Market potential for the use of LNG & L-CNG

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1 Market potential for the use of LNG & L-CNG Gas Infrastructure Europe - Annual Conference Edinburgh, th June 2011 Jaime del Álamo Technical Manager Edinburgh. June

2 Index Natural Gas. General aspects Existing and foreseen NGV park Why Liquefied Natural Gas? LNG availability in Europe. Synergies with other transport modes Technical developments/needs Legislative developments/needs Conclusions Edinburgh. June

3 Natural Gas. General aspects Abstract: Natural Gas is an energy product that mainly consists of methane (CH 4 ). It s originated from the decomposition of organic matter under many layers of sediment deposits. Characteristics: Abundant (recent findings on shale gas) Reliable and affordable (known related technology, already existing infrastructure, etc) Allows a clean combustion Serves for many different applications (domestic, electricity generation, vehicle fuel) Edinburgh. June

4 Natural Gas. General aspects Environmental behaviour: due to its molecular advantage (75% carbon in weight, compared to 86,5% from gasoline and diesel) CO 2 related emissions are particularly favourable. PM and NOx are also reduced, especially when comparing to Diesel engines Best available technology Reduction of oil dependence Introduction of biomethane Same chemical composition than NG no blending limitation Edinburgh. June

5 Existing and foreseen NGV park Europe: 6% growth between ,34 M NGVs in Europe 1 M NGVs in EU 2800 filling stations (EU+EFTA) Edinburgh. June

6 Why Liquefied Natural Gas? When talking about NG ability to be used for different transport applications, the most critical aspect to consider is the energy density. Note: liquefied natural gas needs a temperature of -162 ºC to maintain its state Edinburgh. June

7 Why Liquefied Natural Gas? The next figure represents in a very graphic way the energy/volume equivalence between diesel, CNG and LNG 200 bar CNG 5 litre Diesel oil 1 litre -162 ºC LNG 1,8 litre LNG opens the way for NG to the long distance road transportation LNG on-board tanks present holding times ranging between 5-10 days with the vehicle parked and the tank capacity at 90%. In fact SAE J 2343 calls for a minimum 5 days holding time. Edinburgh. June

8 Why Liquefied Natural Gas? Main fuel alternatives per vehicle category CNG Gasoline/Diesel/LPG E-Hybrids/(Full electric) (CNG)-LNG Gasoline/Diesel/LPG E-Hybrids LNG Electric LNG Kerosene/Diesel *Note: whilst liquid biofuels have clear limits with regard to blending capability, biomethane can be used at any blending ratio due to having the same chemical composition than NG Edinburgh. June

9 LNG availability in Europe. Synergies There is already a good number of LNG terminals along Europe. This panoramic is quickly changing due to new projects appearing LNG offers the possibility of bringing NG as a vehicle fuel where there is no grid access. Edinburgh. June

LNG could feasibly be of use for maritime, and

transportation World Total Regasification

built Liquefaction terminals: 21 in operation 47

10 LNG availability in Europe. Synergies It should be taken into account that LNG could feasibly be of use for maritime, and also for Heavy Duty long distance road transportation World Total Regasification terminals: 62 in operation 127 planned/being built Liquefaction terminals: 21 in operation 47 planned/being built A LNG ferry could consume as much fuel as LD cars Edinburgh. June

effective when linking the big infrastructures at port

LNG terminals built to supply LNG to bunkering barges

trucks there is no need of huge investments in order to build

11 LNG availability in Europe. Synergies The L-CNG station concept has proven to be very effective when linking the big infrastructures at port terminals with inland availability. LNG terminals built to supply LNG to bunkering barges servicing LNG powered ships can be the base for supply of LNG to inland L-CNG refuelling stations. With an operating range of 500 km or more for LNG fuelled trucks there is no need of huge investments in order to build a satisfactory LNG refuelling network. Strategically well chosen sites at truck stops along the major European highways would open the market opportunities. Edinburgh. June

quality requirements were defined by MARPOL Annex VI.

12 LNG availability in Europe. Synergies More and more we are experiencing the great momentum that LNG is taking in the maritime sector. Emission Control Areas: two sets of emissions and fuel quality requirements were defined by MARPOL Annex VI. These areas can be designated for SOx and PM, or NOx, or all three types of emissions Edinburgh. June

Technical developments/needs Thanks to the strong push in Europe for less polluting

because of the security of energy supply, we are experiencing an increased interest in

dedicated catalysts Really low emitting vehicles Increasing offer of CNG/LNG HDVs

for long distance There is a substantial gap in NG powertrain development.

13 Technical developments/needs Thanks to the strong push in Europe for less polluting vehicles (GHG, local pollutants and noise), for the reduction of oil dependence and because of the security of energy supply, we are experiencing an increased interest in NGV technology Reasonable good offer of CNG LDVs engine downsizing, turbochargers, dedicated catalysts Really low emitting vehicles Increasing offer of CNG/LNG HDVs dedicated CNG/LNG for urban and medium distance transportation; dedicated LNG/Dual fuel for long distance There is a substantial gap in NG powertrain development. OEMs spent huge quantities of money for achieving EURO 6 / VI, and seem to have forgotten about NGVs Edinburgh. June

Technical developments/needs Recently we are experiencing an increasing interest from OEMs.

FM Methane-Diesel Dual Fuel Truck with up to 75% substitution of diesel fuel by NG.

They expect sales to take-off in 6-8 countries during the next 2 years.

14 Technical developments/needs Recently we are experiencing an increasing interest from OEMs. These are just two examples of recent developments in the Heavy Duty side: Volvo has launched the FM Methane-Diesel Dual Fuel Truck with up to 75% substitution of diesel fuel by NG. They ll produce 100 units for three main markets: The Netherlands, U.K. and Sweden. They expect sales to take-off in 6-8 countries during the next 2 years. IVECO already has a 270 hp LNG Stralis. The 330 hp will be ready for 2012, and they re working via CRF on the 450 hp for Edinburgh. June

Minimum methane number needed, since it describes the combustion behaviour / anti-knock properties Legislation for Spark Ignited engines

15 Legislative developments/needs NGVA Europe is directly involved in the technical field: UNECE: GRPE, GFV, EFV, DF-TF, LNG-TF CEN: TC 326, PC 408 EC: MVEG ISO: TC 193, TC 22/SC 25, PC 252 NGVA Europe TC Lack on LNG quality designation. Minimum methane number needed, since it describes the combustion behaviour / anti-knock properties Legislation for Spark Ignited engines using NG Legislation for CNG components Legislation for Compressed Ignition Dual Fuel engines using NG Legislation for LNG components Biomethane fuel quality specification Edinburgh. June

Legislative developments/needs Taxation has demonstrated to be a point of outmost importance, especially for the entrance into the market of new alternatives.

huge increase to minimum level of taxation for NG by 400% to a fuel that reduces oil dependence, is much more widespread over the territory, and opens the

16 Legislative developments/needs Taxation has demonstrated to be a point of outmost importance, especially for the entrance into the market of new alternatives. The European Commission has stressed in many occasions the need to reduce oil dependence and increase security of energy supply Why submit a proposal for a huge increase to minimum level of taxation for NG by 400% to a fuel that reduces oil dependence, is much more widespread over the territory, and opens the possibility of introduction of an alternative fuel that has proven to be more efficient when reducing GHG emissions than other liquid biofuels Edinburgh. June

Conclusions Natural Gas is a clean, abundant, versatile fuel that opens the door to one of the most interesting renewable fuels: biomethane LNG makes the use

Some aspects related with gas quality must be addressed Some legislative developments permitting the correct introduction of LNG technology into the EU market

17 Conclusions Natural Gas is a clean, abundant, versatile fuel that opens the door to one of the most interesting renewable fuels: biomethane LNG makes the use of NG a feasible option for Heavy Duty transportation Technology for LNG vehicles and infrastructure is ready, and has proven its economic feasibility. Some aspects related with gas quality must be addressed Some legislative developments permitting the correct introduction of LNG technology into the EU market are under way. At the moment the market is pushing mainly with national legislation There is a need for favourable taxation of this emerging option Edinburgh. June

18 It is a matter of when, not if, LNG will be a commonly selected fuel source Christopher J. Wiernicki, American Bureau of Shipping, CEO Edinburgh. June

19 Edinburgh. June

ALTERNATIVE FUELS THE PROSPECTS OF CNG AND LNG. 06 October 2016 I SGOA conference 2016

ALTERNATIVE FUELS THE PROSPECTS OF CNG AND LNG 06 October 2016 I SGOA conference 2016 DO WE HAVE A PROBLEM? 2 06 October 2016 I SGOA conference 2016 MORE TRANSPORT = MORE EMISSIONS Source: Energie Agentur