LNG Blue Corridors A new concept for road transport Brussels. June 24th, 2011 Manuel Lage, Dr. Eng. General Manager NGVA Europe Brussels, 24th June 2011 1
Advantages of bio-natural gas Natural gas is an alternative fuel coming from natural wells. It is mainly methane (CH4) Biogas is also a methane rich gas, produced by the fermentation of the biomass, it is then a renewable fuel. Methane contents 25% H and 75% C, in weight As a comparison, Petrol contents 13,5% H and 86,5% C Diesel oil contents 13,5% H and 86,5% C LPG contents 17,4% H and 82,6% C Due to its molecular advantage, regulated exhaust emissions and CO 2 are particularly favourable in the engines running on natural gas. Brussels, 24th June 2011 2
Biogas production potential Among different options of biofuels, biomethane presents the highest efficiency per hectare of land. A global European estimation shows a potential of 2.750 TWh (9,9 EJ = 238 Mtoe), made out of 1.500 TWh (5,4 EJ = 130 Mtoe) coming from crops, plus another 1.250 TWh (4,5 EJ = 1.108 Mtoe) coming from other sources: sewage, manure, landfills, etc. If we choose bioethanol instead of biogas we would loose the potential of the waste, sewages, etc (1.250TWh; 4,5 EJ = 108 Mtoe) and we would also reduce the efficiency of the land by 47%. In other words we would obtain 800TWh (2,9 EJ = 70Mtoe) instead of 2.750 TWh (9,9 EJ = 238 Mtoe). Brussels, 24th June 2011 3
NGVs World Market growth. 1991 to 2020 1.500.000 1.400.000 1.300.000 1.200.000 1.100.000 1.000.000 900.000 800.000 700.000 600.000 500.000 400.000 300.000 200.000 100.000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 mid 2010 World: 65 M NGVs in 2020! Source: www.ngvaeurope.eu Worldwide NGVs (.000) Europe total EU-27/EFTA Rest of Europe Estimations 80.000 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 10 years 15% annual growth 2001 1,7 M NGVs 1.991 1.993 1.995 Europe: 6% growth (end 2010 compared with 2009) 6 years 26% annual growth 2007 7 M NGVs 1.997 1.999 2.001 2003 2005 2007 2009 2011 13 years, assuming 18% annual growth 2020 65 M NGVs (9% market share) 2013 2015 2017 2019 2021 2023 2025 Brussels, 24th June 2011 4
CNG urban trucks and buses in Europe CNG Garbage trucks in Europe France approx. 600 Euro 2 - EEV Switzerland approx. 20 Euro 3 - EEV Italy approx. 600 Euro 3 - EEV Spain approx. 1000 Euro 3-4-5 - EEV CNG Urban buses in Europe (+Turkey, Russia) 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Netherlands 135 315 418 847 1140 13001333 20002334 Portugal Greece Spain Sweden Germany Turkey France Italy 8000 Russia In Europe, most of the heavy vehicles running on NG are urban, using CNG/biomethane. Volume and weight of the CNG tanks limit their use in road transport. Brussels, 24th June 2011 5
LNG trucks for long distance haulage Diesel vs CNG & LNG. Autonomy equivalence 1 litre Diesel oil 200 bar CNG 5 litre -162 O C LNG 1,8 litre Two engine technologies are available for heavy engines: - Dedicated, using 100% natural gas - Dual fuel, using diesel injection for ignition and then natural gas as the main fuel LNG opened the way for the medium and long distance road transport Brussels, 24th June 2011 6
LNG trucks around the world Brussels, 24th June 2011 7
Urban & Suburban buses in a big city Urban buses: Total fleet: 2.000 units CNG buses: 2011 430 units 2012 700 units Target 1.000 units Suburban buses: Total fleet: 2.000 units CNG not valid because of the tanks weight (loss of seats) but LNG gives the solution! Brussels, 24th June 2011 8
Vehicle types and fuel alternatives Vehicle type Present fuel LPG Cars Vans Delivery trucks Sub & urban buses Petrol & diesel Diesel Yes (converted) Yes (converted) Liquid bio fuels Yes (%) Full electric Yes (city cars) Hybrids (energy recuperation) Yes Bio-natural gas (CNG & LNG) Yes (CNG) Yes (%) No Yes Yes (CNG) Diesel No Yes (%) No Yes Yes (CNG) Diesel No Yes (%) Yes, small Yes (wired) Yes Yes (CNG/LNG) Coaches Diesel No Yes (%) No No Yes (LNG) Heavy on road trucks Heavy off road trucks Railway locomotives Diesel No Yes (%) No No Yes (LNG) Diesel No Yes (%) No No Yes (CNG/LNG) Diesel & electric? Yes (%) Yes (wired) No Yes (LNG) Ships Diesel? Yes (%) No No Yes (LNG) Brussels, 24th June 2011 9
LNG development in Europe The European Commission s communication Energy infrastructure priorities for 2020 and beyond A Blueprint for an integrated European energy network calls for the need for more "flexible supply, including liquefied (LNG) and compressed natural gas (CNG). In order to achieve this and other objectives, priority corridors have been identified: the North-South Corridor in Central Eastern and South-East Europe (Linking the Baltic, Black, Adriatic and Aegean Seas) the North-South Corridor in Western Europe (helping to remove internal bottlenecks and increase shortterm deliverability via optimising the existing infrastructure, notably existing LNG plants and storage facilities). Aiming to guarantee the fuel transport and energy independence in the region, the North-South corridor will focus on natural gas transit and interconnections and will cover the six mentioned eastern countries and possibly Austria. In the longer term, the EC foresees an extension of this integration process to non-eu signatories in the Energy Community Treaty (Albania, Bosnia and Herzegovina, Croatia, Macedonia, Moldova, Montenegro, Serbia and Kosovo). A declaration signed in February 2010 expresses those countries' joint support for North-South interconnections. Brussels, 24th June 2011 10
LNG fuelled ships are growing rapidly Brussels, 24th June 2011 11
LNG conferences in Europe (last months) Small Scale LNG. Rotterdam, December 2010 Norwegian Gas Conference. Bergen, May 2011 LNG Fuelled Shipping 2011. Hamburg, May 2010 Annual conference GIE (Gas Infrastructure in Europe). Edinburgh, June 2011 There is a growing interest in the LNG across Europe Any LNG application means synergies for the on road transport. Brussels, 24th June 2011 12
LNG Terminals in Europe and in the world LNG terminals in Western Europe Liquefaction: 1 in Norway, above the Arctic Circle Regasification: 16 in operation (Portugal, Spain, France, Belgium, Italy United Kingdom, Greece, Turkey) 52 projects (Albania, Croatia, Cyprus, Germany, Ireland, Netherlands, Poland, Romania, Ukraine) LNG terminals in the world: Liquefaction: 21 in operation 47 planned/being built Regasification: 62 in operation 127 planned/being built Brussels, 24th June 2011 13
LNG supply to Europe Brussels, 24th June 2011 14
Oil replacement in trucks and buses. USA forecast 38% of the fuel used in USA trucks and buses in 2035 will be natural gas! Brussels, 24th June 2011 15
Technical activities on LNG NGVA Europe Technical Committee is following very actively the meetings regarding LNG: GFV meeting. May 2011 Dual Fuel Task Force: April and May 2011 LNG Task Force. Kick off meeting. May 2011 ISO/PC 252. WG-2. L-CNG Filling Stations Dual Fuel legislative developments: last August 2010 work started at UNECE level to develop standards that will allow to type approve Dual Fuel engines. The group is meeting practically once a month. Technical specifications on emissions and tests for new dual fuel vehicles (Euro VI) will be presented in June 2011 session of GRPE. As a consequence of the Dual Fuel task force it has been decided to create a new Task Force to deal specifically with LNG on board systems Regulations needed for series production LNG vehicles are being developed rapidly! Brussels, 24th June 2011 16
The LNG Blue Corridors proposal These initially proposed Blue Corridors will also develop with connection to other LNG distribution initiatives as: Danube Inland Waters Blue Corridor, from Romania to Viena AGRI (Azerbaijan-Georgia-Romania- Interconnection) project to transport LNG from Azerbaijan to the EU through Georgia and Romania. NGVA Europe is working in the preparation of a European Program to develop the concept of European LNG Blue Corridors The intention is to define at least three initial pan European routes with strategically placed LNG filling stations that would allow the heavy, long distance truck transport throughout Europe: Portugal-Spain to France, Netherlands, UK Portugal-Spain to France, Germany, Denmark, Sweden Mediterranean arch to Italy and Slovenia Brussels, 24th June 2011 17
Commission Roadmap for alternative fuels New fuels should demonstrate / proof: Sustainability availability affordability reliability Support measures: - Regulatory policies for well established technologies - Monetary incentives for the demonstration and market introduction of newly developed technologies with a potential of becoming competitive!) Support actions: - Business models for multi-energy filling stations - CO2 / energy efficiency Regulation for Heavy Duty Vehicles - Standardization and build-up of refueling infrastructure - Labeling of CO2 / energy efficiency in a revised Directive reflecting life cycle impacts Brussels, 24th June 2011 18
TEN-T Alternative Fuels Infrastructure TENT-T (Trans-European Transport Network): No time to wait: Next TEN-T annual call second half 2011 Legal base: one ministry has to sign proposal Call Priority 1a: Studies with the possibility for integrated pilot deployment on TEN-T infrastructure contributing to decarbonisation of transport, including usage of alternative fuels on long distance!!! 1. TEN-T Guidelines info day: 29 June 2011 2. TEN-T Annual Call 2011/12 Decarbonisation 3. Adoption by European Parliament and Council: expected 2012 Brussels, 24th June 2011 19
L-CNG infrastructure in Europe From the North to the South, from the West to the East, we have to implement the European L-CNG infrastructure that will allow us to reduce the oil dependence. L-CNG filling station in Sweden L-CNG filling station in Spain Brussels, 24th June 2011 20
manuel.lage@ngvaeurope.eu www.ngvaeurope.eu www.gasnatural.com Brussels, 24th June 2011 21