The Use of Natural Gas in the Transport Sector. Dr Marios Valiantis

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1 The Use of Natural Gas in the Transport Sector Dr Marios Valiantis

2 Transport Sector The transport sector is the driving force of the modern economy. The needs in passenger and freight transportation are increasing at rates greater than the economy and population growth. Existing transport systems cannot be characterized sustainable long term.

3 Transport Sector Europe Europe is heavily depended on imported oil for its mobility and transport oil accounted for 94% of energy consumed in transport 84% of it is imported with a bill of up to 1 billion euro a day in leading to a significant deficit in the EU trade balance of around 2.5% of GDP. The effect of the oil dependence in the European economy is too largeto neglect. Replacing oil with alternative fuels and build up the necessary infrastructurecould bring huge savings on the oil import bill.

4 Road Transport Europe Contributes about 20% of the EU s total CO2 emissions. CO2 emissions increased by nearly 23% between 1990 and 2010, and without the economic downturn growth it could have been even bigger. Light duty vehicles (cars and vans) are producing around 15% of the EU s CO2 emissions. Transport is the only sector in the EU where GHG emissions are still rising.

5 European Legislation Comprehensive Legal Framework to reduce CO2 emissions from new light duty vehicles as part of the efforts to ensure it meets its GHG emission reduction targets. The legislation sets binding emissions targets for new car and van fleets.

6 European Legislation 2007 Cars: manufacturers are obliged to ensure that their new car fleet does not emit more than an average of 130 g. CO2/km by 2015 and 95 g. CO2 /km by This compares with and average of almost 160 g. CO2 / km in 2007 and g. CO2 / km in Fuel consumption: 5.6 l/100 km of petrol or 4.9 l/100 km of diesel by l/100 km of petrol or 3.6 l/100 km of diesel by 2020

7 European Legislation 2007 Vans: manufacturers are obliged to ensure that their new van fleet does not emit more than an average of 175 g. CO2/km by 2017 and 147 g. CO2 /km by This compares with and average of almost 203 g CO2 / km in 2007 and g. CO2 / km in Fuel consumption: 7.6 l/100 km of petrol or 6.6 l/100 km of diesel by l/100 km of petrol or 5.5 l/100 km of diesel by 2020

8 Europe 2020 Strategy Towards a smart, sustainable and inclusive growth 20% Savings in total primary energy consumption by % reduction in greenhouse gas emissions compared with 1990 levels by % percentage contribution of renewable energy in total energy consumption by 2020.

9 2011 White Paper Transportation Roadmap to a Single European Transport Area Towards a Competitive and Resource Efficient Transport System

10 Future Challenges of Transport in Europe Growing congestion and very little accessibility Dependence on oil and increase of oil prices The need to reduce carbon dioxide emissions.

11 Goals Towards a Competitive and Resource Efficient Transport System These 10 goals are the benchmark for achieving the 60% reduction in GHG emissions. Developing and deploying new and sustainable fuels and propulsion systems Optimizing the performance of multimodal logistic chains, including making greater use of more energyefficient modes Increasing the efficiency of transport and of infrastructure use with information systems and marketbased incentives

12 Halve the use of conventionally fuelled cars in urban transport by 2030; phase them out in cities by 2050; achieve essentially CO2 free city logistics in major urban centers by 2020.

13 Energy Consumption Cyprus(ktoe)

14 Commitments of Cyprus to the European Strategy 20% Savings in total primary energy consumption by % reduction in greenhouse gas emissions compared with 1990 levels by Increase in the percentage contribution of renewable energy in total energy consumption to 13% by Increase in the percentage uptake of renewable energy in transportation by 10% by 2020.

15 Commitments of Cyprus to Climate and Energy As a Member State of the EU, Cyprus has undertaken the following goals for emissions reduction within the legislative package of Climate and Energy : Reduction in greenhouse gas emissions by 21% by 2020 with reference to 2005 in the premises covered by the Emissions Trading Scheme (power plants, cement plants and ceramics plants). Reduction in greenhouse gas emissions by 5% by 2020 with reference to 2005 from sectors not included in the Emissions TradingScheme (transport, agriculture, waste and housing).

16 The Use of Natural Gas in the Transport Sector Natural Gas can be used in transportation in 3 forms: CompressedNatural Gas (CNG) Liquefied Natural Gas (LNG) Gas to Liquid(GTL)

17 CNG Natural gas under pressure which remains clear odorless and noncorrosive. Canbe used in cars, urban fleets of buses, utility trucks and taxis One third the price of a gallonof gasoline Cleanerfuel than gasoline: CO reduction by 90% NOX reduction by 35 60% GHG reduction by 20 30%

18 LNG Natural gas in liquidform. High energy density offers a cost efficient alternative to diesel for trucksandrail,with lowerpollutantandco2 emissions. Particularly suited for long distance road freight transport for which alternativesto diesel are extremely limited. LNG is also an attractive fuel option for vessels in particular to meet the new sulphur content in marine fuels decreasing from 1% to 0.1% from 1 January 2015 in Sulphur Emission Control Areas (SECAs) in the Baltic Sea, North Sea, and English Channel, as set by the International Maritime Organisation (IMO).

19 GTL GTL is another liquefaction process gaining interest and investment in recent years. GTL turns natural gas into a clean burning diesel fuel. GTL fuel ignite more easily than conventional fuels, improving the performance of the car engine and reducingthe emissions.

20 Natural Gas Vehicle Market (NGV) in Europe Around 1 million vehicles on the road in Europe Around 3000 filling stations

21 Source: NGV America 2012 NGV Notable Growth

22 World Wide NGV Growth Actual / Projected Source: NGV America 2012

23 International Vehicle Availability Every major car manufacturer is making natural gas vehicles for some marker somewhere: GM/Opel Chevrolet Ford Hyundai Mitsubishi Tata Nissan Isuzu Volvo Mercedes Volkswagen Fiat Peugeot Toyota Skoda Renault Citroen

24 The Chicken and Egg Problem EU launched in January 2013 the Clean Fuel Strategy: ambitious package to ensure the build up of alternative fuel stations across Europe. The three main barriers: relativelyhigher cost of vehicles relatively lower level of consumer acceptance lack of refueling stations

25 Why Should We Invest in NGVs? We will have the fuel domestically NGVs are a Here and Now Technology More NGVs more jobs Substantial Air Quality Benefits: Urban Pollution Substantial Environmental Benefits: GHGs Substantial Environmental Benefits: GHGs Government subsidies / benefits Long term economic benefits

26 Thank You Dr Marios Valiantis Director of Centre for Green Development and Energy Policy Head BSc Environmental Management Head MBA Oil, Gas and Energy Management Head BBA Energy, Oil and Gas Management University of Nicosia 46 Makedonitissas Ave. P.O. Box 24005, 1700 Nicosia Tel: Fax: Website: