Evaluating Demand for Biomethane as a Transport Fuel for Smaller Vehicles

Transcription

1 Evaluating Demand for Biomethane as a Transport Fuel for Smaller Vehicles Global 2012 Biomethane Congress - Brussels October 9, 2012 Massimo Ferrera Alternative Fuels Engine Director EMEA 20 Novembre, 2010

2 Agenda Identifying Fiat initiatives in developing marketing strategies for Bio-NG Analyzing consumer behavior and response to alternatively fuelled vehicles The impact of new technology on increasing market share of alternatively fuelled vehicles Developing strategies to accelerate market development of Bio- NG: could national and European policies help? A case of Italy October 9, 2012 Global 2012 Biomethane Congress - Brussels 2

3 Fiat s marketing strategies For the third year, Fiat S.p.A. confirmed in Dow Jones Sustainability World and Europe Indexes In 2011 Fiat Group: 123,3 gco 2 /km (JATO Statistics) October 9, 2012 FOR THE FIFTH YEAR RUNNING LEADER FOR THE LOWEST CO2 EMISSIONS AMONG THE MAIN EUROPEAN BRANDS Global 2012 Biomethane Congress - Brussels 3

4 Fiat s marketing strategies October 9, 2012 Global 2012 Biomethane Congress - Brussels 4

5 Fiat initiatives in developing marketing strategies for NG In 1995 Fiat Group, after a thorough investigation of various alternative fuels, focused on the development of compressed natural gas technology. The first passenger car was produced in 1997 and the first bus in 1998 In 1996 the consortium of Italian Natural Gas industry was built up called NGV System Italia. The consortium aim is to exploit and share synergic benefit of common interest among different companies involved in the Natural Gas sector (gas companies, refueling station producers, car makers, components suppliers, maintenance services). The consortium is like a tool for common initiatives in the area of standardization, regulation and communication enhancing the dialog together with domestic and international institutions October 9, 2012 Global 2012 Biomethane Congress - Brussels 5

6 Motivations to choose an alternative fuel Near term viable option to lessen energy security risk due to crude oil shortage The cleanest fuel available now and the only real alternative to conventional fuels The cheapest solution Strategic asset supporting progressive migration from fossil to renewable fuel sources October 9, 2012 Global 2012 Biomethane Congress - Brussels 6

7 Fiat initiatives in developing marketing strategies for NG In 1995 Fiat Group, after a thorough investigation of various alternative fuels, focused on the development of compressed natural gas technology. The first passenger car was produced in 1997 and the first bus in 1998 In 1996 the consortium of Italian Natural Gas industry was built up called NGV System Italia. The consortium aim is to exploit and share synergic benefit of common interest among different companies involved in the Natural Gas sector (gas companies, refueling station producers, car makers, components suppliers, maintenance services). The consortium is like a tool for common initiatives in the area of standardization, regulation and communication enhancing the dialog together with domestic and international institutions October 9, 2012 Global 2012 Biomethane Congress - Brussels 7

8 Italian industry of Natural Gas in transport October 9, 2012 Global 2012 Biomethane Congress - Brussels 8

9 Fiat initiatives in developing marketing strategies for NG In 1995 Fiat Group, after a thorough investigation of various alternative fuels, focused on the development of compressed natural gas technology. The first passenger car was produced in 1997 and the first bus in 1998 In 1996 the consortium of Italian Natural Gas industry was built up called NGV System Italia. The consortium aim is to exploit and share synergic benefit of common interest among different companies involved in the Natural Gas sector (gas companies, refueling station producers, car makers, components suppliers, maintenance services). The consortium is like a tool for common initiatives in the area of standardization, regulation and communication enhancing the dialog together with domestic and international institutions The successful market and political acceptance of the new compressed natural gas technology led in 2001 to the definition of a fundamental agreement among government, oil & gas companies and Fiat Group in order to foster the deployment of compressed natural gas vehicles in Italy (National Natural Gas plan) October 9, 2012 Global 2012 Biomethane Congress - Brussels 9

10 National Natural Gas plan Government support Taxation of compressed natural gas for transportation at a constant favorable level (ecological fuel) Incentives to offset the added cost of the compressed natural gas fuel system Subsidies for new refueling stations with a financial contribution Simplified procedures/regulations for the location and operation of new refueling stations Investment in new refueling stations Oil and gas companies OEMs Increased offering of compressed natural gas cars & light commercial vehicles as well as buses & trucks Develop innovative compressed natural gas powertrain technologies to further reduce fuel consumption and CO 2 emissions October 9, 2012 Global 2012 Biomethane Congress - Brussels 10

11 Fiat initiatives in developing marketing strategies for NG In 1995 Fiat Group, after a thorough investigation of various alternative fuels, focused on the development of compressed natural gas technology. The first passenger car was produced in 1997 and the first bus in 1998 In 1996 the consortium of Italian Natural Gas industry was built up called NGV System Italia. The consortium aim is to exploit and share synergic benefit of common interest among different companies involved in the Natural Gas sector (gas companies, refueling station producers, car makers, components suppliers, maintenance services). The consortium is like a tool for common initiatives in the area of standardization, regulation and communication enhancing the dialog together with domestic and international institutions The successful market and political acceptance of the new compressed natural gas technology led in 2001 to the definition of a fundamental agreement among government, oil & gas companies and Fiat Group in order to foster the deployment of compressed natural gas vehicles in Italy (National Natural Gas plan) From 2001 to 2009 compressed natural gas passenger car sales grew from 20k to 130k per year, the refueling stations from 300 to 800, Fiat Group introduced 9 car models and a full line of medium / heavy compressed natural gas engines. In 2009, thanks to dedicated incentives and the 130k NGV new registration, CO 2 tailpipe emissions have been cut by more than t. October 9, 2012 Global 2012 Biomethane Congress - Brussels 11

12 Fiat: full NG engine / vehicle portfolio Coming soon Panda 0.9 T 80 HP Fiat Group sales of Natural Gas vehicles (1997 mid 2012): more than passenger cars & LDVs with a European market share > 80 % Coming soon G. Punto Van CV Fiorino CV Doblò Cargo 1.4 T 120 CV Ducato CV Panda Van 0.9 T 80 HP October 9, 2012 Global 2012 Biomethane Congress - Brussels 12

13 Natural Gas: the easiest way towards renewable fuel source exploitation Gasoline Diesel w/dpf LPG CNG EU mix CNG and 20% Biomethane 100% Biomethane Ethanol Biodiesel Hydrogen EU Energy mix Hydrogen 100% Wind Energy E-Mobility EU Energy mix E-Mobility 100% Wind Energy (*) Reference Vehicle : Gasoline CO 2 emissions (Tank-to-Wheel) : 140 g/km Source : Concawe & DENA German Energy Agency Biomethane use will further reduce greenhouse gas emissions: Avoidance of natural methane emission in the atmosphere CO 2 closed cycle from agriculture and forestry Biomethane produced from biomasses is a second generation bio-fuel with no impact on food production Biomethane can be distributed through the existing CNG pipeline network October 9, 2012 Global 2012 Biomethane Congress - Brussels 13

14 Agenda Identifying Fiat initiatives in developing marketing strategies for Bio-NG Analyzing consumer behavior and response to alternatively fuelled vehicles The impact of new technology on increasing market share of alternatively fuelled vehicles Developing strategies to accelerate market development of Bio- NG: could national and European policies help? A case of Italy October 9, 2012 Global 2012 Biomethane Congress - Brussels 14

15 Customer acceptance and behaviour Drivers 908 today Main factors for quick growth of the NG vehicle market in Italy: Competitive fuel price compared to conventional fuels Number per thousand vehicles and homogeneous distribution of the refueling stations Availability of NG vehicle with a suitable range Government incentives allowing final customer to buy a NG vehicle at a competitive price October 9, 2012 Global 2012 Biomethane Congress - Brussels 15

16 Customer acceptance and behaviour Operating costs w/o performance penalties October 9, 2012 Global 2012 Biomethane Congress - Brussels 16

17 Customer acceptance and behaviour Operating costs w/o performance penalties 2011 Best in class as operating cost 2012 October 9, 2012 Global 2012 Biomethane Congress - Brussels 17

18 Customer acceptance and behaviour Chicken & egg loop October 9, 2012 Global 2012 Biomethane Congress - Brussels 18

19 Agenda Identifying Fiat initiatives in developing marketing strategies for Bio-NG Analyzing consumer behavior and response to alternatively fuelled vehicles The impact of new technology on increasing market share of alternatively fuelled vehicles Developing strategies to accelerate market development of Bio- NG: could national and European policies help? A case of Italy October 9, 2012 Global 2012 Biomethane Congress - Brussels 19

20 The full OEM technology for NG engines / vehicles Proprietary technology developed in house and continuous improvement approach Technology: mature, available and low cost compared to alternatives October 9, 2012 Global 2012 Biomethane Congress - Brussels 20

21 New technologies for NG engines / vehicles The continous improvement 0.9L 2-cylinder turbo MultiAir- Euro 5-30% CO2 vs 1.4L 4 cyl. 16v same performance CO 2 = 86 g/km October 9, 2012 Global 2012 Biomethane Congress - Brussels 21

22 Agenda Identifying Fiat initiatives in developing marketing strategies for Bio-NG Analyzing consumer behavior and response to alternatively fuelled vehicles The impact of new technology on increasing market share of alternatively fuelled vehicles Developing strategies to accelerate market development of Bio- NG: could national and European policies help? A case of Italy October 9, 2012 Global 2012 Biomethane Congress - Brussels 22

23 Strategies to accelerate Bio-NG market development TO INCREASE DIFFUSION OF NG REFUELING STATIONS MAINLY IN URBAN AREAS AND FOR PUBLIC TRANSPORTATION NATIONAL LEVEL TO SIMPLIFY THE BUROCRAZY FOR AUTHORIZATION OPENING NEW REFUELING STATION NATIONAL LEVEL TO ENTRY IN FORCE LEGISLATION THAT ALLOWS SELF-SERVICE APPROACH NATIONAL LEVEL TO ENTRY IN FORCE LEGISLATION THAT REQUIRES NG REFUELING POINT FOR ANY NEW MULTI DISPENSER REFUELING STATION NATIONAL LEVEL TO REMOVE TANK WEIGHT IN THE CURB WEIGHT COMPUTATION EUROPEAN LEVEL TO DEFINE FUEL QUALITY FOR BIO METHANE (CERTIFICATION METHOD) EUROPEAN LEVEL TO DEFINE THE METHOD TO CERTIFY THE BIO METHANE PRODUCERS NATIONAL LEVEL TO RECOGNIZED BIOMETHANE AS BIOFUEL AT LEGISLATIVE LEVEL NATIONAL LEVEL TO ALLOW THE INECTION INTO THE GRID OF CERTIFIED BIO METHANE PRODUCED IN SITU AND TRANSFERRED VIA TRUCK NATIONAL LEVEL TO PROVIDE DETAXATION FOR CERTIFIED BIO METHANE NATIONAL LEVEL October 9, 2012 Global 2012 Biomethane Congress - Brussels 23

24 Potential biomethane exploitation Potential biogas production in Italy: about 6.5 Bm 3 methane/ year (*) If 1/3 of biogas was used for the production of biomethane for vehicles: about 2 Bm 3 methane/year It would be possible to fuel 900,000 Fiat Doblò / year Fiat Doblò 1.4 TC 16v 120 HP Natural Power 4.9 kg methane/100 km Combined Fuel Consumption (*) Biomethane growth rate in Italy CRPA estimate May 2011 October 9, 2012 Global 2012 Biomethane Congress - Brussels 24

25 Conclusions Since now for several decades, Natural Gas still remains a strategic choice for sustainable mobility thanks to progressive migration towards Biomethane October 9, 2012 Global 2012 Biomethane Congress - Brussels 25