LNG for Mobility - Implications on heavy duty transportation

Transcription

1 LNG for Mobility - Implications on heavy duty transportation 17 th February, 2017 OMV Refining & Marketing

2 Agenda European Small Scale LNG Activities Value Chain & Applications Technology & Regulation Economics Outlook 2 OMV Aktiengesellschaft, February 2017

3 LNG activities started in countries with sea access, now pilot projects are slowly moving to Central Europe Most active countries in LNG fuelling: UK, ESP, NL and Scandinavia Pilot projects & initiatives: EU Blue Corridor project: Aims to establish LNG infrastructure for trucks along the TEN-T network EU LNG Masterplan for Rhein-Main-Danube Aims to facilitate the creation of a harmonized European regulatory framework for LNG as fuel for inland waterways Source: Pyöry 2016 Outlook: Most infrastructure planned in countries with strong existing infrastructure & along the Blue Corridor First pilot projects planned in Austria, Hungary and Slovakia 1,500 LNG trucks in EU (~ 40,000 t), 240,000 trucks in China (~6,000 kt; 2,500 stations), >25,000 trucks in USA (~670,000 t) EU >100 truck stations and ~30 bunkering 3 OMV Aktiengesellschaft, February 2017

4 Infrastructure available mainly in countries with sea access 4 OMV Aktiengesellschaft, February 2017

5 Blue Corridor connecting SW to NWE transportation routes Key facts: The Blue Corridors project s aim is to establish LNG as a real alternative for medium- and long-distance transport; first as a complementary fuel and later as an adequate substitute for diesel. Project is co-financed by EU via Seventh Framework Program Essential working package is supposed to deliver 14 LNG or L-CNG stations (8 already operating) on critical points along the corridors as well as a fleet of approx. 100 LNG HDVs. Partners of the program: Gas companies Truck manufacturers / engineering LNG suppliers 5 OMV Aktiengesellschaft, February 2017

6 6 OMV Aktiengesellschaft, February 2017

7 Agenda European Small Scale LNG Activities Value Chain & Applications Technology & Regulation Economics Outlook 7 OMV Aktiengesellschaft, February 2017

8 Trucks are currently only transport option within the LNG Value Chain in EU - LNG via Rail is in focus in coming years Storage / Terminal Logistics Filling Station Customer LNG LNG LNG LNG fuelled LNG LNG LNG fuelled Rail: Existing in US, First pilot loading in EU in May 2016, infrastructure under development, Realistic topic for Truck: Currently only transport mode in use in Europe, however most expensive one Inland-waterways: Would be cheapest transport form, however current bottleneck Main river for existing LNG carriers (too narrow) 8 OMV Aktiengesellschaft, February 2017

9 LNG Customers Truck Examples Long distance haulage Vos Logistics (NL) has added five LNG-powered trucks to its fleet of international trailers (> km/year). They are also capable of using Bio-LNG. Gasrec is providing its refuelling facility at Daventry for Kuehne + Nagel s dedicated fleet of five dual-fuel-converted Mercedes Actros trucks Short distance Huybregts (NL) supplies Albert Heijn supermarkets using 10 IVECO Bio-LNG trucks. Noise reductions allow Huybregts to deliver at later hours than competitors. 80% CO 2 reduction across whole value chain. Tesco has signed a deal with Gasrec to enable 35 dual-fuel vehicles to fill up at Gasrec s refuelling station Public services In December 2013, at the Warsaw town hall MZA and the Lider Trading signed the agreement for the delivery of 35 Solbus LNG articulated buses. A public-access LNG/CNG station (PL) was officially opened by public utility PGK Śrem and will mainly serve a garbage truck fleet. Special applications Lukoil supplies LNG for towing vehicles used at Asyaport harbor (TR). Shell and Caterpillar are developing LNG fueled mining trucks (CAN) Source:* 9 OMV Aktiengesellschaft, February 2017

10 LNG Customers Other Examples Logistics Shell operates two LNG fueled ships, transporting liquid fuels Chemgas Barging has built an inland waterway conventional gas tanker. The vessel is equipped with a dual-fuel engine Services DCL Barge has refitted the tug-barge Eiger-Nordwand to accommodate a liquefied natural gas (LNG) drive system. (20% less CO2, 85% less nitrogen and 99% less fine particulates Tourism Viking Grace world s first LNG powered passenger vessel with a capacity of 2800 passengers operates between Stockholm and Turku AIDA cruise ships LNG used during stays at port Rail Deutsche bahn shunting locomotive converted to operate using LNG, fuelling station installed near the main railway station Munich Off-grid customers Primagas offers LNG supply to off-grid industries with annual energy consumption higher than 3500 MWh Source:* 10 OMV Aktiengesellschaft, February 2017

11 Agenda European Small Scale LNG Activities Value Chain & Applications Technology & Regulation Economics Outlook 11 OMV Aktiengesellschaft, February 2017

12 Different technologies available for infrastructure and trucks Filling Stations Available Trucks Mobile containerized station Pilot Project (10 18 t) Moveable skidded station Small Project (18-24 t) Permanent full scale station Large Project (40-80 t) Lack of standards for LNG vehicles, infrastructure and HSSE requirements 12 OMV Aktiengesellschaft, February 2017

13 Deployment of alternative fuels infrastructure (DAFI) and A European Strategy for Low-Emission Mobility as a framework 2050 Target Deployment of alternative fuels infrastructure Directive (Obligation to build a LNG fueling station network along TEN-T network until 2025 in a proposed radius of 400 km) A European Strategy for Low-Emission Mobility How can LNG in mobility support the 2050 target to achieve -60% CO2 emissions from transport vs levels? ~ 10% of CO2 emissions could be reduced vs conventional Diesel vehicles Proposal on Certification of carbon dioxide emissions and fuel consumption -95% of particulate emission reduction vs. Diesel (Euro VI) Proposal on Monitoring and reporting of certified data -35% NOx emission reduction vs Diesel (Euro VI) Public consultation for carbon dioxide emission standards Clean Vehicles Directive be updated for public procurement obligations -70% on noise emissions As LNG is currently only real alternative in heavy-duty segment, tightened regulations about emissions could be a key driver of market development 13 OMV Aktiengesellschaft, February 2017

14 Agenda European Small Scale LNG Activities Value Chain & Applications Technology & Regulation Economics Outlook 14 OMV Aktiengesellschaft, February 2017

15 Beside environmental effects the fuel cost advantage plays a key role when looking at the operational costs Simplified TCO analysis for trucks CO2 Savings LNG truck vs. Diesel truck Net Present Value: ~ 8,000 EUR Internal Rate of Return: ~15% Pay Back Time: 5 years Over period of 10 years the saving amounts to 85 tonnes CO2 15 OMV Aktiengesellschaft, February 2017

16 Fuel Efficiency, purchasing cost delta and driving distance are the main triggers to improve payback period time Net Present Value Payback Period More driven kilometres and better fuel efficiency are shortening the pay-back period Topography is crucial for the fuel consumption For long distance transportation the fuel efficiency is key, for distribution business with shorter distances the purchasing cost differential and the O&M costs are playing a more important role 16 OMV Aktiengesellschaft, February 2017

17 Agenda European Small Scale LNG Activities Value Chain & Applications Technology & Regulation Economics Outlook 17 OMV Aktiengesellschaft, February 2017

18 Still some work to do for a real market penetration EU-wide harmonization of standards for truck, ship & infrastructure as well as HSSE Long-term investment security for logistic companies (e.g. incentives delta purchase price) Major players should take active role in market development (Pilot Projects) Position LNG as fuel for mobility in heavy-duty transportation and inland waterway shipping Emission regulations could be supportive (e.g. ECA regions) Technology Improvement in fuel efficiency, CAPEX for truck, ship & infrastructure (SSLNG) Common technical standards to be developed throughout the OEMs Rail and ship logistics technology to be improved as well as development of further loading/unloading infrastructure needed 18 OMV Aktiengesellschaft, February 2017

19 Legal Disclaimer This presentation is prepared in order to outline our expression of interest. Nothing in this presentation shall be construed to create any legally binding obligations on any of the parties. Neither party shall be obligated to execute any agreement or otherwise enter into, complete or affect any transaction in relation to this presentation. All figures and information in this presentation are strictly confidential, they are by no means binding and thus indicative only OMV Aktiengesellschaft, all rights reserved, no reproduction without our explicit consent 19 OMV Aktiengesellschaft, February 2017

20 Back-up 2 20 OMV Aktiengesellschaft, February 2017

21 Bcm Long-term, power generation and transport make up for efficiency in industry, residential, and commercial Range of end-use gas demand in 2040, EU Demand Range 2015 Demand 25 bcm bunkering 10 bcm HDV Power generation Industry Residential Commercial Transport Notes: European Energy Scenarios - July Source: IHS 2016 IHS 21 OMV Aktiengesellschaft, February 2017

22 Partnership Iveco & Uniper Iveco - New Stralis NP Uniper First Filling station in Ulm (DE) Presented in Madrid June horse power engine, Nm Long distance optimized with mileage up to 1,500 km Euro VI norm fit TCO improved by +3% compared to previous version -40% fuel costs compared to Diesel version First filling station is located at the Iveco location in Ulm LIQVIS is the brand of Uniper for the distribution of LNG as fuel Goal is to set-up filling station network in Germany Network should later be extended to selected surrounding countries through partnerships Liqvis is offering full service including package to transfer fleet from diesel to LNG (partnership Iveco) 22 OMV Aktiengesellschaft, February 2017

23 First LNG-trucks and ships are already in use in Europe with further development and efficiency improvements expected Today: Trucks First dual fuel (substitution 70:30) and 3 mono fuel LNG trucks available Currently lower efficiency (18% less than conventional) and higher costs than conventional trucks Decent range: 600 km LNG only Today: Ship 2 ships running on LNG (chartered by Shell) in inland waterways 2 LNG inland transport ships expected for end 2016 Main Increasing activities in ECA areas due to strict regulations Outlook: New models expected for 2017/18 Improvement of efficiency (dual fuel substitution 90:10) in OMV modelled BASE case: assumption of same costs in 2030 Volvo Dual Fuel (2017e) Diesel Substitution: up to 90% 2,300 Nm / 460 HP Tank: 126 kg LNG & 150 l Diesel Range: up to km Outlook: Key activities expected in ECA areas Expected slow development for Danube due to waterway Main Shell ordered 15 LNG-fuelled ships for operation on Rhine until OMV Aktiengesellschaft, February 2017