Natural gas and bio methane as fuel for transport w. pietersma
1. European Directive
‘Clean Power for
transport’
(2014/94/EU)
Deployment of LNG
infrastructure in the Netherlands
Wouter Pietersma
senior policy advisor Maritime Affairs
23 June 2015
2. Content presentation
Basic principles NL implementation
Why the market
Implementation method
Stakeholder meetings
Existing policy frameworks
Demand forecast
Expectations
Status implementation plan
Time planning
Bunkering seaports
23 June 2015
3. Basic principles Netherlands implementation
Clean Power Directive, Article 6 paragraph 1
... appropriate number of refueling points for LNG at inland ports from
12/31/2030
Clean Power Directive, whereas, paragraph 15
… not intended to place an additional financial burden on Member
States, make use of a wide range of regulatory and non-regulatory
incentives and measures, in close cooperation with private sector
actors.
Principles Central Government
Market, unless ...
23 June 2015
4. Why the market?
Strong market parties (Shell, GDF Suez) in the Netherlands, with
ambitious plans
Allready present LNG terminal Rotterdam (GATE)
Increasing demand inland shipping, deep sea, short sea
So far steady growing market, concession?
Closely bundled roads and waterways Combined road/inland
shipping infrastructure possible?
(Presently: 1 Gate-terminal for deep sea feeding. ? Number of truck
fuel stations?)
23 June 2015
6. Stakeholder meetings
Agreement on Energy for Sustainable
Growth
… national target for limiting CO2
emissions.
Maritime Strategy
… to boost the international sustained
maritime top position of the Netherlands,
in collaboration with all the maritime
partners.
23 June 2015
7. Existing policy frameworks
Maritime strategy:
The Central Government stimulates
the usage of alternative fuels,
propulsion systems and energy
sources, and shall remove obstacles
where needed
Industry and government shall
jointly commit themselves to
enlarge the possibilities of
(co)financing of innovation projects
23 June 2015
8. 23 June 2015
LNG refueling points demand forecast/estimation?
Assessed the demand of LNG
refueling points on basis of study
CEF call submitted with ships that
can be retrofitted “economically
feasible”
9. Expectations LNG-infrastructure
Inland LNG shipping: mobile refueling,
possibly followed by infrastructure
Central Government intervention possible,
only when initiatives of markets are not
sufficient
Gradual growth of numbers, depending on
the availability of EU subsidies
Additional national subsidies not to be
expected
23 June 2015
10. Status implementation plan
Industry has organized themselves (LNG
platform)
Internal policy- and legal coordination has
started
Concept action plan shipping partly
finished
European Commission assignment for
scheme of implementation plan
In progress:
Involving stakeholders in autumn 2015
(Maritime Strategy, Agreement on Energy
for Sustainable Growth, LNG platform)
International coordination (Benelux and
other EU Member States)
23 June 2015
11. 23 June 2015
Time planning
Autumn 2015, stakeholder meeting
implementation Clean Power Directive
(discussion: tentative modest but
realistic targets)
January 2016, prelimenary
implementation plan (ready and
sending to Parliament for support and
discussion: long term policy document)
November 2016, legal text LNG
refueling stations implemented
November 2016, policy framework to
the European Commission
My name is Wouter Pietersma, senior policy advisor maritime affairs, EU coordinator and from that perspective involved in the in Clean Power for transport Directive.
What you see here is an LNG inland waterways vessel. This summer it will sail on the river Rhine
This vessel is the Ecoliner of Damen Shipyards, an LNG tanker vessel.
The modular design can be re-used for other types of LNG transport vessels.
The rapidity of the increase of the number of LNG inland waterway vessels is uncertain.
The Clean Power for Transport Directive facilitates the work of EU Member States to promote this development.
Member Staes are required to develop national policy frameworks for the market development of alternative fuels and their infrastructure;
Today I will present the Netherlands implementation policy.
For the deployment of LNG infrastructure the national government operates under the assumption of “the market, unless”
Also for the requirement of the Directive to develop sufficient LNG fuelling points, “the Market, unless” approach is the starting point
Paragraph 15 of the considerations states that “no additional financial burden should be placed on MS. Implement the directive by making use of a wide range of regulatory and non-regulatory incentives and measures, with the private sector, who should play a key role”
NL gives effect to the guidance as noted in the considerations in close cooperation with the private sector
Plans of the market, industry, seem already sufficient to satisfy the demand
The Netherlands implementation strategy can be divided in three steps:
First step is to initiate stakeholder meetings
Ministry representatives (DG Transport and Mobility, DG Environment and International Affairs) consult with public AND private stakeholders, also with environmental organizations
Public and Private stakeholders develop a joint policy framework, so that it has public support
The policy framework defines what the central government expects from the private sector
It will also state which efforts the central government will perform
The intentions from the policy framework will be worked out into an implementation plan.
The implementation plan constitutes the basis for a legal implementing regulation (=AmvB) (welke status, wet of AMVB?, procedure?)
For the implementation plan two existing stakeholder meetings are important:
The agreement on Energy of The Social and Economic Council of the Netherlands (SER)
The consultations for the Dutch Maritime Strategy
The energy agreement holds a national objective
This objective contributes to the public supportof the energy and climate policy in the Netherlands
The main target is reduction of the CO2 emissions
The national government AND business community make agreements on the targets
The national government co-signs the agreement
This agreement concerns all sectors, not only transport
The stakeholders, also the “green” parties, refer particularly to the opportunities for LNG in maritime shipping and inland shipping.
The Dutch Maritime Strategy was finalized early 2015.
With the Maritime Strategy, the central government has laid down agreements with the Dutch shipping sector.
The Maritime Strategy is important for the execution of the shipping part of the Clean Power for Transport directive.
The ambitions as formulated within the agreement on Energy of The Social and Economic Council of the Netherlands (SER) and Dutch Maritime Strategy are high and abstract
For the implemention of the Directive we stick as close as possible at the text and scope of the Directive.
The general Dutch implementation policy is no additional burdens on top of EU legislation.
Here you can read the agreement as formulated in the Maritime Strategy. The Central Government has obliged itself to stimulate alternative fuels like LNG.
We agreed to remove obstacles where needed
The maritime industry and central government both will do their best to enhance financing possibilities for innovation in inland shipping
New agreements are laid down in writing.
Most important question for the national policy framework is understanding the future demand of LNG in inland shipping.
The Ministry of Infrastructure and the Environment has assigned a study to examine possible locations for LNG bunker filling stations.
It was taken into account that there are vessels for which it can already be economically viable to switch over to LNG
When looking at the sailing movements of the vessels it is possible to make an assessment of desired bunker locations at the fairways.
They are the black spots at the illustration
The first plan of the private sector (the industry), seem to correspond with the desired locations from the examination
They are in the planning phase
As you can understand the research gives the Dutch authorities the input needed to fulfill the Central Governments part of the obligations.
On the basis of this study an application is submitted for a CEF grant of the European Commission for LNG retrofitting of vessels
In the study it is also examined whether LNG infrastructure can be used by multi modalities: shipping and road transport
We expect the development of LNG infrastructure will start with mobile bunkering by road
This development is already happening
The fixed installation will follow
A gradual growth is expected for fixed installations
Co-financing support from the European Union could stimulate the fastness of this development
When the central government observes market failures (too fast, too slow), market intervention could be possible
With regard to stimulation measures:
No growth is expected for national grants or susbsidies
LNG development is dependent of EU grant, EU financing support (EFSI) and some national fiscal instruments
What we notice is that the private sector has organised itself in the so-called LNG platform
The central government contributes by making voluntary agreements with the industry
For example in a recently signed safety deal on LNG, signed by the secretary of State of the Ministry of I&M
In the deal it is laid down that there shall be worked on safe transport and use of LNG in the Netherlands
The Ministry incorporates the industry developments in the implementation strategy
Internal discussion have started and the draft strategy is partly ready
.We also use this in a recent assignment of the Commission
The Commission requests a table of content of the policy framework
The agreement on Energy of The Social and Economic Council of the Netherlands (SER) and Maritime Strategy will provide input
Next step is to reconvene with the stakeholders
We aim at autumn
During this meeting the draft implementation strategy will be discussed.
We also would like to expand our international consultations
Consultations with Germany and within the Benelux already take place: this is exploratory, purpose is exchange of information but also avoidance of double efforts on both sides of the borders!
I would like to conclude this presentation with an overview of our time planning
In autumn 2015 a wide stakeholder meeting on the implementation of the Clean Power Directive
A preliminary implementation plan will follow in January 2016
Long term plan till 2030, that’s why sufficient time is needed and are we in January ready
The legislative texts for LNG fuelling points will be implemented with an implementing regulation in Dutch law in November 2016 once the Commission comes forward with standards and specifications
In November 2016 we will send the national policy framework to the Commission
In seaport LNG terminal already present
Supply and demand are more in balance by market offering bunker vessels
Different sense of urgency
I hope to have given you some insights in the Netherlands “polder model”
The polder is a piece of land below sea level, like more than half of the Netherlands
The polder model is a term that is used to describe the Dutch version of consensus-based economic and social policy making
Like the deployment of LNG infrastructure in the Netherlands
Thank you for your attention