Fuel Efficiency and PerformanceTesting at Gerotek

Test Results – Unladen Acceleration

Test Results – Laden Acceleration

Fuel Efficiency – Unladen

Fuel Efficiency – Laden

Fuel Efficiency – Unladen City Cycle

Fuel Efficiency – Laden City Cycle

Savings to the Taxi Owner/Driver Petrol LPG (auto gas)Unit Price (per litre) R 10.77 R 7.85*Efficiency (l/100kms) 14.92** 17.63**Efficiency (l/km) 0.15 0.18Annual Mileage (kms) 100,000 100,000Total annual fuel costs R 161,550 R 141,300Saving to taxi driver R 20,250 per year (12.5% saving) Note: savings exclude the possible maintenance cost saving *Sasol’s recommended retail price as at Nov 2011 **Based on City Cycle Laden efficiency

Taxi Routes Impacted Completed In progress : 54 Minibus 40 Minibus Taxis Taxis Hammanskraal/ Soshanguve/ Pta CBD Pta CBDIn progress: Mamelodi/ 15 Minibus Pta CBD In progress Pretoria Taxis CBD 40 MinibusIn progress: 235 Greener vehicles Taxis 40 Minibus in Gauteng Taxis In progress : Total Tembisa/ JHB CBD 15 Minibus 70 Randburg/ TaxisMinibus Taxis JHB CBDConverted in 2010/11 FYIn progress : Completed 15 Minibus 16 Minibus Taxis Taxis

Refuelling Infrastructure LeveragedNewly Operational Hammanskraal In progressKruisfontein Soshanguve Lavender road Mamelodi PretoriaIn progress In progressCnr Potgieter Mahubeand Visagie St Tembisa/ Spartan Maxi City Shopping Randburg Centre In progress Malanshof Existing Spartan

The Refilling Station

Skills Development• Clearly a significant lack of skills in this sector• AIDC facilitated the training of 40 artisans by LPGSASA (1 week theory and practical)• Resulted in the 1st South African black female artisan to qualify

Training by LPGSASA

Successfully Passed Artisans

Pilot Project Media Presentation• Venue : Gerotek, Pta• Date : 8 April 2011• 160 invited delegates from: – Industry – Government – Media• Agenda – Presentations – Press conference – LPG Taxis available to drive around the test track

Pilot Project Media Presentation

Pilot Project Media Presentation SANTACO’s Secretary General : Mr Philip Taaibosch “The taxi industry is aware of the environmental impact of its business.. and welcome the assisting support from Government”

Pilot Project Media Presentation

Making Headlines..

Project Summary• 235 minibus taxis will be converted by Dec 2011 to operate dually on LPG and petrol in Gauteng• Lower emissions into Gauteng’s atmosphere• Cleaner, safer and cheaper fuel can be used• Leveraged refuelling infrastructure development from Sasol – 5 new filling stations• Implementation of a skills development programme• Strong support and endorsement from SANTACO and Government (National and Provincial)• Globally tried and tested concept for decades

LPG Vehicles Globally Country Number of Number of Vehicles dispensing sites South Korea 2,187,066 1,533 Poland 2,050,000 6,700 Turkey 2,000,000 6,853 Italy 1,002,118 2,350 Australia 620,000 3,200 Russia 600,000 2,000 Mexico 550,000 2,500 India 500,000 550 Japan 292,300 1,900 Netherlands 270,000 1,900 South Africa Approx 160* 3* South Africa Approx 395** 9** *statistics prior to this project ** statistics post this project phase

The Way Forward• Continue the promotion of alternative fuel sources• Encourage LPG use amongst the taxi industry – word of mouth• Gauteng Government is considering the method in which this project continues• Build on opportunities for creating a new sector: – LPG conversions – Kit servicing – Parts and accessories – Potential for local assembly of LPG kits (critical mass) – Socio economic value for Gauteng

Thank you

AIDC Dineshan Moodley Evaluating the Role of LPG in Developing a Green South African Motor Industry

by Nigel Brown

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