Gas transport in Lithuania: utopia or opportunity we are about to miss?

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1 Gas transport in Lithuania: utopia or opportunity we are about to miss? Vidas Korsakas, SG dujos Auto Transbaltica 2017 VGTU, Vilnius, Lithuania

2 POLLUTION? Transport contributes about a quarter of the EU's total emissions of carbon dioxide (CO2)*, the main greenhouse gas, therefore the European Commission is looking at cost-efficient ways to make the European economy more climate-friendly and less energy-consuming * Source: European Commission, Climate Action -

3 POLLUTION? Road transport contributes nearly three quarters of the CO2 emissions*, therefore naturally it is subject of key concern Greenhouse gas emissions from transport by mode in 2014 Share of transport energy demand by mode in 2014 (%) * Source: European Commission, Climate Action -

4 IS IT CRITICALLY IMPORTANT? EU low-carbon economy roadmap suggests that: By 2050, the EU should cut emissions to 80% below 1990 levels Milestones to achieve this are: 40% emissions cuts by 2030 and 60% by 2040 Transport sector is recognised as priority by all developing countries in the world, including China and US. On December of 2015 at COP21 in Paris, 65 countries committed to improve vehicles efficiency, many of them joined the Global Fuel Economy Initiative

5 THE JOURNEY? Now 2050 to Diesel, Gasoline Hydrogen

6 HYDROGEN - FUEL FOR THE NEAREST FUTURE Hydrogen has necessary potential and is perceived as the main fuel for the future: Zero emission in use Can be used as accumulator for energy Safe (if handled and used properly) Usage of pure hydrogen nowadays is limited by a number of factors, especially - lack of cars

7 BUT WHAT ARE THE OPTIONS FOR NOW AND NEXT DECADE OR TWO? While discussion on the topic is Natural Gas a bridge to clean energy? still ongoing, practice shows that there are not so many options for upcoming 2-3 decades to bridge the gap from now to clean energy future based on renewables. Moreover, methane can be and in small quantities is already produced as renewable (biomethane) and it can be mixed with other gases

8 OPPORTUNITIES Today there are 9 industrial-capacity compressor stations in Lithuania

9 OPPORTUNITIES Directive 2014/94/EU on the deployment of alternative fuels infrastructure sets goals to EU member states to develop an appropriate number of refuelling points : CNG in urban/suburban and other densely populated areas by end 2020 CNG along the TEN-T core network by end 2025 Hydrogen in the Member States who choose to develop it by end 2025 LNG for heavy-duty vehicles by end 2025

10 OPPORTUNITIES Development of gas-driven (CNG and LNG) transport in modern European countries is intense during last years: Consumption in Czech Republic in 2015 grew by 46% Increasing number of CNG stations and vehicles constantly announced from Italy, Germany, France, Spain Estonia is planning and moving towards goal to have 50 stations and 20 thousand vehicles by 2020* Leading vehicle manufacturers are announcing new models and developments: Audi A4, A5, Volkswagen new 1.0 TGI, Scania, Iveco, * Source: Presentation by Mr. Sergei Danilov, Esti Gaas, 2nd NGVA Europa regional seminar, Helsinki 2015

11 OR UTOPIA? Lithuania is loosing momentum: last new CNG station was opened in Lithuania in 2015 Only of 3 existing CNG stations are open to serve public Biggest municipal fleet announces public tender with obvious preference for diesel vehicles (in 2017!!!)

12 OR UTOPIA? What is the key obstacle? No clear policy, priority and support by the government and authorities, first of all resulting in CNG price: excise for natural gas, used as fuel for vehicles, in Lithuania is taxed with the highest rate in European Union - 0,28 Euro per m3 The only exception (for excise) is for public in-city transport If such situation remains - development in any other sector is clear - Utopia

13 HOW TO MAKE IT HAPPEN? Recognition of the issue and coordinated efforts by governing bodies and authorities in Lithuania To start with, change of the existing excise

14 WHO ARE READY TO SUPPORT TO MAKE IT HAPPEN? ADIA - Association of Alternative Fuels and Infrastructure - SG dujos - pioneer and leader in CNG infrastructure development and maintenance in Lithuania - SG dujos Auto - unique research center that focuses on research of hydrogen as fuel or an additive to fuel, other eco-friendly fuels, additives and fuel systems

15 Thank you! We are looking forward to hear from you. SG dujos Auto Vidas Korsakas, CEO J. Savickio g. 21/11, Vilnius Tel: