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  • 1. IGU – International Gas Union WORKING COMMITTEE 5 – UTILISATION STUDY GROUP 5.3 – NATURAL GAS VEHICLES (NGV) Report on Study Group 5.3 “Natural Gas for Vehicles (NGV)” FINAL REPORT Publishing this report or its parts before IGU 24th World Gas Conference (WGC 2009) in 5-9 October 2009 is prohibited June 1st 2009
  • 2. S.G 5.3 STUDY GROUP MEMBERS AND PARTNERS Davor Matic – OMV Gas Adria – Croatia - S.G 5.3 - Chairman Eugene Pronin – Gazprom / NGVRUS - Russia – S.G 5.3 - Vice-chairman Study Group members and partners (in alphabetical order): Dinara Baisheva – Gazprom - Russia Peter Boisen – NGVA Europe - Sweden Olivier Bordelanne - GDF SUEZ – France Jovica Budimir – Srbijagas - Serbia Osvaldo Casagrande – Inflex - Argentina Gerco Van Dijk – Gasunie - Netherlands R. Fernandes – Praxair / ALGNV – Brazil Jorge F. G. de Figueiredo – APVGN - Associação Portuguesa do Veículo a Gás Natural – Portugal Trevor Fletcher – Hardstaff (and NGVA Europe) – United Kingdom Juan Carlos Fracchia – Inflex / IANGV Björn H. Halldórsson - Metan Ltd – Iceland Garth Harris – IANGV (retired) – New Zealand Ekatarina Kravetskaya – Gasunie (Moscow office) - Russia Manuel Lage – NGVA Europe / Iveco – Spain Izina Malenkina – Vniigaz - Russia Flavio Mariani – ENI Gas & Power – Italy Robert Mellema – Gasunie - Netherlands Nuno Nascimento - Galp Energia - Portugal Pavel Novak – Czech Gas Association – Czech Republic B. Ochani - NIGC - National Iranian Gas Company – Iran Hasin Parvez - Green Fuel CNG conversion center - Bangladesh Jonathan Parcer - PT. Wendell - Indonesia Juan Plana – Gas Natural – Spain Gracjan Ramut – PGNiG - Poland Thierry Renaudie - GDF SUEZ – France Mike Sato - Tokyo Gas – Japan Guan Saw - Cummins Westport - China Martin Seifert – SVGW - Switzerland Peter Seidinger – OMV Gas & Power – Austria Jeffrey Seisler – Clean Fuels Consulting – United States Vasiliy Shashukov – Gazprom - Russia Ton Smit – Aardgasmobiel - Netherlands Alexander Stroganov - Gazprom – Russia -2-
  • 3. Study Group members and partners (in alphabetical order) – continue: Lee Giok Seng – Petronas / ANGVA - Malaysia Henk Verbeek – Rolande LNG - Netherlands Svetlana Videnova – Avtometan – Bulgaria Mkrtychan Yakov – Vniigaz - Russia Koen Wiersma – Gasunie - Netherlands M. Haikal Zubir – Petronas – Malaysia -3-
  • 4. ACKNOWLEDGEMENTS Chapter 3.2.2. Summary of technology development and an overview of NGV industry today Special thanks to John Baldwin (CNG Services Ltd.), Peter Boisen (NGVA Europe), Jeff Seisler (Clean Fuels Consulting), Eugene Pronin (Gazprom / NGVRUS) and Rich Kolodziej (NGV America / IANGV) for providing summaries of technology development and overviews of the NGV industry today. Chapter 3.3.1. Description of major markets today Special thanks to Jeff Seisler (Clean Fuels Consulting), Peter Boisen (NGVA Europe), Manuel Lage (NGVA Europe / Iveco), Rich Kolodziej (NGV America / IANGV) and Eugene Pronin (Gazprom / NGVRUS) for providing descriptions of major NGV markets today. Furthermore, many thanks to Lee Giok Seng (ANGVA / Petronas), Juan Carlos Fracchia (Inflex) and R. Fernandes (Praxair) for providing verifications related to their respective markets. Chapter 3.3.2. Technical and Commercial Data Base Replies to the distributed questionnaire were kindly provided by: • Peter Boisen (Target 2010 Partners – Sweden) • Osvaldo Casagrande (Argentoil–Inflex – Argentina) and R. Fernandes (ALGNV – Latin America Natural Gas Vehicles Association, Brazil) • Trevor Fletcher (Hardstaff Group - United Kingdom) • Jorge F. G. de Figueiredo (Portuguese Natural Gas Vehicle Association – Portugal) • Davor Matic (OMV Gas Adria – Croatia) and Dino Novosel (EIHP – Croatia) • Flavio Mariani (ENI – Italy) • Pavel Novak (Czech Gas Association – Czech Republic) • Rich Kolodziej (NGV America – United States) • Jonathan Parcer (PT. Wendell Indonesia – Indonesia) • Joan Plana (Sedigas / Gas Natural S.D.G. S.A. – Spain) • Eugene Pronin (Gazprom – Russia) • Gracjan Ramut (PGNiG – Poland) • Thierry Renaudie and Olivier Bordelanne (GDF SUEZ – France) • Shigeyoshi (Mike) Sato (Tokyo Gas - Japan) • Guan Saw (Cummins Westport - China) • Martin Seifert (SVGW – Switzerland) • Peter Seidinger and Franz Marschler (OMV Gas & Power, Austria) • S.H. Taheri and B.Ochani (IFCO (Iranian fuel conservation company) • Henk Verbeek and Erik Buthker (NGV Holland / Dutch4 – Netherlands) • Svetlana Videnova (Avtometan - Bulgaria) • M Haikal Zubir (Petronas – Malaysia) -4-
  • 5. Chapter 4.1. Identified (potential and promising) new technologies and assessment of new technologies chances Special thanks to Jeff Seisler (Clean Fuels Consulting) and Shigeyoshi (Mike) Sato (Tokyo Gas) for providing contribution regarding identified (potential and promising) new technologies and assessment of the new technologies chances. Thanks to Peter Seidinger for distributing information on ionic compressors technology. Many thanks to Ian Patterson for providing information on Radio Frequency Identification (RFID) system. Chapter 5. Case studies We would like to express our gratitude to: • Peter Boisen (NGVA Europe) and Mats Ekelund (Taxi Stockholm – Member of the Board) for providing case of OEM (bio) CNG taxis in Stockholm – Sweden. • Olivier Bordelanne and Thierry Renaudie (GDF SUEZ) for preparation of the Lille (natural gas – biomethane buses) and Paris (natural gas garbage trucks) cases. • Ollie Clark on the great audit on Adelaide Metropolitan Passenger Bus Fleet (and to experts he interviewed: Mr Alan Castree, Manager, Fleet and Depot of the SA Government’s Dept for Transport, Energy and Infrastructure and Messrs Doug Lamont, General Manager and Mr Dave Sharrad, Workshop Manager, of Torrens Transit, Morphettville). • R. Fernandes (Praxair) for delivering text on airplane fuelled by natural gas demonstrated in the South of Brazil • Jorge F. G. de Figueiredo (APVGN - Portuguese Natural Gas Vehicle Association) for providing case and auditing experts of Companhia Carris de Ferro de Lisboa, SA (public transport system operator in Lisbon – Portugal): Mr. Eng. Alberto Lage (responsible for warranty management); Eng. José Roseiro (responsible for maintenance contracts); Eng. Vasco Matos (responsible for exploration fleet management and drivers evaluation); Eng. Chaínho (former responsible for maintenance fleet), Mr. Joaquim Belo (traffic coordinator); Mr. Luís Filipe (maintenance coordinator) and the Development and Innovation-Director, Eng. Jorge Nabais. • Trevor Fletcher, C/O, The Hardstaff Group for providing case on Hardstaff Dual Fuel LNG/CNG trucks. • Garth Harris (IANGV) for preparing New Zealand case (interviewing: Craig Worth, Fleet Manager, GoBus, Hamilton, New Zealand). • Katie Kim, Secretary Team and to Kevin Park, NGVI,INC for the interview on Chuncheon – Korea bus fleet as well as to (interviewed) Suk won Lee, Manager of Managing Maintenance Dept. • Manuel Lage (NGVA Europe, Iveco) for providing case on OEM garbage truck fleet in Madrid – Spain and for the case on natural gas off- road airport applications in Madrid airport – Spain. • Hamilton Street Railway’s Don Hull, Director of Transit, and Mark Selkirk, Supervisor of Fleet Maintenance, were interviewed by Alicia Milner, President of the Canadian Natural Gas Vehicle Alliance. • Yuri Panov (MADI University, Moscow) and Eugene Pronin (Gazprom, Russian NGV Association) for preparing case on OEM natural gas buses in Moscow, Russia. • Lee Giok Seng (ANGVA / Petronas - Malaysia) and to Punnachai Footrakul (PTT Public Company Ltd, Bangkok, Thailand) for providing case of CNG ferries in Thailand. • Cindy Slinn (HSR) for providing HSR CNG Transit Photos. • M Haikal Zubir (Petronas – Malaysia) for providing case on Sunlight Taxi Sdn Bhd CNG taxi fleet (using converted vehicles) from Kuala Lumpur – Malaysia. Editing Special thanks to Jeffrey Seisler (Clean Fuels Consulting) for his time and efforts spent in providing overall editorial support in preparing the final versions of this document. -5-
  • 6. CONTENT S.G 5.3 STUDY GROUP MEMBERS AND PARTNERS ........................................................................ 2 ACKNOWLEDGEMENTS........................................................................................................................ 4 1. SUMMARY .......................................................................................................................................... 8 2. INTRODUCTION ............................................................................................................................... 11 3. MARKET DEVELOPMENT AND PRESENT MARKET SITUATION ................................................ 13 3.1. MARKET DATA, SHARE OF GAS, TRENDS............................................................................. 13 3.1.1. NGV statistics, total number of vehicles and share of NGVs............................................... 13 3.2. THE OVERALL GAS (NGV) MARKET TODAY – WHAT ARE THE APPLICATIONS? ............. 17 3.2.1. Total estimated NGV consumption, total World gas consumption and share of NGVs....... 17 3.2.2. Summary of technology development and an overview of NGV industry today.................. 19 3.3. MARKET PROFILE ..................................................................................................................... 29 3.3.1. Description of major markets today...................................................................................... 29 3.3.2. Technical and Commercial Data Base................................................................................. 35 3.3.2.1. Analysis by country and by application – state of the art .................................................. 35 4. TECHNOLOGY STATE OF THE ART .............................................................................................. 36 4.1. IDENTIFIED (POTENTIAL AND PROMISING) NEW TECHNOLOGIES AND ASSESMENT OF THE NEW TECHNOLOGIES OPPORTUNITIES ........................................................................... 36 5. CASE STUDIES ................................................................................................................................ 39 5.1. CASE STUDIES ON NEW PROJECTS...................................................................................... 39 5.1.1. Off-road applications ............................................................................................................ 39 5.1.1.1. Airport applications – case Madrid .................................................................................... 39 5.1.1.2. Airplane fuelled by natural gas has been demonstrated in the South of Brazil ................ 43 5.2. REAL LIFE EXPERIENCES........................................................................................................ 44 5.2.1. OEM natural gas buses........................................................................................................ 46 5.2.1.1. Europe............................................................................................................................... 46 5.2.1.1.1. Natural gas – bio-methane buses in France (Lille) ........................................................ 46 5.2.1.1.2. The NGVs Experience of "Carris de Lisboa" – Lisbon (Portugal).................................. 47 5.2.1.2. Russia ............................................................................................................................... 51 5.2.1.2.1. OEM natural gas buses in public transport in Moscow .................................................. 51 5.2.1.3. Asia-Pacific region ............................................................................................................ 52 5.2.1.3.1. OEM passenger bus fleet in the City of Adelaide, South Australia................................ 52 5.2.1.3.2. OEM passenger bus fleet in Hamilton - New Zealand ................................................... 56 5.2.1.3.3. OEM passenger bus fleet in Chuncheon - Korea .......................................................... 57 5.2.1.4. North America ................................................................................................................... 58 5.2.1.4.1. Hamilton Street Railway – The World’s First CNG Transit Fleet ................................... 58 -6-
  • 7. 5.2.1.5. Conclusion on real life experiences using OEM natural gas buses.................................. 63 5.2.2. Dual Fuel LNG/CNG trucks in long distance haulage.......................................................... 65 5.2.2.1. Case of Hardstaff Dual Fuel CNG-LNG trucks ................................................................. 65 5.2.3. OEM garbage trucks ............................................................................................................ 68 5.2.3.1. CNG trucks in urban garbage collection in Paris - France................................................ 68 5.2.3.2. CNG trucks in urban garbage collection in Madrid - Spain............................................... 71 5.2.4. Natural gas taxi fleets........................................................................................................... 73 5.2.4.1. Large taxi fleet using converted vehicles in Kuala Lumpur - Malaysia ............................. 73 5.2.4.2. Taxi fleet using (bio) CNG OEM vehicles in Stockholm - Sweden ................................... 77 5.2.5. Natural gas ships ................................................................................................................. 77 5.2.5.1. CNG ships ......................................................................................................................... 77 5.2.5.1.1. CNG ferries in Thailand.................................................................................................. 77 6. THE FUTURE FOR NGVs AND POTENTIAL IMPACT OF NGV TECHNOLOGIES ....................... 79 6.1. PROGNOSIS OF REGIONAL NGV MARKET DEVELOPMENT ............................................... 79 6.2. WHAT ARE THE PRINCIPAL CHALLENGES AND OPPORTUNITIES? ................................. 87 7. CONCLUSIONS & RECOMMENDATIONS ...................................................................................... 88 APPENDIX – NGV Technical and Commercial Data Base................................................................... 91 NGV Original Equipment Manufacturers (OEMs) .......................................................................... 91 Average conversion costs breakdown ............................................................................................. 104 Extra costs related to NGVs (i.e. cylinder inspection, gas system examination, additional road tax etc.)............................................................................................................................................... 109 Subsidies and/or tax exemptions for NGVs (equipment, conversions and OEMs, natural gas as vehicle fuel, filling stations) .......................................................................................................... 113 Filling station CNG prices breakdown .......................................................................................... 121 Standards, codes and regulations for vehicles and filling stations .............................................. 124 TABLES ............................................................................................................................................... 140 FIGURES............................................................................................................................................. 142 -7-
  • 8. 1. SUMMARY S.G 5.3 report provides a global analysis as well as a regional view, to the best extent possible, of the past, present and expected future of natural gas (or “methane”) use in transport sector, based on those countries that provided analyses and case studies as well as on detailed desk research. Regions covered in this report are: Africa, Asia-Pacific, Europe, Middle East, North America, Latin America and the Caribbean and Russian Federation & the Commonwealth of Independent States (C.I.S). The overview of the present situation (state of the art) is supplemented with a summary of technology development, an overview of NGV industry today, and a profile of the major markets. Total NGV parc grew from around 3.2 million vehicles in 2003 to 9.44 million vehicles by the end of 2008 with significant changes in regional NGV market structure. In 2003, Latin America had the highest share: 56% of the total NGV market. But the rapid growth in the Asia-Pacific region represents, by far, the strongest market growth generator. By 2008 the market shares of Latin America and Asia- Pacific region were almost equal, with the Asia-Pacific region representing 37% share and Latin America representing 40% of the global market share. The NGV market in Latin America doubled in 2003-2008 period while the Asia-Pacific region increased by a factor of five. The NGV worldwide share of total vehicle parc in 2008 is approximately 1%. This represents 0.6% (2007) of the total worldwide natural gas consumption. Share of personal cars and similar light duty vehicles in total NGV parc decreased from 94% in 2004 to 87% in 2008, partially due to two fold increase in the heavy duty NGV sector (trucks and buses). IGU S.G. 5.3 established the IGU NGV Technical and Commercial Data Base. This Data Base provides not only an overview of technical standards and codes used in the countries surveyed, but also has practical commercial information covering in detail the costs (CAPEX & OPEX) of various state of the art OEM/conversion products (light duty vehicles (LDVs) and heavy duty vehicles (HDVs)). Also the costs and standards related to the NGV filling stations, as well as fiscal and other supportive measures for NGVs and filling stations are included. Database was developed through direct detailed questionnaire survey conducted among Study Group members and partners from 21 countries worldwide. There has been a dramatic increase in the numbers of models of OEM NGVs in the worldwide vehicle market though numbers of OEM NGVs compared to converted vehicles is relative small. This trend is likely to continue and OEM NGVs will, at some point, become dominated by OEM product. An internal survey, “Key questions and problems in each region for further development of the NGV market” conducted among S.G 5.3 members and partners indicated that one of the main problems related to using NGVs in fleets are responding to requests of fleet operators for information about everyday real life experiences gained from other NGV fleet operators. Therefore, in order to fill this need, IGU S.G. 5.3 collected numerous cases on real life experiences from existing fleet operators already using NGVs about maintenance and life-cycle costs, repair intervals, fuelling time and flexibility, safety, additional technical and infrastructure requirements, feedback from drivers, users, mechanics and overall business efficiency compared to liquid fuels. Initially starting with OEM NGV bus fleets (as opposed to diesel bus fleets), the scope was extended to include garbage truck fleets, taxi fleets, dual-fuel CNG/LNG trucks in long distance haulage and also off-road applications (airport buses and machinery and ferries). The scope was further extended to include bio-methane powered OEM buses. Outcome of numerous audits (interviews of fleet operators conducted by S.G 5.3 members and partners) leads to conclusion that natural gas vehicle technologies are available and proven for a wide range of on-and-off-road vehicle applications including cars, trucks, buses, and marine applications. Comparative reports of NGV maintenance experiences shows a positive influence of a ‘learning curve’ related to improved ‘best practices’ and the development of second generation technologies. Furthermore, some countries have been successful in organising cooperation among NGV stakeholders: OEMs; conversion companies; governments (local, regional, national). This relatively successful approach could be repeated in other countries to increase NGV penetration. -8-
  • 9. In addition to the analysis of customers and operators using existing technologies, an overview of possible “breakthrough” technologies and improvements of existing technologies that can change the shape of the market has been performed. A wide variety of natural gas vehicle engines, fuel storage, fuelling systems, and vehicles are now in operation worldwide. Some of the technologies are relatively basic while others follow the sophistication of the best available technologies (OEM vehicles and fuel storage). The level of sophistication of the NGV systems will continue to improve, particularly as improvements made in current automotive and truck technologies spread worldwide. Besides traditional road vehicles, developments are registered in a number of off-road applications (like LNG turbine locomotives, CNG agriculture machinery and light aircrafts). New developments such as high pressure direct injection and turbo charging should increase efficiency, vehicle range, and reduced emissions. Increasingly more of these new technologies are coming into the country or regional markets. With more stringent emissions standards and new generation of vehicles with these technologies are likely to move into the other regions in parallel with the development of more stringent national and local standards. Anticipated increase in oil prices up to US$120 per barrel in 2020 to $150 in 2030 (consistent with International Energy Agency crude oil price scenarios) indicate a potential growth of NGVs to approximately 50 million in 2020; and to just over 100 million in 2030 according to the mathematical model (developed by IGU WOC 5 S.G 5.3). That would account for the estimated share of NGVs in the worldwide vehicle parc of 4.5% in 2020 and just over 7% in 2030, representing up to 106 bcm annual gas consumption in 2020 and up to 207 bcm annual natural gas consumption in 2030. Some of the market development potential through 2030 is linked to more dramatic growth of NGVs in the Asia- Pacific markets (expected 44% share in the total market) followed by growth in Latin America (26% share) and the Middle East markets (17% share). In order to achieve sustainable NGV market growth, appropriate and competitive fuel pricing relative to petrol and diesel can be created on the basis of energy equivalencies, based upon fuel margins desired, or ‘artificially’ created through favourable taxation that supports cleaner, more environmental fuels. Gas utilities should make a positive business case to the suppliers of traditional petroleum fuels who potentially could profit from integrating CNG/LNG into their retail mix. Government incentives for NGVs (and clean fuels generally) should be linked to the relative share of market growth; when market share is low incentives need to be higher and then adjusted over time to reflect increased market penetration. Furthermore, governments need to be convinced that more financial resources for NGV R&D could dramatically improve the future potential contribution of NGVs environmental benefits (including: biomethane; energy efficiency; increased focus on natural gas / biomethane powered hybrid solutions); and contribution to overall energy security (i.e. through fuel diversification and efficiency). Efforts to continue harmonization of worldwide standards and regulations is needed to make NGVs more competitive (and reliable) in the market. Also, issues associated with fuel quality/composition and the sale units of CNG (LNG) at the fuel pump will be important considerations into the future, among other things, in order to make customers more familiar with understanding the economic advantages (in particular) of using natural gas as a vehicle fuel compared to other alternatives. The natural gas industry should further evaluate the opportunities for biomethane as a renewable resource as part of their overall fuel supply portfolio. This would be consistent with many government policies oriented to take advantage of the potential for natural gas and biomethane to reduce CO2 emissions, improve fuel diversity in the transportation sector, enhance energy efficiency and improve the overall security of supply. Additionally, NGVs would contribute to raising the environmental profile in a positive way for the natural gas industry as a whole. -9-
  • 10. Finally, emerging technologies and natural gas-based fuels are showing strong future potential and should be encouraged for further study and development. This should include, but not be limited to: liquid natural gas as a fuel; use of hydrogen within natural gas; dual fuel heavy duty engines; radio frequency identification (RFID) systems that contribute to safety when used to identify on-board CNG cylinders at the fuelling station (and increase accountability and data base development of NGVs within a country), L-CNG fuelling opportunities; and biomethane development for direct use in vehicles and introduction into the existing pipeline network. - 10 -
  • 11. 2. INTRODUCTION The aim of this report is to provide an overall view of the past, present and expected future of natural gas (or “methane”) use in transport sector. This report provides a global analysis as well as a regional view, to the best extent possible, based on those countries that provided analyses and case studies as well as on detailed desk research. Regions covered in this report are: Africa, Asia-Pacific, Europe, Middle East, North America, Latin America and the Caribbean and Russian Federation & the Commonwealth of Independent States (C.I.S). The overview of the present situation (state of the art) is supplemented with a summary of technology development, an overview of NGV industry today, and a profile of the major markets. The NGV share of the total automotive sector and is gas consumption also was calculated. As its permanent activity IGU S.G. 5.3 works on the establishment and maintenance of the IGU NGV Technical and Commercial Data Base. This Data Base provides not only an overview of technical standards and codes used in the countries surveyed, but also has practical commercial information covering in detail the costs (CAPEX & OPEX) of various state of the art OEM/conversion products (light duty vehicles (LDVs) and heavy duty vehicles (HDVs)). Also the costs and standards related to the NGV filling stations, as well as fiscal and other supportive measures for NGVs and filling stations are included. In total, 21 country members responded to a questionnaire distributed worldwide, providing a good geographical representation of NGV activities. The countries include: Argentina, Austria, Brazil, Bulgaria, China, Croatia, Czech Republic, France, Indonesia, Iran, Italy, Japan, Malaysia, Netherlands, Poland, Portugal, Russia, Spain, Sweden, Switzerland and the United Kingdom. The Technical and Commercial Data Base provides a good basis (data inputs) for economic and financial models (calculation of payback periods, internal rate of return, costs savings etc.) for the above-mentioned countries and for: private light duty vehicles owners (OEMs or converted); heavy duty vehicles owners (OEMs or converted; 100% natural gas or dual-fuel); and for filling stations owners. An internal survey, “Key questions and problems in each region for further development of the NGV market” conducted among S.G 5.3 members and partners indicated that one of the main problems related to using NGVs in fleets are responding to requests of fleet operators for information about everyday real life experiences gained from other NGV fleet operators. Therefore, in order to fill this need, IGU S.G. 5.3 collected numerous cases on real life experiences from existing fleet operators already using NGVs about maintenance and life-cycle costs, repair intervals, fuelling time and flexibility, safety, additional technical and infrastructure requirements, feedback from drivers, users, mechanics and overall business efficiency compared to liquid fuels. Initially starting with OEM NGV bus fleets (as opposed to diesel bus fleets), the scope was extended to include garbage truck fleets, taxi fleets, dual-fuel CNG/LNG trucks in long distance haulage and also off-road applications (airport buses and machinery and ferries). The scope was further extended to include bio-methane powered OEM buses. - 11 -
  • 12. In addition to the analysis of customers and operators using existing technologies, an overview of possible “breakthrough” technologies and improvements of existing technologies that can change the shape of the market has been performed. Finally, to look into the future, the Study Group 5.3 prepared scenarios of regional market development in order to quantify and qualify, to the best extent possible, a projection of how many NGVs and anticipated “methane” consumption could be achieved by 2030. This prognosis includes the expected number of “equivalent” NGVs, and the corresponding natural gas consumption. This report has a somewhat linear structure starting with an analysis of the past trends and development of the NGV share as a function of the total automotive parc as well as of the share of NGV consumption relative to the total global natural gas consumption. Finally, these factors were evaluated considering different possible crude oil prices scenario. - 12 -
  • 13. 3. MARKET DEVELOPMENT AND PRESENT MARKET SITUATION 3.1. MARKET DATA, SHARE OF GAS, TRENDS 3.1.1. NGV statistics, total number of vehicles and share of NGVs Complete NGV statistics on NGV (vehicles and filling stations) growth is compiled from various sources (IANGV, GVR, etc.) and grouped into respective regions. The overall number of NGVs (all categories) between 2003 and 2008 is presented below, indicating that the total number of NGVs worldwide has tripled in last six years. Table 1 – Total NGV parc in 2003 – 2008 period Natural gas vehicles 2003 2004 2005 2006 2007 2008 (total, all categories) 3 201 969 3 834 758 4 636 146 5 352 834 7 546 170 9 442 529 Africa 48 513 55 453 61 743 69 561 81 667 98 964 Asia-Pacific 694 311 863 011 1 121 721 1 514 753 2 403 012 3 479 512 Europe 431 228 426 659 437 965 479 013 555 705 759 749 Middle East 1 000 15 000 63 779 148 427 499 014 846 474 North America 152 505 153 542 153 542 152 553 162 053 115 177 Latin America and the Caribbean 1 795 612 2 190 465 2 629 916 2 807 239 3 490 019 3 752 201 Russian Federation & C.I.S. 78 800 130 628 167 480 181 288 354 700 390 452 Source: GVR, IANGV, et al. It is interesting to note the changes in the regional structure of the NGV market during this five year period. In 2003, Latin America had the highest share: 56% of the total NGV market. But the rapid growth in the Asia-Pacific region represents, by far, the strongest market growth generator. By 2008 the market shares of Latin America and Asia-Pacific region were almost equal, with the Asia-Pacific region representing 37% share and Latin America (including the Caribbean region) representing 40% of the global market share. The NGV market in Latin America doubled in 2003-2008 period while the Asia-Pacific region increased by a factor of five. Total NGV car parc 10 9.44 9 7.55 Russian Federation & C.I.S. 8 Latin America and the Caribbean Million NGVs 7 5.35 North America 6 4.64 Middle East 5 3.83 Europe 4 3.20 Asia-Pacific 3 Africa 2 Total: 1 0 2003 2004 2005 2006 2007 2008 Figure 1 – Total NGV car parc growth in 2003 – 2008 period At the same time, the share of the total European NGV market fell from 13.5% in 2003 to 8% in 2008. The North American market decreased from about 5% to 1.2%. The Russian Federation and C.I.S. grew from 2.5% to 4.1%, and Africa went from 1.5% to 1% market share. - 13 -
  • 14. The largest specific growth occurred in the Middle East, predominantly due to the Iranian national strategy to convert all road transport to natural gas. This was done in order to save crude oil for export instead of being used domestically while using natural gas for domestic vehicles. The Iranian market grew dramatically from only one thousand units in 2003 to 846.5 thousand units in 2008, an increase in its share of the total NGV market from almost zero in 2003 to 9% in 2008. Regional NGV market shares in total NGV market 56% 57% 57% 60% 52% 50% 46% Latin America and the Caribbean 40% Africa 40% Asia-Pacific Europe (%) 37% 30% Asia-Pacific region Middle East 32% 28% North America 20% 24% Latin America and the Caribbean 22% 23% Russian Federation & C.I.S. 10% 0% 2003 2004 2005 2006 2007 2008 Figure 2 – Regional NGV market shares in total NGV market Distribution among the different vehicle market segments - personal cars, buses, trucks, and ‘other’ - compiled from the same data sources but only from 2004 to 2008 is presented below. (2003 data was unavailable.) Table 2 – NGV Parc in 2004 – 2008 for Personal Cars and Other Light Duty Vehicles (LDVs) Natural gas vehicles 2004 2005 2006 2007 2008 (personal cars / LDVs) 3 605 616 4 372 527 5 039 758 6 975 847 8 238 988 Africa 55 303 55 306 58 555 58 590 96 319 Asia-Pacific 771 692 1 015 271 1 350 509 2 105 670 2 650 717 Europe 415 287 423 548 461 335 542 374 727 822 Middle East 15 000 62 194 145 919 496 361 840 262 North America 139 191 141 342 137 913 147 413 99 037 Latin America and the Caribbean 2 190 465 2 629 916 2 807 239 3 466 539 3 661 760 Russian Federation & C.I.S. 18 678 44 950 78 288 158 900 163 071 Source: GVR, IANGV et al. Table 3 – NGV parc in 2004 – 2008 for Medium and Heavy Duty Vehicles (MDVs/HDVs) and Buses Natural gas vehicles 2004 2005 2006 2007 2008 (MDVs / HDVs - buses) 111 092 135 244 120 361 163 263 255 897 Africa 150 5 019 5 367 5 373 1 204 Asia-Pacific 54 247 67 581 56 432 74 584 164 771 Europe 5 226 6 780 7 328 9 205 10 331 Middle East 0 1 584 2 494 2 641 6 200 North America 11 869 10 200 10 240 10 240 11 240 Latin America and the Caribbean 0 0 0 13 820 13 820 Russian Federation & C.I.S. 39 600 44 080 38 500 47 400 48 331 Source: GVR, IANGV et al. - 14 -
  • 15. Table 4 – NGV parc in 2004 – 2008 – Medium and Heavy Duty Vehicles (MDVs/HDVs) - trucks Natural gas vehicles 2004 2005 2006 2007 2008 (MDVs / HDVs – trucks) 92 291 102 935 99 926 134 526 157 254 Africa 0 1 418 3 356 3 356 704 Asia-Pacific 11 398 13 924 20 122 30 569 44 622 Europe 6 061 7 142 9 936 3 529 15 630 Middle East 0 1 12 12 12 North America 2 482 2 000 2 000 2 000 2 500 Latin America and the Caribbean 0 0 0 9 660 9 660 Russian Federation & C.I.S. 72 350 78 450 64 500 85 400 84 126 Source: GVR, IANGV et al. The “others” category (Table bellow) includes other NGVs like 3-wheelers - tuk-tuk – popular in some Asian countries as well as agriculture machinery (natural gas tractors) popular in Russia and C.I.S. countries, and all other non-specified categories. Table 5 – NGV Parc in 2004 – 2008 – Other Natural gas vehicles 2004 2005 2006 2007 2008 (others) 25 759 25 440 92 789 272 534 790 390 Africa 0 0 2 283 14 348 737 Asia-Pacific 25 674 24 945 87 690 192 189 619 402 Europe 85 495 414 597 5 966 Middle East 0 0 2 0 0 North America 0 0 2 400 2 400 2 400 Latin America and the Caribbean 0 0 0 0 66 961 Russian Federation & C.I.S. 0 0 0 63 000 94 924 Source: GVR, IANGV et al. Although slightly decreasing lately (especially in 2008) personal cars and LDVs in general are still representing major share in total global NGV parc. Share of personal cars / LDVs in total NGV parc 96% 94% 94% 94% 94% 92% 92% Personal cars / LDVs (%) 90% 87% 88% 86% 84% 82% 2004 2005 2006 2007 2008 Figure 3 – Share of personal cars / LDVs in total NGV parc in 2004 – 2008 period - 15 -
  • 16. The NGV share of total road vehicles was calculated based on the available NGV and road vehicles market statistics. Results show that the current share of NGVs is now about one percent of the total road vehicle population worldwide. Share of NGVs in total vehicle parc (regional and total) 14% Russian Federation & C.I.S. 12% Latin America and the Caribbean North America 10% Middle East Europe (%) 8% Asia-Pacific 6% Africa Total: 4% 2% 0.79% 0.38% 0.44% 0.51% 0.58% 0.97% 0% 2003 2004 2005 2006 2007 2008 Figure 4 – Share of NGVs in total vehicle parc population (regional and total) Growth would not be possible without natural gas filling stations to fuel the vehicles. In the respective period, the number of natural gas filling stations for vehicles grew from around 6.6 thousand in 2003 to around 14.3 thousand in 2008. Table 6 – Total Number of Natural Gas Filling Stations 2003 to 2008 Filling stations- total 2003 2004 2005 2006 2007 2008 (private + public) 6 580 7 840 8 964 10 252 12 218 14 338 Africa 81 90 96 108 121 123 Asia-Pacific 1 341 1 768 2 062 2 346 3 515 5 319 Europe 1 160 1 436 1 641 1 749 1 971 2 317 Middle East 3 30 96 327 296 639 North America 1 526 1 528 1 568 1 828 1 704 925 Latin America and the Caribbean 2 034 2 479 2 996 3 323 3 879 4 212 Russian Federation & C.I.S. 435 509 505 571 732 803 Source: GVR, IANGV et al. Summary: The number of natural gas filling stations doubled and total number of NGVs tripled in between 2003 and 2008. - 16 -
  • 17. 3.2. THE OVERALL GAS (NGV) MARKET TODAY – WHAT ARE THE APPLICATIONS? 3.2.1. Total estimated NGV consumption, total World gas consumption and share of NGVs The total NGV gas consumption by region has been estimated using statistical data on average specific consumption per equivalent NGV for each region. These average specific consumption figures were calculated using NGV consumption data in countries within each region based upon the reported number of NGVs. Natural gas consumption figures are as follows: • Africa: 4 103 m3 per equivalent NGV annually; • Asia-Pacific: 2 858 m3/eq. NGV; • Europe: 1 262 m3/eq. NGV; • Middle East: 1 927 m3/eq. NGV; • 3 North America: 6 408 m /eq. NGV; • 3 Latin America and the Caribbean: 1 642 m /eq. NGV; and • 3 Russian Federation & C.I.S. 3 282 m /eq. NGV. • 3 The world average is 2 078 m per equivalent NGV. The relatively high natural gas consumption per equivalent NGV in North America is explained by the local situation in the U.S. market. The U.S. NGV inventory is comprised roughly of 18-20% HDVs, 15-18% MDVs and 62-67% LDVs, many of which are used in utility and local, state and federal government fleets. The transit sector remains the largest niche application with nearly 11 000 buses and shuttles (about 12% of the market) accounting for nearly 70% of U.S. NGV fuel consumption. The next largest sector is airports (8% of NGV fuel consumption), where 26 airports now use NGVs and/or require their use by commercial vehicles operating on the premises. The steadily growing refuse sector also comprises 8% of the fuel consumption in the U.S. NGV market and is growing steadily. There are nearly 2 500 garbage collection vehicles roll-off and transfer trucks and privately operated sanitation fleets. The remaining NGV fuel consumption includes government (5%), schools (3%) and ‘other’ (4%) including fuel consumed by personal NGVs. The total consumption by natural gas vehicles, using inputs described above is at about 21 billion cubic meters (bcm) in 2008. Table 7 – Estimated Natural Gas Consumption for the NGV Sector in 2003 – 2008 Estimated Natural Gas 2003 2004 2005 2006 2007 2008 Consumption by NGVs (bcm) 6.91 8.27 9.99 11.69 16.80 21.12 Africa 0.20 0.23 0.25 0.29 0.34 0.41 Asia-Pacific 1.98 2.47 3.21 4.33 6.87 9.94 Europe 0.54 0.54 0.55 0.60 0.70 0.96 Middle East 0.00 0.03 0.12 0.29 0.96 1.63 North America 0.98 0.98 0.98 0.98 1.04 0.74 Latin America and the Caribbean 2.95 3.60 4.32 4.61 5.73 6.16 Russian Federation & C.I.S. 0.26 0.43 0.55 0.59 1.16 1.28 Source: GVR, et al. - 17 -
  • 18. Estimated natural gas consumption by NGVs 18 16.80 16 Russian Federation & C.I.S. 14 11.69 Latin America and the Caribbean 12 9.99 North America bcm 10 8.27 Middle East 8 6.91 Europe Asia-Pacific 6 Africa 4 Total: 2 0 2003 2004 2005 2006 2007 Figure 5 – Estimated Natural Gas Consumption by NGVs by Region Share of NGVs in total natural gas consumption (%) 8% Russian Federation & C.I.S. 7% Latin America and the Caribbean 6% North America Middle East 5% Europe (%) 4% Asia-Pacific Africa 3% Total: 2% 1% 0.41% 0.57% 0.27% 0.31% 0.36% 0% 2003 2004 2005 2006 2007 Figure 6 – Share of NGVs in Total Natural Gas Consumption by Region in (%) Based on the available data of the overall natural gas consumption in respective regions (BP Statistical Review of World Energy, June 2008) the share of natural gas consumption by NGVs of the total natural gas consumption for all sectors is calculated for the 2003 – 2007 period (natural gas consumption data for 2008 were not available at the time of writing this report) and in 2007 was a bit below 0.6%. It must be emphasized that part of the NGV consumption, especially in Europe, is attributed to bio-methane. - 18 -
  • 19. 3.2.2. Summary of technology development and an overview of NGV industry today The previous IGU S.G. 5.3 report for the 2003 – 2006 triennium provided a comprehensive overview and analysis of existing fuels and technologies covering: petrol and diesel automotive technologies: state of the art; hybrid vehicles; natural gas vehicles and power-trains; compressed natural gas (CNG) technology; on board storage and filling; liquefied natural gas (LNG); bio-methane; synthetic fuels produced from natural gas; hydrogen produced from natural gas; and off-road applications. This chapter presents a chronological overview of NGV technology development in last 1 decade . Since the advent of NGVs in Italy in the 1930s, natural gas vehicle technology has made steady improvements and, in some cases, technological ‘leaps’ as they have begun to penetrate world country markets. Most of the improvements and subsequent “generations” of NGVs have, however, mirrored the dramatic changes experienced in the standard gasoline and diesel engines and vehicles. Manufacturers of gasoline and diesel vehicles/engines typically have used NGVs as the benchmark for ‘what is a clean vehicle?’ The most recent diesel engines with selective catalytic reduction (SCR) systems are being touted as ‘cleaner than natural gas’ but, in reality, considering all the regulated and unregulated pollutants, NGVs still are ‘cleaner’ then the best diesel technologies. And so it has been that improvements in the basic gasoline and diesel systems, when natural gas is adapted into these technologies, continue to produce superior emission improvements and at a performance level similar to gasoline engines and that is closing in on that of diesel internal combustion engine technologies. The IGU Report (Study Group 5.3) for the 2003-2006 triennium, “Global Opportunities for Natural Gas as a Transportation Fuel for Today and Tomorrow” presented the various generational changes in the basic retrofit NGV systems: • First generation with completely mechanical fuel system (carburettor vehicles without catalytic converter); • Second generation with basically mechanical fuel system with electronic feedback control or electronically controlled fuel system without feedback control (closed-loop carburettor and throttle body injection / single port injection engines (corresponding to Euro 1 / 2 standard); • Third generation with multi-point fuel injection, electronic control and feedback (closed-loop multi point gaseous injection system engines with group injection or continuous injection (corresponding to Euro 2 / 3 standard)); and • Fourth generation which is as third generation but with OBD capabilities; closed-loop and lean- burn sequential multi-point gaseous injection system engines. It is these systems that have correspondingly over time been used in standard OEM gasoline vehicles, with the fourth generation, OBD compatible system the one of choice for the most highly developed, currently available gasoline engines. CNG cylinders, in parallel, also have seen new ‘generations’ as the need for lighter weight and increased fuel capacity was driven by customer requirements. The all-steel cylinder is the ‘first’ generation (excluding the historical rubber-lined canvas bags as ‘first’ type of non-pressurized gas storage container). The development of the fibreglass, hoop wound aluminium cylinder can be considered a ‘Second Generation’ departure from the all-steel cylinder that began in 1982/1983 in the US. The move to Type 3 fully wrapped metal liner cylinder is a further development from the Type 2 hoop-wrapped cylinder. The development of the 100% full composite CNG cylinders that emerged from aeronautic technology represents a third ‘generation’ of CNG storage. Further refinement of these Type 4 cylinders so far have been refinements of this third generation fuel storage technology. However, Type I cylinders generally are the most popular ones due to their lower prices compared to other types of cylinders. 1 Information for Europe provided by John Baldwin (CNG Services Ltd.), Peter Boisen (NGVA Europe) and Jeffrey Seisler (Clean Fuels Consulting). State of the art in Russian NGV market is described in detail by Eugene Pronin (Gazprom / NGVRUS). In depth review of U.S. development has been provided by Rich Kolodziej (IANGV / NGV America). - 19 -
  • 20. Table 8 - Chronological Overview of NGV Technologies Development (emphasis on Europe) Period State of the art 1st generation NGVs, petrol conversions, tanks (cylinders) in boot of the car. In 1997 – < 2000 2000 period: first generation factory built Volvo S70/V70 with cylinder in luggage space. In 1998 factory built Fiat Multipla with under floor cylinders. 2001 2nd generation factory built Volvo S80 / V70 / S60 with under floor cylinders. nd 2002 2 generation factory built VW Golf and Opel Astra with under floor cylinders. Factory built Fiat Punto and Doblò with cylinder in luggage space. various French cars 2003 with cylinders in luggage space (Citroën Berlingo, Peugeot Partner, Renault Kangoo, Citroën CX3). Factory built Merceded Benz E 200 NGT with compressor engine, but still with cylinders 2004 in luggage space. nd 2 generation factory built Opel Zafira and Combo with under floor cylinders. nd 2006 2 generation factory built VW Caddy and Touran with under floor cylinders. 2007 Factory built Fiat Panda with under floor cylinders. Factory built Mercedes Benz E 170 NGT with under floor cylinders. Opel Zafira, 1.6 litre turbo engine, 150 hp. 2008 rd 3 generation, Passat TSI, 1.4 litre, twin compressor plus turbocharger , > 450 km range, 150 bhp, 0 – 60 in 9.5 sec, ~120 g/km CO2 4th generation – adding of stop-start technology, add regenerative braking, lower CO2/km 2012 to <100 g/km, range now 550 km. Source: John Baldwin (CNG Services Ltd.) and Peter Boisen (NGVA Europe) The offer of light duty NGVs in Europe (EEA - European Economic Area) can be split into four categories2: 1. OEM sales of light duty cars and vans with a European Whole Vehicle Type approval. Such vehicles are accompanied by a CoC (Certificate of Conformity) and registration of such vehicles must be approved by the national road authorities in all EU countries and also other countries accepting EC type approvals. 2. QVM (Qualified Vehicle Modifier) conversions of brand new vehicles with the explicit support of the OEM vehicle manufacturer. Such conversions would normally be made in line with the ECE R115 regulation and the customer will have all normal warranties (some directly from the manufacturer, and some from the QVM). German offers of Ford cars and vans, also Volkswagen vans, follow this model. 3. Same as (2) above, but without the explicit support of the concerned OEM. In these cases it is important for the customer to determine to what extent the OEM warranties and product liability are still valid. 4. Aftermarket retrofitting of conversion solutions, sometimes in line with ECE R115, sometimes in line with other older national regulations (depending upon country). The OEMs will usually not accept any warranty or product liability claims for failures, which can directly or indirectly be attributed to the conversion. 2 according to P. Boisen - 20 -
  • 21. When listing European NGV offers it is important to make a distinction between: (A) light duty natural gas vehicles with a European Whole Vehicle Type approval; (B) medium/heavy duty natural gas vehicles with a European or national type approval arranged via the OEM; (C) QVM conversions of new natural gas vehicles made with the approval of the OEM; (D) QVM conversions of new natural gas vehicles made without the approval of the concerned OEM; and (E) other conversions of new or used vehicles. For MD/HD vehicles OEMs may, on a voluntary basis, issue whole vehicle type approvals but the normal procedure is to have the engines certified according to the EC regulations and then have a national type approval of the complete vehicle. There is obviously a clear distinction between natural gas vehicles directly supplied from an OEM and vehicles using converted engines. In Europe the vast majority of new NGV registrations now consist of OEM products, or QVM conversions made with the approval of the concerned OEM. Looking at LPG powered vehicles the situation is quite different. Here the market is mainly based on retrofitting of light duty gasoline powered vehicles. Outside Europe retrofitting solutions make up the bulk of the NGV volumes but with a gradually increasing share of OEM offers. OEM products also are being developed outside Europe to meet the growing Asian demand for vehicles. Though still dominated by a wide range of different quality retrofit systems, various OEMs have light, medium and heavy duty NGVs, though they currently tend to be Euro 3, with some at the Euro 4 quality vehicles, since the Asian emissions standards tends to be one or two steps behind emissions levels being produced in Europe, Japananese and Korean NGVs. TATA in India is providing the light duty Xenon, Magic Van, Winger, and Ace. Ashok Leyland produces the Viking CNG BS-III. (Tata also produces three separate CNG bus models and one ton, five, and eight ton vehicles designed for passenger and commercial applications). In the U.S market there are OEM light duty sedans (American Honda Civic GX) as well as Small Vehicle Manufacturers (SVM) sedans (Ford 4.6L Crown Victoria, Lincoln Town Car and Mercury Grand Marquis (BAF), Chevy Impala 3.5 and 3.9L V-6 dedicated (Natural Drive) Ford Focus 2.0L bi- fuel and dedicated Ford Focus (Altech-Eco) and SVM light trucks and vans (commercial work trucks and vans): Chevy G1500/2500/3500 Series vans with 6.0L engine (Baytech, IMPCO), Chevy G4500 cab+chassis with 6.0L, Chevy C/K1500/2500/3500 series pick-ups with 6.0L engine (Baytech, IMPCO), Ford F150/250/350 (BAF, FuelTek), Ford E350 series vans with 5.4L (BAF)). In the heavy duty segment (vehicles above 12 tonnes) current OEM offers in Europe include buses with a typical engine size of around eight litres. Engines are available from Daimler, Iveco, MAN, Scania, Tedom (a relatively small Czech manufacturer), and AB Volvo, leaving DAF as the only European HD engine manufacturer currently without a gas engine offer. Bus chassis including engines, often also bodies, are sometimes offered directly from the OEM or sometimes from independent bus manufacturers. Daimler buses sometimes are marketed as Evobus or sometimes as Mercedes Citaro. MAN products are under both the MAN name and as Neoplan. Buses with Iveco engines are marketed in the Iveco brand and are in, Irisbus or Karosa buses. Scania has not been very active concerning natural gas powered buses within Europe (a few buses in Iceland and also in the Swedish town of Eskilstuna) but has sold many buses in Australia (a right hand drive market). RVI (Renault Vehicules Industrielle) now is part of the AB Volvo group (also including American Mack and Japanese Nissan Diesel). Within Europe engines up to the eight litre size are manufactured in France, and larger in Sweden. The French bus manufacturer Heuliez usually uses RVI engines. Renault trucks also have an agreement with Russian GAZ group subsidiary RusPromAuto to supply common rail direct injection (cDi) engines. - 21 -
  • 22. Ekobus, a small Czech bus manufacturer, uses Cummins Westport gas engines imported from America. Russia (re)started development and production in OEM Heavy Duty segment: trucks and buses. Kamaz manufactures dedicated natural gas chassis which is used for different types of general and special purpose vehicles. Powered with an 11.76 litre 260 HP gas engine KAMAZ vehicle can 3 drive up to 500 kilometres with one filling. The engine takes 29.1 normal m per 100 kilometres. According to customer request the on-board gas storage may have different volume. Figure 7 – Kamaz 65116-40 CNG (OEM, range approx. 400 km) Source: Gassuf 2008 exhibition, Moscow, Russia Kamaz company has a separate bus division named Nefaz which also markets OEM NGVs. The Nefaz 30-31 bus carries the same dedicated natural gas engine as the Kamaz truck. Natural gas 3 is stored in high pressure cylinders for 197 normal m . It is sufficient enough to drive 560 kilometres 3 with one filling. Gas consumption equals 35 normal m per 100 kilometres. There are two more gas bus original manufacturers today in Russia: Liaz and Paz companies. Both companies use dedicated natural gas engines from Cummins. These buses are extensively used in Moscow and Togliatti. Daimler is offering Econic natural gas trucks using the same engines as the Evobus/Citaro buses, and the Iveco Stralis trucks use the same engines as Iveco/Irisbus/Karosa buses. Volvo also may offer trucks using the same engines as in Volvo bus models. In the United States, the heavy-duty and medium-heavy segments have received the most marketing focus from the NGV industry. In 2008, Westport Innovations introduced their high-pressure, direct injection LNG ISX-G engine. Based on the Cummins ISX diesel engine with cooled engine gas recirculation, the LNG version of the engine offers the same horsepower, torque, and efficiency as the base diesel engine it is replacing. The Westport LNG system is certified to 0.8 g/bhp-hr NOx and 0.01 g/bhp-hr PM. The Westport GX 15L engine is available with 400 and 450 horsepower ratings and up to 1 750 lb-ft torque for heavy-duty port, freight and vocational applications. - 22 -
  • 23. LNG fuel tanks can be configured to suit customer range requirements. The Westport GX is currently available in factory assembled Kenworth T800 LNG and Peterbilt 386, 387, and 367 models, and is offered for use in various applications including port drayage trucks, heavy-haul trucks, refuse transfer, dump trucks, roll-offs, line-haul, and other vocational applications. Cummins-Westport, a partnership between Cummins Engine Company and Westport Innovations, produces the ISL G. The ISL G engine is available in ratings from 250 to 320 horsepower, and already meets the strict U.S. EPA 2010 emission standards (0.2 g/bhp-hr NOx and 0.01 g/bhp-hr PM). The engine combines Cummins exhaust gas recirculation technology with a three-way catalyst to offer improved efficiency and lower costs. The ISL G is specified for the following heavy-duty vehicles: trash collection trucks (Crane Carrier LET, Autocar Xpeditor, ALF Condor, Peterbilt LCF 320 and Mack TerraPro); Buses, shuttles and trolleys (NABI, New Flyer, Orion, Thomas, ElDorado, Blue Bird, variety of shuttle/trolley upfitters using FCC MB55 chassis); street sweepers (Elgin, Tymco, Schwarze, Allianz-Johnston); and work /vocational trucks (Sterling L series transition to Freightliner M2 tractor, then straight truck; Freightliner Custom Chassis MT45/55; Ottawa; Capacity yard hostlers). A third company, Emissions Solutions, produces a “drop-in” replacement engine for the very popular Navistar (International) diesel DT466 and MaxxForceDT engines. The DT466 replacement engine (the Phoenix NG 7.6L) produces 175-265 hp and 460-820 lb-ft of torque. The MaxxForceDT replacement (the Phoenix NG 9.3L) produces 350 hp and 1200 ft-lb torque. Both are dedicated spark- ignited engines. The Emissions Solutions engines are repower options for food/beverage delivery trucks; refuse trucks, school buses, and utility/public works trucks. In the medium-duty market, Cummins Westport offers its 5.9L B Gas Plus engine. This engine is factory available from Freightliner Custom Chassis in their MT 45 and MT 55 walk-in van chasses and MB55 bus chassis. These chasses are used in a wide range truck and shuttle bus applications. In addition, aftermarket conversion system manufacturers (e.g., Baytech Corporation BAF Technologies IMPCO [FSS], Natural Drive) offer aftermarket conversion for a range of medium gasoline-powered trucks and shuttle bus chasses, including: the Chevy W3500/W4500 and Isuzu NPR and NPR HD COE with a 6.0L engine; the Chevy C6500/7500/8500 Topkick work trucks with a 8.1L engine; the Chevy G3500 Series cutaways with a 6.0L engine; the Chevy G4500 series cutaway with a 6.0L; the Ford E450 series cutaways with a 6.8L engine; and the Chevy C4500/5500 cutaways with a 8.1L engine. In addition to the above-mentioned products (globally) there also is a considerable interest in dual fuel conversions offered by Clean Air Power [CAP], the Hardstaff Group, and others. (See Chapter on real life experiences). From a technical point-of-view medium and light duty vehicles could be fitted with dual fuel conversions systems. Vehicles in the weight class 3.5 - 12 tonnes are defined as medium duty vehicles. Many of these vehicles are in the 3.5 - 6 tonne range with the same vehicle available in three different configurations - vans, trucks, or small buses. Iveco Daily and Mercedes Sprinter are two typical examples of OEM offers, both available with natural gas engines. There also are other vehicles with this type of configuration that usually belong in the light duty class (up to 3.5 tonnes), but sometimes in the medium duty class (above 3.5 tonnes). Fiat Ducato is one example. Other vehicles in this class are Volkswagen Transporter and Ford Transit, both offered as QVM conversions approved by the vehicle manufacturer. In France this class can be found in the Boxer and Jumper models, both from Citroën and Peugeot respectively, and in the Renault Master. - 23 -
  • 24. Figure 8 – Eurocargo CNG (OEM, source: Iveco) Available OEM natural gas technology already offers superior emissions often below environmentally enhance vehicle (EEV) limits. Emission comparison based on Iveco Cursor 8 CNG engines far below the EEV limit, as presented in Figure below. 6 5.45 5.00 Euro 3 (2001) 5 Euro 4 (2006) 4.00 4.00 Euro 5 (2009) 4 3.50 EEV Emission g/kWh Iveco 3.00 3 2.00 2.00 2 1.60 1.55 1.10 1.10 1 0.78 0.50 0.65 0.50 0.40 0.53 0.16 0.03 0.03 0.02 0.01 0.008 0.0022 0 CO NMHC CH4 NOx PT Figure 9 – Emissions of Iveco Cursor 8 CNG engine vs. present and future Euro limits (Source: Iveco) - 24 -
  • 25. Furthermore, NOx emission is compared with existing diesel technology, but also with fuel cells technologies and conventional fuel hybrids. 6 Euro 3 5 Diesel 4 Euro 4 g/kWh 3 CNG lean EEV limits Euro 5 2 Hybrid 1 Fuel cell CNG Iveco stoich. 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Figure 10 – NOx Emissions Comparison : Diesel Versus Alternative Technologies Source: Iveco China represents the single most actively growing OEM market worldwide for vehicles and engines and their manufacturers are actively selling products domestically and in other Asian markets, with numbers of them seeking to penetrate new markets in South America, Eastern Europe and elsewhere. Though more expensive than domestically produced natural gas engines, both Cummins and Iveco have presence in China and are selling engines for HDV and bus applications, in particular. Other international equipment suppliers and European NGV conversion systems manufacturers also are doing business in China. In 2007, 58 vehicle manufacturers in China produced 347 NGV models (including independent chassis but not types of vehicles), covering buses, cars, trucks and utility vehicles. Eighteen engine manufacturers offered 98 types of NGV engine models with the power ranging from 64 kW to 250 kW. More domestic LDV and HDV OEMs are entering the market with a wide variety of equipment. Liquefied natural gas vehicles (L-NGVs) fleet use is expanding and LNG use will become increasingly significant as part of the NGV mix in the future. Another exciting aspect of the “NGV opportunity” is that natural gas can be used in almost any type of petroleum-fuelled engine for almost any application including marine and railway vehicles. Experimental airplanes and helicopters also have been developed as ‘proof of concept’ NGVs. Dual-fuel diesel/natural gas engines first appeared in the early 1980s (almost in parallel in the U.S, Italy and Russia) based on a simple fumigation principle that added natural gas into the intake airstream. Today these environmentally ‘unreliable’ systems have become electronically controlled and a variety of new developments, including high pressure direct injection will create new opportunities for long-haul and other large, heavy duty vehicle applications. The addition of liquefied natural gas (LNG), borne into NGVs as the need for additional fuel capacity and vehicle range emerged is yet another very positive development for vehicular natural gas applications. Increasing demands by government emissions and environmental regulators will continue to help and positively influence NGV development in the future. In future, OEMs will apply their technical skills to adapting their gasoline and diesel engines for superior performance and emissions running on natural gas. But it is unlikely that the OEMs will produce the natural gas vehicle components. - 25 -
  • 26. As increasingly more OEMs develop and produce NGVs, the upcoming challenge for the NGV industry will be to supply the OEMs with the highest quality ‘zero-defect’ components in the quantities that many developing NGV markets will demand. If this can be done, even by a handful of highly dependable equipment suppliers with worldwide distribution then, ultimately, NGVs will move away from retrofit dominance in the market to become a true fuel alternative. The industry welcomes the improvements of gasoline and diesel engines because the better these technologies become, the better it is for NGVs since a ‘better’ fuel typically will make for a better engine, running on natural gas. It is clear today that off-road applications of natural gas within the transportation sector will expand. In-door natural gas forklifts have been around for several years. They are popular in indoor production and storage facilities in a number of countries. The agricultural sector is another very promising market for NGV technologies. This sector consumes a lot of diesel fuel, which is a factor of the high cost of the end product. In a number of Russian agricultural cooperatives farmers have converted their diesel tractors to use natural gas. Although dual-fuel technologies for ICE are less efficient both economically and environmentally (compared to dedicated natural gas systems), they offer at least 25% fuel cost savings. The very recent breakthrough in the NGV technologies was achieved in Russia in 2009. The use of natural gas for rail-road locomotives has bee investigated for decades now. Positive results have been achieved in Russia, USA, Germany, and Peru. However the real success came with installation of a gas turbine to drive the locomotive's power generator. The GT-1 locomotive has one NK gas turbine with rated power of 8 300 kW and carries 17 tons of LNG. In January 2009 the GT-1 locomotive has set a new world record for a single rail-way engine: it was successfully tested with a load of 15 200 tons. Compared to a conventional diesel locomotive, the LNG GT-1 saved 30% of the fuel cost. Figure 11 – CNG QVM forklift Source: Gazprom, Kazan', Russia - 26 -
  • 27. Figure 12 – CNG QVM Belarus tractor Source: NGVRUS, Omsk, Russia Figure 13 – LNG gas turbine GT-1 locomotive Source: Russian Railways, Moscow, Russia - 27 -
  • 28. Hydrogen is not forgotten by the NGV community. A Russian prototype vehicle equipped with a small on-board converter which generates hydrogen from natural gas and adds it (7 – 15%) to the fuel mixture is shown in Figure bellow. This addition of a small amount of hydrogen helps improve the environmental performance and operation of the NGV. An advantage of this technology is that there is no need to separately store hydrogen on-board. Figure 14 – Natural Gas-Hydrogen blend vehicle Source: NGVRUS Railways, Moscow, Russia - 28 -
  • 29. 3.3. MARKET PROFILE 3.3.1. Description of major markets today Natural gas vehicle markets in many parts of the world have experienced dramatic growth in the past 10 years, in particular (see also chapters: “Market data, share of gas, trends” → “NGV statistics, total number of vehicles and share of NGVs” in this report). The motivation for this growth is due to a combination of concerns about improving the environment, improving energy security through the substitution of petroleum in the transportation sector, and economics, where natural gas can provide a 30-50% reduction in fuel expenditures for private, commercial and public-sector vehicles. The beginning development of bio-methane as a renewable fuel brings another dimension to NGV market development as more governments create targets, legislation and regulations aimed at reducing the use of fossil fuels. The increased focus on LNG in the worldwide energy market is another positive development for NGVs. The growth of LNG production and distribution from markets with excess gas to markets nearly fully depending on imported LNG means that the availability of the fuel should result in larger numbers of L-NGVs as LNG appears in more locations in more countries. EUROPE The European benchmark ‘model’ of NGV development that has occurred slowly and steadily is the Italian experience, starting in the 1930s when gasoline was expensive and domestically-sourced natural gas was available and cheap. The Italian NGV sustainability, even at relatively low penetration levels compared to gasoline and diesel (less than 5% of the overall vehicle market), has been built upon a combination of long term support from the natural gas industry, the strength of the Italian natural gas supply network, government cooperation/support (at different times in various ways over history), the favourable price differential between natural gas and petroleum, and the long term support of the Italian NGV equipment supply community for both vehicles and compressors. The Italian market NGV development started as a pure retrofit market, giving birth to a parallel development of the NGV’s components industry in Italy, today the strongest in the world. In the last 10 years or so, the NGV’s Italian market is changing from the retrofit to the OEM options particularly due to the high commitment of Fiat that has put in the market a wide offer of modern cars, all available as CNG from the factory. In September 2008 Fiat announced the company policy of offering all their models with the CNG option. By the end of 2008 Italy had 523 000 units in operation, with a record year of 86 000 vehicles registered. Fiat sold 30 000 Pandas in 2007 and 43 000 units in 2008. There are some ‘shining star’ European NGV country markets where the combination of success factors found in Italy have manifested themselves, despite the different national ‘flavour’ and approaches. The well-organized, highly focused German stakeholders market is a valuable model of NGV development. The success of the developing German NGV market has been built upon a strategy involving the various stakeholders – gas industry, government and the vehicle manufacturers – who have focused targets for vehicle and fuelling station growth. The number of CNG filling stations in Germany is now the highest in Europe with more than 800, but the number of vehicles in service is still less than expected, with some 76 000 units. Sweden, with its ‘municipality-up’ approach to NGV development (as opposed to national policy leadership ‘down’) is based in large part on renewable bio-methane, which provides another variation and lesson of NGV market development. Roughly 58% of the gas used in transportation in Sweden comes from biomethane. The city of Stockholm is going to have an additional source of natural gas from a new LNG terminal that will allow the municipality to replace the existing diesel buses with 800 new CNG units (in two phases, with 400 vehicles in each phase) in the upcoming years. - 29 -
  • 30. Although the ratio between fuelling stations and vehicles in Europe still is far below the economically sustainable 600-1000 vehicles to stations, NGV customers can now drive from Italy through Austria, Switzerland, Germany and into Sweden (albeit not with the ease and facility as with a gasoline vehicle). In other countries like France, Spain, Netherlands and Portugal the NGV development is focused on the fleets of heavy urban vehicles: buses and garbage collection trucks. These fleets offer great advantages for NGV development, since a larger number of vehicles depend on a single organisation’s decision. Large, high polluting vehicles offer the advantage of reducing emissions in big cities where pollution is worst and more people are exposed. On the other hand fleets have their own filling stations, totally independent of the public CNG distribution network, which is not available in these countries. Case of the city of Madrid is one example of this, where all the garbage collection and city cleaning trucks (650 units) are CNG fuelled. In the same way, 35% of the urban bus fleet will be, by the end of 2010, replaced with CNG which accounts for approximately 700 CNG buses, with the intention to reach 50% of the total in the years to come. Similar approaches are followed in other cities like the Hague, Paris, Barcelona, Rome, Porto, etc. Other typical urban services like food distribution and parcel delivery are starting now with new and specifically designed CNG medium and heavy vehicles. The use of heavy vehicles running on LNG is another important development. The Iberian Peninsula, (Spain plus Portugal), already has seven large LNG terminals around the coast. Another has been authorised in the north of Spain (nearly 70% of the gas used in the peninsula comes via LNG, later re-gasified and injected into the grid). Other LNG terminals are in Marseille (France) and near Genova (La Spezia) and in Trieste (Italy), offering the potential for the development of a Mediterranean LNG Blue Corridor. LNG costs less than CNG (no need for compression) and provides an acceptable energy-to- volume-to-weight ratio for long distance trucks. The growth of the OEM development in Europe should provide the long term sustainability for NGV markets so long as the growth of fuelling stations continues steadily and unabated. The markets will be fuelled by concerns of CO2 and emissions reductions as well as energy security, particularly as Europe looks to diversify its energy sources. The realization of the European NGV market potential will be, as highlighted in the 2003 European Commission report, Market Development of Alternative Fuels, due to a ‘European’ approach to both vehicle sales and fuelling station growth. It is likely, however, that the development of the heavy vehicle fleet market will be independent from the public fuelling stations growth. Thus far, however, despite individual country successes, an overall European approach remains lacking. The focus on European climate change and environmental policies, coupled with stronger interest in renewable fuels and energy security should help create a positive environment for NGV development in the longer term. Eastern Europe and Former Soviet Union (FSU) In Eastern Europe first NGVs and CNG filling stations were tried tested in the 1930s in the Former Soviet Union (FSU). This market was rising and falling several times during the recent 80 years, but generally preserved the positive trend. Today NGV markets in Eastern Europe and Former Soviet Union keep growing again, although average rate of growth is not as impressive as for instance in Germany. Dismantling of the command system in the FSU after 1991 led to collapse of the national NGV program that had been launched and implemented in 1980s. Demand for CNG fell ten times within a short period of time. The lack of national NGV politics and economic incentives accompanied by a very small price differential between CNG and gasoline/petrol could not make natural an attractive transportation fuel. - 30 -
  • 31. Global growth of oil prices since the turn of the XXI century translated into revival of NGV markets in the Former Soviet Union and Eastern Europe. The leading nations are Ukraine (120 000 NGVs), Russia and Armenia (over 100 000 NGVs each), Bulgaria (60 000 NGVs) and Uzbekistan (almost 50 000 NGVs). Czech Republic is showing very positive trend which, if continued, will lead that country to 60 000 – 70 000 NGVs in ten years. FSU is the second largest NGV market in Europe after Italy. Compared to 1990, the aggregate number of NGVs rose 15% and passed the 460 000 level. There are now 890 CNG filling stations in this part of the world which is 2.5 times more then 20 years ago. A 12% growth of natural gas consumption is registered in 1990 through 2008, which is proportional to the growth of natural gas vehicles. The key NGV market driver is the fair price of CNG which is at least 50 percent cheaper than gasoline and diesel. For many years FSU / Eastern Europe used to be a large conversion market. Situation is changing: more and more customers would prefer an OEM gas vehicle but the offer is very limited yet. Mostly heavy and medium duty vehicles are converted to use natural gas. Light duties NGVs are not that popular for they do not show fast payback. Beyond conventional on-road vehicles other types of transportation means are being successfully experimented on: airplane, watercraft, agricultural tractors and rail-road locomotives. In a short future one may expect the emergence of other-than-on-road-vehicles commercial market. These vehicles will use both compressed and liquefied methane gases natural and biological (CNG/LNG, CBM/LBM). FSU / Eastern Europe is a very promising territory for the expansion and development of national NGV markets. This development associated with the growth of natural gas transmission systems in Europe, Middle East, Africa, and specifically in Asia will mature into a continuous non- interrupted ocean-to-ocean AfroEurAsian system of Blue Corridors for natural gas vehicles instead of gasoline and diesel ones. These AfroEurAsian Blue Corridors will become an infrastructural basis for Green Corridors for biomethane vehicles – BMVs (by 2020) and White Corridors for hydrogen vehicles – H2Vs (by 2030). International corridors for gas-powered vehicles may become a reality in the very near future provided the key players of the European NGV market (oil & gas and automotive companies) jointly develop the filling and servicing infrastructure. The international EuroAutoMetan consortium could become an efficient instrument to implement this idea. NORTH AMERICA The NGV market began in the United States in the early 1970s when Italian retrofit systems began being used by the Southern California Gas Company – primarily to address the growing urban pollution problem. In 1990, the federal government-passed Clean Air Act and, in 1992, the Energy Policy Act. These included favourable incentives and mandates for expanded use of NGVs that boosted enthusiasm for NGV developments. Growing numbers of gas companies embraced NGVs, and began to install NGV fuelling stations for their own vehicles and a growing fleet of non-utility vehicles. OEMs began their development programs in the early 1990s for pickup trucks and vans, aimed initially at the utility fleet market and NGV equipment suppliers formed a core of business activity that supported continued growth of fleet NGVs. Unfortunately, a number of factors conspired to significantly retard the growth of NGVs in the US during the late 1990s and early 2000s: the difference in fuel prices was not sufficient to stimulate substantial demand for NGVs, the performance of NGVs (including reliability) at that time was not yet comparable to gasoline and diesel technology, key mandates in federal programs were either not enforced or not implemented, the regulatory environment changed for gas utilities, which shifted managements’ focus from market growth to cost cutting, the natural gas fuelling station network was very inadequate (there are about 180 000 gasoline fuelling stations in the US and there was no way in which the NGV industry could even come close to matching that infrastructure), the OEMs began to - 31 -
  • 32. face economic pressures (which, in turn, caused them to re-evaluate “marginal” product lines), there was growing political and auto maker support for the use of corn ethanol and finally there was a political concern that the US natural gas resource base was not adequate to supply the residential, commercial, industrial and power generation markets AND a growing NGV market, too. Because of all of these reasons, demand for NGVs was not strong enough by the early 2000s, and fuelling station growth was insufficient on a large, country-wide basis. Consequently, the auto companies (other than Honda) discontinued the development and production of NGVs in favour of ethanol vehicles (in the short term) and hydrogen fuel cell vehicles (in the long-term). Hybrid vehicles also were added as a near- and mid-term technology solution, partly driven by the success of the Toyota Prius. During this slow period, US cylinder manufacturers, compressor station suppliers and other equipment suppliers significantly expanded their markets internationally, thus providing a base to enable the US NGV market to survive until the market began to expand again. Meanwhile, while growth in the light-duty NGV market was slowing, the NGV equipment and service suppliers were shifting their focus to high fuel-use, urban fleet vehicles, such as transit and school buses, shuttle buses, trash trucks, urban goods delivery trucks, airport and water port vehicles, and taxis. Natural gas was less expensive that gasoline and diesel, and high fuel-use fleets could achieve significant savings through the use of NGVs. As gas utilities were backing out of the NGV fuelling station business, other (non-utility) companies began entering the NGV fuelling business. The combination of good economics, the societal benefits of NGVs (e.g., lower urban pollution, lower greenhouse gases, reduced petroleum use) and much more aggressive (and effective) marketing by suppliers resulted in growing interest in NGVs by the medium and heavy-duty OEMs, and an increasing number of NGVs began to be offered by those OEMs (see technology section of this report). The light-duty market also began to receive more attention - not from the automakers, but from conversion system manufacturers (referred to a “small volume manufacturers (SVM)”). Slowly during the mid-to-late 2000s, more companies began entering the light-duty conversion system market. This entailed significant expense since the process of receiving approvals for such systems by the US Environmental Protection Agency and the California Air Resource Board was (and is) quite burdensome and costly. However, receiving such approvals is required in order for NGV conversion systems to be legally sold in the US. Beginning in 2005, a number of events began occurring that have set the stage for a possible renaissance in the US NGV industry: in late 2005, the federal government significantly expanded economic incentives for NGVs (for the purchase of NGVs, the use of natural gas as a fuel and the installation of NGV fuelling stations) and first slow and then sharp rise of gasoline and diesel prices from 2005 and 2008 (although those prices have decreased significantly from their highs in late 2008, larger gasoline and diesel fuel users – primarily fleets – understand that, once the worldwide recession is over, demand for petroleum will again exceed supply, and gasoline and diesel prices will once again increase sharply). Furthermore, two major national advertising and public relations campaigns in support of NGVs were implemented – one by oil and natural gas tycoon Boone Pickens and the other by Chesapeake Energy – on of the largest natural gas producers in the US with a heavy focus on gas production from gas shale formation. Gas from shale was another major “event”. The US has enormous quantities of natural gas trapped in shale formation. Over the last decade, that technology has evolved, so that, today, gas from shale can be produced at prices that existed prior to the recession of late 2008 and 2009. As a result, analyses have supported the claim that the US has adequate natural gas resources to supply the US needs (at current consumption levels) for over 110 years. The US Energy Information Administration has forecast that, partially because of the advent of gas from shale, the US will be producing 98 percent of the natural gas used through 2030. - 32 -
  • 33. In addition, the allure of other alternative fuels and advanced technologies has waned. Finally, in 2008, then Senator Obama introduced legislation that would have expanded incentives for the purchase and use of NGVs. Also at that time, Rep. Rahm Emanuel (D-Illinois) – who currently serves as President Obama’s chief-of-staff – introduced separate and far more wide- reaching legislation to incentivize the purchase and use of NGVs. As this report is being prepared, legislation has been introduced in both houses of Congress that would implement all of the provisions of both the 2008 Obama and Emanuel bills, and prospects for passage appear very promising. SOUTH AMERICA NGV economics due to the differences in fuel prices between natural gas and petroleum has been the principal driver for NGV development first in Argentina and then in Brazil. Throughout the mid-to-late 1990s and into 2000 growth of retrofit vehicles and a concurrent development of the fuelling station network with support from the gas industry in both countries has allowed the NGV markets to flourish. The vehicle growth rate has consistently been 20-25% annually, and the numbers have become the highest of the NGV populations internationally. As of 2007-2008 twenty percent of the Argentina vehicle population is NGVs. Although the retrofit market has been strongest, the quick growth rate has brought more OEMs into the Brazilian market, in particular. The active NGV markets in Argentina and Brazil have had concurrent positive effects on other countries; Peru, Venezuela, Colombia, Bolivia, and to a lesser degree in Chile. Political mandates to convert NGVs in Venezuela have been initiated in an attempt to use more indigenous natural gas in favour of exporting oil. This has positively affected political conditions in Colombia and Bolivia for NGV. One of the challenges in South America generally has been related to the incremental and at times irregular growth of the natural gas pipeline infrastructure as well as political relationships between countries that affect a smooth transition to increased natural gas usage on the continent, despite an overall favourable gas supply situation. In Brazil the NGV industry was shaken in 2008 due to droughts, which affected the country’s hydroelectric supply and threatened a diversion of the gas supply to the electric generation sector. Overall the NGV growth in South America should excel, particularly due to new entrants like Venezuela, which should represent the next large growth potential. Such expansion will continue to have a ‘knock-on’ affect in the rest of the Latin American countries and will provide a good market for internal and external suppliers of NGV equipment. ASIA – PACIFIC AND MIDDLE EAST Asia is a vast and diverse area but, as a region, holds great promise for some of the largest NGV growth potential. As in other regions of the world, balancing vehicle growth with that of fuelling stations will be a challenge, particularly in countries that do not yet have a fully-established natural gas distribution grid. Providing a widely availability and consistent supply of natural gas at locations convenient for a diverse range of NGV drivers will be a challenge that, over time, likely can be overcome. Countries like India, China, Korea and Malaysia have strong and relatively well-financed gas industries that are expanding the gas distribution networks. Strong growth markets such as Bangladesh, Pakistan and to a lesser degree Thailand (latter achieving also a remarkable development in last five years, from close to zero to 130 000 vehicles) will continue to have gas distribution challenges that likely will be improved, particularly if future oil prices increase enough to help motivate vehicle and fuelling station growth. - 33 -
  • 34. Iran represents a special and remarkable case of NGV development, starting from 1 000 vehicles in 2004 and reaching around 845 000 vehicles only five years later (at the end 2008) and 1.2 million vehicles by mid-2009. Key drivers for the Iranian NGV market development are its utilization of abundant natural gas reserves in order to increase the volume of its crude oil and oil products available for export; a lack of domestic refining capacities; and to help reduce serious air pollution problems, particularly in urban areas. The Government is supporting and subsidizing the conversions of NGVs, the installation of refuelling stations and CNG. The use of natural gas as an alternative fuel st for vehicles has been confirmed by the Government in the 121 article of Economical, Social and 3 Cultural Development law . Some countries throughout the Asia-Pacific/Middle East regions – or some regions within them – suffer from inconsistent electricity supplies that affect CNG compressor station operation. But this too should improve over time so that energy, fuels and NGV technologies can maximize their potential. Also, the greater use of liquefied natural gas (LNG) throughout this energy-expansive region should open new opportunities for larger, over-the-road vehicles as well as creative fuelling strategies such as liquefied-to-compressed natural gas (L-CNG). A wide variety of NGV technologies are becoming available across Asia, be it OEM or retrofit. The replacement with natural gas of two-stroke, diesel, and three-wheel vehicles popular in many countries will be a boon to environment improvement. Subsidies for these ‘public transport’ vehicles will help expand this market dramatically so long as CNG supplies and availability will be conveniently located and reliably maintained. NGVs that are relatively inexpensive compared to other regions seem to be finding in many countries a satisfactory economic threshold between higher first cost of the vehicles and lower fuel prices. Certainly an array of public transport NGVs from buses to three wheelers should drive many markets forward. OEM availability in countries like India, Korea and, ever-expanding in China, coupled with innovative technologies from Western countries should provide the required range of vehicles needed to satisfy and grow long term NGV demand. In some of these rapidly expanding Asian-Pacific markets, concerns about cost-cutting and first price of vehicles, CNG cylinders and fuelling stations have manifested in a number of incidents compromised by a lack of diligence about safety. Since a high proportion of NGVs in Asia will continue to be converted retrofits, there is a much greater need for vigilance about using and adopting international standards and regulations as well as a great need for training and quality control. This is less the case where OEMs ultimately may dominate; however, strong interim growth of converted gasoline vehicles will demonstrate that more concern about safety is required. This too, will lead to greater reliability of the vehicles and fuelling stations that ultimately will be a benefit to the regions NGV market and to the consumers they serve. 3 Houshang, A., Khaki, M.A. (October 2004); IRAN – ONE OF THE WORLD LARGEST NGV MARKET. NIOC- IFCO, IV Expo GNC in Buenos Aires, Buenos Aires - 34 -
  • 35. 3.3.2. Technical and Commercial Data Base 3.3.2.1. Analysis by country and by application – state of the art As its permanent activity IGU S.G. 5.3 works on the establishment and maintenance of the IGU NGV Technical and Commercial Data Base. This Data Base provides not only a technical overview in the form of technical standards and codes used in the countries surveyed, but also has a practical commercial application by covering in detail costs (CAPEX & OPEX) of various state-of-the- art OEM/conversion products (LDVs and HDVs) and costs and standards related to the NGV filling stations. It provides a good overview and description of markets today. Table 9 - IGU NGV Technical and Commercial Data Base – content LDVs and HDVs Filling stations • Available NGV models and prices • Standards and Codes (regulation on filling stations, inspection) • Prices of equivalent petrol and diesel models • Subsidies and / or tax exemptions • Conversion costs (broken down into: equipment, cylinder and labour costs) – 100% • Average CNG price structure (cost of: gas, natural gas, dual fuel … labour, energy / compression, depreciation, tax + profit margin) • Extra annual costs related to NGVs (cylinder inspection, gas system examination, additional tax etc.) • Standards and Codes (vehicle including inspection, conversion / maintenance shops, garages / parking) • Subsidies and /or tax exemptions (vehicles, fuel) In total, 21 countries representing a broad geographical view responded to the questionnaire, or 80% of those participating in the project: Austria, Argentina, Brazil, Bulgaria, China, Croatia, Czech Republic, France, Indonesia, Iran, Italy, Japan, Malaysia, Netherlands, Poland, Portugal, Russia, Spain, Sweden, Switzerland and United Kingdom. The Technical and Commercial Data Base provides a good basis (data inputs) for economic and financial models (calculation of payback periods, internal rate of return, costs savings etc.) for the above-mentioned countries and for: private light duty vehicles owners (OEMs or converted), heavy duty vehicles owners (OEMs or converted; 100% natural gas or dual fuel) and for filling stations owners. In order for the results to be comparable (and since some data might be business sensitive, especially in the heavy duty sector where prices are set through tenders) OEM price differences are expressed as percentages. On the other hand, for performing pre-feasibility analysis (i.e. by existing fleet operators using diesel HD models) such input is sufficient enough to calculate average added costs compared to average prices of diesel models used in an existing fleet. The summary of results is organized on the regional basis and presented in the APPENDIX of this report. - 35 -
  • 36. 4. TECHNOLOGY STATE OF THE ART 4.1. IDENTIFIED (POTENTIAL AND PROMISING) NEW TECHNOLOGIES AND ASSESMENT OF THE NEW TECHNOLOGIES OPPORTUNITIES Vehicle Technology Improvements For natural gas (and bio-methane) vehicles, major improvements in efficiency emissions reduction and increased vehicle range could be achieved through direct injection engine technology (taking advantage of natural gas high octane number) and hybridization. Natural gas emits approximately 20-25% less CO2 compared to petroleum fuels due its methane’s chemical properties. If biomethane is used, the CO2 reduction on a well-to-wheel basis can be 100%-to-180% less than a gasoline passenger car. Additionally, natural gas has huge potential for improving the thermal efficiency of spark ignited (SI) engines due to other combustion-specific properties such as high knock resistance and extreme stratification capabilities for lean air-fuel ratio. For current passenger car standard applications a power drop of approximately 8-10% occurs from reduced volumetric efficiency of intake manifold fuel injection. But this drawback can be compensated by direct injection of natural gas into the combustion chamber and, therefore, utilize all the benefits of CNG as automotive fuel. “Direct CNG Injection” may be a highly attractive solution for sustainable CO2 reduction, and represents a significant opportunity for NGVs to come very close to 4 the efficiencies of gasoline engines . Homogeneous natural gas direct injection power-trains with a standard 3-way catalyst (i.e. Lambda One [λ=1]) would be a cost effective alternative for passenger cars and for light commercial vehicles since it might be possible to avoid using expensive exhaust after treatment systems (as required for Diesel engines). Stratified, lean burn (λ>1) natural gas direct injection operation offers additional efficiency improvement but would require NOx-exhaust after treatment to achieve tighter European and U.S emission regulations. Due to lower NOx level with natural direct injection combustion, the requirements for such NOx exhaust after treatment will be less stringent. Natural gas direct injection technology also has substantial potential in heavy duty as well as light duty applications, with further potential improvements in the overall vehicles characteristics through natural gas hybridization. New NGVs likely will use downsized, supercharged engines and possibly also micro or soft hybrid solutions. Dual fuel turbo engine vehicles operating on natural gas with pilot injection of diesel, possibly also with micro or soft hybrid solutions might enter the market. Before 2012 the car makers will start introducing downsized turbo Otto engines for their standard mainstream product lines. These engines would be well suited also for natural gas applications. The impact of bio-methane can bring the emissions down further when considering well- to-wheel emissions. Development of heavy-duty CNG trucks in Japan could be an example (illustration) of such contributions. A demonstration heavy-duty 20 ton class diesel truck operating between Tokyo and Osaka (and other long-distance inter-city routes), is equipped with a diesel engine capable of maximum output of more than 235 kW. These vehicles account for roughly 20% of the fuel consumed by the transportation sector and they place large burdens on the environment. 4 Source: AVL (www.avl.com) - 36 -
  • 37. A 25 ton class low-emission heavy-duty CNG truck equipped with an engine that has a maximum output of 244 kW has been developed and tested. This project is under the “Project to Promote Development of Next-Generation Low Emission Vehicles” managed by the Japan Gas Association. Targets in this demonstration are established as: • maximum output of 244 kW (332 PS) (GVW: 25 ton); • travel distance per one filling of more than 600 km of highway driving; • Nox exhaust emission rate of less than 1/4 of the new long term regulation value (2.0 g/kWh) and; • CO2 emission level lower than in the base diesel engine. Table 10 – Specifications of planned 20 ton CNG truck project in Japan Base diesel engine Prototype CNG engine Engine type Nissan diesel GE13TA - Number of cylinder Inline 6 cylinders ← Bore x Stroke φ 136 mm x 150 mm ← Displacement 13.074 litter ← Valve system SOHC 4 valve/cylinder ← Air intake system Turbo-charged w / after cooler ← Fuel system Direct injection Single point injection Ignition system Self ignition Spark ignition Maximum output 250 kW / 1 900rpm 244 kW / 1 900 rpm Maximum torque 1 442 Nm / 1 400 rpm 1 487Nm / 1 000 rpm Exhaust emission EGR Three Way Catalyst reduction system Exhaust emission '99 Regulation NOx: <0.5 g/kWh in JE05 mode (Target) Fuelling Station Technology Improvements The so-called ionic compressors (iKompressor) developed through the joint venture between Flowserve and the Linde Group is one of the newest developments in CNG compressor improvements. The ionic compressor design includes two ground-breaking concepts: the use of innovative and proprietary ionic liquid as a liquid piston instead of a conventional fixed metal piston, and efficient gas compression at near isothermal conditions. Instead of using fixed-piston compression technology, the ionic compressor replaces metal pistons with liquid. Use of liquid in place of solid pistons significantly reduces the number of moving parts and frictional losses contributing to energy efficiency and lower wear and tear than conventional compressor systems. According to the claims made by the manufacturers, these compressors should experience at least a ten-fold increase in maintenance intervals, to 10 000 hours between scheduled maintenance versus 1 000 hours for conventional designs. Furthermore, the gas compression is performed at constant temperature using a water-cooled jacket around the compression cylinders. Gas compression at constant temperature or isothermal is the most efficient thermodynamic compression cycle possible. Conventional reciprocating compressors operate on the efficient nearly isentropic compression cycle. This combined effect is designed to use up to 20 percent less energy consumption at low-inlet pressure. - 37 -
  • 38. There is an issue which can be attributed both, to the vehicles and fuelling5. If NGVs are to grow as forecast the industry needs: recognition that NGVs are safe, large scale conversion capabilities which include small conversion centres and awareness that small conversion operations can provide safe, reliable and cost effective work. In some cases, Government support NGVs may weaken or even be removed if safety continues to be an issue. Thus there needs to be a way of ensuring that all vehicles are safe regardless of where the vehicle has been converted. Methods of enforcing existing standards are: to educate regulatory authorities on safety standards for NGVs; to educate regulatory authorities on understanding the technicalities of approvals and their implementation; to encourage regulatory agencies to enforce safety standards without causing significant increase in the cost of converting vehicles; to restrict conversions to trained and certified personnel; to assure regular inspections and regulation of conversion facilities or to control the fuelling of vehicles. Regardless of where the conversion or OEM installation was done, all NGVs require routine inspection. In many countries inspection capabilities exist, but with present technology it is difficult to ensure that all vehicles are inspected as required prior to refuelling (in other words, there are no reliable means of ensuring only certified vehicles are filled). Current means of control are limited to fuelling personnel making the decision to fuel a vehicle and in most cases; these people will not decline to fuel a vehicle. Traceability of CNG vehicles, components and inspections is primarily paper documentation that may or may not be accurate. Identification plates on vehicles do not necessarily provide adequate traceability. One way to achieve identification of uncertified or unapproved vehicles (before an incident occurs) and restricted fuelling to only approved/certified vehicles is the utilization of a relatively newly developed technology called Radio Frequency Identification (RFID). This system is designed to contribute to NGV safety, particularly during the fuelling process, when it is used to identify on-board CNG cylinders as being those that were initially installed in the vehicle at its time of conversion or production. It also provides an opportunity to create a cylinder/vehicle data base that can be used in a variety of ways to improve the tracking and accountability of NGVs. The RFID system is comprised of an RFID antenna located in the fuelling nozzle a unique RFID CNG delivery hose, a RFID control system at the dispenser, graphic display and optional keypad. RFID system works as follows: • Vehicle is connected to fuelling nozzle. • RF signal from nozzle antenna powers the tag. • Tag transmits vehicle data to reader to Viridis controller. • Controller validates encoded data from vehicle. • Controller authorizes transaction. • Vehicle is fuelled. • Transaction data is captured by Viridis RFID system. • Optionally, fuelling data can be written to vehicle tag. The data that can be programmed to a tag is determined by the regulatory body issuing the tag. Typical data would include: vehicle ID; vehicle license number; vehicle owner; conversion company ID; inspection company ID; date of conversion/inspection; expiry date; price level (discount/surcharge); and credit account data. 5 Following text on RFID was kindly provided by Ian Patterson (Virdis) and its presentation: I. Patterson; “Safe NGVs: Is this the solution?”, NGV 2009, New Delhi, India, March 2009 - 38 -
  • 39. 5. CASE STUDIES Case studies were provided by the various study participants and are split into two categories. The first set of case studies represent new and interesting concepts (including off-road applications) but that are not in operation long enough to provide in-depth, conclusive results. The second set of case studies represent ‘real life experiences’ where NGVs are in regular use in fleets of buses, garbage trucks, ferries etc. and which have proven results from which conclusions can be drawn. 5.1. CASE STUDIES ON NEW PROJECTS 5.1.1. Off-road applications Off-road vehicles provide a special opportunity to demonstrate the diversity of natural gas as a vehicle fuel. Many of these vehicles operate indoors where pollution and emissions is of particular concern (airport baggage handlers, fork lifts, ice clean machines, etc.) Airports, in particular, provide an excellent opportunity for NGVs since both public and off road airport vehicles that never leave the premises all can take advantage of centrally fuelled CNG filling. Additionally, the wide range of public exposure through taxis, buses circulating to parking lots, hotel transport as well as vehicles servicing the airlines (food service, fuelling trucks, security etc.) provides an excellent opportunity for NGVs to be seen by millions of people each year. As for in-flight technology, natural gas airplanes can demonstrate further flexibility and safety; however, at this time they remain as ‘proof of concept’ and are not at this time being considered for widespread commercial application. 5.1.1.1. Airport applications – case Madrid The fundamental aim of the AERGAS Madrid airport project has been to reduce the level of emissions, both acoustic and gaseous, of the vehicles and equipment working inside the airport, through the design and development of a new range of equipment, all working on CNG. At the beginning of 2005, the project AERGAS was set up, with the following partners: Aena, (the Spanish Public Authority for Airports and Air Navigation), Avia, IDAE, Gas Natural, IVECO and TEM Gorris6. The project was presented to the PROFIT 2005 program, obtaining the approval of the Ministerio de Industria, Comercio y Turismo of Spain, and being given a loan of € 800 000 as refundable funds, a 75% of the total budget. Aena had established its environmental policy, committing itself to the protection of the air quality; by means of: a first target of reducing the levels of the pollutant gases, and particularly NOx; the additional benefit of the reduction of the noise in the airport’s environment; the progressive substitution of the diesel engines of the vehicles of assistance in land for electrical and or CNG units, as vehicles E.E.V. (Environmentally Enhanced Vehicles); and translating this commitment to the handling companies servicing the airports, that will be obliged to use vehicles and material aligned with the new environmental target. Gas Natural built a temporary CNG filling station to service the first prototypes in Barajas airport, with the following characteristics: ability to fill, at 250 bar, a set of big CNG tanks fixed on to a truck, acting as a mobile filling station for other equipment and capacity to fill directly the prototypes at a pressure of 200 bar. 6 AVIA Ingeniería y Diseño is a vehicle and aeronautical engineering company that has been in charge of the design and development of all the CNG special airport equipment. IDAE is a Public Entity reporting to the Ministerio de Industria, Turismo y Comercio, having the objectives of promoting the energetic efficiency and the rational use of the energy in general. On the other hand IDAE looks for the diversification of the energy sources and the growing use of renewable alternatives. - 39 -
  • 40. IVECO has carried out the development of the different CNG engines (all of them homologated EEV) specifically for airport handling requirements. TEM Gorris: is a Spanish company specialising in the production and maintenance of airport handling equipment. It has been responsible for the industrial development for production and final assembly of all the airport equipment. AERGAS program has given priority to the development of the equipment with higher potential to reduce the gaseous and noise emissions in the airport. In the previous study carried out by AENA in Madrid-Barajas, it was found that the equipment with improved contributions to lowering air pollution (NOx, CO, PM) were: • Ground Power Unit (GenSet): with more than 50% of the total. • Trasfer bus (already available in CNG): from 8% to 14%, related to the considered pollutant. • Luggage tractor: from 5% to 10%. • Aircraft tractor: from 5% to 9%. Other complementary equipment, like mobile scales and luggage belts, having minor influence, will be developed later on, out of this program. Off-road CNG airport applications are presented below: Figure 15 - CNG Ground Power Unit (GenSet) – AERGAS Project Source: AERGAS The CNG Ground Power Unit is EEV compliant (using IVECO F4BE0641A*G TECTOR engine) producing 147 kW at 2700 rpm coupled with generator of nominal power of 120 kVA. Fuel capacity is 5 tanks of 140 litre at 200 bar providing 8 hours autonomy. All the CNG installation has been homologated following Regulation 110 ECE for vehicles. Total emission difference in 8 hours was, with present diesel system, 12 kg and with CNG EEV system 0.58 kg (more then 20 times less). - 40 -
  • 41. Figure 16 – CNG Luggage Tractor – AERGAS Project The CNG Luggage Tractor is EEV compliant (using IVECO 8149.03 CNG SOFIM engine) with rated power of 65 kW. Fuel storage capacity consists of 1 tank of 80 litre and 2 tanks of 70 litres providing a total of 220 litres at 200 bar, which is enough for 8 hours of continuous operation. As in previous case, CNG installations are homologated following Regulation 110 ECE. Figure 17 – CNG Aircraft Tractor – AERGAS Project Source: AERGAS Developed CNG Aircraft Tractor is EEV compliant (using IVECO F4BE0641A*G TECTOR engine) with rated power of 147kW. Fuel storage capacity consists of 6 tanks of 80 litres at 200 bar (enough for 8 hours of continued use). As in previous cases, CNG installations are homologated following Regulation 110 ECE. - 41 -
  • 42. Figure 18 – CNG Aircraft Tractor in operation – AERGAS Project Source: AERGAS - 42 -
  • 43. 5.1.1.2. Airplane fuelled by natural gas has been demonstrated in the South of Brazil In Campo Magro, Metropolitan region of the city of Curitiba, State of Paraná, an airplane fuelled by natural gas has been introduced to the public in general. According to the pilot, Werner Egon Schrappe, this is the first airplane of this type converted for natural gas utilization, resulting in a better operating cost and reduced climate impact. Similar to typical road vehicles, the airplane engine is converted to dual fuel, permitting changing the fuel at anytime during the flight to the original petroleum-based airline fuel. Schrappe has indicated this type of operation is being tested by experimental aviation, with small size airplanes, normally used for private transportation or specific limited usage, such as in agricultural areas. In accordance with Schrappe, there are some 16 500 airplanes of this size, as per the National Aeronautical Register in Brazil. Out of this number, some 4 000 will be closed to the experimental unit demonstrated in Campo Magro. The conceptual plan to convert the airplane engine to natural gas came from a conversation with Rogerio Silveira, President of IBDA – Brazilian Institute for Automotive Development, who once promoted an NGV conversion program in the region. Mr. Silveira explains that airplanes of this size has an engine similar to road vehicles, and deploys the same type of gasoline. Therefore, a conversion to natural gas would certainly be applicable. The project has been developed in two months, including actual tests at field. The load capacity of some of these types of airplanes may reach to 240 kilograms. Considering the pilot weight, the difference may be adapted to the natural gas fuel storage system. The prototype is capable of storing 7.5 cubic meters of natural gas, capable to keep the airplane flying for approximately 40 minutes. However, this capacity may be expanded with additional light cylinders, or even structural changes, capable of permitting some additional load. Currently the same airplane is capable of flying 4.5 hours on gasoline. The objective of this first experience was to demonstrate the capability of using natural gas safely in such airplanes. In cases of frequent flights the use of natural gas provides a good payback. Conversion cost is around US$ 1 000 and the modification can be made within a day. Today, there also are some similar airplanes fuelled by ethanol. Schrappe has 30 years of experience with small aircraft and assures there are no risks in running such equipment with natural gas. This natural gas airplane prototype was presented officially in July 2005, in Curitiba, Brazil. This prototype was a Bravo 700 model, advanced ultra light model, with 2 seats. This model has been manufactured in Brazil, and was equipped with 80 hp Rotax 912 engine, imported from Austria. Figure 19 – Bravo 700 ultra light aircraft model Source : Airliners.net Copyright : Juliano Damasio - 43 -
  • 44. 5.2. REAL LIFE EXPERIENCES It is important to understand ‘real-life’ experiences with the operation of NGVs. In responding to stakeholders’ requests for such information, and to highlight the efforts of the stakeholders participating in IGU S.G 5.3, this section provides Real Life Experiences from existing fleet operators already using NGVs about maintenance, life-cycle costs, repair intervals, fuelling time and flexibility, safety, additional technical and infrastructure requirements, feedback from drivers, users, mechanics and the overall business efficiency compared to liquid fuels. Initially starting with OEM NGV bus fleets (compared to Diesel bus fleets), the scope was further extended to garbage truck fleets, taxi fleets and dual-fuel CNG/LNG trucks. The scope also included bio-methane-powered OEM buses. The main purpose of the research was to provide guidance to fleet operators and companies when considering the procurement of NGVs. These case studies provide answers to the most common questions asked by Public Transport Companies (PTC) representatives who normally use diesel-fuelled vehicles. Audits were conducted of various NGV fleet operators using a specific list of guide questions. Each ‘auditor’ was free to include additional information as well. Guidance questions included:: • Contact person’s details (in case that direct contact/visit is possible) • What was the main reason behind decision to introduce NGVs? • What is the main reason for decision to continue with / increase introduction of NGVs in the fleet? In case of natural gas buses and trucks: • Maintenance costs of natural gas buses/trucks compared to diesel buses/trucks: - Increase in costs for (i.e. tyres) ……. by (%) – list/description - Decrease in costs for (i.e. motor oil)…… by (%) – list/description - Overall conclusion – total costs increased / decreased by (%) / description - Time for daily maintenance of natural gas buses/trucks compared to diesel buses/trucks: increased / decreased (description) • Regular maintenance intervals: increased / decreased (description) • Frequency of control, inspection of cylinders, how the inspection on cylinders is carried on? • Feedback from drivers (experiences) (description) • Feedback from users (passengers) (experiences) (description) • Feedback from mechanics (experiences) (description) • Fuelling flexibility – Is the filling time / service satisfactory? (What could be improved?) • Is the specific filling time satisfactory (per bus/truck) • What is the real filling time compared to projected time? • Fuelling flexibility – Was the filling of the buses/trucks reliable until now? (What could be improved?) • Were there any incidents/accidents regarding the use of your natural gas buses/trucks (in daily operation, maintenance or filling)? If so, audited person is invited to provide further description (what was the reason which caused accident/incident?) • What is audited persons suggestion / advice for new potential users of natural gas buses/trucks? - 44 -
  • 45. • How adaptation of the garages to accommodate NGVs was managed? (Is there any regulation in place?) • Figures (evidence – garage, depot) • Other (based on experiences) …. • What the new owner should take care on? What are the most critical issues? • Is the fleet operator still keeping diesel buses/trucks? Why? • Failed projects – Why? Identification of such projects • Bus/trucks operator that refused to expand the fleet – identification of such projects • How did fleet operators heard / learned about the NGVs? – mandate by the municipality/government, by NGV people, equipment / OEM manufacturers, by NGOs, public demand, experiences of other operators. Summary of results is presented in this chapter. During preparation of this report, only light editing of this part was made in order not to loose the sense and the spirit of the text provided by auditors. - 45 -
  • 46. 5.2.1. OEM natural gas buses Urban buses represent one of the largest single success markets for natural gas vehicles. Although urban buses contribute only about 2% of overall vehicle sector pollution, these high fuel- consuming vehicles are responsible for exposing large numbers of people to locally produced pollution, including carcinogen-causing diesel particulates. Since each bus represents approximately 10-to-30 residential homes gas consumption, they also can be a very attractive customer for the natural gas industry. The cases below present a wide sample of experiences with natural gas buses that provides a comprehensive representation of the pros and cons of using public transport in the NGV sector. 5.2.1.1. Europe 5.2.1.1.1. Natural gas – bio-methane buses in France (Lille) In Lille urban community, each new bus purchased since 1998 runs on natural gas. Today, approximately 214 buses out of 330 are NGVs. Ultimately Lille hopes to have 100% buses running on natural gas /bio-methane. Lille is planning to fuel the NGV buses with the biogas produced on site at a city biogas facility. In the urban community, 3 bus stations/garages have been created or upgraded (2 operating since 2007). Each bus station/garage is equipped with a slow-fill compression system. By the end of 2008 total of 295 buses were expected to commence operation, with total annual mileage of 12.5 million km (giving an average annual mileage per bus of 42 300 km). A compression unit : bio-methane and natural gas Bio-methane pipe Figure 20 – Lille – Sequedin - Waste organic recovery centre near bus depot site Source: The use of bio-methane as a fuel by the urban bus fleet in Lille (France), Dr. MESTREL Consultancy & Associates (Paris, Zurich, Stockholm) - Safe & Sustainable Urban transportation systems expertise Since September 2007, an organic wastes vaporization centre is operating in Lille-Sequedin. 108 600 tons of organic wastes from cooking, gardening or domestic sources are converted into 4 million m3 of bio-methane annually, equivalent to 4 million litres of diesel fuel. - 46 -
  • 47. The organic waste centre provides fuel for 150 NGV buses at an operating cost similar to diesel-fuelled buses. For the moment, NGV buses are fuelled directly from the biogas production centre but in the future, the objective is to inject the purified bio-methane into the existing gas distribution lines (authorizations are under discussion with administrations). Currently the biogas is being flared rather than fuelling the buses due to a particular regulatory problem that, at this writing, cannot be overcome. The national government wants to regulate the City of Lille’s underground pipeline from the biodigester to the bus depot across the street as if the City were a utility company, which involves an entire change in the regulatory approach to move the gas to the bus depot. Hopefully a resolution to this regulatory/legislative issue will be found soon. The higher purchasing cost for the NGVs is balanced by lower fuel costs in comparison to diesel fuel. Furthermore, NGV-related costs could be stabilized by optimizing the reliability and costs of the replacement parts. Comparison of the costs between CNG and diesel bus on a 600 000 km basis shows € 35 000 (or 17%) difference in purchasing costs (€ 209 000 for diesel bus versus € 244 000 for the CNG counterpart); € 123 000 (or almost 100%) savings on fuel costs and 50% higher increase in maintenance costs. It must be emphasized, however, that this calculation is not representative of other similar cases since in this case maintenance costs of filling stations also are attributed to the buses. Hence, maintenance costs include: security control visit (detailed inspection control), NGV pressurizing station (CNG filling station) maintenance, catalytic exhaust and additional costs for NGV- specific pieces (parts). Total savings is in that case (including filling station maintenance) € 6 000. Conclusions from the Urban Commune of LIlle are that the introduction of bio-methane into the NGV chain brings a very positive result and demonstrates the positive impact us renewable biogas (or natural gas) as an opportunity to use less diesel and improve the environment. Whatever the fuel used (natural gas or bio-methane) the interest of a NGV buses fleet has been demonstrated (lower costs, better reliability of the vehicles, more friendly for environment, etc.). 5.2.1.1.2. The NGVs Experience of "Carris de Lisboa" – Lisbon (Portugal) The "Companhia Carris de Ferro de Lisboa, SA" is the public bus enterprise for passenger transportation in Lisbon, the Portuguese capital. The Carris buses represent the first experience in Portugal with compressed natural gas (CNG) starting in 1998. Presently (February / 2009) Carris has a total fleet of 749 buses, including 40 NGVs. By October 2009 it is anticipated that another 20 CNG buses will be added to the fleet. The Carris fleet is parked in three stations: Miraflores, Musgueira and Pontinha. Presently, the only facility equipped to supply CNG is Cabo Ruivo, hence the NGV buses remain in this complex. There is another complex (Santo Amaro), but it is reserved exclusively for electrical tramways. The first phase" of Carris's NGVs was acquired in 2001. It was composed by 20 CNG buses (Volvo B10L). In the first semester of 2005 Carris acquired a second group of 20 more CNG buses (Volvo also). In the year 2008 Carris decided to acquire a third group of 20 CNG buses. The third group will be composed by 20 CNG buses from MAN, model 18.310 HOCL-NL. This new third group nd of CNG buses will begin its activity in 2 semester 2009. The present document intends to explain the views of the Carris technicians about their experience with NGVs. To elaborate this document APVGN expert and member of the S.G 5.3 (see Acknowledgements) interviewed many technicians and experts from this enterprise (names of audited experts are listed in Acknowledgements also) responsible for: warranty management, maintenance contracts, exploration fleet management and drivers evaluation, maintenance, traffic coordination, and the development and innovation respectively. The mixed views of some of the interviewed experts, expressed below, are transcripted independently of the personal view of interviewer. - 47 -
  • 48. The main task of the expert responsible for maintenance contracts is the follow-up of the fleet’s maintenance contracts. Maintenance plans are prepared by Carris and executed by another associated enterprise (Carris Bus). There are plans for the interventions in each three months, six months and yearly, with individualized control of each vehicle. The plans are elaborated according to the original equipment manufacturer guidelines and experience with other vehicles of same group. The contractual indicators collected include immobilisation rate, damage rate in service and kilometres travelled by vehicle. Figure 21 - View on CNG bus fleet at Companhia Carris de Ferro de Lisboa, SA For the NGVs there is a special plan of maintenance. The spare parts specific of NGVs, namely the valves, spark plugs and pressure regulators, are not included in the maintenance contract. In the first two years of service, all vehicles benefit from the OEM warranty. About the immobilization rate, interviewed expert (for maintenance contracts) explained that it is of 9% for the NGVs first group (B10L) and averages 8.5% for the total fleet (diesel + NGV). About the specific fuel consumption, same expert reported 72.1 normalized cubic meters 3 (Nm ) per 100 km for 40 NGVs and 56.4 litres of diesel for the conventional buses. It must be explained that the topography of Lisbon, known as the "Seven Hills" city, is hilly. For expert responsible for warranty management, the main motivation to introduce NGVs in the Carris fleet was the environmental and energy policy. He considers NGVs buses more expensive than conventional diesel buses and that the maintenance costs are higher, namely the preparation of mechanical personnel, spare parts, electronic control of engine (centralina), ignition bobbin and valves seats. - 48 -
  • 49. About the range of NGVs, the same expert explained that there were problems with the first group, but this problem was surpassed in the second group. The first phase has natural gas storage of 5 cylinders, each with 205 litres (total 1 025 litres) and this capacity enables autonomy of about 230 km. The second group has 10 cylinders, each with 125 litres (total 1 250 litres) and this capacity enables a satisfactory autonomy of about 300 km. Interest has been expressed in the “dual fuel” (natural gas + diesel) system to take advantage simultaneously of the Diesel Cycle and the natural gas. On the other hand, the responsible expert for the fleet’s direct management, reported different experiences with the first and second groups of buses. This is directly related with the characteristics of both groups. The first group’s problem of autonomy is not solved. Questioned by the interviewer about the possibility of adding CNG cylinders in first group vehicles, expert answered that Volvo considered some difficulties to execute this operation. For the expert responsible for exploration fleet management and drivers evaluation and for the expert formerly responsible for fleet maintenance, the delays in the refuelling of the NGVs (about 7-9 minutes) are not a problem. Nevertheless, these technicians posed another two problems: superior frequency of the NGVs refuelling in intensive service (24 hours/day); and trustworthiness of supply. "We would like to be calm in regards to the supply of our single CNG station. If there is a failure in this station all NGV fleet would be immobilized. We are not 100% sure about this subject and therefore we have some insecurity", declared maintenance expert. Expert responsible for exploration fleet management and drivers evaluation corroborated and added: "Our sense of insecurity is lesser now. nd The vehicles of 2 tranche are more reliable and there are fewer damages in service. But there is a risk coefficient. Now the performance of the CNG station is better because Galp Energia – Gás Natural (the enterprise that owns the station) changed the old compressors by two "Galileo" compressors modules of higher capacity and upgraded the gas network from a pressure of 1-4 bar to a pressure of 16 bar". Figure 22 – CNG filling station at Companhia Carris de Ferro de Lisboa, SA - 49 -
  • 50. Another advantage of the new feeder is the quality and reliability of gas. "Before, there were impurities in the natural gas, accumulated in the filter", told traffic coordinator. The team of the fleet’s daily management emphasizes the importance of inlet pressure in the CNG station and asserts that the service became much better after the network upgrade, with pressure elevation. This station works with two Galileo compressors and two dispensers with three hoses. The system operation is in communicating vessels. For this reason, in case of attempt to refuel simultaneously three buses it's not possible to achieve the plain loading of CNG – the system stops before the 200 bar and triples the time of filling. Therefore, Caris prefer to refuel only two buses simultaneously to ensure the total loading and a reasonable refuelling time. “When the new 20 CNG buses arrives this will be an additional source of discomfort and Caris need to solve this problem, perhaps installing a battery of cylinders with pre- compressed CNG", reported expert responsible for exploration fleet management and drivers evaluation. About economic general questions, Development and Innovation Director consider establishing a balance between NGV buses and Diesel propelled buses. NGV buses have a tare more elevated, with reflexes in autonomy; have a superior investment cost (more 25% in average); are less efficient in energy (higher energy consumption, over 30% in general terms); and present higher costs of supply and maintenance (10-15% more). But in economic aspect this disadvantages could be balanced by the natural gas price. "It's necessary that the natural gas price would be lower enough compared to diesel price to permit the recovery of the additional investment cost in a reasonable time, considering vehicles life cycle", state this Director of Development and Innovation. This balance is surely positive in Carris case because of announced a big novelty in enterprise: a second CNG supply post feed with liquefied natural gas (LNG). In other words: a LCNG post. "Since we will have 60 NGVs until the end of 2009, Carris is analysing with Galp Energia Gás Natural the hypothesis for placing of a LCNG facility in Miraflores Complex (executive headquarter enterprise) and, simultaneously, a public CNG post supply". By other side, the LCNG will permit a drastic reduction of electricity costs (presently, at Cabo Ruivo facility, the consumption is 0.2 kWh by normalized cubic meter). The new LCNG facility will be an important and positive novelty for general public, particularly for taxi drivers (about 3 500 in Lisbon municipality), enterprises with little fleets and particular citizens. Carris have a good background of collaboration with other fleets. In spite of CNG facility at Cabo Ruivo is for private use, at September 2006 Carris signed an agreement with State Secretary of Transports and APVGN extending the use for private NGVs. Some conclusions (by auditor) APVGN representative and S.G 5.3 expert audited some technicians with strong sentiments favourable to classical Diesel Cycle fuelled by diesel fuel. These technicians are concerned with the operational aspects of public transportation and have the responsibility to maintain the system working on a daily basis. Therefore, they don't want to take any chances and all pioneer projects have some risks. The fact that there is only one available CNG station (at this moment) is an additional source of anxiety. This problem could be solved immediately because there is a private refuelling station from another enterprise, located at about 15 km from the Carris station (Valorsul, at São João da Talha). It would be possible to elaborate an agreement between the two enterprises in case of emergency supplies, but this possibility must be negotiated by the administrations of these two enterprises and surpasses the operational technicians’ competences. In auditor opinion, corroborated by the Carris technicians, the main question for an bus enterprise that wants to launch the CNG solution is the careful preparation of the system logistics (feeder station, compression capacity, CNG buffer stock, maintenance manpower) and the specifications of buses (autonomy is a crucial question in urban service). On the other hand, the fact that a CNG station is not owned by the auto bus enterprise but by the gas enterprise has advantages and disadvantages. It's positive to facilitate the decision for NGVs (no investment for bus enterprise) but by other side could pose an additional complication for decisions about improvements in station (contract questions). - 50 -
  • 51. 5.2.1.2. Russia 5.2.1.2.1. OEM natural gas buses in public transport in Moscow Natural gas buses are operated by company Mosgortrans owned by Moscow municipality. Natural bus fleets consists of: • 50 buses Ikarus-280.33, articulated (Raba, Hungary) with G-10 - dedicated natural gas; 6-cylinder in-line; compression ratio 11.0 – 12.7; 190 kWt (250 hp) @ 2 100 rpm; torque 1 130 Nm @ 1 300 rpm. • 12 buses LiAZ-5292.37, 1 bus LiAZ-5256.57 single (12 m), and 1 bus LiAZ-6212.PG articulated (producer is LiAZ, Russia) with Cummins CG-250 30 - 6-cylinder in-line; dedicated natural gas; 8.3 l; 186 kWt (250 hp) @ 2400 rpm; torque 1 017 Nm @ 1 400 rpm All buses are using Type 2 CNG cylinders 8 x 50 litre (water capacity) per bus and average annual mileage travelled is 60 thousand kilometres per bus. Ikarus-280.33 LiAZ-5292.37 Figure 23 – CNG buses models in operation in Moscow – Russia At the time survey (audit) was conducted (December 2007) specific costs of diesel fuel and natural gas were € 0.46/litre and € 0.21/m3 respectively. Cost of diesel and gas engine oil was € 1.80/litre and € 2.61/l (45% higher then for diesel engine oil). Engine oil replacement is 25 litres per every 10 thousand kilometres. Real life experiences from fleet operation are showing: • Average annual fuel costs savings of € 4 160 per bus (for Ikarus buses) and € 3 750 per bus in case of LiAZ buses. • Additional cost of engine oil is € 20.24 per natural gas bus per year (due to more expensive engine oil for natural gas engines). • Tire's wear is same as diesel modification. - 51 -
  • 52. 5.2.1.3. Asia-Pacific region 5.2.1.3.1. OEM passenger bus fleet in the City of Adelaide, South Australia The passenger bus fleet serving the City of Adelaide, South Australia, and the surrounding metropolitan area (a population of the order of one million) was the first in Australia to make a material commitment to NGV buses, ordering 100 OEM MAN model SL 202 buses delivered during 1992 and 1993 and a further 100+ (model NL 202 & NL 232) buses delivered from 1994 to around 1997. These purchases followed the successful conversion and trial of six earlier model MAN buses, three of which were diesels which had been converted to LPG and three which were converted to natural gas directly from diesel. The team that managed the trial was made up of employees from the University of South Australia (UniSA), the (then) State Transport Authority (STA) and the (then) South Australian Gas Company (SAGasCo). At the time the STA, a State Government entity, owned and operated the fleet which totals around 750 buses and SAGasCo was a vertically integrated, listed gas utility, distributing and marketing natural gas throughout metropolitan Adelaide and in a number of regional cities and towns. The fleet operated from six metropolitan depots, each containing a maintenance workshop and the STA also operated a large well equipped workshop where major work such as engine testing and rebuilds, body repairs etc. were undertaken. The mid nineties saw considerable change at both STA and SAGasCo. The former set about restructuring resulting in the day to day operation and maintenance of the fleet being contracted out to private enterprises, largely on the basis of the operating cost per kilometre offered by the respective tenderers. In the early days there were three contractors but around four years ago, one contractor (Torrens Transit, or TT) was successful in procuring the contract for virtually the entire operation. Because the buses are owned by one party and operated by another, it was necessary to interview each to obtain an understanding of the performance and acceptability of the natural gas buses in the fleet. Understandably, the operations contractor, TT, was reluctant to divulge detailed operating cost data due to the fact that the current five year contract will expire during the next six months and TT wishes to keep all such information confidential before tendering for the new contract. It should be noted that the persons interviewed on behalf of both the owner and the operator were not involved in the decisions to purchase NGV buses. The reasons for the decision are offered by the interviewer who had a significant involvement in the project during the time leading up to the decision. It is of relevance that the required modifications to the first depot workshop were made by the (then) STA in consultation with SAGasCo and the design and supply of the refuelling plant was the responsibility of SAGasCo. UniSA provided advice and assistance on matters of engine modification and developed a sophisticated on-board emissions monitoring and performance evaluation package. - 52 -
  • 53. Fleet owner response: It is generally agreed that the primary motivation to introduce natural gas buses to the fleet is for environmental reasons and less for economic considerations. The State Government saw natural gas buses as a practical, cost effective means of reducing urban air pollution following the success of field trials conducted by the project team. The abundance of natural gas from local sources was also a factor. The main reason for continuing with the NGV programs that their performance generally has been satisfactory and it would be too expensive to replace them ahead of their projected 25 year life. At this time there is no plan to increase the number in the fleet. The main reasons for not continuing to order natural gas buses are the view by the present Government that bio-diesel represents a “greener” option and the maintenance costs of the natural gas buses is prohibitive. It is recognised that the price gap between diesel and natural gas is widening in favour of natural gas and may warrant a review. Maintenance costs and specific maintenance issues would be better discussed with the operator but there is no doubt that the natural gas buses are more expensive to maintain by as much as 30%. Heat generation and consequent component deterioration/failure (engines, brake drums, transmissions etc) require more frequent repair/replacement. Also the complexity of the engine control components leads to down time often requiring several field trips for maintenance staff (who tend to be diesel mechanics as opposed to technicians) before resolution. Regular maintenance intervals are much the same as for diesels. Storage cylinders must be inspected at five yearly intervals and must be replaced after 15 years. This adds to costs and down time. Fuelling flexibility was hampered by the fact that originally just one depot had a refuelling plant. This is less of a problem now that there are facilities at four depots. There has been downtime on relatively few occasions because the depots are given priority in the odd event of an electricity or gas supply restriction or failure. The refuelling plants have proven to be very reliable, rarely out of service except for programmed maintenance. Refilling times have been quite satisfactory; they have operated as specified times comparable with diesel. Only (technical) incident worth reporting is in early days refuelling hose, while unattended, became pressurised and ruptured. A suggestion from the fleet owner would be to purchase vehicles employing simpler and/or more reliable technology, and to employ appropriately skilled maintenance staff. Buses are garaged outdoors overnight (temperatures in Adelaide rarely fall to zero). The workshop areas were modified by upgrading ventilation and the inclusion of high level lightweight “explosion panels”. There were few specific regulations available at the time the first buses were introduced. Subsequent national (and international) regulations incorporated some of the innovations put in place at the first NGV depot (Morphettville). Diesel buses are still kept because they are considerably less expensive in terms of capital cost and because the present Government is supporting the bio-diesel industry. - 53 -
  • 54. Fleet operator response: The reasons behind the decision to introduce natural gas buses are not known. It was a decision made by the State Government of the time, probably because gas buses were perceived as “greener” than the diesels available at that time. Decisions regarding the composition of the fleet are the prerogative of the owners. The buses are only part way through their projected life and premature replacement would be costly. The natural gas buses in the fleet are very much more expensive to maintain than the diesels. There are three models in use, MAN SL 202 (100X) and MAN NL 202 and NL 232 (about 110 in total, low floored) as well as six earlier model MAN diesels, converted for field trials and just one Scania. The NL buses have roof mounted storage cylinders at the front. The extra weight on the front axles is thought to have caused the shorter tyre life than the diesels and the SL NG buses. Typically the latter have a life of 90 000 kilometres whereas the NL series natural gas buses’ front tyre life is typically 45 000 km. The major cause of the high maintenance cost is that the natural gas bus engine operating temperatures are considerably higher than diesel engines and there appears to have been no provision made for the additional heat generated to dissipate. The problem is exacerbated considerably in the newer low floor fleet, in which more frequent floor replacement is anticipated (three over the 25 year bus life compared with just one for the diesels and perhaps two for the earlier, SL, series). The cost is around A$ 20 000 each. The most significant cost increases are incurred by the need to bring forward engine maintenance and the replacement of major components (which, in some instances are becoming difficult and/or costly to procure). Overheating leads to: • valve replacement and engine “top half” repairs @ 350 000 km and approx 700 000 km for diesels; • complete engine rebuild @ 500 000 km compared with 1 000 000 km for diesels; cost = A$ 20 000; • replacement of engine mounts @ 18 months on NL series buses and of diesels @ 20 years; • frequent replacement of gear box/diff, especially on NL series buses (@ around 350 000 km); • higher oil consumption overall due to more rapid engine wear; (not an overly excessive cost); • unacceptable working environment for mechanics working in pits beneath “hot” buses. A small number of the newest buses are used almost exclusively on an inner city “loop” run, which does not allow them to attain normal road speeds. This service exacerbates the overheating difficulties (example: gearboxes need replacement at mileages as low as 180 000 km). The low floor buses are configured in such a way that the exhaust catalytic converters are fitted so low to the ground that they are frequently damaged/dislodged necessitating replacement at a cost of up to A$ 7000 a piece. As alluded to above, the procurement and pricing of replacement components is increasing maintenance costs, some examples being: • a replacement rubber hose (not a high pressure hose) quoted @ A$ 1 800 • an oxygen sensor quoted @ A$1,000 when a comparable unit costs A$ 85 • huge overpricing of spark plug bases etc. - 54 -
  • 55. The overall conclusion regarding the additional maintenance costs of the natural gas fleet is that, very approximately, the older SL series are around 20% and the newer NL series some 30% above the diesel equivalents. An additional point made was that the sale of a 25 year old diesel bus would currently fetch around A$ 7 000 whereas the natural gas buses would not be saleable due to the dearth of filling stations outside of the bus depots. The operators identified an area of even greater concern over and above the costs of traditional maintenance, which was a tendency for the natural gas buses, after four or five years, to begin to stall while in service (three or four hours after leaving the depot) for no apparent reason. The problem appeared to be in the sophisticated electronic engine control system and can only be corrected by uncoupling an externally mounted, (roadside!), 20 pin plug/socket and re-coupling after about three minutes. Cylinder inspection frequency is five yearly and the current requirement is to replace them after 15 years of service. Inspection (A$ 100 per cylinder) and replacement are handled by contract. An annoyance is the fact that some cylinders are received up to three years after manufacture, effectively reducing their useful lives by that period. Training and experience of mechanics is very diesel-oriented and the perceived over- sophistication and temperamental nature of performance of the natural gas buses, particularly the NL series, has caused widespread disenchantment with the mechanics. The operator recognises the growing need for technicians as opposed to mechanics to better service the fleet, as diesels too become more sophisticated and bio-diesel becomes more entrenched. Refuelling has not, to date, caused any major interruption to fleet operation. Inevitably there is down-time associated with station maintenance but this is carried out in a well planned way. There are now four refuelling stations in operation which has added a considerable degree of overall supply security. The filling time specified from the outset was four minutes and this remains appropriate and is achieved. The tendency nowadays is to add a small amount of extra storage at new stations which has paid off. Overall, refuelling has met all requirements and has been very reliable. Intending users should make themselves aware of the sorts of vehicle inadequacies described above and if still wishing to pursue the NGV option, choose vehicles that are perhaps less sophisticated, designed, built and supplied with the application in mind (simpler body configuration, ease of maintenance, after sale manufacturer support, employee training, etc). Comments & Observations from the auditor The interviews were of considerable value in helping the interviewer understand some perceptions and, more importantly, some apparent misperceptions in the minds of the fleet owners and the operators. It is accepted that the interviewer’s perceptions may be swayed as a result of having had a close association with the NGV industry for 25+ years. Readers are advised to consider the following comments and observations in that context. First, the owners and operators have rather different objectives. Both fundamentally wish to provide a cost effective and reliable service but the owner (an agent of State Government) is want to demonstrate an awareness of and concern for the environmental issues. Indeed the owner was well ahead of it’s time in this regard. The operator is less concerned about environmental issues and very concerned about cost effectiveness and reliability. After all, contracts are awarded largely on the basis of the overall cost per kilometre offered by the respective tenderers. In it’s defence, the operator genuinely believes that diesels, with which it has a depth of experience, are, nowadays, environmentally superior to natural gas buses which consume a greater quantity (up to 10% more in energy content terms) of fuel because they do not (yet) match the efficiency of diesel engines. This would appear to be an area in need of urgent attention by the NGV industry. Neither party seem to be aware of, or if they are, concerned about, carcinogenic particulate matter emissions from diesels. - 55 -
  • 56. The operator employs maintenance staffs who are primarily diesel mechanics and maintaining a diesel fleet is “bread and butter” to them whereas natural gas buses present a challenge (especially these early models) due to their complexity and due to the lack of manufacturer support and availability and cost of parts. It is now a decade since the owner last ordered natural gas buses and presumably the OEM models now available are reliable, fully OEM supported and more fuel efficient. During discussion it was claimed that future city buses will be diesel electric hybrids costing 20% less than current models (which cost around A$ 475 000) and offering fuel consumption reduction of up to 35%. It would seem to be imperative that the NGV industry urgently pursue the development of gas powered hybrid buses with the respective OEMs. Simplicity in design, from engine control systems through to elementary panel configuration (to facilitate heat dissipation) would seem to be a basic requirement… surely a fundamental consideration? The current use of bio-diesel (15% in diesel) is likely to grow in the near future, perhaps to 35% blends possibly because of successful lobbying on the part of the farming community and of course it provides an opportunity for Government to reinforce it’s environmentally aware image. Interestingly, the operator expressed the view that bio-diesel presents challenges with respect to maintenance due to suspected departure from specification. One wonders what effect out-of-spec fuel has on emissions. There is an irony regarding the use of natural gas in the Adelaide bus fleet; it would seem that, in the longer term a high price has been paid as a result of the fleet becoming the early adopter of a new technology so many years ago. There seems to be no recognition that in pioneering a major new concept there would be an accompanying risk. Further, even if capital cost and maintenance cost have been of the order of 20%-30% higher than for diesels, the fuel cost difference, even over the past 15 years, would have resulted in minimal increased overall cost. What of the future? First it is worth noting that the Government owners of the Perth and Brisbane bus fleets continue to purchase natural gas buses and that there are currently around 1 000 natural gas buses operating quite satisfactorily in the major cities of Australia. So far as the Adelaide fleet is concerned, the increasing gap between diesel and gas prices cannot be ignored. Nor can the possible emergence of hybrid buses. At present (August 2008), diesel costs are around A$ 1.80 per litre including an excise of 38c per litre. Gas is available to large volume users for around 35c per equivalent litre of diesel. Assuming diesel is exempt from excise for the bus fleet there results a cost difference of around A$ 1.00 per litre equivalent. This suggests a very significant fuel cost saving is available when extrapolated over the entire 750 bus fleet. It might well be that economic considerations force a review in the medium term. 5.2.1.3.2. OEM passenger bus fleet in Hamilton - New Zealand Main reason behind decision to introduce natural gas buses is cost reduction. Company has operated CNG buses since 1991. Cost reduction is the main reason for decision to continue with natural gas buses in the fleet. Increase in costs for tyre wear is around 2%, with very slight reduction in engine oil costs. Overall maintenance costs are 2% lower. There are savings on the fuel costs but respondent was not able to estimate the level of actual fuel costs reduction. Daily maintenance is different compared to diesel because of the need to bleed compressor oil out of the system. The compressor is often operating at capacity which increases oil carryover. It is too costly to modify the refuelling equipment to reduce the oil carryover. - 56 -
  • 57. As regards regular maintenance intervals, annual visual inspection with torch and mirror is carried out. Cylinders are not removed during the 20 year life. Type 4 cylinders roof mounted in a compartment. Feedback from drivers (experiences) shows that the only difference between the MAN diesel and the Cummins gas engine is that the diesel has higher torque at low rpm. Once the bus has moved off, the performance of the gas engine more than makes up for the low torque at takeoff. This applies to this model of gas engine and would be different for C series Cummins gas engine. Passenger considers natural gas buses quieter (no other issues). Reported feedbacks from mechanics are that they consider natural gas being cleaner than diesel. Natural gas buses require less maintenance. Spark plugs last 100 000 km. Every 20 000 km is maintenance of tappets performed. Wipe ignition system with a rag to clean. No gas detectors in workshops are needed. As regards fuelling flexibility, trickle fill is applied with 36 buses filled overnight. Buses will run 600 km unloaded. Usually storage is only about half depleted. There are 50 gas buses only 25 of which are required on a day to day basis. In fact, there are too many cylinders on the buses. Since 1991, there have only been 3 days where gas has not been available and 2 of those were scheduled maintenance. There have been no incidents involving trickle fill. Respondent advices for new potential users of natural gas buses are to evaluate actual requirements for refuelling, need to carefully plan bus duty, driver roistering, bus fuel storage, refuelling and refuelling system, consider the need for trickle fill and fast fill (taking gas temperature compensation in case of fast fill into consideration). Buses really only are feasible from depots to which they return overnight. Final advice is to purchase new buses, not conversions. 5.2.1.3.3. OEM passenger bus fleet in Chuncheon - Korea Korea executed government policies for natural gas buses, which was the reason behind decision to introduce natural gas buses in Chuncheon. The main reason to continue with introduction of natural gas buses is experienced fuel cost- savings firsthand. Natural gas buses inside fleets are manufactured between 2002 and 2008. Reported operational costs increase / decrease are as follows: • Compared to diesel buses increased costs: tire wear for 30%, breaking pads wear for 10%, drums, tire wheel hubs and disks for 5%, engine oil 200% and spare parts for 300%. • Costs of transmission oil are equal to diesel buses. • Fuel costs are 60% lower. General conclusion of the respondent is that increased weight (due to cylinders) and high price of the CNG parts make the maintenance cost increased in case of CNG bus compared to diesel bus. Reasons for high maintenance costs are considered to be unreasonably too high costs of spare parts charged by the OEMs, also requiring for parts to be replaced instead of repairing them. Furthermore, supplier of the parts was not in position to sell parts directly. Initially, many of the engine parts had quality issues, but through the re-design and improvements, the durability has been improved a lot recently. - 57 -
  • 58. It is expected that maintenance costs of new CNG buses will be much less in the future. However the most important item which is fuel (CNG) makes the total maintenance cost decrease. Time spend for daily maintenance of natural gas buses compared to diesel buses is slightly increased due to the high-tech systems involved. Regular maintenance intervals are about the same. Drivers reported that the noise and exhaust fumes are decreased but the generating power of starting is much poorer than diesel buses. Passengers feel no exhaust fumes and a smooth, comfortable ride. Mechanics reported that disks get worn more frequently due to the continuous ticking of the engine when started. As regards fuelling flexibility, the refuelling facility (in this respective case) is not large enough to serve the buses. There are always buses lined up, waiting to be refuelled. Sometimes the waiting takes longer than the actual filling of the gas. Nevertheless, fuelling process as such was until now reliable. Respondent’s conclusion is: “Natural gas buses have many advantages and disadvantages. However, we should first and foremost focus on the environment and encourage the use of natural gas buses”. Based on experiences, respondent would like to suggest the following: to increase the number of fuelling stations, especially near the bus companies, make the fuel tank lighter than now since heavy tanks burn more fuel than the light ones, cut down on the prices of natural gas buses, develop a solution to remedy the start-up issue and reassure customers that buses will not explode due to overheating. 5.2.1.4. North America 5.2.1.4.1. Hamilton Street Railway – The World’s First CNG Transit Fleet It was more than two decades ago when a forward-thinking Canadian partnership led to the creation of the world’s first compressed natural gas (CNG) transit buses. Hamilton Street Railway (HSR) collaborated with government partners to convert seven diesel buses to CNG operation in 1985. This effort launched the world’s leading alternative transit bus technology, a technology now in use for more than a quarter of a million transit buses, reducing greenhouse gas and air contaminant emissions in urban centres around the world. How It Began In the mid-1980s, municipally-owned transit provider HSR was looking for a lower emission alternative to diesel buses. Hamilton is an industrialized city located on Lake Ontario. The ninth largest city in Canada with a population of approximately 518 000, Hamilton is home to two major steel producers who manufacture 60% of all steel in Canada. Incorporated in 1873, HSR has a long and rich history. Originally part of the local electrical company, the company began offering railway services in and around the Hamilton area in the late 1800s. Railcar propulsion was initially accomplished by animals with electrical propulsion introduced in 1892. Electric rail services were replaced by electric trolley buses in the mid-1900s. A funicular railway allowing passengers to travel directly up the Niagara Escarpment also operated from the late 1890s to the mid 1930s. - 58 -
  • 59. The conversion of seven diesel buses to CNG in 1985 was undertaken with funding and technical assistance from both the Province of Ontario and Natural Resources Canada. Grants of up to 75% of the vehicle cost and 100% of the station capital cost were provided. Support was also provided by the local natural gas distribution company, Union Gas, and ORTECH, a provincial government research organization. Hamilton’s lead with CNG transit was quickly followed by other Ontario municipalities including Toronto, London, Mississauga, and Kitchener-Waterloo. In conjunction with Toronto and Mississauga, HSR went on to place the first production order for CNG buses with Ontario Bus Industries, a company acquired by the former DaimlerChrysler in 2000. HSR also developed a policy to support ongoing CNG bus purchases which eventually resulted in more than 100 CNG buses operating within the fleet. At present, HSR’s transit buses are used up to 22 hours/day and services are provided to 20 million passengers each year. Why CNG? Initial CNG interest at HSR was driven by a desire to find an environmentally friendly alternative to diesel buses. CNG had substantially better environmental performance with the ability to significantly reduce diesel particulate emissions characterized by the dark exhaust plumes emitted by diesel buses. The CNG buses were used for demanding downtown routes where their lower exhaust emissions would provide maximum benefit. The greenhouse gas benefits of CNG were not even given consideration in the 1980s as air quality and public health issues dominated the public policy agenda. The lower cost of natural gas compared to diesel was another benefit. A three-year, comparative cost analysis conducted by HSR between 1994 and 1996 found that CNG transit buses were less expensive to operate on a cost per kilometre basis before factoring in station capital and maintenance costs. Natural Resources Canada profiled HSR’s success with CNG transit buses in a FleetSmart report. An additional benefit of pioneering and using CNG for transit was the positive public image that was created for HSR. In recognition of its leadership in using a lower impact transportation fuel, HSR was recognized by the Transportation Association of Canada receiving its first ever Environmental Achievement Award in 1995. HSR Transit Fleet Use of CNG Today, there are 94 CNG transit buses in HSR’s fleet of 211 buses. In addition to the CNG buses, HSR operates 12 diesel electric hybrid (DEH) buses and 105 conventional diesel buses. The majority of buses are 40’ in length. There are seven 60’ articulated DEH buses in the fleet with another 18 - 60’ DEH buses on order. All buses have been purchased from either New Flyer Industries in Winnipeg, MB or from Daimler Buses North America (Orion brand) in Mississauga, ON. As a result of a recent change, HSR now plans for a 12 year bus life rather than 18 years which were formerly the norm. Buses are operated out of a single bus garage with a fast fill refuelling station supplied by IMW Industries of Chilliwack, BC. Responsibility for the eight year old fuelling station rests with the City of Hamilton’s Fleet and Facilities department, rather than with HSR itself. The station currently consists of four compressors (two doubles and two singles) which allow for CNG bus refuelling in 12-15 minutes per bus. Diesel buses are refuelled in 6-7 minutes per bus. A station upgrade would allow for CNG buses to be refuelled at the same rate as diesel buses and could support an expansion of the CNG fleet. Both diesel fuel and CNG are purchased on contract with responsibility for fuels procurement residing outside of HSR and within the City of Hamilton. HSR has experience operating CNG buses with three of the four generations of natural gas engines. - 59 -
  • 60. Table 11 - Generations of natural gas engines used by HSR CNG Engine Engine Manufacturer CNG Engine Model Status Generation st 1 Cummins L10 Retired nd 2 Detroit Diesel Series 50 50 on road Cummins 8.3 24 on road rd 3 Cummins Westport C Gas Plus 20 on road th 4 * Cummins Westport ISL G - * - There are no 4th generation natural gas buses in the HSR transit fleet. CNG Transit Bus Operating Costs Recent HSR analysis shows a higher maintenance cost for CNG buses of CAD $0.93/kilometer compared to CAD $0.66/kilometer for diesel buses. These figures reflect experience with the blend of CNG engine technologies noted above, and they do not include station operation and maintenance costs. The analysis also does not incorporate fuel pricing. CNG is typically 15-40 % less expensive than diesel fuel in Canada. A separate assessment of the operating costs associated with the most recent generation of engine technology in HSR’s fleet (C Gas Plus) was not available. HSR aggregates operational data based on all vehicles in its transit fleet, so any fuel consumption or maintenance costs benefits associated with newer generation engine technology cannot be identified. In order to integrate CNG transit buses into its fleet, HSR staff was trained in CNG transit bus maintenance, refuelling, and safe workplace procedures. Mechanics were required to take a course on maintaining internal combustion natural gas engines. Service line staff responsible for refuelling buses were trained and certified as compressor operators. The local government authority with jurisdiction fuels requires that a compressor operating engineer must be on site for each operating shift. CNG fuel storage cylinders are visually inspected. At present, cylinder life is specified to exceed the vehicle life, so separate hydrostatic cylinder testing is not required. HSR had early experience with premature pressure relief device (PRD) failures attributable to missing and ultraviolet- degraded protective caps. As a result, HSR staff now ensures that protective caps are visually checked and replaced if there are signs of degradation as part of annual vehicle inspection work. In HSR’s experience, CNG buses require preventative maintenance tune ups every four months and, compared to diesel buses, the maintenance schedule must be strictly followed to ensure good performance and vehicle reliability. HSR has experienced more mechanical problems with its CNG buses, particularly in extreme weather conditions. The CNG engines typically run at higher temperatures and, on very hot days, there can be issues with re-starting the older CNG buses. Coupled with municipal anti-idling bylaw requirements, this high temperature issue can be a challenging one for HSR drivers to manage. HSR has found that there are noise level differences between CNG and diesel buses with some CNG buses being noisier and experiencing more vibration. Industry experience suggests that early generations of both CNG and diesel buses were noisier than today’s buses due to the design of the vehicle’s hydraulic cooling systems. Drivers have also commented on reduced power when climbing hills with fully loaded CNG transit buses. - 60 -
  • 61. Lessons Learned In pioneering the development of CNG transit bus and engine technology, HSR has clearly led the way for transit operators around the world. HSR has also gained a wealth of operational experience and, in this regard, can point to many lessons learned. There are operational differences with CNG transit buses and these differences can be effectively managed. HSR had to adapt and modify its operational procedures in several ways to accommodate CNG buses in its fleet. For example, HSR’s experience with CNG transit bus and station maintenance has led it to carry a higher ratio of spare parts, so as to ensure that maintenance tasks are not constrained by parts supply. Additional training requirements were integrated with other staff training needs. Bus refuelling was consolidated at a single garage to simplify and streamline operations. Provincial funding conditions that restricted transit fleets to applying a “First In, First Out” policy for vehicle replacements had made it more difficult to manage fleet issues. When this restriction was lifted, HSR found they had greater flexibility which helped with managing early generation CNG bus issues. Government needs to be engaged and actively support alternatives over the long term. At present, there is no permanent funding for transit bus purchases in Canada. In the past, the Province of Ontario provided incentive funding for CNG buses equal to one-third of the capital cost of the bus. With the end of this provincial funding, HSR lost a significant support for their decision to continue to choose CNG for transit buses. With governments focused on air quality, carbon reduction, and achieving greenhouse gas reduction goals, reinstating funding support for lower carbon alternatives like natural gas directly support public policy objectives and reward fleets like HSR who choose to integrate lower emission technologies into their fleet operations. Ongoing recognition for fleets is an important element of a successful permanent transition to lower emission fuels and technologies. Developing lower emission fuels and technologies is just the first step. Supporting early adopter fleets throughout the vehicle lifecycle is critical to creating real world change. Alternatives to the status quo may introduce greater complexity for fleet operations. Fleets need recognition and support from all levels including their own communities in order to stay the course once a change has been made. HSR is looking to 2010 and wondering how the performance and maintenance of diesel bus technology will change. Until now, HSR’s experience suggests that managing their CNG fleet has been the more complex task with early generation technology continuing to pose challenges related to spare parts, and station and vehicle maintenance costs. As diesel technology incorporates increasingly more complex systems to meet the new emission standards, the differences associated with natural gas may be less of an issue. Natural gas engine technology is much improved and only requires maintenance free catalyst after-treatment to meet the 2010 emissions regulations. Leveraging the CNG fleet as a means to introduce very low emission fuels such as hydrogen or biomethane produced from waste biomass are not under consideration at present at HSR. Bus procurements over the next two years will focus on conventional diesel and DEH buses. For the natural gas vehicle industry, the impact of HSR’s contribution to natural gas transit bus technology development has been positive and significant. It can also be said that HSR’s experience in transitioning from the early adoption raises several important questions for the natural gas vehicle industry: • How to ensure that there is ongoing funding support for vehicles and for station equipment and upgrading? • Who manages the relationship with the customer (fleet) in a deregulated natural gas distribution environment? • How to ensure that transit fleets like HSR receive the support of their transit industry colleagues to network and share operational information regarding natural gas bus operations? - 61 -
  • 62. • What is the best means to communicate up-to-date information about the economic and environmental performance of natural gas transit buses? • How can local allies whose focus includes air quality, public health and carbon reduction goals be cultivated and engaged at the community level to support a fleet’s choice to use a lower emission fuel like natural gas? • How to ensure that all appropriate municipal contacts (transit fleet, fleet services, fuel procurement, planning and environmental) are engaged at an early stage to build broad understanding of the positive economic and environmental case for natural gas for transit? From the auditor: The Canadian Natural Gas Vehicle Alliance would like to congratulate HSR for its leadership and vision in creating the world’s first clean air urban transit fleet based on lower emission natural gas transit bus technology. Hamilton led the way, and now the world has followed! Figure 24 - New Flyer bus with Cummins Westport Figure 25 – HSR CNG transit bus C Gas Plus engine Figure 26 - CNG bus refuelling at HSR bus garage - 62 -
  • 63. 5.2.1.5. Conclusion on real life experiences using OEM natural gas buses Information collected in direct contact (through audits) is also supported with information collected through basic ‘desk research’. The main source of information originated from an excellent review paper by G.M.Watt produced for the IANGV as a snapshot of the existing experience with NGV 7 transit bus fleets from information gathered from the USA, Canada, Asia, Japan and Australia . The IANGV report refers to bus products from the 1990 – 2000 period (basically to the first generation of the natural gas buses). The IGU S.G. 5.3 survey covers the 1990 – 2008 period (hence, refers to the first and second generation of the NGV buses). Some of the predictions from the IANGV review paper are substantiated in practice by the IGU cases from the 2000 – 2008 period. This especially applies to the engine reliability, maintenance and fuel economy problems largely overcome in the second generation of buses. The most important results of this IANGV paper are highlighted below, with the IGU S.G. 5.3 survey to be treated as an independent analysis with results compared to the results of the survey made by IANGV. Table 12 – Comparison of IANGV Review paper conclusions and results of S.G. 5.3 survey IANGV Review paper – conclusions Results of S.G. 5.3 survey • Usually success has been achieved through the • Results of the S.G. 5.3 successful cases analysis combination of a long-term commitment and motivation indicate the same. by the whole organisation (especially to maintenance and training), fuel cost savings and the need to meet strict environmental performance. • NGV buses typically cost between 10% and 25% more • This is confirmed through this IGU survey but also than their diesel equivalents. through IGU NGV Technical and Commercial Data Base. The differences in purchase costs and efficiency are offset through the fuel costs, which are generally lower. • The fuel efficiency of natural gas buses is not as good • The question on the specific consumption was not as diesel buses and reports of 10-15% decreased fuel directly asked during the audit since the emphasis efficiency are common. When a vehicle shows much was placed on the operating costs (fuel costs, higher natural gas fuel consumption (25-40%) drivers maintenance etc.) (Lower efficiency, to a certain should be monitored and retrained. Rarely are such extent, is reported in some cases, i.e. Portugal, levels due to the gas engine unless they involve an old Australia). There is a difference in efficiency and conversion technology. torque between diesel and natural gas engines, but other parameters such as driving habits also prevail (i.e. tire wear which is the same as diesel, also can be linked directly to driver’s behaviour). • NGV buses have range and payload restrictions in • True, but improvements are made in new comparison to diesel buses, but the importance of this generation of buses using aluminium and/or depends on the duty of the buses. composite cylinders. 7 Glen M. Watt, “Natural Gas Vehicle Transit Bus Fleets: The Current International Experience”, IANGV – Review Paper, Gas Technology Services, Australia - 63 -
  • 64. Comparison of IANGV Review paper conclusions and results of S.G. 5.3 survey – cont´ IANGV Review paper – conclusions Results of S.G. 5.3 survey • Maintenance garages normally have been set up to • Confirmed handle diesel fuel and vehicles. Since natural gas is lighter than air and dissipates upward, adequate ventilation is required at the ceiling-level in workshops. Sometimes explosion-proof lights may be prescribed by regulation. • Maintenance of NGV buses may be more expensive • This can be confirmed. Analyses show that and it has been consistently reported that, at best, maintenance costs are reported to range from 2% maintenance costs of NGV buses are equal to diesel lower to 50% or higher. This leads to the equivalents. NGV parts are generally more expensive conclusion that training and organization of due to lower volumes. maintenance services have a stronger impact (approach to natural gas buses maintenance is • Some operators, particularly in the USA and Canada, often equal to approach of servicing diesel buses). report maintenance costs up to 40% more than diesel Also, spare parts are reported to be more buses, although others, report lower costs. It should be expensive (but this generally is due to lower noted however that this comparison has been made on volumes and because whole component buses that were designed in the early 1990s and do replacements some times are needed/ used in not reflect the later generation of buses. practice. In some cases, maintenance costs for the filling stations are attributed to buses; hence results are not fully comparable. • Training of maintenance staff and drivers - it is • Confirmed – see the comment above considered essential that all staff involved in NGV buses receive adequate training for their roles as part of the introduction of the NGV buses. • Reliability of NGV buses may not equal equivalent • Confirmed. Second generation OEM buses have diesels - it has been often reported that the NGV largely overcome initial problems. buses introduced in the early to mid-1990s did not have the reliability of diesels, but recent reviews however all report improvements in NGV engine reliability, but NGV bus engines are still rapidly developing, with the latest fuel injection technologies offering great promise in combustion efficiency, emissions and reliability. To conclude, the 1990s OEM NGV buses suffered reliability, maintenance and fuel economy problems but by the late 1990s, OEM buses had largely overcome these problems. IGU S.G. 5.3 survey showed the huge difference between the first and second generation OEM natural gas buses. We can conclude this section with the remark of Mr. Clark (auditor and project participant in the Adelaide natural gas buses project) that natural gas buses have come a long way since the early nineties in terms of reliability, thermal efficiency, emissions performance, and maintenance costs. They now compare favourably with diesels on all of these aspects, and the surveys done for this project confirm that conclusion. It is acknowledged by both supporters and critics that: NGV parts generally are more expensive due to lower volumes produced, and that natural gas, heavy duty engines still are in the early stage of their product development cycle and will continue to improve. Likewise latest and most advanced diesel engine technology with more sophisticated catalysts, and especially the selective catalytic reduction systems (SCR) will be more expensive to maintain and will result in somewhat decreased performance that should narrow the gap between natural gas and conventional diesel systems. We must acknowledge the sacrifices made by the "early adopters" and their tolerance for new technology adoption, hoping that any negative experiences are seen in the light of "pioneering" and that they will remain positive about NGVs so that they are not reluctant to purchase newer generation technology that will have advantages over the earlier generations. - 64 -
  • 65. 5.2.2. Dual Fuel LNG/CNG trucks in long distance haulage 8 Introduction Most of today’s heavy duty NGVs – garbage trucks, delivery vans and buses – have been re- designed as spark-ignited, dedicated (natural gas only) engines. While it has been difficult to achieve the same efficiencies as the traditional diesel cycle engine, work continues on both lean burn and stoichiometric strategies to balance and optimize both performance and emissions. Since the early 1980s, however, another approach began emerging: the dual fuel diesel engine. These systems ‘fumigated’ natural gas into the engine through the air intake manifold. At idle the engine ran on 100% diesel. As the driver accelerated an increasing amount of natural gas entered the cylinder chambers. At full power the engine operated on 80% natural gas and 20% diesel; enough to ignite the natural gas through the heat of diesel combustion. The early mechanical systems suffered from over-fuelling and widely variable emissions performance over the full power curve. Advanced, computerized diesel engines have helped create dramatic improvements in dual fuel natural gas/diesel technology. First developed by Clean Air Partners (CAP) in California, the new generation of computer compatible dual fuel systems use specially designed injectors that introduce natural gas in a precise quantity through the induction manifold. The most advanced systems on the market are capable of continually assessing the combustion air fuel ratio to ensure that the gas/diesel ratio remains within a suitable lambda range. Electronic signals to both the gas and diesel injectors provide the correct fuel mix in each combustion cycle, ensuring optimal efficiency, and power and fuel economy. Tests of the most advanced systems show that a Euro 3 diesel engine can achieve a Euro 4 level. When manufacturers provide access to their electronic control unit (ECU), a Euro 5 rating can be achieved, according to the manufacturers. The majority of dual fuel systems available today are engineered by CAP on Caterpillar engines. Technical achievements developed by the Hardstaff Group (Nottingham, England), with their OIGI® Dual Fuel system, has opened an opportunity for any fully electronic fuel controlled engine to be re-engineered to dual fuel. Although, at this writing, standards and regulations for dual fuel engines are not developed at the United Nations level (or at most national levels who rely on the UN regulations for testing and certification) it is clear that dual fuel technology will have a greater role to play among the new NGV emerging technologies. 5.2.2.1. Case of Hardstaff Dual Fuel CNG-LNG trucks The case on Dual Fuel CNG – LNG trucks has been made through the audit and correspondence with Hardstaff Group – United Kingdom. Designed for use with both compressed natural gas (CNG) and liquefied natural gas (LNG) Hardstaff uses its own patented OIGI® (Oil Ignition Gas Injection) Dual Fuel technology which is a dual fuel system developed to substitute natural gas for diesel in light and heavy duty engines.9 The natural gas injection system is electronically controlled and can cater for multi-point, mono point and sequential port injection. A separate electronic control unit (ECU) is used for the natural gas fuel, providing a full closed loop feedback system that monitors existing variables alongside the diesel electronic control unit (ECU) and controls the gas injection based on the feedback from the various engine sensors. The sensors include boost pressure, lambda sensor signal, pedal deflection, coolant temperature, gas temperature and pressure, and many more inputs. The ECU is fully programmable and can provide custom mapping for various vehicle applications, giving enhanced compatibility features. The system is also OBD (On Board Diagnostics) compliant. 8 Source: J. Seisler; “Clean Trucking,” Freight Transport Magazine, August 2006 9 There are also other suppliers of dual fuel natural gas/diesel engine systems such as Clean Air Power (UK), Diesel Gas (New Zealand), and others. - 65 -
  • 66. CO2 reduction depends on the diesel fuel displacement with natural gas. Substitution of diesel by natural gas can be as high as 90%; dependent on vehicle applications and limitations of the original diesel engine, and typically is 70% - 85%. With the substitution level of 50%, CO2 reduction is around 13.75% while with 90% share of natural gas in mixture goes up to approximately 25%. With 70 – 75% share of natural gas in fuel mixture, CO2 reduction is around 20% in average. Substitution levels are equal with either CNG or LNG storage Besides CO2 savings of (average) 20%, there is reported: 35% - 65% reduction in NOx, 98% reduction in CO and 3 dB reduction in noise level while articulates meet Euro 4 and 5 standard. Hardstaff’s patented custom umbilical coupling design allows for a combination of LNG and CNG to be used, with the LNG tank being mounted on the tractor unit and the CNG cylinders mounted on the trailer. This coupling method allows for increased natural gas capacity suitable for longer distance use. Figure 27 - Umbilical Trailer Containment Umbilical Trailer Containment allows a 6x2 tractor configurations to use CNG as fuel source or as an alternative or addition to LNG. Tractor unit equipped with an LNG tank can provide a range of approximately 480 km, while main storage on trailer equipped with 620 water litres (two CNG tanks) can provide additional 515 km. In total, truck autonomy of around 1 000 km with one filling is possible (dependent upon substitution ratio). Current vehicles available (with manual gearbox): are Volvo FH12, DAF 55, DAF 65, DAF 85, vehicles with Caterpillar C12 engine and Mercedes Benz Axor. Future planned developments include: Volvo D9, D13, Iveco, Mercedes Benz Actros, DAF LF45 and other models at Euro 4 and 5, including automatic gearbox. During an audit is reported that main reason to introduce natural gas heavy duty trucks were environmental benefit for Hardstaff and the companies purchasing transport services from them by offering to customers extra value and very large fuel cost reductions. Additional reasons for customer adoption were to improve corporate social responsibility, reduce the company’s own carbon footprint for product delivery, develop and engineer their own dual fuel technology and improve economics. As regards maintenance costs increase compared to diesel trucks, the only extra costs in servicing or maintaining dual fuel engines are: natural gas filters, catalysts for methane reduction and a small additional time for preventative maintenance inspections. In case of motor oil costs, if the maintaining dealer is using oil sampling to determine oil change periods, then Hardstaff OIGI Dual Fuel technology will extend motor oil life. - 66 -
  • 67. Hardstaff total overall specific maintenance costs increase is estimated to be in range of 1.5 eurocents per kilometre. Time for daily maintenance of natural gas trucks compared to diesel trucks is the same, while regular maintenance of Dual Fuel trucks requires extra time needed to carry out leak checks and filter changes. As regards, frequency of control and inspection of cylinders there is extra inspection required at service intervals for damage to cylinders and a leak check. Hardstaff have its own factory trained inspectors and supervised technicians capable of carrying out safety inspections. Feedback from drivers is that the Hardstaff OIGI dual fuel system enables the drive to operate the vehicle in the same way as a diesel, so the driver has immediate acceptance. Some drivers require a longer period to accept the filling process, however, good hand over and complete training packages eliminate such problems. As regards feedback from mechanics once training is given, the majority of technicians have no problem with maintaining the vehicles. Early cylinder valves, PRD’s shut off valves failed, also there were “o” rings, seals, electric solenoid failures. Now they are more robust. Fuelling flexibility is unchanged, since all station designs offer the same fill rates and times as diesel. Dependant on quantity required, 4 to 5 minutes per trucks is acceptable. In 8 years of operation, two incidents have been reported using LNG, one was caused through a driver using a cryogenic glove that was torn, no injury, but was recorded to be accurate. The second incident, a driver forced the nozzle onto the receptacle, damaging the seal, which on release leaked a small quantity of LNG on to the drivers arm, the injury was reported and associated to the same injury as a minor burn. Suggestion / advice for new potential users of natural gas trucks is to ensure that the information given from the supplier meets their expectations and to establish maintenance criteria and ensure all necessary training is carried out and audited, and re-training programmes are in place. Most critical issues is that training and safety are constantly audited and improved on. For adoption of the garages to accommodate NGVs, Hardstaff adopted all current legislation on the market to ensure safety standards such as NFPA 52 “Vehicle Fuel systems and codes”, BSI 13645 (2002) “Storage and equipment LNG” and the new regulation in progress prEN 13638 “NGV filling stations”. Essential was to install methane detection system, to assure safe operation of work shop. Hardstaff still kept diesel trucks since fuelling infrastructure is not mature in the UK and sometimes not economical to have stations in low volume truck operations. There is no incentive in the UK for bus operators to use natural gas powered buses, the operators are given the diesel fuel duty back and only pay approximately 50% for their diesel, truck operators do not have their fuel duty rebated and therefore recognise natural gas powered vehicles offering large savings. On the last question how did they hear/learn about the CNG, the respondent explained that the UK Government formed a program called the Energy Saving Trust which promoted and supported with grants, alternative fuel technology. Hardstaff was an early participant in this program. - 67 -
  • 68. 5.2.3. OEM garbage trucks Real life experiences for garbage trucks are based on the collected cases from facilities in Paris, France (one of the largest in Europe) as well as the large OEM natural gas garbage trucks facility in Madrid, Spain. 5.2.3.1. CNG trucks in urban garbage collection in Paris - France Reasons for entering into the natural gas garbage trucks fleet project were: to do better than the specifications required by the law on air (31/12/96: 20% of renewed vehicles have to be “green” vehicles), Paris has to be taken as an example and alternative fuel consumption costs have to be inferior or equal to diesel fuel consumption costs. CNG was selected as alternative fuel of choice due to: no LPG offer for heavy duty vehicles, larger autonomy for NGVs than for electric vehicles, fast refuelling possibility, energy diversification and lower emissions (especially CO2, Pb, S or particles). From 1997 to 2001: 30% of the renewed vehicles are “green” vehicles and since 2001: 100% of the renewed vehicles are NGVs. The fleet development went into 3 stages. a. Purchase of natural gas b. Adaptation of the trucks c. Supply of the natural gas powered garbage collecting stations / garages (distribution points) trucks by the City of Paris Dynamics of purchase of natural gas powered garbage collecting trucks by the City of Paris was: • 2002: 28 garbage trucks powered by CNG • 2004: 90 garbage trucks + 17 cleaning vehicles powered by CNG • 2005: 104 garbage trucks + 8 larger collecting trucks + 34 cleaning vehicles powered by CNG • 2006: 26 garbage trucks + 5 cleaning vehicles powered by CNG • 2007: 14 cleaning vehicles powered by CNG • 2008: 33 garbage trucks + 14 cleaning vehicles powered by CNG (to be delivered) - 68 -
  • 69. Adaptation of the garbage collection market occurred in two phases. First phase: 2002-2005 • Evaluation of the global emission levels of the fleet. • Incentives for “green” vehicles (bonus/penalty). Second phase: 2005-2009 • Obligation for the operating company to collect garbage with NGV trucks. • Transition period of 1 year allowed as far as trucks comply with Euro III norms. • Possibility to access to 1 of the 3 filling stations owned by the City of Paris. Natural gas filling stations network development occurred in 3 phases: 1) demonstration plant in Ivry with a NGV distribution station, 2) call for offers following the defined specifications and 3) construction of 2 NGV filling stations. Construction and operation of the NGV distribution point in Ivry was entrusted to GNVert. 3 Technical specifications: flow enough for 10 vehicles/hour and fast filling points: >60 Nm in 5 minutes. In the Call for offers and specifications the objective was to find an external partner able to supply natural gas in the defined area to fill the vehicles of the City of Paris. Some obligations have been defined for such supplier: to provide the field/place for the refuelling NGV station, to build the station, to distribute the fuel in the scope of the market and eventually to other customers, to provide fuel to the vehicles of the City of Paris from both sites and to set up a computer assisted fuel distribution. Results from the call were contract signed for 4 years between the City of Paris and GNVert (up to mid-2008) and 2 NGV distribution stations built and operated (Noisy-le-Sec and Saint-Denis). Garage / depot modification included: secure lighting, natural and mechanical event construction, gas detection system installation and modification of the fire alarm system. Some difficulties encountered with the first garage (Ivry) due to: environmental (urban area, commercial area at proximity, residential area) and administrative aspects (security study necessary, security wall construction, area limitations and file instruction by authorities). Other garages examples (Aubervilliers, Romainville) have easy external parking for all NGV trucks but adaptation of maintenance station in Romainville was needed. Gas detection and alarm system in the offices (Natural gas) evacuation on the roof Figure 28 – Preparation of garage to accommodate NGVs - 69 -
  • 70. But alternatives exist in the form of parking of the CNG powered vehicles outside (no garage or covered area) and/or construction of a dedicated maintenance building for CNG powered vehicles. Fuel consumption measurement campaign was conducted in 2004 in collaboration with ADEME, IVECO and the City of Paris for CNG garbage truck Iveco MP190E26P CNG (from City of Paris) with total weight in charge of 19.8 tones, 6 cylinders 9.5 litres using stochiometric mixture and with maximum power of 194 kW (280 HP) at 2100 rpm which was compared with diesel garbage truck Premium RVI with the same characteristics than NGV one with 6.0 litres engine. Trucks were tested in 3 different exploitation circuits: a) urban cycle, 20th arr.; 2 circuits in the morning; b) markets cycle 1 different market every day and 1 circuit around 12:00 PM and c) semi- th urban cycle 12 arr. and the Vincennes forest with 2 circuits in the evening. In the morning (urban cycle) consumption of NGV truck was 35% higher (circa 120 m3/100 km of natural gas and 89 litres of diesel/100 km). This can be explained due to the difference between 3 diesel and Otto cycle, assuming similar heating values of 1 m of natural gas and 1 litre of diesel, but also with driving habits. In markets cycle consumption of NGV truck was 46% higher with measured natural gas 3 consumption of circa 158 m /100 km and diesel consumption of 108 litres/100 km). Circuits in the evening (semi-urban cycle) showed 32% higher consumption with measured natural gas consumption of 116 m3/100 km and diesel consumption of 88 litres/100 km. Evaluation of the typical week is presented below: Table 13 - Evaluation of the typical week – OEM NGV garbage trucks fleet in Paris NGV Diesels 3 3 km m (n) km m (n) 12 collecting circuits in the morning (urban cycles) 195.4 234.6 195.0 173.6 14 collecting cycles in the evening (semi urban cycles) 288.9 334.2 288.6 252.8 6 collecting cycles around 12:00 PM (market cycles) 84.0 117.1 83.5 90.1 Total: 568.3 685.9 567.1 516.5 Consumption in Nm3 or litres/100 km 122.9 91.1 Above mentioned table / measurements gives approx 34 – 35% higher consumption of NGV truck compared to diesel truck on the energy equivalent basis. This, as mentioned below, corresponds among other, to the efficiency differences in the Otto and diesel cycles, but reason can also be the driving habits (as concluded in the IANGV review paper on transit buses). On the other hand, fuel price difference improves the project feasibility as add-on to the environmental benefits (local emissions and noise reduction). At the end, natural gas garbage trucks project in Paris is considered by the respondent to be a success story which key characteristics are: • the political decisions; • the adaptation/upgrade of the trucks station/garage is a strong constraints due to security aspects; • need to support/form the technical staff in charge of driving the trucks and the maintenance teams; • gas supply has to be entrusted to specialists; • financial support from state/local authorities. - 70 -
  • 71. 5.2.3.2. CNG trucks in urban garbage collection in Madrid - Spain Urban garbage collection in most Spanish cities is carried out at night. This makes it particularly sensitive to noise emissions from two sources: vehicle engine and loading and compacting operations. Also, in most big Spanish cities the waste collection service, garden maintenance and other municipal cleaning activities are subcontracted to private companies. In the early 1990s Madrid Municipality defined as a priority a severe reduction in exhaust emissions of the vehicles carrying out the municipal services: passenger transport, cleaning services, waste collection and other. The target was to reduce these emissions much more than the near future legal homologation limits. Madrid Municipal Policy already at that time was at the forefront of innovative and alternative technologies regarding urban transport fuels and tractions. FCC (Fomento de Construcciones y Contratas) is the company that it provides waste management services to the Madrid Municipality, having won the majority of the consecutive tenders in the last 20 years. FCC has always been a company looking for the most modern, efficient and sophisticated equipment in order to give the best service, to be used as their competitive advantage. Until 1993 the more popular truck configuration for garbage collection vehicles was the 2 axle rigid truck with a GVW of 20 tonnes, permitted by the old Spanish regulation. In 1993 Spain adopted the European Weight & Dimensions Regulation that reduced the 2 axle vehicle GVW from 20 to 18 tonnes. This major change produced a shift in this market that could not allow to loose 2 tonnes of load and then was obliged to go to the next configuration of 3 axle rigid trucks able to carry 26 tonnes GVW. The compulsory changes in truck configuration produced an excellent opportunity to explore new vehicles also from the point of view of engines and fuels. Another positive element was the attitude of the Spanish Administration giving excellent support to development projects related to alternative energies and fuels. For both Iveco (previously Pegaso) and FCC there was a precedent experience of alternative fuels with two prototypes of LPG trucks as a first step in other fuels. The third column of this successful project was Gas Natural S.A., the major Spanish gas company that entered in the development project with IVECO and FCC for an innovative 3 axle truck with a CNG fuelled engine. The first 2 trucks were completed and put in service in 1994. They were the first ever CNG trucks running in Spain. These trucks introduced a number of configuration and functional innovations such as: 3 axle configuration with reduced wheelbase (the achievement was to have a bigger capacity truck than the older 2 axle, with a much better manoeuvrability), 3rd steering axle commanded (this configuration was first in Europe for this kind of application), full pneumatic nd rd suspension for 2 and 3 axles, frontal high performance Power Take Off, the CNG engine IVECO 8469G, giving 260 HP, belonging to the first generation of IVECO CNG engines, emitted only 1 g/kWh of NOx when the European Legislation in force was Euro 1 allowing up to 8 g/kWh, then offering, a reduction of 88% of the legal limit. Moreover, in that year they were considered ecological vehicles responding to the Euro 3 limits (to come into force in 2001), with a NOx level of 5 g/kWh, while CNG truck was still 80% better than that. After a 4 year period of intensive tests with the two prototypes, not only of the vehicle itself but as well as the filling station, driver acceptance, maintenance learning and mechanics training, the conclusion of FCC and the Municipality of Madrid was perfectly clear and positive towards the new CNG technology trucks. As a consequence, in 1998 the decision was taken to include a significant number of CNG trucks to be specified in the next Municipal tender for garbage trucks renewal. In the year 2000, a total of 40 CNG trucks were put in service, together with the dedication of one of the FCC fleet depots that had been converted with a CNG filling station and workshop adaptation for the new trucks. The experience of the 40 units running from 2000 was mainly to demonstrate that their performance regarding operational times, driver interchange ability, serviceability and maintenance downtimes were perfectly equivalent to the diesel units with the same mechanical configuration. - 71 -
  • 72. On the other hand, the total absence of black smoke, much lower gaseous emissions and reduced noise levels were highly appreciated by the neighbourhood of the areas were these CNG trucks operated. Another major advantage, achieved with this first 40 truck fleet, was the fuel cost comparison with diesel, observing a significant saving that paid back in a few years the extra cost of acquisition of the CNG truck. Again the conclusion was clear and the decision from both, Madrid Municipality and FCC, was that in the next tender the whole fleet would be renewed with CNG trucks. In 2003 FCC bought 337 new IVECO CNG trucks. Figure 29 - Madrid - Iveco CNG Refuse collection fleet Yearly emissions savings achieved for FCC natural gas fleet (445 units in total) and natural 3 gas fleet consumption of 10.5 million m /a in case of IVECO CNG (EEV) vs. diesel Euro 3 limits was: • NOx emission savings: 132.391 kg • CO + HC + PM savings: 703.000 kg • CO2 savings: 2.069.440 kg Measurement of the noise perceived by the citizens gave following results. The general homologation of the noise in a truck is done in what it is defined as “pass by” test in which the vehicle passes in front of the measurement microphone at a certain speed and with a defined acceleration. The value measured in this type of test is representative of the standard truck in general operation, but has really nothing to do with the very special service of a truck stopped and loading garbage containers in a city street. Because of that Iveco and FCC proposed to the Municipality the development of another specific noise test trying to represent the most extreme situation of the work in a very narrow street in summer when many people sleep with their windows opened. Taking measurements in that extreme case was found that the worst condition of measurement was all around the truck and at a distance of 7 metres from it. This is the representative distance from the truck to the windows in the first floor of a house in a narrow street. This evaluation concept has had a very strong weight in the tenders. It should be stressed that it is not a legal homologation requirement, but it has become a fundamental factor in the municipal tenders. The noise difference between diesel and CNG engines, measured in test bed at a distance of 1 metre is about 5 dbA. Due to the logarithmic scale this means that the noise power emitted by the CNG engine is practically half of that emitted by the diesel equivalent. The great achievement with the complete truck, taking into account that the operational noise includes not only the engine noise but also the sophisticated hydraulic body systems, has been to see that the average difference around the truck maintains the 5 dbA difference found in the bare engine. In 2007 the CNG fleet was further increased from 445 to 675 units. - 72 -
  • 73. Due to the fact that FCC is a private company auditor had no access to all the economics of its activity in this garbage collection service. In general terms, and because this customer has already seen the complete life span of many CNG trucks, auditor was in position to give some main economic data: • The fuel bill is reduced by around 30 % compared to diesel operated trucks. • Total operating costs during the complete truck life, including all the investments for the gas compression station and the trucks chassis extra cost, is still some 15 % better than in the case of diesel. After the positive experience of Madrid, in such a large scale, this has taken FCC to see in the CNG trucks a competitive advantage to be used in most of their new tenders in Spain. The total number of CNG trucks put in service in Spain by FCC is already higher that 800 units. With this, FCC is now the private company with the biggest CNG truck fleet in Europe. Other Spanish cities with CNG trucks operated by FCC are: Barcelona, Oviedo, Vitoria-Gasteiz, Salamanca, Vigo, Málaga, Puerto de Santamaría (Cádiz), Valencia and Pozuelo de Alarcón (Madrid). Other than the 675 CNG trucks for municipal services, the city of Madrid also has: 375 in service CNG buses, out of a total of 2 035 units (this number will grow up to 650 CNG buses by the end of 2011), 35 CNG light vans for other municipal environmental services and prototypes of airport handling equipment operating in Barajas airport, all with CNG engines (this case is described in previous chapter). The future tender for Barajas Handling Equipment will accept only CNG engine vehicles. 5.2.4. Natural gas taxi fleets Real life experiences have been collected for two types of taxi fleets: taxis converted to CNG (case of large taxi fleet of company Sunlight Taxi Sdn Bhd in Kuala Lumpur – Malaysia and using another in Stockholm, Sweden using OEM NGVs. 5.2.4.1. Large taxi fleet using converted vehicles in Kuala Lumpur - Malaysia Focus for NGV in Malaysia is public transportation (i.e. taxis and buses). Around 60% of taxis in Malaysia is concentrated in Klang Valley and 99% percent of these taxis are running on natural gas. Company Sunlight Taxi Sdn Bhd operates in Kuala Lumpur and Selangor (Klang Valley) area for 15 years using 3 325 vehicles (all CNG retrofits). Company is using uniform fleet composition consisting of several types and models of (converted) vehicles. Main model is Proton Iswara (with 2 600 units in operation) followed by Proton Waya (300 units), Proton Wira (200 units), Nissan Sentra and Enviro 2000 (70 units of each model), Nissan Serena (45 units) and Nissan Cefiro (40 units). Basic facts (based on main model – Proton Iswara) are: Table 14. CNG taxi fleet in Kuala Lumpur – basic operational facts (based on Proton Iswara model) Mileage Average mileage per day: 300 km Filling frequency: 3 times Mileage per fill: 120 km CNG Equipment CNG tank average size: 60 litres of water capacity CNG cylinder producer: INFLEX, Argentina and Shenyang, China (Type 1 and Type 2) CNG cylinder standard: ISO 11439 CNG kits: Oyrsa, Argentina & Landi Renzo, Italy - 73 -
  • 74. Average maintenance costs breakdown per taxi is presented below: Table 15 – Average maintenance costs breakdown (per converted CNG taxi) Cost estimate per No. Item Servicing interval service (US$)* 1 Engine oil 5 000 km (20W/50) 34 2 Gear oil 40 000 km 10 3 Timing belt 60 000 km 95 4 Air filter 20 000 km 5 5 Spark plug 30 000 km 7 6 Tires Twice a year 130 7 Absorbers Annually 160 Every 36 months 8 CNG cylinder (ISO 11439) 25 9 CNG regulator Every 3 years 85 * USD 1 = Malaysian Ringgit 3.60 Annual operating costs evaluation is based on average annual mileage of 100 000 km. Table 16 – Average maintenance costs breakdown (per converted CNG taxi) Annual Operating Costs based on average 100 000 km per year Maintenance cost: US$ 1 367 per year Taxi rental: US$ 4 000 per year Fuel costs: USD 2 052 (10 800 litres per year) TOTAL: USD 7 419 per year Capital Expenditure NGV conversion: US$ 700 *Other costs are borne by taxi company (i.e. vehicle cost, permit cost) Fuel Costs comparison CNG: US$ 0.19 per litre equivalent petrol ≈ US$ 0.28 per kg of CNG Petrol: US$ 0.50 per litre (current price) : US$ 5 400 per year Fuel savings per year: US$ 3 348 per year (NGV vs. petrol) At the average distance travelled by these taxis, return of investment in the NGV kit installation is less than 5 months. - 74 -
  • 75. Busiest NGV station in Kuala Lumpur. Average of 2 million kg of CNG per month This is a standalone CNG station with 20 hoses. Figure 30 - Kampung Baru NGV Station, Kuala Lumpur Figure 31 – CNG filling station using mother-daughter system and integrated in classic petrol station, Kuala Lumpur, Malaysia - 75 -
  • 76. CNG filling station using mother-daughter system and integrated in classic petrol station, Kuala Lumpur, Malaysia – cont´ - 76 -
  • 77. 5.2.4.2. Taxi fleet using (bio) CNG OEM vehicles in Stockholm - Sweden This case is provided by Taxi Stockholm Company and Swedish Gas Association. Taxi Stockholm is owned by 933 small taxi companies. Vehicle demand includes station wagon units, with automatic gearbox and expected mileage travelled in 3 years between 360 and 450 000 km, and with eco demand imposed (only clean cars after 2009 – no new batch deals, stud free tires and fleet management). The Taxi Stockholm fleet makes 11 daily rounds around the globe (out of which 6 rounds on bio gas & ethanol). At this time there are 100 ethanol stations and 11 bio gas refuelling stations, which are not considered sufficient (crowded). Refuelling intervals are: diesel “every 2 days“, ethanol 1-2 times per day and for bio-methane 3-4 times per day. Service costs are related to service cost contract and are: for diesel € 0.12 /10 km, bi-fuel € 0.17/10 km and ethanol € 0.21 /10 km. It is expected that introduction of VW Passat Variant EcoFuel (Swedish deliveries starting in mid 2009), will have a huge impact upon the share of NGV taxis. The Swedish taxi drivers want combi versions, automatic gearbox and a good range on gas – a combination which was not available until now (Passat Variant). 5.2.5. Natural gas ships 5.2.5.1. CNG ships 5.2.5.1.1. CNG ferries in Thailand CNG powered ferries using movable CNG storage transport passengers and vehicles between Trad province and Chang Island. Ships capacity is 180 passengers and 28 vehicles (dimensions 35 m long with 11 m of width and gross weight of 102 tons). Regular distance travelled is 10 km in 45 minutes. Re-powering is with CNG engine on 2 ferries and 1 ferry is converted to Diesel Dual Fuel (DDF) operation. Technical features on re-powering with new CNG engine (2 engines per ferry) including achieved savings are presented below: Table 17 - CNG engine re-powering – CNG ferry – Thailand Before After Engine HINO EK-100 (2 engines) Cummins CG-250 (2 engines) Power 260 bhp 250 bhp Fuel consumption 55 Litre (Diesel) / Trip 57 kg (CNG) / Trip Fuel prices 27 Baht / litre 8.50 Baht / litre Fuel costs + transportation costs 1 485 Baht / Trip 884 Baht / Trip Saving - 41 % - 77 -
  • 78. Technical features for converted original diesel engine to Diesel Dual Fuel (DDF) system are listed below: Table 18 - Diesel Dual Fuel (DDF) - CNG ferry – Thailand Original Diesel - Diesel consumption (litre / trip) 55 - Fuel costs (Baht / trip) 1 485 DDF mode - Diesel consumption (litre / trip) 22 - CNG consumption (kg / trip) 24 - Fuel costs + transportation costs (Baht / Trip) 966 Diesel replacement rate 59% Saving 35% Currently, CNG storage truck parking in the ferry and return to refuelling station at night. In the future, utilisation of CNG mobile storage instead of truck in order to reduce CNG transportation costs is envisaged. Figure 32 – CNG ferry operation - Thailand - 78 -
  • 79. 6. THE FUTURE FOR NGVs AND POTENTIAL IMPACT OF NGV TECHNOLOGIES 6.1. PROGNOSIS OF REGIONAL NGV MARKET DEVELOPMENT The Study Group 5.3 received a task to prepare scenarios of regional market development in order to quantify, qualify, and shape, to the best extent possible, an answer to the question: How many NGVs could there be by 2030 and what will be the anticipated “methane” consumption in 2030? The purpose of mathematical modeling was so-called “What if?” analysis. In order words to calculate (estimate) overall potential for natural gas vehicles in the global market (until 2030) in relation to expected inputs (population and GDP growth, global vehicle parc growth, crude oil prices increase etc.). The scenarios developed by the study group are: BAU = Business as Usual Scenario (regression scenario) linked to crude oil price increases and policies existing as of today. The total NGV car parc is calculated using regression (correlation) analysis done on the historical data on crude oil prices (growth) and NGV growth. In most cases the regression equations well describe the data sets and were used for further prognosis (NGV market growth in correlation with expected crude oil price growth) assuming that all other external factors (i.e. policies of today) will remain the same. According to the BAU scenario, depending on the expected crude oil prices increase, there is a potential to reach just over 100 million “equivalent”10 NGVs in 2030. Policy governed scenario. Policy influence is simulated through a targeted share of NGVs in the total global vehicle population. For each region a targeted share of the total expected vehicle population is determined. In the so-called Low scenario the assumed annual growth of total global vehicle parc does not exceed 2%, while the High scenario assumed the annual growth of total global vehicle parc does not exceed 3%. This range is based on the historical trends with the average annual growth in the range of 2-3%. The Policy scenario (mandates / targeted NGV share) shows the possibility of reaching around 145 million (low scenario) and slightly above 200 million equivalent NGVs (high scenario) in 2030, with a targeted share of 10% NGVs in the total vehicle population in 2030. A summary of results of all scenarios are presented below. Table 19 – Scenarios of NGV market development – prognosis of NGV market growth – BAU scenario millions equivalent NGVs 2005 2010 2015 2020 2025 2030 Business as usual scenario - governed by increase in crude oil prices and policies remaining as today Africa 0.06 0.10 0.12 0.23 0.37 0.52 Asia-Pacific 1.12 4.15 12.06 22.91 33.33 45.70 Europe 0.44 0.35 1.12 2.18 3.20 4.42 Middle East 0.06 1.31 4.27 8.37 12.34 17.07 North America 0.15 0.25 0.47 0.77 1.06 1.40 Latin America and the Caribbean 2.63 4.58 9.00 14.85 20.39 26.91 Russian Federation & C.I.S. 0.17 0.90 2.16 3.90 5.58 7.58 Total: 4.64 11.64 29.19 53.20 76.27 103.60 10 Equivalent NGVs in general means number of NGVs if all NGVs are considered to be LDVs (or better to say personal cars). In other words, 1 NGV truck or bus is equivalent to 10-15 cars, 1 van is equivalent of 2 personal cars etc. - 79 -
  • 80. Table 20 - Scenarios of NGV market development – prognosis of NGV market growth - Policy governed scenario millions equivalent NGVs 2005 2010 2015 2020 2025 2030 Policy governed scenario - targeted NGV share in total vehicle population (10% in 2030) Sub-scenario: Low → Total annual global vehicle parc growth 2 % Africa 0.06 0.09 0.15 0.21 0.30 0.40 Asia-Pacific 1.12 4.57 12.77 21.99 34.27 49.18 Europe 0.44 0.94 6.84 18.27 39.68 42.95 Middle East 0.06 1.57 3.09 5.49 8.02 11.16 North America 0.15 0.21 3.13 6.53 10.19 14.12 Latin America and the Caribbean 2.63 4.81 7.36 10.73 14.69 19.04 Russian Federation & C.I.S. 0.17 0.65 0.96 2.60 5.59 7.18 Total: 4.64 12.84 34.29 65.82 112.74 144.03 millions equivalent NGVs 2005 2010 2015 2020 2025 2030 Policy governed scenario - targeted NGV share in total vehicle population (approx. 10% in 2030) Sub-scenario: High → Total annual global vehicle parc growth 3 % Africa 0.06 0.09 0.15 0.21 0.30 0.40 Asia-Pacific 1.12 5.43 17.94 38.33 68.59 111.69 Europe 0.44 0.94 6.84 18.27 39.68 42.95 Middle East 0.06 1.57 3.09 5.49 8.02 11.16 North America 0.15 0.21 3.13 6.53 10.19 14.12 Latin America and the Caribbean 2.63 4.81 7.36 10.73 14.69 19.04 Russian Federation & C.I.S. 0.17 0.65 0.96 2.60 5.59 7.20 Total: 4.64 13.70 39.46 82.16 147.06 206.56 The difference between Policy scenario High and the Policy scenario Low is based on the growth in Asia-Pacific region, while in other regions the High scenario has the same estimated number of NGVs as in the Low scenario. In Europe the expected share of 10% NGVs is assumed to be achieved in 2025 instead of 2020, hence shifted 5 years to the right compared to initial Target 2020. Business as usual scenario (with calculated / estimated potential of around 53 million equivalent NGVs in 2020 and slightly above 100 million equivalent NGVs in 2030, linked to expected crude oil price increases as the main growth generator) is considered to be the reference scenario and is described in further text, while Policy governed scenario in which further development of supportive measures, mandates and other policy instruments is envisaged, typically triggered by environmental protection and security of supply issues could be taken into consideration as more theoretical illustration of possible strategic growth. As mentioned above, referent BAU scenario represents vehicle market potential based solely on the continuation of existing trends and policies and is triggered only by a reaction of the market to crude oil upward price changes. Therefore, the scenario represents definite potential that can be achieved and be improved further by environmental policies, CO2 reduction etc. On the other hand it can be reduced through development of other new vehicles technologies. The text below summarizes the main inputs and summary of results. The detailed methodology, databases used as inputs, calculation models, etc. is available on request11. 11 Request can be sent on: davor.matic@omv.com - 80 -
  • 81. The data has been gathered from the best-available public sources, including Earth Trends and the United Nations, although there are inconsistencies frequently between data sets that cover passenger, light commercial and medium commercial vehicles, buses and heavy duty vehicles. To the best extent possible the variations have been calculated using accepted statistical methods to forecast vehicle growth in accordance with other variable such as population and gross domestic product (GDP). Historical crude oil prices for the period until 2008 were gathered from Inflationdata. Although prices by the end of 2008 started to fall rapidly, and are expected to fall further in 2009 due to the global economic situation, it is expected that they will continue to increase after 2009 due to announced economic recovery, on the one hand, and due to demand for depleting reserves on the other. Therefore, in this scenario is assumed that crude oil prices will, in 2010, reach (at least) the level before the recession and continue to increase until reaching the (at least) approximately 90 percent higher price level in 2030 compared to the expected 2010 level (but only 15 percent higher price compared to peak crude oil price reached in 2008). This scenario falls between the IEA reference and the high scenario (IEA Outlook 2008). Crude oil prices development scenarios - comparison 200 180 160 140 US$ / bbl 120 100 80 60 40 20 0 2010 2015 2020 2025 2030 IGU NGV BAU model 78 100 120 135 150 IEA Outlook 2008 - high 88 108 133 158 186 IEA Outlook 2008 - reference 75 55 75 92 113 IEA - mid (high-ref average) 81 81 104 125 149 Figure 33 – Crude oil prices development scenarios - comparison Historical crude oil prices used in the model (and based on the publicly available statistical data) are: 42.8 US$/bbl in 2004, 55.0 US$/bbl in 2005, 62.1 US$/bbl in 2006 and 66.4 US$/bbl in 2007, and around 100 US$/bbl in 2008 (peak crude oil price reached in 2008 was around 130 US$/bbl). Based on the total number of "equivalent" NGVs, the total expected natural gas consumption 3 was calculated using a consensus average of 2 000 m /a per “equivalent” NGV for each region. Of course, this is an approximation and average for the total NGV parc consisting of cars, vans, buses, trucks, garbage trucks, 3-wheelers (tuk-tuks) etc. and taking into consideration so-called "rebound effect". Rebound effect is registered in the number of cases in the transport sector that, in parallel with increasing car (engine) efficiency, drivers are increasing their annual mileage travelled and/or average travel speed (in other words - driving more and faster). Another example of rebound effect occurs with an increase of safety features inside the car (multiple air bags, ABS system etc), which actually resulted in an increased number of road fatalities (drivers feeling safer hence driving faster and more risky). Although this is not relevant in this case, it can certainly be assumed that, in parallel with specific fuel consumption reduction, increased annual mileage travelled and increased average driving speed might counteract the positive effect of higher efficiency on fuel savings. - 81 -
  • 82. Besides estimating the possible natural gas consumption based on the specific annual consumption of 2 000 m3 per equivalent NGV, another sub-scenario also is made based on the average specific consumption per “equivalent” NGV in each region, calculated using existing statistical data (number of NGVs and annual consumption). According to available statistical data, the average global specific consumption is 2 078 m3/annum, in other words, very close to the previously used assumption, but the regional distribution being somewhat different. The main reason is the significantly different specific consumption per equivalent NGV in North America due to vehicle fleet composition in U.S NGV market (18-20% of total NGV fleet in U.S are HDVs, but transit sector which is 12% of the NGV market representing 70% of the U.S NGV fuel consumption followed by airport vehicles (additional 8% of the consumption)). Therefore, such distribution was made to allow for those differences. The number of natural gas filling stations was calculated for each region based on regression equations using historical data of the number of NGVs and the number of filling stations. Overview of achieved results is presented below: Total NGV car park: Business As Usual scenario 120 104 100 Million equivalent NGVs Russian Federation & C.I.S. 76 Latin America and the Caribbean 80 North America 53 Middle East 60 Europe Asia-Pacif ic 40 29 Africa 12 Total: 20 5 0 2005 2010 2015 2020 2025 2030 Figure 34 – Total NGV car parc: Business as Usual scenario S-curve is assumed to stagnate some time after 2030 (fuel prices difference to become less favourable, high crude oil price boosting also other alternative fuels/technologies, costs of material, steel, etc. also increasing). As previously explained, assumptions about the possible methane (natural gas + bio- methane) consumption by NGVs has been made using two sub-scenarios. In the first sub-scenario the average annual specific consumption (per equivalent NGV) of 2 000 m3 is assumed equal for all regions. This closely matches the calculated average global annual specific consumption per equivalent NGV of 2 078 m3 (obtained through existing statistical data). - 82 -
  • 83. Table 21 – Estimated natural gas (incl. bio-methane) consumption potential by NGVs – BAU scenario - Sub-scenario 1 - Equal average consumption per equivalent NGV in all regions bcm 2005 2010 2015 2020 2025 2030 Africa 0.12 0.20 0.23 0.45 0.75 1.03 Asia-Pacific 2.24 8.29 24.12 45.82 66.66 91.40 Europe 0.88 0.70 2.23 4.35 6.40 8.83 Middle East 0.13 2.62 8.54 16.75 24.68 34.13 North America 0.31 0.51 0.94 1.54 2.12 2.81 Latin America and the Caribbean 5.26 9.16 18.00 29.70 40.78 53.83 Russian Federation & C.I.S. 0.33 1.80 4.31 7.79 11.15 15.15 Total: 9.27 23.28 58.37 106.41 152.54 207.19 In order to more precisely calculate the expected “methane” consumption by NGVs for each region (mainly to be able to incorporate some regional specifics like U.S HD NGV transit market impact), the actual average specific annual consumption per equivalent NGV has been calculated for each region first, based on the existing average specific NGV consumption data for 2008 (source GVR, calculated only using statistical data only for countries for which NGV consumption data was available) assuming similar fleet composition patterns to 2030. This then was included in the second sub- scenario. The summary of assumptions used as well as results achieved in this sub-scenario are presented below. Table 22 - Specific consumption per equivalent NGV (m3/annum) – inputs to sub-scenario 2 Specific consumption per 3 2005 2010 2015 2020 2025 2030 equivalent NGV (Nm /a) Africa 4 103 4 000 3 625 3 250 2 875 2 500 Asia-Pacific 2 858 2 000 2 000 2 000 2 000 2 000 Europe 1 262 1 450 1 635 1 825 2 000 2 200 Middle East 1 927 2 000 2 000 2 000 2 000 2 000 North America 6 408 6 400 6 300 6 200 6 100 6 000 Latin America and the Caribbean 1 642 1 650 1 650 1 650 1 650 1 650 Russian Federation & C.I.S. 3 282 3 065 2 850 2 635 2 420 2 200 World average: 2 078 2 041 2 017 2 008 1 998 1 989 Table 23 – Estimated natural gas (incl. bio-methane) consumption potential by NGVs – BAU scenario - Sub-scenario 2 – Region specific average consumption per equivalent NGV in each region bcm 2005 2010 2015 2020 2025 2030 Africa 0 .25 0 .40 0 .42 0 .74 1 .08 1 .29 Asia-Pacific 3 .21 8 .29 24 .12 45 .82 66 .66 91 .40 Europe 0 .55 0 .51 1 .83 3 .97 6 .40 9 .72 Middle East 0 .12 2 .62 8 .54 16 .75 24 .68 34 .13 North America 0 .98 1 .62 2 .96 4 .77 6 .46 8 .42 Latin America and the Caribbean 4 .32 7 .56 14 .85 24 .50 33 .64 44 .41 Russian Federation & C.I.S. 0 .55 2 .76 6 .15 10 .27 13 .50 16 .67 Total: 9 .99 23 .76 58 .86 106 .82 152 .41 206 .04 It is interesting that both approaches gave almost the same result, or more precisely, similar overall (global) “methane” consumption by NGVs, but with somewhat different regional spread (precisely, with higher consumption in North America compared to the previous case). - 83 -
  • 84. As for the NGV population prognosis, the trends already observed in 2003 – 2008 period (see Chapter: “Market data, share of gas, trends” → “NGV statistics, total number of vehicles and share of NGVs” in this report) are envisaged in the future, with a major increase of share in total global NGV population foreseen in Asia-Pacific region followed by Middle East region, on account of decreasing share in Latin America. Regional NGV distribution - 2005 Regional NGV distribution - 2010 Russian Africa Africa Russian Federation & 0.9% 1.3% Federation & C.I.S. Asia-Pacific 3.6% C.I.S. 24.2% 7.7% Asia-Pacific 35.6% Europe Latin America Latin America 9.4% and the and the Caribbean Caribbean Middle East 39.4% 56.7% 1.4% Europe North America Middle East 3.0% North America 3.3% 11.3% 2.2% Regional NGV distribution - 2015 Regional NGV distribution - 2020 Africa Africa Russian Russian 0.4% 0.4% Federation & Federation & C.I.S. C.I.S. 7.4% 7.3% Asia-Pacific Latin America Latin America and the Asia-Pacific 41.3% and the Caribbean 43.1% Caribbean 27.9% 30.8% North America North America 1.4% 1.6% Europe Middle East Europe Middle East 15.7% 3.8% 4.1% 14.6% Regional NGV distribution - 2025 Regional NGV distribution - 2030 Africa Russian Africa Russian 0.5% Federation & 0.5% Federation & C.I.S. C.I.S. 7.3% 7.3% Latin America Latin America and the and the Asia-Pacific Caribbean Asia-Pacific Caribbean 43.7% 26.0% 44.1% 26.7% North America North America 1.4% 1.4% Middle East Middle East Europe Europe 16.2% 16.5% 4.2% 4.3% Figure 35 - Regional NGV distribution – prognosis – Business As Usual (BAU) Scenario - 84 -
  • 85. Regional NGV parc (fleet) estimate was then compared to the estimate of overall vehicle parc (all fuels) in order to calculate respective shares of NGVs in the total vehicle parc in the period up to 2030. Total global vehicle parc is expected to reach 1.44 billion vehicles in 2030, which is growth of around 60% (or around 2% annually in average in the respective period) compared to base year 2005 (909.5 million vehicles). Table 24 - Total vehicle parc - all fuels (millions vehicles) - prognosis (million) 2005 2010 2015 2020 2025 2030 Africa 27 .56 31 .52 36 .87 42 .50 49 .62 57 .54 Asia-Pacific 189 .69 228 .26 255 .37 274 .88 311 .56 351 .27 Europe 282 .58 313 .29 342 .12 365 .49 396 .82 429 .48 Middle East 25 .06 31 .40 38 .63 45 .76 53 .47 61 .99 North America 283 .32 297 .20 312 .51 326 .52 339 .66 353 .06 Latin America and the Caribbean 58 .57 68 .72 81 .76 97 .50 112 .99 126 .95 Russian Federation & C.I.S. 42 .75 43 .36 47 .81 51 .95 55 .91 59 .86 Total: 909 .52 1 013 .75 1 115 .08 1 204 .61 1 320 .03 1 440 .14 The share of NGVs in the total global vehicles parc is expected to reach a little bit more than 7% in 2030, compared to 0.5% in 2005 (rounded figures). Share of NGVs in the total global vehicle park (all fuels) (%) 90% 80% Russian Federation & C.I.S. 70% Latin America and the Caribbean 60% North America Middle East (%) 50% Europe 40% Asia-Pacific Africa 30% World: 20% 10% 2.62% 4.42% 5.78% 7.19% 0.51% 1.15% 0% 2005 2010 2015 2020 2025 2030 Figure 36 – Share of NGVs in the total global vehicle parc (all fuels) Estimated number of natural gas filling stations (based on regression calculation) as well as number of “equivalent” NGVs per filling station (as result/outcome of the overall calculation) is presented below, again, for each region. - 85 -
  • 86. Table 25 - Number of natural gas filling stations (based on regression calculation) Filling stations (x 1) 2005 2010 2015 2020 2025 2030 Africa 96 166 191 355 562 746 Asia-Pacific 2 062 5 318 14 024 25 956 37 416 51 028 Europe 1 641 1 239 4 001 7 820 11 501 15 882 Middle East 96 1 311 4 267 8 373 12 339 17 065 North America 1 568 1 222 2 523 4 713 7 252 10 823 Latin America and the Caribbean 2 996 5 219 10 077 16 515 22 608 29 785 Russian Federation & C.I.S. 505 1 261 2 518 4 259 5 939 7 939 World: 8 964 15 736 37 601 67 991 97 617 133 268 Table 26 - NGVs per filling station NGVs per filling station (x1) 2005 2010 2015 2020 2025 2030 Africa 643 602 609 637 666 691 Asia-Pacific 543 779 860 882 890 895 Europe 266 281 279 278 278 278 Middle East 664 1 000 1 000 1 000 1 000 1 000 North America 97 207 186 163 146 129 Latin America and the Caribbean 877 877 892 899 901 903 Russian Federation & C.I.S. 331 713 856 915 939 954 It is important to point out that the global NGV project can open new working places in: • car industry (OEMs) - in R&D, production, marketing and sales line; • conversion sector (conversion shops); • filling stations industry (CNG, LCNG, virtual pipelines) - in R&D, production, marketing and sales line; • maintenance sector (maintenance OEMs + retrofits + filling stations); • administration - regulation, legislation, homologation, licensing, permitting; • vehicle components industry - again: R&D, production, marketing and sales line; • education sector; • conference tourism - in-house and external training, business skills development, technical tours, etc.; • gas (& oil) industry - additional gas sales, filling stations → CNG as the “door opener” towards potential large natural gas consumers in stationary gas consumption in liberalized markets (i.e. large shopping molls chains); • large industrial consumers to be approached first with NGVs and later co-generation, industrial gas applications, natural gas "turn-key service" and unified energy solution. • Other sectors in the vertically integrated NGV equipment chain. Global NGV market development can create many diverse direct and indirect positive effects throughout the worldwide economy, from security of supply through reduced independence on liquid fuels, reduced greenhouse and reductions of other harmful emissions, and creation of the new employment opportunities in numerous sectors of the worldwide labour market. - 86 -
  • 87. 6.2. WHAT ARE THE PRINCIPAL CHALLENGES AND OPPORTUNITIES? On a global basis one of the main goals toward cost reduction and improved reliability of technology is to foster the general harmonization of NGV equipment standards as well as ‘best practices’ (i.e. fuel station operation, cylinder inspection, etc.). Such standardization also will contribute to an improved cross-border flow of NGVs, which, ultimately creates a unified transportation and fuel market generally associated with that for petrol and diesel fuels and vehicles. The main challenges yet to be faced, based upon the recommendations of the stakeholders from the previous IGU WOC 5 S.G. 5.3 2003 – 2006 Triennium team are summarized below: 1. Worldwide harmonization efforts for codes, standards and regulations for NGVs (retrofit and OEM) including: • ISO standards and UN regulations, broadly including harmonizing regulations with the standards; • Fuel connectors and filling; • Vehicle type approval; • Regular vehicle and fuel system inspections; (gas system components inspected in line with ISO 19078); • Fuel measurement units and accuracy should be harmonized, particularly among countries in the same region; • Promotion of adoption of highest level international standards and regulations for retrofits, in particular by national and regional governments, to enhance increased safety and costs reductions; • Increase of specified training curricula for operation, maintenance, retrofit conversions, cylinder inspection, etc. to help ensure quality control and enforcement. 2. Regionalization / internationalisation of fuelling infrastructure strategy (and vehicle homologation): • Grouping (Strategic Alliances) of national NGV Associations to form and promote regional NGV Associations (and International Association for NGVs) to achieve critical mass and worldwide standardisation. • Support interlinking - “Blue Corridor” concept (Europe, Russia & C.I.S., Latin America – Bi- Oceanic Blue Corridor, Switzerland – Green corridor (support), Austria – Trans-Austria corridor (support) etc). On the technical side, the main challenge (and certainly achievable) is the further development of commercially available and competitive efficient NGV technologies in order to increase vehicle range and that better match customer’s requirements to have NGVs that are transparent in cost and performance to traditional gasoline and diesel vehicles. Technical improvements should include: improving efficiency of natural gas engines; hybridization; improvements due to downsizing, higher loads, turbo-charging, etc; but also further improvements in fuelling concepts (i.e. increasing share of LNG and L-CNG stations where possible) and fuelling technology in order to achieve successful fuelling business (telemetry, oil free compressors, hydraulic and ionic compressors, satellite maintenance, etc.). Another challenge is to increase the share of bio-methane as a fraction of the total “methane” consumption by NGVs also by fulfilling conditions for injection of purified bio-methane into the grid for utilization of the “green gas principle”. Recognition of natural gas/methane as a renewable resource provides much greater added benefit for the ‘NGV case’ around the world. - 87 -
  • 88. 7. CONCLUSIONS & RECOMMENDATIONS CONCLUSIONS Market Profiles • Among the major NGV world markets the Asia-Pacific region has experienced the most dramatic growth and this is likely to continue in the near future. • The NGV worldwide share of total vehicle parc in 2008 is approximately 1%. This represents 0.6% (2007) of the total worldwide natural gas consumption. Technology State of The Art • A wide variety of natural gas vehicle engines, fuel storage, fuelling systems, and vehicles are now in operation worldwide. Some of the technologies are relatively basic while others follow the sophistication of the best available technologies (OEM vehicles and fuel storage.) The level of sophistication of the NGV systems will continue to improve, particularly as improvements made in current automotive and truck technologies spread worldwide. • There has been a dramatic increase in the numbers of models of OEM NGVs in the worldwide vehicle market though numbers of OEM NGVs compared to converted vehicles is relative small. This trend is likely to continue and OEM NGVs will, at some point, become dominated by OEM product. • New developments such as high pressure direct injection and turbo charging should increase efficiency, vehicle range, and reduced emissions. Increasingly more of these new technologies are coming into the country or regional markets. With more stringent emissions standards and new generation of vehicles with these technologies are likely to move into the other regions in parallel with the development of more stringent national and local standards. Case Studies • Natural gas vehicle technologies are available and proven for a wide range of on-and-off-road vehicle applications including cars, trucks, buses, and marine applications. • Generally the life cycle costs of NGVs are comparable or even better to traditionally fuelled vehicles. Life cycle costs include purchase price, maintenance and repairs, vehicle insurance, fuel costs, vehicle taxation, and road use charges. In most markets the life cycle costs will be considerably lower for NGVs than for conventionally fuelled vehicles thanks to considerably lower fuelling costs. • Comparative reports of NGV maintenance experiences shows a positive influence of a ‘learning curve’ related to improved ‘best practices’ and the development of second generation technologies. • Some countries have been successful in organising cooperation among NGV stakeholders: OEMs; conversion companies; governments (local, regional, national). This relatively successful approach could be repeated in other countries to increase NGV penetration. - 88 -
  • 89. Prognosis for Industry Growth • Anticipated increase in oil prices up to US$120 per barrel in 2020 to $150 in 2030 (consistent with International Energy Agency crude oil price scenarios) indicate a potential growth of NGVs to approximately 50 million in 2020; and to just over 100 million in 2030 according to the mathematical model (developed by IGU WOC 5 S.G 5.3). That would account for the estimated share of NGVs in the worldwide vehicle parc of 4.5% in 2020 and just over 7% in 2030, representing up to 106 bcm annual gas consumption in 2020 and up to 207 bcm annual natural gas consumption in 2030. • Some of the market development potential through 2030 is linked to more dramatic growth of NGVs in the Asia-Pacific markets followed by growth in Latin America and the Middle East markets. RECOMMENDATIONS Retail Sale of Natural Gas as a Vehicle Fuel • Gas utilities should make a positive business case to the suppliers of traditional petroleum fuels who potentially could profit from integrating CNG/LNG into their retail mix. • Fuel pricing is critical to the success of NGV market development. Appropriate and competitive fuel pricing relative to petrol and diesel can be created on the basis of energy equivalencies, based upon fuel margins desired, or ‘artificially’ created through favourable taxation that supports cleaner, more environmental fuels. Support from Governments • Government incentives for NGVs (and clean fuels generally) should be linked to the relative share of market growth; when market share is low incentives need to be higher and then adjusted over time to reflect increased market penetration. • In the last few years, Government support for clean fuels has been more assertive for liquid biofuels, electric vehicles, liquid hybrid vehicles, and hydrogen fuel cells. Government-sponsored research and development has not, by-in-large, supported NGVs because they are considered as ‘commercialized’. However, governments need to be convinced that more financial resources for NGV R&D could dramatically improve the future potential contribution of NGVs environmental benefits (including: biomethane; energy efficiency; increased focus on natural gas / biomethane powered hybrid solutions); and contribution to overall energy security (i.e. through fuel diversification and efficiency). Standards • Issues associated with fuel quality/composition and the sale units of CNG (LNG) at the fuel pump will be important considerations into the future. Addressing these issue should make customers more familiar with understanding the economic advantages (in particular) of using natural gas as a vehicle fuel compared to other alternatives. • Efforts to continue harmonization of worldwide standards and regulations is needed to make NGVs more competitive (and reliable) in the market. - 89 -
  • 90. Gas Industry Activities • Biogas-to-biomethane shows promise as a renewable resource that is 100% sustainable (i.e. made purely from various solid and liquid waste streams and other feedstocks). The natural gas industry should further evaluate the opportunities for biomethane as a renewable resource as part of their overall fuel supply portfolio. This would be consistent with many government policies oriented to take advantage of the potential for natural gas and biomethane to reduce CO2 emissions, improve fuel diversity in the transportation sector, enhance energy efficiency and improve the overall security of supply. Additionally, NGVs would contribute to raising the environmental profile in a positive way for the natural gas industry as a whole. Development of Innovations • Emerging technologies and natural gas-based fuels are showing strong future potential and should be encouraged for further study and development. This should include, but not be limited to: liquid natural gas as a fuel; use of hydrogen within natural gas; dual fuel heavy duty engines; radio frequency identification (RFID) systems that contribute to safety when used to identify on- board CNG cylinders at the fuelling station (and increase accountability and data base development of NGVs within a country), L-CNG fuelling opportunities; and biomethane development for direct use in vehicles and introduction into the existing pipeline network. - 90 -
  • 91. APPENDIX – NGV Technical and Commercial Data Base As its permanent activity IGU S.G. 5.3 works on the establishment (based on the distributed questionnaires) and maintenance of the IGU NGV Technical and Commercial Data Base. This Data Base provides not only a technical overview in the form of technical standards and codes used in the countries surveyed, but also has a practical commercial application by covering in detail costs (CAPEX & OPEX) of various state-of-the-art OEM/conversion products (LDVs and HDVs) and costs and standards related to the NGV filling stations. It provides a good overview and description of markets today. Prepared summary of results is organized on the regional basis and presented bellow. NGV Original Equipment Manufacturers (OEMs) In order for the results to be comparable (and since some data might be business sensitive, especially in the heavy duty sector where prices are set through tenders) OEM price differences are expressed as percentages. On the other hand, for performing pre-feasibility analysis (i.e. by existing fleet operators using diesel HD models) such input is sufficient enough to calculate average added costs compared to average prices of diesel models used in an existing fleet. ASIA-PACIFIC REGION Table 27 - Summary NGV OEMs – Asia-Pacific region – overview for countries surveyed through questionnaire Price difference Price difference compared to compared to Country Available NGV models gasoline models diesel models Comment (%) (%) CHINA* LDVs No data provided for LDVs via questionnaire HDVs Zhengzhou Yutong ZK6118HGK 12% XiamenKinglong XMQ6122G 6% Zhongtong LCK6120G-2 21% Higer KLQ6129GC 9% Dandong Huanghai DD6129S11 8% INDONESIA HDVs Daewoo buses in Jakarta n.a. JAPAN LDVs Daihatsu / Miravan (Mini car) 136% Note: Mini car =engine displacement Mitsubishi / Mini cab (Mini car) 88% less then 660 cm3 ; Length < 3,40 m; Daihatsu / Hijet Cargo (Mini car) 108% Width < 1,48 m; Height < 2 m Toyota / Probox (small van) 135% HDVs Isuzu / 2 tonne Elf (truck) * Average price is 980 thousand YEN (€ 5.955) – only Nissan / 2 tonne Atras (truck) conversion costs – (it is basically a price difference related to Mazda / 2 tonne Titan (truck) natural gas system) Isuzu / 4 tonne Forward (truck) * Average price is 3.2 million YEN (€ 19.450) – only Nissan Diesel / 4 tonne Condor (truck) conversion costs – (it is basically a price difference related to Hino / 4 tonne Ranger (truck) natural gas system) Isuzu / ERGA (transit bus) 48% Isuzu / ERGAmio (transit bus) 55% * only conversion costs – (it is basically a price difference related to natural gas system) - 91 -
  • 92. Summary NGV OEMs – Asia-Pacific region cont´ Price difference Price difference compared to compared to Country Available NGV models Comment gasoline models diesel models (%) (%) MALAYSIA LDVs NAZA n.a. Ria MPV 4% Citra 9% HDVs Daewoo Bus BV120MA 89% In Japan can be observed high price difference of NGV models compared to its liquid fuels counterparts, which is on the other hand offset with supportive measures (see part on subsidies and/or tax exemptions). * At the time of the finalization of this report, nine Chinese manufacturers offering 32 light duty vehicles were identified in analyses conducted by Clean Fuels Consulting for private clients. Eight HDV OEMs were identified that produce trucks, of which six also produce natural gas buses. Additionally, two bus manufacturers were identified that produce natural gas buses using engines supplied by both Chinese and domestic producers. - 92 -
  • 93. EUROPE This survey confirmed Europe to be the region with the most Euro 4 OEM products available worldwide. Table 28 - Summary NGV OEMs – Europe – for countries surveyed Price difference Price difference compared to gasoline compared to diesel Country Available NGV models models models Comment (%) (%) AUSTRIA LDVs OPEL Zafira 1.6 CNG ecoFLEX Turbo (150 PS) 3% -0.2% Opel Combo Tour 1.6 CNG n.a. n.a. VOLKSWAGEN Passat 1,4ltr., 110 kW (150 PS) 0% -2.0% Touran 2,0ltr., 80 kW (109 PS) 11% 0.1% Caddy Life EcoFuel n.a. n.a. CITROËN Berlingo 1.4 n.a. n.a. C3 1.4 Style n.a. n.a. FIAT Dobló 1.6, 16V Natural Power n.a. n.a. Grande Punto 1.4 8V Natural Power n.a. n.a. Multipla 1.6 16V Natural Power n.a. n.a. Panda Natural Power n.a. n.a. Punto Start 1.2 Natural Power n.a. n.a. FORD C-Max n.a. n.a. Focus Limousine CNG n.a. n.a. HYNDAI Tucson n.a. n.a. MERCEDES BENZ B 170 NGT n.a. n.a. RENAULT Kangoo Campus 1.6 Erdgas CNG n.a. n.a. SKODA Octavia 1.6 Kombi n.a. n.a. HDVs Iveco (bus + truck) + € 50.000 – 60.000 more then diesel versions Mercedes (bus + truck) + € 50.000 – 60.000 more then diesel versions MAN (bus) + € 50.000 – 70.000 more then diesel versions NGV´s in Austria (both light and heavy duty) are subjected to lower tax (NOVA) than diesel/gasoline. Hence, only comparison with all taxes + VAT included was possible. For detailed list of available NGVs in Austria please contact: peter.seidinger@omv.com and/or franz.marschler@omv.com - 93 -
  • 94. Summary NGV OEMs – Europe cont` Price difference Price difference compared to compared to Country Available NGV models gasoline models diesel models Comment (%) (%) BULGARIA LDVs VOLKSWAGEN Caddy Kasten Economy (class Diesel model (2.0l SDI 51 kW) - 500 kg useful load) - 2.0l ECO 32% 24% petrol model - 1.2l 59 kW FUEL 80 kW Caddy Kasten (class 730 kg Diesel model (2.0l SDI 51 kW) - useful load) 2.0l ECO FUEL 80 23% 23% petrol model (1.6l 59 kW) kW Caddy Kombi (7 seat) - 2.0l Diesel model (1.9l TDI 77 kW) - 21% 9% ECO FUEL 80 kW petrol model (1.6l 75 kW) FIAT Diesel model ( 1.3 JTD Panda - 1.2 Dynamic Natural 42% 17% Dynamic) - petrol model (1.2 Power Dynamic) Panda Van 1+1 1.2 60 Natural Diesel model ( 1.3 JTD Active) - 46% 20% Power Active petrol model (1.2 Dynamic) Diesel model (1.3 JTD 16V) - Doblo Cargo - 1.6 Bipower 37% 19% petrol model (1.4 Bz) Doblo Panorama 4+1 - 1.6 Diesel model (1.3 JTD Active) - 7% 5% Active Bipower petrol model (1.4 Active) HDVs No OEM HD models available CROATIA LDVs FIAT Multipla Natural Power n.a. n.a. HDVs CNG model 1.6 compared with Fiat Dobló Cargo Furgone 1.6 petrol model Furgone 1.4 8v and 42% 18% BiPower with diesel model Furgone 1.9 JTD Iveco Daily n.a. n.a. HDVs MAN Lions City (12 m) 15% - 25% Depending of the number and type of cylinders (steel 6 x 190 MAN Lions City - articulated litres, aluminium composite 5% - 17% (18 m) 4x320 or 9x181 litres). - 94 -
  • 95. Summary NGV OEMs – Europe cont` Price Price difference difference compared to Country Available NGV models compared to Comment gasoline diesel models models (%) (%) CZECH LDVs REPUBLIC FIAT Multipla Dynamic 1.6 16V 24% Multipla Active 1.6 16V 26% Panda Dynamic 1.2 32% Panda Van 1.2 15% Dobló Van 1.6 16V 28% Grande Punto 10% CITROËN Berlingo 1.4i GNV 20% C3 1.4i GNV 13% MERCEDES BENZ B 170 NGT 15% B 200 NGT 12% RENAULT Kangoo Express 21% OPEL Zafira CNG Turbo 15% Combo 1.6 CNG 12% VOLKSWAGEN Caddy EcoFuel 13% Touran EcoFuel 8% Passat TSI EcoFuel 15% HDVs Iveco - bus & garbage truck 20% Information for CNG buses only. Iveco – Daily 3.0 CNG Tedom - bus & garbage truck 18% Information for CNG buses only. Mercedes Benz - bus & garbage truck Mercedes Benz – Sprinter 316 NGT / Sprinter 516 NGT SOR (Ecobus) 20% Solaris – bus Fiat Ducato 15% - 95 -
  • 96. Summary NGV OEMs – Europe cont` Price difference Price difference compared to compared to Country Available NGV models gasoline models diesel models Comment (%) (%) FRANCE LDVs CITROËN Berlingo 12% 4% C3 21% 8% C3 (professional) 17% 5% FIAT Dobló 27% 4% Multipla 22% 9% Panda 22% 14% Grande Punto 29% 6% MERCEDES E-class (E200) 10% 3% B-class 13% 8% OPEL Combo Tour 20% 13% Zafira 7% 1% PEUGEOT Partner 28% 14% RENAULT Kangoo 27% 12% VOLKSWAGEN Caddy van 18% 6% Caddy life 27% 3% HDVs Buses: Irisbus Iveco Citelis n.a. n.a. Heuliez Access’ bus GX327 n.a. n.a. Volvo 7700 n.a. n.a. Van Hool A330 n.a. n.a. Mercedes Citaro n.a. n.a. Trucks: Effedi Metan One 3.5 n.a. n.a. Iveco Daily 3.5-5.2-6.5t & 19-26t n.a. n.a. Mercedes Econic 19-26t n.a. n.a. Renault Trucks PVI: Midlum 12- 16t, Puncher 20-26t, Premium n.a. n.a. 18-20-26t - 96 -
  • 97. Summary NGV OEMs – Europe cont` Price difference Price difference compared to compared to Country Available NGV models gasoline models diesel models Comment (%) (%) NETHERLANDS LDVs CITROËN C3 24% 12% Berlingo 36% 21% FIAT Panda 37% 2% Doblo Cargo 60% 23% MERCEDES-BENZ E200 CNG 9% 11% OPEL Combo 41% 16% Zafira 20% 6% PEUGEOT Partner 36% 21% VOLKSWAGEN Caddy 22% 6% Touran 17% 3% HDVs MAN bus Estimated € 35 000 extra costs Mercedes bus and trucks No general price info Estimated € 35-40 000 extra Iveco bus and trucks costs Estimated € 30-40 000 extra Volvo bus costs Estimated € 15-20 000 extra Scania bus costs Scania truck LNG Underway for licensing Econic truck LNG Idem Iveco truck LNG Idem - 97 -
  • 98. Summary NGV OEMs – Europe cont` Price difference Price difference compared to compared to Country Available NGV models Comment gasoline models diesel models (%) (%) POLAND LDVs FIAT Doblo 1.6 11% Panda van 1.2 10% OPEL Price of CNG equal to price of Zafira 1.6 CNG diesel model. Combo 1.6 CNG 6% VOLKSWAGEN Caddy EcoFuel 8% MERCEDES BENZ Class B, E 21% HDVs Fiat Ducato 2.0 53% Mercedes Benz Sprinter 21% IVECO Irysbus Citelis Same as diesel. Man Lions City G CNG 10% Volvo 7700 A CNG 22% Volvo 7700 CNG 22% Mercedes Citaro CNG n.a. Solaris CNG n.a. Man CNG (18 m) n.a. PORTUGAL LDVs FIAT Multipla, Doblo, Punto n.a. n.a. VOLKSWAGEN Touran and Caddy n.a. n.a. HDVs IVECO trucks n.a. n.a. 30% - 50% more then diesel version Volvo buses n.a. n.a. MAN buses n.a. n.a. Mercedes Bens Sprinter buses n.a. n.a. Renault trucks (Midlum and others) n.a. n.a. - 98 -
  • 99. Summary NGV OEMs – Europe cont` Price difference Price difference compared to compared to Country Available NGV models Comment gasoline models diesel models (%) (%) SPAIN LDVs FIAT Multipla Dynamic 19% CNG model (1.6l) compared with petrol model (1.9P) 6% CNG model (1.6l) compared with diesel model (1.9D) Doblo SX Bipower 19% CNG model (1.6l) compared with diesel model (1.3D) 9% CNG model (1.6l) compared with diesel model (1.9D) Doblo Bipower 40% CNG model (1.6l) compared with petrol model (1.4P) Panda 1.2 Natural Power n.a. Punto Classic Natural Power n.a. OPEL Zafira 17% CNG model (1.6l) compared with petrol model (1.6P) Combo Cargo 15% CNG model (1.6l) compared with diesel model (1.2D) CNG model (1.6l) compared Combo Tour Enjoy 23% 17% with petrol model (1.4P) and with diesel model (1.2D) 6% CNG model (1.6l) compared with diesel model (1.7D) Combo Essentia 16% CNG model (1.6l) compared with diesel model (1.2D) 7% CNG model (1.6l) compared with diesel model (1.7D) VOLKSWAGEN Caddy 1.9 Eco Fuel n.a. Touran Eco Fuel n.a. MERCEDES B-Class CNG n.a. A-Class CNG n.a. HDVs Stralis CNG 75% (2-axle) 50% (3-axle) Daily CNG -25% up to -33% Citelis CNG -12% (12 m / 18 m) Mercedes Citaro CNG bus n.a. Mercedes Econic NGT (truck) n.a. - 99 -
  • 100. Summary NGV OEMs – Europe – overview for countries surveyed through questionnaire cont` Price difference Price difference compared to compared to Country Available NGV models Comment gasoline models diesel models (%) (%) SWEDEN LDVs FIAT Punto 1.2 Bi-Power 44% 19% Multipla CNG n.a. n.a. OPEL Combo 1.6 CNG Tour 30% 13% Zafira 1.6 CNG Enjoy 20% 3% CITROËN C3 21% 4% VOLKSWAGEN Caddy 2.0 EcoFuel Life 33% 17% Touran 2.0 EcoFuel 16% 3% FORD Focus C-Max 25% 13% MERCEDES-BENZ E 200 NGT 4% 0% sedan FIAT Doblo Van 1.6 Natural Power 21% 9% OPEL Combo 1.6 CNG Van 25% 8% VOLKSWAGEN Caddy 2.0 EcoFuel Van 20% 7% Caddy 2.0 EcoFuel 19% 4% IVECO Daily CNG Chassis n.a. n.a. Daily CNG Van n.a. n.a. HDVs MD commercial vehicles IVECO: Daily CNG Van 4.2-5 There are no list prices for HD ton, Daily CNG Chassis 4.2-6 n.a. n.a. vehicles since the price will be based ton on adaptations for individual customer. MERCEDES BENZ: Econic The actual price differential in 1828 GLL (2 axle) and Econic comparison to a standard diesel n.a. n.a. vehicle will be influenced by the 2628 GLL/NLA (3 axle) distribution/garbage vehicle respective emission standards (and the respective emission treatment VOLVO: FL garbage vehicle systems), by the difference in costs for (2 axle) with plug battery n.a. n.a. engine and fuel systems (where powered hydraulics variations in operating range requirements have an impact upon HD buses NGV models). Possible future MERCEDES BENZ: Citaro hybridisation of both diesel and NG CNG (3 versions, 12-18 n.a. n.a. vehicles will reduce present pricing metres) differentials since reduced fuel consumption will help to significantly MAN: CNG (4 versions) n.a. n.a. lower the costs. Currently € 35 000 is NEOPLAN: CNG n.a. n.a. the general approximation of the VOLVO: B 5000 CNG and B additional on costs for an NGV bus. n.a. n.a. 5000 CNG -articulated - 100 -
  • 101. Summary NGV OEMs – Europe cont` Price difference Price difference compared to compared to diesel Country Available NGV models models Comment gasoline models (%) (%) SWITZERLAND LDVs FIAT: Multipla, Doblo Cargo, n.a. n.a. Doblo SX, Panda, Ducato OPEL: Zafira, Combo Tour, n.a. n.a. Combo Van VOLKSWAGEN: Touran, Caddy Life, Caddy LDV, n.a. n.a. IVECO New Daily After Sales Conversions: n.a. n.a. FORD: Focus, Transit, Fiesta, n.a. n.a. Focus C Max, Maverich CHEVROLET: Nubira SW, n.a. n.a. Lacetti, Nubira PEUGEOT: Partner, LDV n.a. n.a. CITROËN: C3, Berlingo, n.a. n.a. Berlingo Furgon MERCEDES E200 n.a. n.a. HDVs MAN solo and articulated n.a. n.a. Volvo buses n.a. n.a. Mercedes Econic n.a. n.a. IVECO Eurotech NGT truck n.a. n.a. UNITED HDVs £ 40 000 (€ 58 000) extra cost on KINGDOM Mercedes Benz Econix (RCV) top of the diesel vehicle. - 101 -
  • 102. MIDDLE EAST Table 29 - Summary NGV OEMs – Middle East – overview for countries surveyed Price difference Price difference compared to Country Available NGV models compared to gasoline Comment diesel models models (%) (%) IRAN LDVs KIA - PRIDE 10% PEUGEOT 405 8% Roa 13% 206 SD 3% Pars 6% SAMAND petrol base 7% (XUG) MAZDA Mazda pickup (1 cab.) 9% Mazda pickup (2 cab. ) 9% Nissan Pickup 9% HDVs MB -OM 457 Price of CNG model is around 100 000 US$ (73.000 €). Renault Scania -1 A60 Mini bus Price of CNG model is around 270 million Rial (approx. 27 895 US$, 21 650 €) Man (2876) city bus Price of CNG model is around 970 million Rial (approx. 100 200 US$, 77 785 €) Renault (2612) city bus Price of CNG model is around 970 million Rial (approx. 100 200 US$, 77 785 €) Scania (SG 9A ) city bus Price of CNG model is around 870 million Rial (approx. 89 880 US$, 69 765 €) RUSSIA Table 30 - Summary NGV OEMs – Russia – overview for countries surveyed Price difference Price difference compared to gasoline compared to Country Available NGV models Comment models diesel models (%) (%) RUSSIA LDVs No data provided for LDVs via questionnaire. HDVs Average price before tax around Scania Piter bus 164 thousand €. Average price before tax around Liaz bus Solo 105 thousand €. Average price before tax around Liaz bus articulated 170 thousand €. Kamaz truck (6*6, 260 Average price before tax around horse power, 10 ton) 42.4 thousand €. - 102 -
  • 103. LATIN AMERICA Table 31 - Summary NGV OEMs – Latin America – overview for countries surveyed Price difference compared to Country Available NGV models Comment gasoline models (%) ARGENTINA LDVs RENAULT Clio Authentic 4% Kangoo Authentic 16% Renault Megane 16% FIAT The conversion is made by an authorized Siena, Palio and Fiorino workshop and the vehicles has full guarantee from FIAT Similar to FIAT above. Planning to launch the 206 PEUGEOT Partner NGV/Gasoline (in time the questionnaire was replied). Had some NGV models offered in the past, but FORD AND VOLKSWAGEN not any more. Not available at the moment. NGV for HD vehicles (urban passenger transportation) development depends on legislative approval of a regulation HDVs governing the use (obligatory) of CNG for urban buses on a step-by-step program. This would be, perhaps, the starting point of a new expansion of natural gas in Argentina. BRAZIL LDVs FIAT Siena 20% No diesel models. FORD Ranger 15% Only gasoline or flex-fuel models = petrol + VOLKSWAGEN 10% ethanol. - Saveiro 1.8 8% - Parati 1.8 15% At the time of this report Volkswagen has interrupted their NGV Program temporarily, in - Golf 1.0 11% order to evaluate some new models launched - Golf 1.6 14% directly from their production line. - Polo 1.0 10% - Polo 1.6 10% - Kombi 1.4 35% No OEM HD NGVs are available in Brazil. There are no local OEMs producing HD NGVs for the internal market. There are still a HDVs considerable number of local barriers (costs, gas distribution infrastructure, taxes, diesel culture, bus operation concession contracts, no government incentives, questionable environmental standards, etc). - 103 -
  • 104. Average conversion costs breakdown An overview of conversion costs for light and heavy duty vehicle segments for each respective region is presented below. All data inputs are acquired directly through the questionnaire. Where possible, conversion costs breakdown on equipment and labour has been acquired. ASIA PACIFIC REGION Table 32 – Summary – Average conversion costs breakdown – Asia-Pacific region Country Category Description CHINA Average cost of dual fuel conversion kit is approximately US $ 2 500 / engine (€ 1 750 / engine), mainly for trucks converted from diesel. Dual fuel is defined as the HDVs engine that can use either natural gas or diesel fuel. There are no data available for conversions of LDVs. INDONESIA At present there are no active suppliers of equipment. PT. Wendell Indonesia has facilities arranged to begin conversions using European equipment, but due to LDVs lack of central / local government support the public interest in CNG is currently very low. JAPAN Average conversion costs: US$ € LDVs Mini car: 9 700 7 225 Small van: 11 745 8 750 Average conversion costs: US$ € HDVs Micro bus (average): 41 600 31 000 Medium size transit bus (average) 62 200 46 350 MALAYSIA Conversion kits: US$ € Mixer type for carburettor 515 360 Mixer type for fuel injection 636 445 Sequential type (4 cylinder engine) 1 455 1 020 LDVs Cylinder cost US$ € Type 1 (60 lwc) 360 250 Type 2 (60 lwc) 455 320 HDVs US$ € HDVs Monogas 24 240 16 970 Dual fuel 9 090 6 365 As in the case of OEMs, the highest conversions costs occur in Japan (again, partially offset by available supportive measures). - 104 -
  • 105. EUROPE Table 33 – Summary – Average conversion costs breakdown – Europe Country Category Description Beginning from about € 2 500 (up to € 5 000 depending on decided AUSTRIA LDVs equipment) with VAT included. No conversions of HD NGV in Austria. BULGARIA Conversion Cylinder Labour costs Total equipment cost cost € € € € (VAT excluded) (VAT excluded) (VAT excluded) (VAT excluded) Min 150 150 80 380 Max 500 500 150 1 150 LDVs Conversion Cylinder Labour costs Total equipment cost cost € € € € (VAT included) (VAT included) (VAT included) (VAT included) Min 180 180 96 456 Max 600 600 180 1 380 Depending from volume capacity. Only Dual-fuel conversion are available € HDVs - Dual-Fuel conversion - min 2 500 - Dual-Fuel conversion - max 3 500 € (VAT included) min max CROATIA LDVs Carburetted vehicle 950 1 090 Electric injection without catalyst 1 170 1 360 Vehicle with catalyst 1 620 2 015 No conversion of HDVs done in Croatia. One bus has been converted, but outside HDVs Croatia (in Italy). CZECH Czech market now is firstly oriented towards OEMs. Average conversion cost is REPUBLIC LDV / HDV around 60 000 Czech Koruna (€ 2 000) for LDVs. HDVs conversions (trucks, buses) are not requested now thanks to OEMs. FRANCE LDV / HDV French market is oriented towards OEMs (vehicles conversion is not used in France). NETHERLANDS According to reply on the questionnaire, conversion cost is up to € 5 000 (same cost is LDV / HDV reported for HDVs and LDVs conversions). No conversions in Portugal are allowed except for forklifts. All NGVs in country are PORTUGAL LDV / HDV from OEMs. Only for forklifts equipments there were some conversions. - 105 -
  • 106. Summary – Average conversion costs breakdown – Europe cont´ Country Category Description POLAND 4 500 PLN (€ 1 035). It depends on kind of original fuel system and varies between 3 LDVs 200 and 6 000 PLN (€ 735 - € 1 400). 60 000 PLN (€ 13 800), cost could increase up to 110 000 PLN (€ 25 300) in case the HDVs engine have to be repaired. SPAIN Cost to convert vehicles like Citroën Berlingo, Opel Combo are around € 2500 LDVs / HDVs (without 16% VAT, or € 2900 with 16% VAT included). For HDVs, total maintenance overhead can be increased by 3-5% compared to Diesel vehicle. SWEDEN No significant conversion market currently exists in Sweden. From 2008 the national legislation may allow ECE R115 based conversions of LD vehicles, but the market potential is very limited considering the fairly wide offer of new and second hand OEM LDVs LD NGVs. Customers are usually not prepared to accept the financial risks associated with conversions where OEM warranties and product liability will become void as a consequence of the conversion. The main Swedish conversion potential is the conversion of HD diesel trucks is from diesel to dual fuel applications. There are several projects dealing with this potential. Conversion costs are in the order of € 20 000 - 25 000. Dual fuel conversions currently HDVs attract a lot of interest, particularly concerning HD trucks used in long haulage business. Total conversions costs for a truck with a closed loop system are estimated to be in the range € 20 000 - 25 000 (everything included). SWITZERLAND The average conversion costs are in the range of CHF 6 000 (€ 3 600) to CHF 12 000 (€ 7 200) depending on storage capacity and pressure cylinder type. Normally a LDVs conversion kit can cost top to CHF 4 000 (€ 2 420). The most important cost factor is installation / adoption of the cylinder package to the vehicle. Vehicle type approval is substantial especially emission testing and certification. All trucks bought in Switzerland are OEM types. Engine conversion (Diesel - Natural HDVs Gas) is too expensive and professional transport companies are only ordering OEM vehicles. UNITED Conversion costs information is available only for HD segment (for Dual Fuel KINGDOM conversion) Average conversion costs for HD truck £ US$ € Single CNG tank installation 15 000 29 250 21 750 Labour 2 500 4 875 3 625 Tank, pipe work and valves 3 000 5 850 4 350 Exhaust catalyst 3 500 6 825 5 075 ECU management system and electrics 6 000 11 700 8 700 LNG fuel containment 18 000 35 100 26 100 Vehicle conversion costs in Europe seem to be rather uniform across countries except in the cases of Switzerland and Netherlands where they are above average. In some European countries market is oriented towards OEMs only (France, Portugal, Sweden, etc.). - 106 -
  • 107. MIDDLE EAST Table 34 – Summary – Average conversion costs breakdown – Middle East Country Category Description IRAN Conversion kits US$ € Carburettor (mixer type ): 100 - 150 73 - 110 LDVs Injection (injection plus ECU) 300 - 500 220 - 365 Used cylinders are Type I. Each litre ≈ 3.5 - 4.0 US$/litre Average conversion cost US$ € Cylinder + frame 2 450 1 715 HDVs Conversion kit 1 000 700 Piping 500 350 Total: 3 950 2 765 LATIN AMERICA Table 35 – Summary – Average conversion costs breakdown – Latin America Country Category Description ARGENTINA Conversion cost average is US$ 650 (€ 475) depending on car model i. e.: new Renault Mégane or Ford Focus are close to US$ 800 (€ 585). A second hand car LDVs can be converted at a cost of US$ 550 (€ 400). It highly depends on type of equipment, volume of cylinder, new or recycled components, etc. A typical diesel engine (i.e.: Mercedes 266) conversion into a CNG (dedicated) is HDVs about US$ 6 000 / 7500 (€ 4 200 - € 5 250) plus VAT. This conversion has been duly tested and is available to the market but penetration is still negligible. BRAZIL 3 rd th 5 US$ generation kit generation kit Conversion equipment cost 280 585 Cylinder cost (63 litres) 430 430 Labour cost 600 600 Total: 1 310 1 615 LDVs rd th 3 5 € generation kit generation kit Conversion equipment cost 200 425 Cylinder cost (63 litres) 310 310 Labour cost 435 435 Total: 945 1 170 HDVs Costs are in the range of 25 to 30% of the heavy duty vehicle sales price - 107 -
  • 108. RUSSIA Table 36 – Summary – Average conversion costs breakdown – Russia Country Category Description RUSSIA (€) Unit price Personal car (2x50 l) Minivan (4x50 l) Equipment 500 500 500 LDVs Labour 200 200 200 Cylinder 50 l 300 600 1.200 Total: 1 300 1 900 (€) Unit price Truck Bus Equipment 600 600 600 HDVs Labour 300 400 Cylinder 50 l 300 1 800 2 400 Total: 2 700 3 400 - 108 -
  • 109. Extra costs related to NGVs (i.e. cylinder inspection, gas system examination, additional road tax etc.) Extra costs of NGV use are related to things such as additional taxes and duties as well as additional costs of inspections (cylinders, gas system in the vehicles etc.). Costs can be either annual, or periodical (but in the period larger then one year) or one-time-only costs. ASIA – PACIFIC REGION Table 37 – Summary – Extra annual costs related to NGVs – Asia-Pacific region Country Category Description CHINA LDVs No data provided for LDVs via questionniare. HDVs RMB US$ € Cylinder inspection (each 3 years) – steel 500 73 56 HDVs Cylinder inspection (each 3 years) – 250 37 28 composite LNG tank inspection (every 3 years) 5 000 730 555 JAPAN LDVs / 1st inspection is within 4 years. After that, it is every 2 years. Cost is around 20 HDVs 000 - 30 000 YEN (120 - 180 €) MALAYSIA Cylinder inspection US$ € LDVs / NZS 5454, hydrostatic test, every 5 yrs 45 32 HDVs ISO 11439, visual inspection, every 3 yrs - estimated cost 27 19 LATIN AMERICA Table 38 – Summary – Extra annual costs related to NGVs – Latin America Country Category Description ARGENTINA US$ € LDVs Maintenance, examination sticker, 200 140 cylinder inspection etc. BRAZIL US$ € Initial inspection 43 31 LDVs Cylinder retest (every 5 yrs) 52 37 Road tax 1 to 4% over vehicle sales price - 109 -
  • 110. EUROPE Table 39 – Summary – Extra annual costs related to NGVs – Europe Country Category Description Only visual inspection of cylinders is necessary acc. to ECE R 110 / ECE R 115 AUSTRIA LDVs (this will be done during periodical inspection.) > no add. costs for NGV´s BULGARIA € Gas system examination (every year) 10 per car LDVs Removal of cylinders 10 per cylinder Cylinder inspection every 5 years 20 per cylinder CROATIA € (VAT incl.) € (VAT incl.) < 3.5 tonne > 3.5 tonne One time costs (at start-up) Vehicle certification in accordance with the 55 55 relevant ECE regulation. Paper processing fee (stamp) 3 3 LDVs / Regular annual costs add-ons HDVs Annual registration cost addition 85 280 Added cost for annual technical examination 8 8 of gas installation Additional road tax 75 275 Periodical costs Cylinder pressure test (every 3-5 years) – 140 140 price per cylinder CZECH REPUBLIC Czech Koruna € LDVs Car inspection (every year) 500 17 Inspection per cylinder (every 5 yrs) 800 28 Czech Koruna € HDVs Car inspection (every year) 500 17 Inspection per cylinder (every 5 yrs) 4 000 140 FRANCE No extra cost for yearly maintenance except for cylinder inspection. Cost LDVs estimated to € 300 maximum every 4 years. “detailed visual inspection” every 3 years: € 1 200 / HDV (buses) + other maintenance costs HDVs = maintenance cost about 20% higher than diesel ; some examples in France go down to +12% - 110 -
  • 111. Summary – Extra annual costs related to NGVs – Europe cont´ Country Category Description NETHERLANDS Cylinder inspection (every 5 years). Estimated cost is € 500. Road tax LDVs depending on car weight and fuel type, making CNG more expensive (for G3 is same as gasoline and only diverted for weight). POLAND LDVs ca 72 PLN (€ 17) – technical inspection LDVs / ca 300 PLN (€ 70) – cylinder inspection – every three years HDVs HDVs ca 260 PLN (€ 60) – technical inspection ca 750 PLN (€ 170) – cylinder inspection – every three years PORTUGAL Recent Decree-Law 137/2006 requires a special inspection for NGVs, but LDVs currently there is no institution certified for inspections. This is a problem for NGVs because, NGVs operating without certification is illegal. SPAIN LDVs There in no fixed price for LDV cylinder inspection: approximately € 200 SWEDEN Existing LD vehicles are now, in principle, all OEM vehicles with a European Whole Vehicle Type Approval. For these vehicles it is sufficient with a regular visual inspection of the system every four years in line with the ECE R110. LDVs / There are no special costs for this inspection (part of the over all vehicle HDVs inspection demands). For MD/HD vehicles registered on the basis of (1) a European engine certification and (2) a national type approval scheme, some added costs will apply. SWITZERLAND There is no additional extra cost involved in operation of NGV in Switzerland. Every 36-month (or today 48 month) according to the ECE R110 the cylinders LDVs have to be inspected. Normally the OEM companies require a check of the gas system as well, according to their specifications. There is a road tax in the form of a weight- kilometre tax for trucks. For every kilometre driven a tax based on the weight has to be paid (LSVA-tax). Because HDVs of the additional weight of the fuel cylinders in the CNG case the LSVA-tax is higher for CNG-trucks. There are no extra annual costs involved in operation a CNG truck or bus. UNITED Approximately £ 500 (€ 725) per vehicle, some elements of this cost are for the KINGDOM HDVs 3 years visual inspection of the CNG tanks. While, on one hand, conversion costs in Europe can be considered to be within similar range, extra costs related to NGVs differ significantly among European countries. - 111 -
  • 112. MIDDLE EAST Table 40 – Summary – Extra annual costs related to NGVs – Middle East Country Category Description IRAN US$ € LDVs / LDVs 20 14 HDVs HDVs – free of charge RUSSIA Table 41 – Summary – Extra annual costs related to NGVs – Russia – overview for countries surveyed through questionnaire Country Category Description RUSSIA Cylinder requalification once every 43 € / cylinder LDVs three or four years Additional maintenance cost 1.17 € / 1000 km Cylinder requalification once every 43 € / cylinder HDVs three or four years Additional maintenance cost 1.64 € / 1000 km - 112 -
  • 113. Subsidies and/or tax exemptions for NGVs (equipment, conversions and OEMs, natural gas as vehicle fuel, filling stations) Supportive measures in each region are listed here. ASIA-PACIFIC REGION Table 42 – Summary – Subsidies and/or tax exemptions for NGVs – Asia-Pacific region Country Description CHINA LDVs: Data for LDVs were not available via questionnaire. HDVs: Depending on each province and city. Some provincial governments provide subsidies/loans for public transit. The amount varies depending on the financial ability of each province. Some provincial capital city governments provided subsidies up to 40~60% of price of the difference for equivalent diesel models. Natural gas as vehicle fuel VAT of CNG and LPG is lowered to 13% and VAT for diesel and gasoline at 17%. Filling stations Not across the board subsidy by General Government. But provincial government may have subsidies, bank loan or tax incentive for natural gas refuelling station since most of the refuelling stations' owner are state owned enterprise (SOE). JAPAN HDVs: Ministry of Economy, Trade and Industry: 50% of conversion costs Ministry of Land, Infrastructure and Transport • Only for truck and bus fleets. • Half of conversion costs in case of OEMs. • One third of conversion cost in case of after market conversion. • Subsidy by local government is necessary. Japan Trucking Association • Only for GVW over 2.5 ton fleet truck. • About one thirds of conversion cost in case of OEM. (Loans) Development Bank of Japan, Japan finance Corporation for Small and Medium Enterprise and National Life Finance offer special interest for NGV purchase. (Tax exemptions) • 7% tax exemption or 30% special depreciation. • Tax on purchasing automobile: 2.7% reduction. • Vehicle tax: 50% reduction for one year after vehicle registered. - 113 -
  • 114. Summary – Subsidies and/or tax exemptions for NGVs – Asia-Pacific region cont´ Country Description JAPAN – cont´ Natural gas as vehicle fuel • CNG is exempted from taxation except VAT. Filling stations Ministry of Economy, Trade and Industry; 50% of construction cost (Loans): Japan Finance Corporation for Small and Medium Enterprise, and National Life Finance Corporation offers special interest rate for purchasing NGVs. (Tax exemptions): 7% tax exemption or 30% special depreciation MALAYSIA LDVs: Road tax exemption of 25% for bi-fuel and 50% for mono-gas. NGV kits and cylinders are tax exempted. Natural gas as vehicle fuel Natural gas as fuel is subsidized and non-profit business for Petronas. Filling stations CNG stations equipment is tax exempt. EUROPE Table 43 – Summary – Subsidies and/or tax exemptions for NGVs – Europe Country Description AUSTRIA LDVs Lower tax for new CNG cars (NOVA) - CNG cars with lower tax on new CNG-cars (“Normverbrauchsabgabe (NOVA)”). NOVA is based on consumption of fuel of the cars referring to EU norms. For liquid fuels NOVA is based in litre, for CNG in kg (as CNG is sold in kg at the retail sites in Austria). New VW Passat CNG with only 4% NOVA, compared to 8%/9% for diesel/gasoline Plus bonus (for environmental friendly vehicles): € 500 remark: bonus is deducted from net price before VAT Local subsidies in Austria: for details please contact: peter.seidinger@omv.com and/or franz.marschler@omv.com HDVs No tax exemption or subsidies for CNG for heavy duty NGV´s, but lower price of CNG (due to lower tax on CNG compared to gasoline/diesel, see bellow). Natural gas as vehicle fuel Reduced tax for CNG (compared to other fuels) = 6.6 eurocents per m³ (no guarantee for a certain period of time given) (“mineral oil tax” for diesel = 34.7 eurocents/litre, gasoline 44.2 eurocents/litre). Filling stations a) € 10.000 for construction of new CNG sites (subsidy from April 2009 till end of 2010) b) Special transportation fee for natural gas used as CNG in Austrian gas grid: 2 400 €/a + 0.36 eurocents/kWh. - 114 -
  • 115. Summary – Subsidies and/or tax exemptions for NGVs – Europe cont´ Country Description BULGARIA Natural gas as a vehicle fuel is without excise duty. CNG as fuel is not subject of taxation except VAT (20%). CROATIA In 2009, Financial facilities of Croatian Fund for Environmental Protection and Energy Efficiency 1st Financial Facility Fund will encourage and stimulate all programmes and projects that foster implementation of clean vehicles by conducting and enhancing technical measures (engine efficiency improvement, replacement of conventional vehicle engines with more environmental friendly ones, decrease of rolling and air resistance, drivers education, etc) and organisational measures (toll fees, congestion charging, parking space control, parking fees, freight transport control in urban areas, urban traffic infrastructure control) in passenger and freight transport, and especially in field of alternative fuels introduction (compressed natural gas, biogas, bio diesel, bio ethanol, LPG and hydrogen) as well as propulsion system equipped with batteries and fuel cells. Utilisation of CNG and LPG are priorities since stakeholders ready to adopt these systems and especially using light duty vehicles within for commercial applications, public transportation service (city buses), taxis, driver schools and public companies (example.: waste collecting operators – garbage trucks, etc.). The financial assets will be allocated as support for new CNG/LPG refuelling stations commissioning as well as partial coverage of the retail price differences between conventional and EEV vehicle, and city buses running on CNG/LPG. Public Invitation to tender was (at the time of writing this paper) announced to be launched in the second half of 2009, depending upon the Fund's incomes and resource availability. The investment structure will be as follows: Interest Free loans and subsidiaries for trade associations, respectively financial aids (reimbursement free) for local & regional authorities. Co-financing up to 40% of eligible costs except for Local Authorities on islands or in highland area for which is eligible up to 60% and finally for Special Care Areas is set up to 80%. According to preliminary Fund's budget allocation, there will be ensured around 3 million Croatian Kuna (~ 405 400 €) for this purpose. nd 2 Financial Facility Fund for Environmental Protection and Energy Efficiency will, in 2009 fiscal year in collaboration with Ministry of Sea, Transport and Infrastructure as well as with Ministry of Economy, Labour and Entrepreneurship, in fiscal year 2009 start developing the Programme for Negative Transport Impact on the Environment Reduction – diminishing of the road vehicles pollutants from two categories: heavy duty and buses. The programme will offer supportive assets for yearly substitution of 1 000 ecologically unacceptable vehicles within the period 2009 – 2011. This action should provide significant pollution reduction and respectable financial savings. Within this time period enough assets will be allocated to support substitution of ~ 3 000 freight vehicles powered on engines with unacceptable ecological standards (EURO 0,1,2,3) and school buses with ecologically friendly vehicles whose emissions are equal or greater than EURO 5 eco-standard (in Croatia, the EURO 4 emissions levels currently are in force.). The Fund will allocate subsidies to the legal entities of up to 50 000 Croatian Kuna (~ 6 750 €) per vehicle. For the Programme implementation the Fund has to assure 150 million Croatian Kuna (~ 20 270 000 €). Natural gas as vehicle fuel CNG as a fuel not subject of taxation except VAT (22%) and annual lump sum of 550 Croatian Kuna (€ 75) for LDVs (<3.5 tonnes) and 1 200 Croatian Kuna (around € 165) for HDVs (>3.5 tonnes). - 115 -
  • 116. Summary – Subsidies and/or tax exemptions for NGVs – Europe cont´ Country Description CZECH LDVs / HDVs REPUBLIC Zero road tax on NGVs from January 2009. Ministry of Transport subsidy on CNG buses purchased for a public municipal transportation. Gas industry subsidy on CNG buses purchased for a public municipal transportation. Governmental subsidy: 600 000 CZK / CNG bus (€ 20 700 / CNG bus) for new bus purchase. Gas industry subsidy 200 000 CZK (€ 6 900) for marketing endowment. Natural gas as vehicle fuel In the Agreement that was signed in 2006, the Czech Government undertook to stabilise the excise duty on st CNG. From 1 January 2007, a zero excise duty on CNG is applicable in the Czech Republic, and it will stay in place until 2012; from that year on it will be gradually increased in about four stages. In 2020 it is to return to its 2006 level. ITALY Financial incentives for OEMs: New OEM vehicles: Category Amount: Note: Duration Vehicles purchased from Fiat Panda, Fiat EURO 4, CO2 <120 g/km € 2 000 10/03/06 to 12/31/2009 and Punto, Citroen C3 registered to 03/31/2010 Vehicles purchased from All the others new EURO 4, CO2 >120 g/km € 1 500 10/03/06 to 12/01/2009 and OEM vehicles registered to 03/31/2010 Vehicle scrapping: Private passenger car € 800 (in case of scrapping Euro 0 or Euro 1 vehicle and concurrent purchase of a new car with emission CO2 < 140 G/km). € 2 000 for LD trucks (if the LD truck scrapped is a Euro 0 or Euro 1 vehicle and the concurrent purchase new truck is a Euro 4 with vehicle weight <3.5 tons). Financial incentives for converted vehicles: Category Amount: Note: Duration Euro 0/1 € 350 Certifies from 01/01/07 (Financial act) Until funds exhausted Euro 2 0€ 50 million € for each of the years 2007, 2008 and 2009 Converted and certified within 3 years (Financial act) Euro 3/4 € 650 from the date of 1st registration from =1/01/07 2 million € by Italian Productive Activity Ministry Incentives. Other tax relief: Euro 0, Euro 1, Euro 2 and Euro 3 CNG vehicles (new OEM and converted) are not subject to the road tax increase introduced by 2007 Financial Act for these category of vehicles. I.C.B.I. Protocol incentives (Initiative for environmental friendly vehicles): Category Amount: Note: Duration Natural and legal entities (road Converted vehicles – haulage contractors Until fund exhaustion - € 350 excluded), resident in the cities 15 million € category Euro ½ joining the Agreement - 116 -
  • 117. Summary – Subsidies and/or tax exemptions for NGVs – Europe cont´ Country Description FRANCE LDVs: • € 2 000 tax credit for a personal car acquisition (emitting less than 140 g CO2/km). • € 1 000 tax credit tax credit in addition to all other tax credit if a car older than 10 years is given back ( → destruction). HDVs: • Partial / total registration fee exemption depending on the region. • Society vehicle tax exemption. • Extraordinary 12 months depreciation. Subsidy: • Truck >3.5t: 30% of NGV extra cost. • Bus: € 1 500 /bus (<23 seats) & € 7 500/bus (23 seats) (up to 20 busses/year/owner). • Garbage truck: € 7 500 / truck (up to 20 trucks/year/owner). • Extra help for areas specified by French environmental agency (ADEME). Natural gas as vehicle fuel LDVs: No tax on natural gas used as a fuel. HDVs: VAT refund Natural Gas Consumption tax refund: • up to 40 000 m3 / vehicle / year for buses and garbage trucks fleets; • 3 up to 9 000 m / vehicle / year for taxis fleets. Filling stations Extraordinary 12 months depreciation. Extra help for areas specified by French environmental agency (ADEME). NETHERLANDS Natural gas as vehicle fuel Dues on natural gas nowadays are 3 eurocents / m3 instead of 15 eurocents / m3 up to 5 000 m3, 12 3 3 3 3 eurocents m / up to 170 000 m and around 2 eurocents / m above 170 000 m yearly consumption for vehicles. Filling stations Many provincial Governments collaborate together through IPO (Interprovincial Overleg) to coordinate the marketing activities of NGV industry to the public. Financial support will be used to cover the costs of marketing / promotion of filling stations construction. Besides the € 60 000 for the construction of each station, some municipalities also offers € 40 000 to cover initial losses should those occur during the first 3 years of each fuelling stations operation. - 117 -
  • 118. Summary – Subsidies and/or tax exemptions for NGVs – Europe cont´ Country Description POLAND LDVs: Not applicable. HDVs: Subsidies from National Fund for Environment Protection – 100 000 PLN (€ 23 000) / vehicle EU Funds – up to 50% of the approved costs Natural gas as vehicle fuel Zero excise tax until the end of 2013. Decreased pollution charges but only in case business activity. PORTUGAL LDVs: For bi-fuel NGVs 40% of tax exemption ("Imposto automóvel"). HDVs: For dedicated NGVs 50% of tax exemption (Imposto automóvel). Natural gas as vehicle fuel LDVs: • No subsidies neither tax exemptions for CNG. HDVs: • Exemption of ISP tax for natural gas. TVA rate reduced (5%) for natural gas. SPAIN LDVs / HDVs Up to € 2 000 for a new public services - LDVs and HDVs (or 15% of vehicle price). Natural gas as vehicle fuel Lower tax: 0.4140 eurocents / kWh (6.5 times lower then diesel) - for LDVs and HDVs Filling stations • up to 60 000 € for collective stations • up to 30 000 € for individual stations • up to 25 000 € for public stations - 118 -
  • 119. Summary – Subsidies and/or tax exemptions for NGVs – Europe cont´ Country Description SWEDEN A person enjoying the benefit of private use of a company-owned-or-leased car must pay personal income tax on the assessed value of the benefit. If the car is an NGV the assessed value will be reduced by 40 %. The reduction is, however, maximized to SEK 16 000 = € 1 730 (in practice this, in most cases, means an annual income tax reduction by SEK 8 000 (€ 865)). The annual road tax for passenger cars Sweden is calculated with regard to fuel type, emission standard attained, and CO2 emissions. Considering that diesel fuel tax is considerably lower than the tax on petrol the annual road tax is higher for diesel cars than for petrol cars. The added tax on diesel cars is calculated in a manner which should provide a breakeven for cars reaching the typical annual average mileage of some 17 000 km. In practise this means that diesel cars are usually only purchased by people which annually drive more than the average mileage. The basic tax for cars meeting Euro 4 emission requirements is SEK 360 (for diesel cars SEK 1 260) annually (or € 39 and € 136 respectively). In addition there is a tax based on g/km CO2 emissions above 100 g/km (for methane 10 SEK/g (1.08 €/g, for petrol 15 SEK/g (1.62 €/g, and for diesel 52.5 SEK/g (5.67 €/g)). Total tax for a vehicle emitting e.g 150 g/km is thus for methane SEK 860 (€ 93), for petrol SEK 1 110 (€ 120), and for diesel SEK 3 885 (€ 420). An NGV thus has about SEK 3 000 (€ 325) lower tax than a diesel vehicle. In the capital of Stockholm a congestion tax is levied on all cars entering and leaving the city during between 06.30 AM and 18.30 PM, Monday through Friday. Environmental vehicles, including NGVs are exempt from this tax. The exemption could, on a yearly basis, be worth 48*5*60 SEK, or totally up to SEK 14 400 (€ 1 555). As regards filling stations, special government support of investments in new natural gas / bio- methane refuelling stations is available. Up to 30 % of the total investments may be covered via these grants. There are no subsidies on fuel. SWITZERLAND LDVs: In some Swiss states there are road tax exemptions or partial exemptions applicable for "clean cars". These exemptions also apply for NGV's in most states. The local gas companies are giving subsidies to private customers buying an NGV. These contributions range from CHF 1 000 to CHF 15 000 (€ 600 to € 9 040). HDVs: There are no subsidies, loans or tax exemptions for HD NGV's. Some gas companies subsidize the investment costs for HD NGV's (buses, garbage trucks). Natural gas as vehicle fuel There will be a tax reduction on gaseous fuels valid in 2008 (exact date unknown). This reduction applies for CNG and LPG as vehicle fuel. Bio fuels are not subject to fuel taxes if they are produced in a sustainable way. The current tax situation now and in the future: • Before 2008 (CHF 0.6 per litre (€ 0.36 per litre) - petrol equivalent) • 2008 onwards (CHF 0.2 per litre (€ 0.12 per litre) - petrol equivalent) Some gas utilities are giving a one time fuel bonus to new customers in the range of 500 - 1 000 kg free CNG. Filling stations There are no subsidies for refuelling stations apart from investment contributions given by the Swiss Gas Industry (regional transport companies). Tax exemptions do not exist. UNITED Natural gas as vehicle fuel KINGDOM Reduced fuel duty for natural gas, approximately £ 0.08 per litre (€ 0.116 per litre) compared to £ 0.50 pence (0.725 €ct) for petrol or diesel. Filling stations Grants of approximately 30% towards the additional cost of gas stations when compared with diesel stations can include land or site costs as well. - 119 -
  • 120. MIDDLE EAST Table 44 – Summary – Subsidies and/or tax exemptions for NGVs – Middle East Country Description IRAN LDVs: • Tax on imported car: gasoline 100% CIF value, CNG 65% of CIF value. • For imported CNG car - 25% compared to gasoline car. • For imported CNG component tax is only 4% CIF. HDVs: • For all CNG engines and NGVs parts customs duty is 4 % of their value. Natural gas as vehicle fuel • The CNG price in Iran is subsidized by government and is always less than 50% of gasoline price. Filling stations Rial US$ € Subsidies for public CNG stations 1 000 000 000 107 500 78 750 Subsidy for private CNG station 400 000 000 43 000 31 500 LATIN AMERICA Table 45 – Summary – Subsidies and/or tax exemptions for NGVs – Latin America Country Description ARGENTINA The Autonomous City of Buenos Aires has granted 50% discount on the vehicle license to be paid every year. This applies to pick ups, vans, ambulances, buses, trucks. BRAZIL LDVs / HDVs For LDVs same taxation as gasoline vehicles. For HDVs subsidies and tax exemptions are not available. Natural gas as vehicle fuel Reduced sales tax (ICMS) applied over fuel costs in some states. Filling stations Not available = same treatment in comparison with regular stations. All refuelling stations are multiple fuel stations. No different treatment for natural gas. RUSSIA Table 46 – Summary – Subsidies and/or tax exemptions for NGVs – Russia Country Description RUSSIA No subsidies or other forms of support available. - 120 -
  • 121. Filling station CNG prices breakdown One important piece of information for development of sustainable natural gas filling stations business is available breakdown of filling station CNG prices. Audited experts were asked to provide information on average share (percentage) of: costs of gas, labour costs, costs of energy (for compression, depreciation, profit margin and taxes in the final CNG retail price). Overview of selected countries is presented in the next figure with all countries surveyed presented in the next table. It can be seen that share of natural gas costs in the total CNG price vary significantly (from 25 to up to 80 percent, with exception of Malaysia where CNG price is subsidized). - 121 -
  • 122. Table 47 – Filling station CNG prices breakdown – overview for countries surveyed through questionnaire Region Asia – Pacific (%) China Indonesia Japan Malaysia CNG final retail price (%) 100 100 100 subsidized Cost of gas (%) 71 65 52 263 Labour costs (%) 6 24 5.6 Costs of energy (compression) (%) 4 6 8 Depreciation (%) 1 35 8 7 Profit margin (%) 5 5 - Taxes (%) 13 5 - Europe Czech (%) Austria Bulgaria France Poland Spain Switzerland UK Republic CNG final retail price (%) 100 100 100 100 100 100 100 100 Cost of gas (%) 50 59 40 50 53 41 28.0 49 Labour costs (%) 8 3 10 27 7 12 5.0 7 Costs of energy (compression) (%) 12 4 5 5 4 3 2.5 3 Depreciation (%) 15 4 45 18 4 5 18.0 10 Profit margin (%) 2 13.5 - - 10 12 2.5 12.5 Taxes (%) 13 16.5 - - 22 27 44.0 18.5 Middle East (%) Iran CNG final retail price (%) 100 Cost of gas (%) 25 Labour costs (%) 20 Costs of energy (compression) (%) 55 Depreciation (%) - Profit margin (%) - Taxes (%) - Latin America (%) Brazil CNG final retail price 100 Cost of gas (%) 79.4 included Labour costs (%) below Costs of energy (compression) (%) 7.1 included Depreciation (%) above included Profit margin (%) above Taxes (%) 13.5 - 122 -
  • 123. Bulgaria Czech Republic Taxes 16.5% Taxes Profit margin 0.0% 0.0% Profit margin Cost of gas 13.5% 40.0% Depreciation Depreciation Cost of gas 45.0% 4.0% 59.0% Costs of energy Costs of (compression) energy Labour costs Labour costs 4.0% (compression) 3.0% 10.0% 5.0% Spain France Taxes Taxes Profit margin 27.0% Depreciation 0.0% 0.0% 18.0% Costs of Profit margin Cost of gas energy 12.0% 41.0% (compression) 5.0% Cost of gas 50.0% Depreciation 5.0% Costs of Labour costs energy Labour costs 27.0% (compression) 12.0% 3.0% UK (LNG - LCNG) Switzerland Cost of gas Taxes 28.0% 18.5% Taxes 44.0% Profit margin Cost of gas Labour costs 12.5% 49.0% 5.0% Depreciation Costs of 10.0% energy (compression) Depreciation Labour costs Profit margin 2.5% Costs of 18.0% 7.0% 2.5% energy (compression) 3.0% China Japan Taxes Taxes 5.0% Profit margin Profit margin 13.0% 5.0% 5.0% Depreciation Depreciation 1.0% 8.0% Costs of Costs of Cost of gas energy energy 52.0% (compression) (compression) 4.0% 6.0% Labour costs Labour costs 6.0% Cost of gas 24.0% 71.0% Figure 37 - Average filling station CNG prices breakdown – examples – Europe and Asia-Pacific - 123 -
  • 124. Standards, codes and regulations for vehicles and filling stations Standards, regulations and codes are collected in order for this report to provide an overview of available but also missing regulation (“weak points” or “missing links”) in respective country / region to provide (on one place) first info to potential project developers and investors but also as contribution of the constant IGU S.G. 5.3 group support towards harmonization of standards. Regulation on garages includes legislation on underground parking of NGVs, but also i.e. regulation on necessary adoption of bus garages (initially built for diesel buses) in order to be able to accommodate natural gas buses. In depth overview presented also in the Appendix of this report illustrates non homogenous spread of legislation / regulation in use and the need to strengthen support and activities to achieve harmonization of standards. EUROPE Table 48 – Standards, regulations and codes for vehicles and filling stations – Europe – overview for countries surveyed through questionnaire Country Category Standard AUSTRIA LDVs / HDVs ÖVGW G95 (Erdgas (CNG)-Kraftstoffanlagen für Kraftsfahrzeuge und mobile Maschinen und Geräte; • vehicle including inspection Ausführung, Einbau, Betrieb und Instandhaltung) > covers retrofitting, operation and maintenance. • conversion / maintenance shops ÖVGW G95 (see above) (Local) Regulations on parking CNG cars in garages (including underground parking garages = (generally) allowed, based on local legislations, county by county; • garages (including underground changes done/ongoing on technical certificate provided by parking garages) Austrian Gas Industry) OIB regulation part 3 ‘antipollution’ (from Austrian Institute for building industry) Filling stations Small home refuelling (slow fill) ÖVGW G96 (G 96-Erdgas-Kleintankstellen; Errichtung und Betrieb (issued: July 1997)) (Public) CNG refuelling • regulation on filling station ÖVGW G97 (G 97-Erdgas(CNG)- Betankungsanlagen für erdgas( CNG)-betriebene Fahrzeuge; Planung, Herstellung, • regulations on inspection Errichtung und Betrieb (issued: Februar 2008) (ÖVGW G97 for design, production, installation and operation of NGV filling stations) Biomethane injection into gas grid: ÖVGW G33 (and G31) - 124 -
  • 125. Standards, regulations and codes for vehicles and filling stations – Europe – overview for countries surveyed through questionnaire cont´ Country Category Standard BULGARIA LDVs / HDVs • vehicle including inspection ECE R110 standard accepted Regulation for structure and safety exploitation of portable and distributing gas-mains and equipments, installations • conversion / maintenance shops and devices for natural gas (National Gazette № 67/02.08.2004). • garages (including underground Absence of specific regulation on CNG. parking garages) Filling stations • regulation on filling station Regulation for structure and safety exploitation of portable and distributing gas-mains and equipments, installations • regulations on inspection and devices for natural gas (National Gazette № 67/02.08.2004). CROATIA LDVs / HDVs ECE R110 standard accepted Act on rules and conditions for appliances and equipment for gas use in vehicles – covers LPG and CNG (National Gazette 04/2000, 57/2001, 91/2001). • vehicle including inspection Act on homologation of engines with self-ignition, gas engines and engines with outer ignition source which use LPG as a fuel and engines with self-ignition, gas engines and engines with outer ignition source which use natural gas as a fuel in regards to exhaust emission of pollutants (National Gazette № 95/2003). Act on rules and conditions for appliances and equipment • conversion / maintenance shops for gas use in vehicles. • garages (including underground Absence of specific regulation on CNG. parking garages) Filling stations • regulation on filling station In preparation (high draft prepared – status Feb 2009) based on ÖVGW G97 (DVGW G651) and prEN:13638:2007 • regulations on inspection - 125 -
  • 126. Standards, regulations and codes for vehicles and filling stations – Europe – overview for countries surveyed through questionnaire cont´ Country Category Standard CZECH LDVs / HDVs REPUBLIC • vehicle including inspection TDG 982 02 – valid since February 2009 • conversion / maintenance shops • garages (including underground TDG 982 01 – valid since February 2009 parking garages) TDG 982 01 - Garage, service, repair shop and other place • vehicle including inspection facility for the NGV´s – valid since February 2009 TDG 982 02 - Requirements for operation, repair, • conversion / maintenance shops maintenance and inspection of the NGV´s – valid since February 2009 • garages (including underground TDG 982 03 - NGV refuelling appliances – valid since parking garages) February 2009 Filling stations • regulation on filling station TDG 304 02 (updated) valid since March 2007 • regulations on inspection FRANCE LDVs R110 (EN11439) - visual inspection. Frequency for LDVs: after 4 years and then every 2 years. Tank inspection: • vehicle including inspection French regulation on “detailed visual inspection” based on ISO 19078. • conversion / maintenance shops Not available, no conversions in France. • garages (including underground No current restrictions parking garages) HDVs ISO 19708 (cylinders inspection). Frequency for HDVs: after • vehicle including inspection 4 years and then every 3 years. • conversion / maintenance shops Not available, no conversions in France. • garages (including underground ATEX conformity parking garages) Filling stations Dedicated French regulation within “ICPE” section n° 1413 • regulation on filling station (2006/06/02) and application decree 2006/09/18 regulation on HP meter homologation: OIML v4. PED • regulations on inspection Hydraulic test every 10 years. Internal visual inspection every 40 months. - 126 -
  • 127. Standards, regulations and codes for vehicles and filling stations – Europe cont´ Country Category Standard NETHERLANDS LDVs / HDVs • vehicle including inspection • conversion / maintenance shops Voertuigreglement / PGS 26 • garages (including underground garages) Filling stations • regulation on filling station PGS 25 outside and PGS 27 indoor • regulations on inspection PORTUGAL LDVs / HDVs Decree - Law 137/2006 require an identification label in all • vehicle including inspection NGVs. • conversion / maintenance shops • garages (including underground Portuguese law permits explicitly underground parking of parking garages) NGVs (but not LPG cars). Filling stations • regulation on filling station Government published a Regulation about filling stations - see http://www.apvgn.pt, section "Legislation" (“Legislaçăo” • regulations on inspection – on Portuguese language only). POLAND LDVs / HDVs • vehicle including inspection Regulation R-110 i 115 - certification of approval concerning elements of gas system and cars issuing by Motor Transport Institute in Warsaw and Transport Institute of Silesian University of Technology. • conversion / maintenance shops Conversion could be made by companies which are on the list of Ministry of Infrastructure. • garages (including underground Parking NGVs in underground garages are generally parking garages) permitted, there is no special regulation. Filling stations • regulation on filling station In preparation. • regulations on inspection Regulation concerning tanks (cylinder) supervision of th Ministry of Economy from 9 July 2003. SPAIN LDVs / HDVs • vehicle including inspection R 110 and UNE 26525 (based on ISO 19078) • conversion / maintenance shops R115 for conversions • garages (including underground None at the time parking garages) Filling stations • regulation on filling station UNE 60631-2008 • regulations on inspection - 127 -
  • 128. Standards, regulations and codes for vehicles and filling stations – Europe cont´ Country Category Standard SWITZERLAND LDVs ECE R110, ECE R115, SVGW Directive G10, CEN • vehicle including inspection standard EN 13423 compressed natural gas vehicle operations • conversion / maintenance shops There are no legal restrictions to the access of NGV's for • garages (including underground underground garages (though private garage operators can parking garages) prohibit access for alternative fuel vehicles). HDVs • vehicle including inspection ECE R110 • conversion / maintenance shops The bus depots need ventilation in the garage at the roof • garages (including underground and very often gas detection equipment. In case of a gas parking garages) detection alarm special ventilation has to be pumped in. Filling stations SVGW G8 / G9 planning building and installation of • regulation on filling station refuelling, stations and VRA's. prEN 13638 refuelling stations, prEN 13945 VRA's, ATEX, PED. Periodic inspection of stationary pressure cylinders in • regulations on inspection refuelling stations. - 128 -
  • 129. Standards, regulations and codes for vehicles and filling stations – Europe cont´ Country Category Standard SWEDEN LDVs / HDVs Sweden follows the EU legislation. Sweden will not accept the registration of any vehicles that do not fulfil the ECE R110/R115 demands. Sweden is concerned about the ambiguity created by the optional demands in the ECE R110 regulation – the possibility to have an EU approval based on component and system testing down to minus 20 or, alternatively, minus 40 degrees C. Sweden prefer a modification of the ECE R110 regulation which uses one demand only, the ability to cope with temperatures down to minus 40 degrees C (or a change of the directive stating that European whole vehicle type approvals must be based on the ECE R110 COLD (-40 degrees C) testing demand. Directly imported new or used vehicles with a European whole vehicle type approval must, in line with the EU legislation, also be approved for registration by the Swedish authorities. It may, on the other hand, be extremely difficult to import into Sweden a used vehicle converted outside Sweden. Light duty vehicles category M1 (LD passenger cars) and N1 (LD commercial vehicles) converted from petrol propulsion according to the ECE R115 and ECE R110 demands will be approved for registration in Sweden after a registration inspection of the vehicle and the required documentation. For MD/HD vehicles national type approval rules apply. Details will be provided at a later date. For category M2 (more than 9 seats and less than 5 tons), M3 (more than 9 seats and more than 5 tons, N2 (MD cargo vehicles with a weight between 3.5 and 12 tons), and N3 (HD cargo vehicles with a weight above 12 tons) conversions from diesel propulsion according to ECE R115 and ECE R110 demands will be approved for registration in Sweden after a registration inspection of the vehicles and the required documentation. There has been a discussion about authorization of conversion companies, but no decision so far. There are no restrictions concerning underground parking of NGVs, but, there are, of course building codes which prescribe that underground parking spaces must be well ventilated including gas escape ducts in the roof. There are also no restrictions concerning road tunnel transits, or of transfers on ships and ferries. A study was made in 2005 by SWECO in co-operation with Norske Veritas concerning the installation of an underground bus terminal in Stockholm, also including CNG refuelling facilities. The study stated that such a set up could be arranged in a safe manner. Filling stations • regulation on filling station data not avalable via questionnaire • regulations on inspection - 129 -
  • 130. Standards, regulations and codes for vehicles and filling stations – Europe cont´ Country Category Standard UNITED LDVs KINGDOM The Road Vehicles Construction and Use Regulation 1986. • vehicle including inspection Statutory Instrument 1998 No 2884 Schedule 5A. ECE R115 (used as a guide). BS ISO 19078 (tank • conversion / maintenance shops inspections). • garages (including underground No current restriction. parking garages) HDVs Annual vehicle inspection at designated test station. LNG • vehicle including inspection containment have to apply for an STGO (special types goods order). • conversion / maintenance shops 3 year inspection on tanks. • garages (including underground Workshops to have Methane detection systems integrated parking garages) with ventilation system or alarm. Filling stations NFPA 59A for LNG. NFPA 52 for CNG, to be replaced with Pr • regulation on filling station EN 13638, has also used IGE (Institute of Gas Engineers) UP/5 part 1. Pressure equipment directive define the periodic inspection of • regulations on inspection pressure vessels. CNG station buffer storage now has 10 year inspection. ASIA – PACIFIC REGION Table 49 – Standards, regulations and codes for vehicles and filling stations – Asia-Pacific region Country Category Standard CHINA HDVs New alternative energy vehicle production admittance regulation (by NDRC, effective from 2007-11). Some provinces and municipalities established the detail regulations respectively: • vehicle including inspection • i.e. Chongqing City CNG Vehicle Safety Supervision Regulation (by Chongqing local government, effective from 2008-7-1) etc. • i.e. NGV equipment maintenance regulation (by Sichuan province government, effective from 2006-8) etc. Filling stations Regulation on filling stations The State Council: 2003-6-1 #373 • regulation on filling station Special equipment Safety Supervision Regulation. Regulations on inspection General Administration of Quality Supervision & Inspection: • 2003 - 6-1 (Y-M-D) #46 Gas cylinders Safety Supervision • regulations on inspection Code. • 2006-6-21 TSG R4001-2006 Gas Cylinder Filling Licensing Regulation. - 130 -
  • 131. Standards, regulations and codes for vehicles and filling stations – Asia-Pacific region cont´ Country Category Standard INDONESIA LDVs / HDVs • vehicle including inspection • conversion / maintenance shops None • garages (including underground parking garages) Filling stations • regulation on filling station None at this stage, but information is that Government will adopt/modify the NZS5425 and NZS5422 • regulations on inspection JAPAN LDVs / HDVs • vehicle including inspection High Pressure Gas Safety Law • conversion / maintenance shops Road Trucking Law • garages (including underground No regulation parking garages) Filling stations Building Standards Law • regulation on filling station High Pressure Gas Safety Law Fire Service Law • regulations on inspection High Pressure Gas Safety Law MALAYSIA LDVs • vehicle including inspection Malaysian Standard (MS 1096) • conversion / maintenance shops Road Transport Department approval • garages (including underground Not applicable parking garages) HDVs • vehicle including inspection • conversion / maintenance shops Road Transport Act • garages (including underground parking garages) Filling stations • regulation on filling station Petroleum Development Act • regulations on inspection Machinery Act - 131 -
  • 132. MIDDLE EAST Table 50 – Standards, regulations and codes for vehicles and filling stations – Middle East Country Category Standard IRAN LDVs • vehicle including inspection ISO 11439 • conversion / maintenance shops ECE R110 • garages (including underground ISO 15500 parking garages) Iranian standard ISIRI 7598 / 6750 / 6306 / 5760 / 5636 HDVs • vehicle including inspection Euro II for emission • conversion / maintenance shops • garages (including underground parking garages) Filling stations • regulation on filling station ISIRI 7829 • regulations on inspection ISIRI 57600 / 8002 RUSSIA Table 51 – Standards, regulations and codes for vehicles and filling stations – Russia Country Category Standard RUSSIA LDVs • vehicle including inspection National Standards and Rules apply UN ECE Rules 110 and 115 + National Standards and • conversion / maintenance shops Rules apply • garages (including underground National Standards and Rules apply parking garages) HDVs • vehicle including inspection • conversion / maintenance shops National Standards and Rules apply • garages (including underground parking garages) Filling stations • regulation on filling station National Standards and Rules apply • regulations on inspection - 132 -
  • 133. NORTH AMERICA Table 52 – Standards, regulations and codes for vehicles and filling stations – North America Country Category Standard United States LDVs NFPA 52 – Vehicular Fuel Systems Code – 2006 NFPA 57 – Liquefied Natural Gas Vehicular Fuel System • vehicle including inspection Code – 2002 40 CFR 86.098-8 - Emission standards for 1998 and later model year light-duty vehicles • conversion / maintenance shops CSA B109-01 – Natural Gas for Vehicles Installation Code NFPA 88A – Standard for Parking Structures – 1998 NFPA • garages (including underground 30A – Code for Motor Fuel Dispensing Facilities and Repair parking garages) Garages - 2007 HDVs • vehicle including inspection NFPA 52 – Vehicular Fuel Systems Code – 200 NFPA 57 – Liquefied Natural Gas Vehicular Fuel System • conversion / maintenance shops Code – 20026 NFPA 88A – Standard for Parking Structures – 1998 NFPA 30A – Code for Motor Fuel Dispensing Facilities and Repair Garages – 2007 SAE J2343 – Recommended Practices for LNG Powered Heavy-Duty Trucks- 1997 • garages (including underground SAE J2406 – Recommended Practices for CNG Powered parking garages) Medium and Heavy- Duty Trucks – 2002 Design Guidelines for Bus Transit Systems Using Liquefied Natural Gas (LNG) as an Alternative Fuel (3/97) CSA B109-01 – Natural Gas for Vehicles Installation Code CA Code of Regulations, Title 13, Div 2, Ch 4, Article 2 Filling stations ANSI NGV2-2000 – Basic Requirements for Compressed Natural Gas Vehicle Fuel Containers • regulation on filling station ANSI NGV3.1-1995 – Fuel System Components for Natural Gas Powered Vehicles • regulations on inspection ANSI NGV4.2/CSA 12.52 -1999 – Hoses for NGVs and Dispensing Systems ANSI NGV4.4/CSA 12.54 -1999 – Breakaway Devices for Natural Gas Dispensing Hoses and Systems ANSI NGV4.6/CSA 12.56 -1999 – Manually Operated Valves for Natural Gas Dispensing Systems ANSI PRD1-1998 (with 1999 & 2007 addenda) – Basic Requirements for Pressure Relief Devices for Natural Gas Vehicle Fuel Containers 49 CFR 178.57 – Specification 4L welded insulated cylinders 49 CFR 571.304, FMVSS 304 – Compressed Natural Gas Fuel Container Integrity 49 CFR 571.303, FMVSS 303 – Fuel System Integrity of Compressed Natural Gas Vehicles 49 CFR 393.65, FMCSR – All Fuel Systems - 133 -
  • 134. LATIN AMERICA Argentina Table 53 – Technical standards – natural gas for vehicles - Argentina Compressed Natural Gas - Group IV NAG-E 401 (ex ET-ENRG-GD-Nº 1) Fastening devices for CNG cylinders. NAG-E 402 (ex ET-ENRG-GD-Nº 2) Vehicles for bulk CNG transport. NAG-E 403 (ex ET-ENRG-GD-Nº 3) CNG packaged compression and storage and other enclosed equipment, not requiring perimeter wall. NAG-E 404 (ex ET-ENRG-GD-Nº 4) CNG integrated compression and dispensing equipment certification, installation and control. NAG-E 405 (ex ET-ENRG-GD-Nº 5) CNG carbon fiber composite cylinders installation, use and control. NAG-E 406 (ex ET-ENRG-GD-Nº 6) Transport system for CNG containers modules. NAG-E 407 Motorcycles Compressed Natural Gas (CNG) fuel system. It regulates the minimum technical and safety requirements for the installation, qualification, use and control of CNG fuel systems on natural gas propelled motorcycles. NAG 415 (ex GE-N1-115) It defines the functions of each individual or legal entity involved in Regulations. Definitions and Terminology. the system. Definitions and terminology applied. List of specifications Specifications and Procedures. Technical to be used in the manufacture of cylinders, valves and fittings for Documentation to be complied by all registered local and foreign activity. categories of manufacturers and importers. NAG 416 (ex GE-N1-116) It defines the requirements to be complied with during configuration Minimum technical and safety Standards and and mounting; the tests and verifications to be performed on the Specifications for on-board CNG fuel system system and on the motor vehicle and the feature enabling the installation and testing. identification of motor vehicles fitted with CNG equipment. It also includes the minimum requirements for passenger public transport conversion. NAG 417 (ex GE-N1-117) Standard for components designed to operate It applies to the construction and performance of CNG system with compressed natural gas in vehicles components for providing motive power in new or used motor carburetion systems and operation vehicles that require internal combustion engine. requirements NAG 418 (ex GE-N1-118) This standard specifies the characteristics and location of CNG Regulations for CNG Filling Stations. containers for storage and compression plants, compressors installations, dispensing installations, piping, fittings, and other supplementary elements. Furthermore, it regulates the distribution and size of the dispensing outlet, stipulates the guidelines for vehicle maneuvering yard and specifies methods for re-qualification as well as regularity in their implementation on CNG vehicle Filling Stations once enabled and started up. NAG 419 (ex GE-N1-119) It states garages characteristics and requirements to be complied Parking and Garages. Difficulties and Accidents. with for parking CNG vehicles; stipulates parking standards; Instructions for CNG filling. includes stages and procedures to be followed for CNG filling at stations, and provides recommendations to consider in case of difficulties and accidents. NAG 441 (ex GE-N1-141) It regulates compression equipment and dispensers to be installed Compression equipment for compressed natural in CNG filling stations. gas filling stations. NAG-E 444 (ex GE-N1-144) It specifies the requirements for the mandatory periodical Technical specification for periodic re- scheduled inspection and its testing on each cylinder, verifying the qualification of CNG seamless steel cylinders necessary requirements to ensure reliability and acceptability. according to IRAM 2529 standard - 134 -
  • 135. Table 54 – Resolutions – natural gas for vehicles - Argentina Resolutions It approves the mechanisms for quality and safety inspection for CNG Filling Stations qualification and penalties to be applied to Resolution ENARGAS Nº 93/94 them by Distribution Licensees. Replaced by Resolution ENARGAS Nº 2629 It stipulates the normative framework for setting up a registry of Resolution ENARGAS Nº 138/95 Certification Organizations and guidelines to be complied with for the approval of components and equipment for the gas industry. It states the regulations for protecting user’s rights, and guidelines for individuals and legal entities involved in the CNG system in order to guarantee service quality, efficiency and safety. Resolution ENARGAS Nº 139/95 For this purpose, an IT Center for recording and updating data of the individuals and entities involved in the CNG system was created. It stipulates the obligation of gas Distributors to inspect CNG Filling Stations, being empowered to preventively shut off gas in such Resolution ENARGAS Nº 197/95 station where a motor vehicle not bearing the pertinent sticker is filled with gas. Replaced by Resolution ENARGAS Nº 2629 It states the minimum mandatory requirements for contracting an Resolution ENARGAS Nº 591/98 insurance against liabilities to third parties by the individuals and legal entities involved in the CNG system. Extension of provisions set forth in annex II of Resolution Resolution ENARGAS Nº 2592/02 ENARGAS Nr. 139/95 Substitutes the "Procedure for conversion, annual inspection, modification or refusal of CNG Fuel System" of Resolution N° 139/95, annex I by the "Procedure for conversion, annual inspection, modification, dismounting, withdrawal or reinstallation of Compressed Natural Gas (CNG) Fuel System in motor vehicles", Annex I of this Resolution. Resolution ENARGAS Nº 2603/02 It states the guidelines for drafting the "Guide for the use of CNG Fuel System" and "Safety recommendations for the use of motor vehicles using CNG in their propulsion system". A site at ENARGAS web page allowing disaggregated access to the CNG Centralized IT System to Users, Installation Workshops, CNG Fuel System Suppliers, and Centers for CNG Cylinders Periodic Inspection and other Official Entities is enabled. It repeals Resolutions ENARGAS N° 41/93, 93/94 and 197/95. It approves the mechanisms for quality and safety inspection for qualifying Compressed Natural Gas Filling Stations. General Resolution ENARGAS Nº 2629/02 regulations. Specific regulations for Filling Stations. Centralized IT Registry. Minimum guidelines for the mandatory bonding insurance for those stations. - 135 -
  • 136. Resolutions – natural gas for vehicles – Argentina cont´ Resolutions Implements qualification of CNG fuel system components in lots. It enables differentiation of new elements from used ones, making Resolution ENARGAS Nº 2760/02 duplication of serial numbers difficult and improving individualization of already installed elements. It defines guidelines for approval, use and testing of CNG filling stations dispenser’s hoses and sets a term for hose manufacturers Resolution ENARGAS Nº 2767/02 and importers to develop a Technical Specification project for their approval. It addresses the relocation of the qualifying sticker for vehicle CNG filling, valid until December 2002, for its compliance with the pertinent international standards and as an element that will facilitate transition to an intelligent control system. The sticker is Resolution ENARGAS Nº 2768/02 divided into two: one internal sticker affixed on the inner side of the hood or on the left strut (driver’s side) for enabling CNG filling and the other, for identifying the vehicle as CNG propelled and compliant with national and international safety standards, serves as an indicator for firemen, civil defense, etc. in case of accident. It stipulates the creation of a "Technical Commission for the Analysis of Intelligent System Technologies" enabling development of a comprehensive improvement of the natural gas propelled Resolution ENARGAS Nº 2793/03 motor vehicle fleet control. Orders the feasibility analysis and the subsequent implementation of a mandatory inspection of every on- board CNG cylinder. It enforces the Technical Specification for the conversion of motorcycles into a propulsion system using gasoline and natural gas as alternative fuels. It approves the prototype and subsequent Resolution ENARGAS Nº 2947/04 control of production, ensuring that the installation does not jeopardize the structural integrity, stability, driving characteristics or maneuverability and ensures a close follow-up of this technological innovation through the implementation of safety measures. Brazil Standard and Regulation Organizations: • ANP – National Petroleum, Natural Gas and Biofuel Agency - www.anp.gov.br • Inmetro - National Metrology, Standards and Industrial Quality Institute - www.inmetro.gov.br • ABNT – Brazilian Technical Standards Association - www.abnt.org.br • Conama – National Environmental Council - www.mma.gov.br/port/conama • Ibama – Brazilian Environmental Institute - www.ibama.gov.br • Denatran – National Transit Department - www.denatran.gov.br • Contran – National Transit Council - www.denatran.gov.br/contran.htm • MME – Ministry of Mining and Energy - www.mme.gov.br - 136 -
  • 137. Table 55 – Brazilian Standards and Regulations (Rev. # 5- February, 2007) Act Description Natural Gas Establish the natural gas specification, from local or imported sources, to be ANP Act 104/2002 commercialized, by geographic regions. ANP Act 43/1998 Establishes regulations to import natural gas. Natural Gas Transportation ANP Act 170/1998 Applied to construction and/or expansion of natural gas transportation or transfer facilities, in gaseous or liquid (LNG) phase. ANP Act 29/2005 Criteria to calculate natural gas pipeline transportation costs. Distribution and Refueling Establish regulations to LNG-liquefied natural gas bulk distribution and ANP Act 118/2000 commercialization, as also as CNG-compressed natural gas distribution centers operation. ANP Act 116/2000 Regulates refueling station activities. Regulates activities of the bulk compressed natural gas-CNG distribution, ANP Act 243/2000 commercialization and also operation of the CNG distribution centers. Regulates refueling station activities selling exclusively natural gas for ANP Act 32/2001 vehicular applications. Establish the minimum requirements to be met by mass flow meters in Inmetro Act 32/1997 automotive dispenser service. Specifies environmental conditions to be met by refueling station construction Conama Act 273/2001 site and/or when service discontinuity. (See Inmetro Act 189/2004 below) Requires all refueling stations shall comply with Conama Act 273/2001 above, Conama Act 319/2002 starting January 1st, 2004 and July 1st, 2004 for operations other than refueling, covered by this Act. ABNT Standard Establish requirements applied to design, construction and operation of NGV NBR12236/1994 refueling stations, operating at a maximum pressure of 25 MPa. Requires certification capabilities from construction companies to build NGV Inmetro Act 189/2004 refueling station and commissioning. Cylinder Manufacturing ABNT Standard NBR Establish requirements applied to seamless cylinders for high pressure gas 12790/1995 storage. ABNT Standard Establish requirements applied to design, fabrication and inspection of plastic NBR 13973/1997 reinforced cylinders NGV service. ABNT Standard NBR ISO Specify minimum requirements to design, fabrication and tests of high 4705/2001(Draft) pressure compressed gas cylinders, with 1 to 150 liters capacity. ABNT Standard NBR ISO Specify minimum requirements to design, fabrication and tests of NGV light 11439/2001 cylinders. ABNT Std. 10288 Compressed gas direct expansion hydro test method. Inmetro Act 74/2001 Endorse the ISO 11439 application to NGV light cylinder manufacturing. Inmetro Act 143/2004 Change the color of new NGV cylinders to yellow, which is mandatory starting July 1, 2006. This will be applied to existing cylinders in NGV service, at the requalifying date. See ABNT Std. NBR 12176. - 137 -
  • 138. Brazilian Standards and Regulations (Rev.# 5- February, 2007) cont´ Act Description Cylinder Certification Inmetro Act 198/2000 Requires all seamless cylinders applied to NGV service shall be certified in accordance with the Brazilian Certification System, to be commercialized in the country. Inmetro Act 90/2001 Requires all cylinder manufacturers, suppliers, distributors and requalifying service providers shall meet the Brazilian Certification System requirements, starting November 30, 2001. Inmetro Portaria 171/2002 Establishes criteria to evaluate mandatory compliance of NGV cylinders to Inmetro Act 74/2001 (ISO 11439), starting January 1st, 2003. ABNT Standard Gives the minimum conditions that used cylinders must meet to be back in 12274/1994 service, in general, independently of the applied manufacturing standard. Cylinder Requalification Service Certification Inmetro Act 199/2000 Establishes all cylinder requalification services provider shall certified as per the Brazilian Certification System, demonstrating they are capable to execute services in accordance with ABNT Std. NBR 12274 (see above). Inmetro Act 90/2001 See Cylinder Certification above. Conversion Kit Manufacturing Inmetro Act 170/2002 Establishes minimum requirements to fabricate and commercialize NGV system components, except cylinders. Conama Act 291/2001 Establishes environmental requirements to be met by NGV system components. Several compliance dates (see document) Ibama Std. 15/2002 Give administrative procedures to execute Conama Act 291/2001 above. ABNT Std. Establishes minimum safety requirements to be met by NGV components and BR11353-1/1999 installation. Inmetro Act 257/2002 Establishes evaluation procedures to determine compliance of NGV conversion kits with above mentioned Standards and Acts. NGV System Service Providers (conversion shops) Inmetro Act 132/2001 Establishes the Quality Regulations required qualifying shops and obtaining the necessary Inmetro registration. Inmetro Act 102/2002 Gives the criteria for concession and renovation of shops’ registration, detailed and RTQ-33-Rev.1 in the attached RTQ-33-Rev.1. In Brazil there are no available standards applied to garages. Also, there are national regulations for Heavy Duty Vehicles. - 138 -
  • 139. Brazilian Standards and Regulations (Rev.# 5- February, 2007) cont´ Act Description Natural Gas Vehicles (NGVs) Contran Act 25/1998 Covers vehicle modifications and assign functions required by Art. 98 and 106 of the National Transit Code to Inmetro. Contran Act 201/2002 Establishes vehicle modifications accepted by article 98 and 106 of the Brazilian Transit Code, specially aftermarket market conversions for natural gas. Also prohibits the use of natural gas in motorcycles or tricycles. Conama Act 18/1986 Establishes the Automotive Vehicles Control Program (Proconve) applied to all road vehicles in Brazil. Conama Act 07/1993 Defines basic guidelines and emission standards for road vehicles inspection and maintenance program. Conama Act 15/1995 Establishes vehicles emission controls and new vehicle categorization starting January 1, 1996, given continuity to Conama Act 18/1986. Conama Act 299/2001 Establishes procedures to prepare brand new vehicles emission data, applied to import or local manufactured models. Conama Act 354/2004 Requires the application of the OBD – on board diagnosis – system in all light duty vehicles, starting 2008. Ibama Std. Instruction Creates a Reference Term to qualify technical agents for activities related to 13/2002 Proconve. Inmetro Act 122/2002 Establish an identification tag to be used by all natural gas vehicles, upon vehicle safety inspection approval by a certified Inmetro agent. Inmetro Act 203/2002 Approves the RTQ-37-Rev.1. Establishes that all NGVs must meet the requirements of RTQ-37-Rev.1 starting October 22nd, 2002, except Article 4 and the single paragraph of Art. 3, which will be applied starting October 1, 2003. Inmetro Act 190/2003 Establishes the mandatory use of the NGV identification tag, which must be applied to the vehicle windshield, or, alternatively delivered to the vehicle owner o conductor, to be always kept with the vehicle license. Denatran Act 30/2006 Establishes the Vehicle Safety Certificate national control system. ABNT Std. 6601 Determination of HCs, CO, CO2 in light road vehicles emission gas. Vehicle Inspection Inmetro Act 71/1996 Gives instructions to inspect vehicle modifications, by OICs – Authorized Inspection Agents, duly qualified by Inmetro for this purpose. Inmetro Act 122/2002 Requires the application of the NGV tag in the windshield, immediately after the OIC inspection and approval, starting October 1, 2002. Inmetro Act 104/2006 Establishes all safety inspections, to be accomplished by a certified inspection organism, shall meet requirements of RTQ-37, attached to Inmetro Act 203/2002, upon an NGV system installation OICs Denatran/Inmetro Criteria to qualify OICs (Inspection Certification Organism) for safety vehicle Joint Act 01/2002 inspections and to authorize these agents to issue the CSV – Safe Vehicle Certificate, to meet article 106 of the Brazilian Transit Code. OCPs Inmetro Act /1999 Establishes standard NIE-DINQP-038, which details additional technical (draft) criteria to authorize OCPs (Product Certification Organism) to certify high pressure cylinders made in accordance with ISO 4705D or ISO 9809. - 139 -
  • 140. TABLES Table 1 – Total NGV parc in 2003 – 2008 period.................................................................................. 13 Table 2 – NGV Parc in 2004 – 2008 for Personal Cars and Other Light Duty Vehicles (LDVs)........... 14 Table 3 – NGV parc in 2004 – 2008 for Medium and Heavy Duty Vehicles (MDVs/HDVs) and Buses 14 Table 4 – NGV parc in 2004 – 2008 – Medium and Heavy Duty Vehicles (MDVs/HDVs) - trucks...... 15 Table 5 – NGV Parc in 2004 – 2008 – Other ........................................................................................ 15 Table 6 – Total Number of Natural Gas Filling Stations 2003 to 2008.................................................. 16 Table 7 – Estimated Natural Gas Consumption for the NGV Sector in 2003 – 2008 ........................... 17 Table 8 - Chronological Overview of NGV Technologies Development (emphasis on Europe)........... 20 Table 9 - IGU NGV Technical and Commercial Data Base – content .................................................. 35 Table 10 – Specifications of planned 20 ton CNG truck project in Japan............................................. 37 Table 11 - Generations of natural gas engines used by HSR............................................................... 60 Table 12 – Comparison of IANGV Review paper conclusions and results of S.G. 5.3 survey ............. 63 Table 13 - Evaluation of the typical week – OEM NGV garbage trucks fleet in Paris........................... 70 Table 14. CNG taxi fleet in Kuala Lumpur – basic operational facts (based on Proton Iswara model) 73 Table 15 – Average maintenance costs breakdown (per converted CNG taxi) .................................... 74 Table 16 – Average maintenance costs breakdown (per converted CNG taxi) .................................... 74 Table 17 - CNG engine re-powering – CNG ferry – Thailand ............................................................... 77 Table 18 - Diesel Dual Fuel (DDF) - CNG ferry – Thailand................................................................... 78 Table 19 – Scenarios of NGV market development – prognosis of NGV market growth – BAU scenario ............................................................................................................................................................... 79 Table 20 - Scenarios of NGV market development – prognosis of NGV market growth - Policy governed scenario ................................................................................................................................. 80 Table 21 – Estimated natural gas (incl. bio-methane) consumption potential by NGVs – BAU scenario - Sub-scenario 1 - Equal average consumption per equivalent NGV in all regions .............................. 83 Table 22 - Specific consumption per equivalent NGV (m3/annum) – inputs to sub-scenario 2 ............ 83 Table 23 – Estimated natural gas (incl. bio-methane) consumption potential by NGVs – BAU scenario - Sub-scenario 2 – Region specific average consumption per equivalent NGV in each region............ 83 Table 24 - Total vehicle parc - all fuels (millions vehicles) - prognosis ................................................. 85 Table 25 - Number of natural gas filling stations (based on regression calculation)............................. 86 Table 26 - NGVs per filling station......................................................................................................... 86 Table 27 - Summary NGV OEMs – Asia-Pacific region – overview for countries surveyed through questionnaire ......................................................................................................................................... 91 Table 28 - Summary NGV OEMs – Europe – for countries surveyed................................................... 93 Table 29 - Summary NGV OEMs – Middle East – overview for countries surveyed .......................... 102 Table 30 - Summary NGV OEMs – Russia – overview for countries surveyed .................................. 102 Table 31 - Summary NGV OEMs – Latin America – overview for countries surveyed ....................... 103 Table 32 – Summary – Average conversion costs breakdown – Asia-Pacific region ......................... 104 Table 33 – Summary – Average conversion costs breakdown – Europe ........................................... 105 Table 34 – Summary – Average conversion costs breakdown – Middle East .................................... 107 Table 35 – Summary – Average conversion costs breakdown – Latin America................................. 107 Table 36 – Summary – Average conversion costs breakdown – Russia............................................ 108 Table 37 – Summary – Extra annual costs related to NGVs – Asia-Pacific region............................. 109 Table 38 – Summary – Extra annual costs related to NGVs – Latin America .................................... 109 Table 39 – Summary – Extra annual costs related to NGVs – Europe ............................................... 110 - 140 -
  • 141. Table 40 – Summary – Extra annual costs related to NGVs – Middle East........................................ 112 Table 41 – Summary – Extra annual costs related to NGVs – Russia – overview for countries surveyed through questionnaire .......................................................................................................... 112 Table 42 – Summary – Subsidies and/or tax exemptions for NGVs – Asia-Pacific region ................. 113 Table 43 – Summary – Subsidies and/or tax exemptions for NGVs – Europe ................................... 114 Table 44 – Summary – Subsidies and/or tax exemptions for NGVs – Middle East ............................ 120 Table 45 – Summary – Subsidies and/or tax exemptions for NGVs – Latin America......................... 120 Table 46 – Summary – Subsidies and/or tax exemptions for NGVs – Russia.................................... 120 Table 47 – Filling station CNG prices breakdown – overview for countries surveyed through questionnaire ....................................................................................................................................... 122 Table 48 – Standards, regulations and codes for vehicles and filling stations – Europe – overview for countries surveyed through questionnaire .......................................................................................... 124 Table 49 – Standards, regulations and codes for vehicles and filling stations – Asia-Pacific region.. 130 Table 50 – Standards, regulations and codes for vehicles and filling stations – Middle East............. 132 Table 51 – Standards, regulations and codes for vehicles and filling stations – Russia .................... 132 Table 52 – Technical standards – natural gas for vehicles - Argentina .............................................. 134 Table 53 – Resolutions – natural gas for vehicles - Argentina............................................................ 135 Table 54 – Brazilian Standards and Regulations (Rev. # 5- February, 2007) .................................... 137 - 141 -
  • 142. FIGURES Figure 1 – Total NGV car parc growth in 2003 – 2008 period............................................................... 13 Figure 2 – Regional NGV market shares in total NGV market.............................................................. 14 Figure 3 – Share of personal cars / LDVs in total NGV parc in 2004 – 2008 period............................. 15 Figure 4 – Share of NGVs in total vehicle parc population (regional and total) .................................... 16 Figure 5 – Estimated Natural Gas Consumption by NGVs by Region .................................................. 18 Figure 6 – Share of NGVs in Total Natural Gas Consumption by Region in (%).................................. 18 Figure 7 – Kamaz 65116-40 CNG (OEM, range approx. 400 km) ........................................................ 22 Figure 8 – Eurocargo CNG (OEM, source: Iveco)................................................................................. 24 Figure 9 – Emissions of Iveco Cursor 8 CNG engine vs. present and future Euro limits ..................... 24 Figure 10 – NOx Emissions Comparison : Diesel Versus Alternative Technologies............................. 25 Figure 11 – CNG QVM forklift................................................................................................................ 26 Figure 12 – CNG QVM Belarus tractor.................................................................................................. 27 Figure 13 – LNG gas turbine GT-1 locomotive...................................................................................... 27 Figure 14 – Natural Gas-Hydrogen blend vehicle ................................................................................. 28 Figure 15 - CNG Ground Power Unit (GenSet) – AERGAS Project ..................................................... 40 Figure 16 – CNG Luggage Tractor – AERGAS Project ........................................................................ 41 Figure 17 – CNG Aircraft Tractor – AERGAS Project ........................................................................... 41 Figure 18 – CNG Aircraft Tractor in operation – AERGAS Project ....................................................... 42 Figure 19 – Bravo 700 ultra light aircraft model .................................................................................... 43 Figure 20 – Lille – Sequedin - Waste organic recovery centre near bus depot site.............................. 46 Figure 21 - View on CNG bus fleet at Companhia Carris de Ferro de Lisboa, SA ............................... 48 Figure 22 – CNG filling station at Companhia Carris de Ferro de Lisboa, SA ...................................... 49 Figure 23 – CNG buses models in operation in Moscow – Russia ....................................................... 51 Figure 24 - New Flyer bus with Cummins Westport C Gas Plus engine............................................... 62 Figure 25 – HSR CNG transit bus ........................................................................................................ 62 Figure 26 - CNG bus refuelling at HSR bus garage ............................................................................. 62 Figure 27 - Umbilical Trailer Containment............................................................................................. 66 Figure 28 – Preparation of garage to accommodate NGVs .................................................................. 69 Figure 29 - Madrid - Iveco CNG Refuse collection fleet........................................................................ 72 Figure 30 - Kampung Baru NGV Station, Kuala Lumpur ...................................................................... 75 Figure 31 – CNG filling station using mother-daughter system and integrated in classic petrol station, Kuala Lumpur, Malaysia ........................................................................................................................ 75 Figure 32 – CNG ferry operation - Thailand .......................................................................................... 78 Figure 33 – Crude oil prices development scenarios - comparison ...................................................... 81 Figure 34 – Total NGV car parc: Business as Usual scenario .............................................................. 82 Figure 36 - Regional NGV distribution – prognosis – Business As Usual (BAU) Scenario .................. 84 Figure 37 – Share of NGVs in the total global vehicle parc (all fuels)................................................... 85 Figure 38 - Average filling station CNG prices breakdown – examples – Europe and Asia-Pacific ... 123 - 142 -