LPG: the sustainable alternative for today and tomorrow AEGPL Briefing Document on LPG January 2015 Slide 2 to 7 Overview of LPG use in Europe Part 8 to 12 LPG contribution to EU policy objectives For further information, please contact AEGPL General Manager at: samuel.maubanc@aegpl.be
What is LPG? Blanket denomination covering Propane and Butane Comes from multiple sources, as a by-product: Natural gas extraction (over 65% of global LPG supply, 47% in Europe) Oil refining/extraction Easily liquefied and transported
A wide range of applications Space and water heating Agriculture Industrial use Cooking Transport fuel Others An extensive database of the hundreds of LPG applications can be found here: http://lpg-apps.org/
Distribution of demand in the EU Autogas 33% Total LPG demand in 2013 = 16,5 million tonnes Industry 22% Residential 40% Agriculture 5% * Excluding LPG used as feedstock by chemical industry Top-10 LPG markets in EU Residential: 1. Italy 2. France 3. Spain 4. Germany 5. Portugal 6. Poland 7. UK 8. Romania 9. Greece 10. Netherlands Autogas: 1. Poland 2. Italy 3. Germany 4. Bulgaria 5. Romania 6. Netherlands 7. France 8. Greece 9. Lithuania 10. UK Industrial: 1. Germany 2. UK 3. Spain 4. Sweden 5. France 6. Italy 7. Finland 8. Poland 9. Greece 10. Portugal
A closer look at the residential market LPG fulfils the energy needs of millions of European households, especially for space heating/cooling, hot water, and cooking. These three applications represent on average 85% of the total energy use in a European home. As a portable and clean-burning gaseous fuel, LPG is an ideal substitute for natural gas where the gas grid is not available (over 40 million households are in this case), typically in rural or peri-urban areas. In off-grid areas, LPG is a cleaner alternative to more polluting energy sources such as heating oil and coal, which together still represent 1/3 of the energy mix. LPG currently represents 17% of energy use in off-grid areas.
thousands millions A closer look at the Autogas market STATIONS IN THE EU NUMBER OF VEHICLES 30 25 30.374 7.5 6.5 5.5 7.415 20 4.5 15 2003 2005 2007 2009 2011 2013 3.5 2003 2005 2007 2009 2011 2013 LPG is the most widely-used alternative transport fuel in the EU, and also the fastest growing total number of LPG vehicles increased by 40% in the last 5 years Over 3 billion euros have been invested in building-up the LPG filling station network already
A closer look at the Autogas market Across the EU, customers can choose out of: over 90 models from over 20 manufacturers In all vehicle segments From small city vehicles To delivery vans With full manufacturer warranty In addition: Conversion possible of almost any gasoline-powered vehicle Development of Dual Fuel (LPG-diesel) technology for trucks and non road mobile machinery Growing interest in LPG for boats (esp. inland waterways navigation and smaller leasure boats)
LPG contribution to climate policies In residential or industrial: The GHG footprint of LPG is respectively 17% and 49% lower than heating oil and coal; LPG emits almost no black carbon, contrary to heating oil, coal and biomass. As suggested by the European Parliament (see motion for resolution B7-0474/2011) and the European Commission (see 2013 Clean Air Policy Package), black carbon emissions should be regulated as it is the second largest contributor to global warming after CO2; According to projections from the PRIMES Model tool used by the European Commission for many of its impact assessments a larger uptake of LPG in off-grid areas until 2030 would result in up to 184 million tonnes of CO2 avoided; In transport: An LPG car can save up to 16% CO2 emissions compared to the same car model fuelled with petrol; If LPG reaches its objective of representing 10% of the car fleet in Europe in 2020, this would result in 350 million tonnes of CO2 avoided compared with baseline scenario. It is a low-hanging fruit in decarbonising the transport sector, as LPG does not require any new major investment nor public funding for its refuelling infrastructure; From a well-to-wheel perspective (including emissions from production and distribution of fuels, in addition to tailpipe emissions), LPG has a GHG footprint respectively 21% and 23% lower than petrol and diesel. These values are defined by the EU Joint Research Centre and are referenced in the Fuel Quality Directive;
LPG contribution to air quality policies In residential or industrial: In transport: LPG cars generate 96% less NOx (Nitrogen Oxide) than diesel and 68% less than petrol; LPG cars generate over 4 times less Particulate Matter than diesel. Diesel fumes were classified as carcinogenic by the World Health Organisation in 2013; If LPG reaches its objective of representing 10% of the car fleet in Europe in 2020, this would represent a reduction in external cost (e.g. medical treatment, premature deaths, etc.) of pollutant emissions of over 20 billion euros; While the European Commission has recently taken action against 17 EU member states for breaching EU particulate (PM10) and NOx limits, LPG represents again a low-hanging fruit in reducing these emissions
LPG contribution to EU security of energy supply policies Thanks to its diverse origins (by-product of natural gas and oil extraction and refining) and the fact it is easy and affordable to transport, LPG offers a very secure prospect for supply in the medium to long term. It is also not dependant on pipelines and can therefore be delivered virtually anywhere; The largest part of EU LPG supply is locally produced (refineries across the EU, or natural gas fields from e.g. Norway, UK and Hungary) or imported from EU-neighbouring countries such as Algeria; The global supply of LPG is expected to increase by over 25% between now and 2020; Although currently marginal in Europe, the supply of locally-produced biopropane is expected to develop;
LPG contribution to EU energy efficiency policies LPG benefits in rural areas are particularly important, as the building stock in these areas is often older, bigger and less energy-efficient than in urban areas. A number of efficient technologies such as district heating (only relevant for cities) and conventional heat pumps (not suitable for the retrofit of poorly insulated buildings) are unavailable in rural areas: LPG is an immediately available and clean alternative to heating oil, coal and unsustainable biomass. Use of LPG in off-grid areas facilitates the uptake of new high-efficiency technologies such as gas heat pumps, micro-cogeneration, and thermo-solar installations.
AEGPL general recommendations for upcoming EU Energy and Climate policies EU policies should not be only looked through the prism of a simple dichotomy between fossil fuels and renewables: both can be combined (e.g. gas heat pumps which are considered renewables while running on a fossil fuel) and each energy source or technology comes with different pros and cons regarding energy efficiency, emission of pollutants, or cost-efficiency; Technology neutrality should remain a pillar of EU Energy and Climate Policies (of particular relevance to policies on Alternative Transport Fuels); Alternative Transport Fuels Policies should envisage environmental impact of transport in a more transversal way: not only tailpipe emissions should be covered by legislation, fuels should be assessed according to emissions from a well-to-wheel or lifecycle point of view (even for electric vehicles); Legal certainty is vital for innovation and investments in clean and efficient technologies: short term incentives or supportive policies for a given technology ( picking-winners ) are often counterproductive; Climate policies have to regulate not only CO2 emissions but also pollutants having a significant impact on global warming, such as black carbon; It is vital that specificities of rural building stock are taken into account in EU Climate and Energy Policies (of particular relevance to the upcoming EU Heat Strategy, which the Commission might be releasing in late 2015 or 2016); In a similar fashion to what was done for biofuels, and as requested by many stakeholders, the current assumption in EU legislation that all types of biomass are carbon-neutral should be revisited: only genuinely sustainable biomass should be subject to EU incentives;