Transport

"The Clean Power for Transport : A European alternative fuels strategy.

The role of natural gas and biomethane as fuel for vehicles"

Conference of the Biogas Association

Alkmaar, 30 September 2014

Transport

The impact of oil in road transport

EU transport sector is facing the challenge to reduce its high dependence on oil, which today accounts for 94% of energy use in transport. 84% of the oil that we use is imported from outside the Union with an approximate cost of 1 billion Euros per day which led to a significant deficit in the EU trade balance of around 2.5% of the Union's GDP Transport was responsible for 24% of GHG emissions in the EU in 2012 (including maritime international transport) The transport sector's dependence on oil raises serious concerns over our long-term energy supply security, it exposes us to volatile fuels prices, and undercuts our efforts to mitigate the effect of climate change.

Transport

Clean Power for Transport initiative

•  Communication “Clean Power for Transport: A European alternative fuels strategy”, adopted by the Commission on 24 January 2013

•  A Directive on the deployment of alternative fuels infrastructure •  endorsed by the EP on 15 April 2014 and adopted by the Council on 29

September 2014

•  SWD Actions towards a comprehensive framework on LNG for shipping •  Adopted by the Commission on 24 January 2013

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The Communication

•  The Communication lays out a comprehensive alternative fuels strategy for the long-term substitution of oil as the primary energy source for transport.

•  It provides a framework to guide investments and technological development

•  Single-fuel solutions covering all transport modes would be technically possible with liquid biofuels and synthetic fuels but feedstock availability and sustainability considerations constrain their supply potential

•  The main options for the different modes are: Liquefied Petroleum Gas (LPG), Natural Gas (in the forms of CNG, LNG and GTL) and Biomethane, Electricity, Biofuels and Hydrogen.

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Transport

Alternative fuels for all transport modes

Road Air Rail Water

Range

Urban Short Medium Long Short Medium Long Inland Short sea Maritime

Natural gas and biomethane

LNG

Electricity

Biofuels

Hydrogen

Transport

The Clean Power for Transport package establishes that natural gas and biomethane are part of the EU mix of alternative fuels required to substitute oil as energy supply to transport in the long term. Both offer a large potential to contribute to the diversification of transport fuels. New drilling techniques have increased the available natural gas reserves, by up to a factor of 3 in recent years. The level of total biogas production foreseen for 2020 in the National Renewable Energy Action Plans is about 12 billion m3 (in natural gas equivalent). However, the European Biogas Association (EBA) (2014) estimates that by 2030 the overall potential for biogas is at least 50 billion m³.

Why are natural gas and biomethane part of the CPT?

Transport

Why are natural gas and biomethane part of the CPT?

Natural gas offers important environmental benefits in terms of reduction of CO2 and pollutant emissions, in particular when it is blended with biomethane and pollutant emissions.

The injection of biogas into the natural gas grid and/or the use of 100% biogas in transport can significantly contribute towards a decrease in the CO2 intensity of natural gas and diversify sources.

CNG, LNG and 100% biomethane vehicles are based on a mature technology, using conventional internal combustion engines. A reasonable choice of vehicles has been developed in recent years. However, the market is not sufficiently developed being the major obstacle the lack of refuelling infrastructure in a large part of Europe and common standards.

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Market development of CNG, LNG vehicles and filling stations

•  CNG  Current  situa-on  in  the  EU  and  in  the  World:  •  There  are  one  million  vehicles  running  on  CNG,  which  represents  0.5%  of  the  EU-­‐28  

vehicle  fleet.  The  industry  aims  to  have  5%  of  the  fleet  by  2020.    Nearly  3000  refuelling  staHons,  with  the  majority  in  Germany  and  Italy.  

•  15  million  vehicles  including  EU  represenHng  1.2%  of  the  vehicle  fleet  worldwide.  

•  LNG  Current  situa-on  in  the  EU  and  in  the  World:  

•  74  refuelling  staHons  (34  L-­‐CNG,  43  LNG):  UK,  Spain,  Sweden,  Netherlands,  …    China:  70,000  LNG  trucks  and  1,000  staHons  (300,000  by  2020  and  3,500  staHons)  

•  USA:  more  than  6,000  trucks  already  running  on  LNG  

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Market development of biomethane vehicles and filling stations

•  Biomethane  current  situa-on  in  the  EU  :  •  In    2013  biomethane  was  produced  in  14  European  countries  and  in  over  

230  upgrading  plants  with  a  total  capacity  of  0,8  billion  m3/year.    •  Grid  injecHon  is  in  pracHce  in  11  European  states  (AT,  CH,  DE,  DK,  FI,  FR,  

LX,  NL,  NO,  SE,  UK)  •  In  Europe  there  are  over  300  CBG100  and  LBG100  staHons  offering  100  %  

renewable  methane.    •  About  80  %  of  all  100  %  renewable  fuel  staHons  in  Europe  are  renewable  

methane  staHons.  They  mostly  offer  biomethane  (BG),  but  also  syntheHc  biogas  

•  Vehicles  are  fuelled  with  biomethane  (either  pure  or  in  blend  with  natural  gas)  in  12  European  countries  AT,  CH,  DE,  DK,  FI,  FR,  HU,  IS,  IT,  NL,  SE,  UK).    

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The Directive on alternative fuel infrastructures

1. Minimum requirements on alternative fuels infrastructure build up, to be implemented through Member States' national policy frameworks Ø Investments encouraged

2. EU common technical specifications

Ø Interoperability ●  3. Consumer information

Ø Fuel / vehicle compatibility Ø Confidence for investors & consumers

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The Directive on alternative fuel infrastructures: national policy frameworks

•  Assessment of the state and future development of the market of alternative fuels in the transport sector, in the light of the development of alternative fuels infrastructure and considering trans-border continuity

•  National targets and objectives and measures necessary to ensure the achievement of the national targets and the objectives contained in national policy frameworks

•  Measures that can promote the deployment of alternative fuels infrastructure in public transport services

Transport

The Directive on alternative fuel infrastructures: national policy frameworks

•  Designation of the urban/suburban agglomerations, other densely

populated areas and networks to be equipped with recharging points and CNG refuelling points subject to market needs

•  Assessment of the need to install LNG refuelling points in ports

outside the TEN-T Core Network •  Consideration of the need to install electricity supply at airports for

use by stationary airplanes •  Support measures for alternative fuels infrastructure shall be

implemented in compliance with the state aid rules contained in TFEU

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The Directive: natural gas supply for waterborne transport

•  Member States shall ensure, through their national policy frameworks, the availability of an appropriate number of refuelling points for LNG at maritime ports to enable LNG inland waterway vessels or sea-going ships to circulate throughout the TEN-T Core Network by 31 December 2025 at the latest

•  Member States shall ensure, through their national policy frameworks, the availability of an appropriate number of refuelling points for LNG at inland ports to enable LNG inland waterway vessels or sea-going ships to circulate throughout the TEN-T Core Network by 31 December 2030 at the latest

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The Directive: LNG supply for road transport Member States shall ensure, through their national policy frameworks, the availability of an appropriate number of LNG refuelling points accessible to the public by 31 December 2025 at the latest, at least along the existing TEN-T Core Network, to ensure that LNG heavy-duty motor vehicles can circulate throughout the Union, where there is demand, unless the costs are disproportionate to the benefits, including environmental benefits

A review of this directive could be done by 31 December 2027 at the latest, taking into account the LNG heavy-duty motor vehicles market, to ensure that an appropriate number of LNG refuelling points accessible to the public are put in place in each Member State

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The Directive: CNG Supply for road transport

Member States shall ensure, through their national policy frameworks, the availability of an appropriate number of CNG refuelling points accessible to the public by 31 December 2020, to ensure that CNG motor vehicles can circulate in urban/suburban agglomerations and other densely populated areas

Member States shall ensure, through their national policy frameworks, the availability of an appropriate number of CNG refuelling points accessible to the public by 31 December 2025 at the latest, at least along the existing TEN-T Core Network, to ensure that CNG motor vehicles can circulate throughout the Union

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The Directive: EU common technical specifications on AF infrastructures

3. European standards for natural gas supply Shall contain technical interoperability specifications with a single solution for each of the following: à LNG refuelling points for waterborne vessels compatible with ISO/TC 67 à LNG connectors and receptacles compatible with UN ECE Regulation 110 ISO/DIS 12617

à LNG and L-CNG refuelling points for motor vehicles compatible with ISO/DIS/ 16924 à CNG refuelling points for motor vehicles compatible with ISO/DIS/16923 à CNG connectors and receptacles compatible with UN ECE Regulation 110 (referring to ISO 14469, parts 1 and 2)

Transport

EU funding support for biomethane •  A range of projects have received EU support for the development of

biomethane as a fuel for vehicles in the latest years:

•  BIOMASTER

•  BioWALK4Biofuels

•  MADEGASCAR

•  GasHighWay

•  BioGas Max

•  BIOGASFUEL

•  Urban Biogas

•  Green Gas Grids

•  Baltic Biogas Bus

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Transport

Smart, Green and Integrated transport Programme • Demonstrating and testing innovative solutions for cleaner and better urban transport and mobility

http://ec.europa.eu/programmes/horizon2020/en/h2020-section/smart-green-and-integrated-transport

Secure, clean and efficient energy Horizon 2020 programme • Smart Cities and Communities solutions integrating energy, transport, ICT sectors through lighthouse (large scale demonstration - first of the kind) projects

• LCE 11 – 2014/2015: Developing next generation technologies for biofuels and sustainable alternative fuels • LCE 12 – 2014/2015: Demonstrating advanced biofuel technologies • http://ec.europa.eu/programmes/horizon2020/en/h2020-section/secure-clean-and-efficient-energy

Funding for research and innovation

Transport

Connecting Europe Facility (CEF) funds for TEN-T projects (Trans-European Transport Network)

Ø  Support under TEN-T funds is given to measures to promote innovation and new technologies for transport infrastructure and facilities contributing to decarbonisation or the reduction of external costs of transport.

Ø  Objective 2: New technologies and innovation in all transport modes

Ø Actions to support the deployment of alternative fuels infrastructure Ø Actions to promote the market introduction of solutions for vehicles

powered by clean fuels Ø Call 2014:Funding objective 2: Budget: €20 Million

http://inea.ec.europa.eu/en/cef/cef_transport/apply_for_funding/cef_transport_call_for_proposals_2014.htm

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Final remarks

•  The CPT Directive will contribute to achieve the 5% share of natural gas and biomethane vehicles market in 2020 aimed by the natural gas and biomethane vehicles industry

•  It is essential to shift from natural gas to biomethane, as the use of natural gas alone will not allow for significant reductions of GHG emission compared to the use of e.g. diesel fuels.

•  The adoption of the standard M/475 for natural gas and biomethane for use in transport and biomethane for injection in the natural gas grid is key for a large use of biomethane in transport as well as to contribute to the achievement of the 10% RED target

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Final remarks •  More R&D is necessary to reduce the costs of biomethane

production

•  LNG and liquified biomethane used in HDV is the most attractive option to mitigate the high dependence of EU on diesel; in this respect the "LNG Blue corridors project" is key to demonstrate the technical and environmental performance of LNG HDV as well to create the conditions for its market uptake in the EU

Transport

Thank you for your attention!

Antonio.Tricas-Aizpun@ec.europa.eu