RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska

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RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
RESTART OF CNG (COMPRESSED
  NATURAL GAS) IN EUROPE

            Kral Vaclav
            Czech NGV Association
            MOTOR JIKOV Strojirenska
RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
CONTENT

• PRESENTATION OF COMPANY MOTOR JIKOV

• CNG ADVANTAGES, ECOLOGICAL BENEFITS OF CNG

• FUEL COST COMPARISON AND OTHER BENEFITS

• EU TARGETS, ACTUAL SITUATION

• NATURAL GAS VEHICLES (NGVs)

• REFUELING TECHNOLOGIES

• SWOT ANALYSIS, SUMMARY AND GOALS

                                            14th European Forum on Eco-innovation
RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
COMPANY MOTOR JIKOV                                         YOUR PARTNER IN CNG
                                                             FILLING TECHNOLOGIES

The tradition 114 years of the machinery production
It achieved sales of EUR 51 mil. (2012), 800 employees, worldwide export to 26 countries

• expert consulting in CNG business
• case study of CNG filling technology according to customer needs
• calculation of return on investment
• production of vehicle refuelling appliance CNG JIKOV
• construction of filling stations, including all project activities and engineering
• service of filling technology
• we founded the Association NGVA. It is the NGVA Europe member – we realize the
  project Strategic research agenda (cooperation of leading R&D representatives with
• technology suppliers and engineers from the Czech Republic)
• with the Ministries of the Czech Republic cooperate in the creation of the National
  Programme for clean mobility

We also use CNG meanwhile in 50 % of the fleet of our company vehicles:
• saving for the year 2012 in the fuel cost is EUR 59,000.-
• 1 kilometer = 0.035 EUR
• forklift-trucks = 50% savings
                                                                      14th European Forum on Eco-innovation
RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
CNG ADVANTAGES

• environmental (lower emission of CO2, particles, CO, HC, NOx etc.),

• economic (due to tax policy it is the cheapest fuel in Czech republic now)

• strategic (alternative fossil fuel, increasing resources compared to oil, the
            possibility of using biogas)

• safe (CNG is lighter than air - vehicles are safer, parking in underground
       parking is possible)

                                                              14th European Forum on Eco-innovation
RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
ECOLOGICAL BENEFITS

                      14th European Forum on Eco-innovation
RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
Well-to-Wheel – CO2 emission

                               14th European Forum on Eco-innovation
RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
FUEL COST COMPARISON*

VW Passat Variant                                  1,4 TSI EcoFuel           1,4 TSI               2,0 TDI BMT
Power                                  kW               110                    118                       103
Fuel                                                   CNG                  Gasoline                    diesel
Fuel consumption combined         kg, l / 100 km         4,3                    6,2                       5,2
Fuel price average                    € / kg, l         0,99                   1,34                      1,32
Fuel cost                            € / 1 km          0,043                  0,083                     0,069
Fuel cost per year                € / 50.000 km                               4 150                     3 450
                                                       2 150
Saving per year                   € / 50.000 km                              - 2 000                   - 1 300

CO2 emission                         g / km             119                    144                       135
CO2 emission per year             kg / 50.000 km                              7 200                     6 750
                                                       5 950
CO2 emission saving per year      kg / 50.000 km                             - 1 250                    - 800

New car price (Highline, DSG)**         €                                    31 270                    32 115
                                                       33 420
Price increase                          €                                    + 2 150                   + 1 305

                                                                * in Czech republic
                                                                ** basic pricelist

                                                                                      14th European Forum on Eco-innovation
RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
OTHER BENEFITS OF CNG

• Using CNG in transport can further achieve:
     • increase of the state energetic independence
     • use of power source - there are double global resources compared to oil
     • a way to further development of bio-CNG (same technologies – vehicles, filling)
     • support of european industry (producers of NGVs, compressors, cylinders,
       conversion kits…)

• Using biomethane in transport industry then can achieve:
     • further reduction of emissions compared to CNG (e.g. CO2 neutral balance)
     • own production of biogas station power source, which means:
           • fully renewable power source (using biomass, wastes, manure…)
           • reduction of dependency on oil import and consequently natural gas
           • creation of jobs in Europe (agriculture, industry)

                                                                14th European Forum on Eco-innovation
RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
EU TARGETS

EC implemented a program for use of alternative fuels with the target to replace the
traditional fuels in 2020 in the volume of 20 %. Among alternative fuels, which can
replace over 5% consumption of motor fuels in the next 20 years it includes:

• biofuels – already used, e.g. biomethane;

• natural gas – application in medium-term horizon. Not LPG;

• hydrogen and fuel cells – application in long-term horizon.

Czech Republic joined this target in 2005 in form of Government Decree No. 563
dated 11 May 2005 (Alternative fuel transportation program – natural gas) and
Government Decree No. 1592 dated 16 December 2008 (Fleet replacement program
of public administration as "environmentally friendly" vehicles).

                                                                 14th European Forum on Eco-innovation
RESTART OF CNG (COMPRESSED NATURAL GAS) IN EUROPE - Kral Vaclav Czech NGV Association MOTOR JIKOV Strojirenska
EU TARGETS

Implementation based on voluntary agreement between the state and gas
companies dated 16th March 2006. Building of one hundred CNG filling stations
worth CZK 1 billion by 2020 on economically advantageous conditions belongs
among the commitments of gas companies.

It further results from the Agreement that the transport company, which decides to
change its fleet fuel to CNG, will be provided building of CNG filling station at the
expenses of a gas company plus a “marketing” allowance.

Support of ecological fuel vehicles (urban transport) is also a part of Regional
Operation Programs. Building of accompanying infrastructure may be also
accentuated.

                                                                14th European Forum on Eco-innovation
CNG IMPLEMENTATION IN EU
  COUNTRIES - SUPPORT

Concept of gas implementation in transport area is a part of transport and eco-policy.

Programs of gas implementation in transport area initiated and supported by state or
municipalities. They are usually a part of system support of urban transport development.

Tax benefit of natural gas considering a fuel is guaranteed for longer period (road and
consumer tax) or there exists a long-term guarantee of the tax difference for natural gas and
oil. Reduction of income tax of companies; zero tax on natural gas.

Subsidies for infrastructure development of CNG filling stations.

Direct subsidies for extra costs related to operation of gas buses.

Direct subsidies for purchase of gas vehicles no older than 3 years.

Gas implementation in transport is supported by legislation, research and development,
promotion.

Gas vehicles in city centers are privileged (green zones; parking; preferential lanes; TUT
project in Berlin).
                                                                       14th European Forum on Eco-innovation
EU TARGETS?

Contrary to that is a preparation of new Directive 2003/96/EC, which would
mean an essential power taxation within EU (from 2018 there would be
paid tax of EUR 0,4 per every 1 m3 of natural gas used in transport).

Consumer tax in the Czech Republic:

  dddddddddddddddddddddddddddddddddddddd
  dd                                       •   2007 – 2011 tariff 0 CZK/t (0 CZK/m3);
                                           •   2012 – 2014 tariff 500 CZK/t (0.36 CZK/m3);
                                           •   2015 – 2017 tariff 1.000 CZK/t (0.7 CZK/m3);
                                           •   2018 – 2019 tariff 2.000 CZK/t (1.4 CZK/m3);
                                           •   from 2020 – tariff 3.355 CZK/t (2.36
                                               CZK/m3), or minimal level according to EU.

                                                                  14th European Forum on Eco-innovation
ACTUAL SITUATION

EC action plan (2001) – replacement of „fossil“ fuels, 3 technologies with
  such potential – biofuels, natural gas, hydrogen / fuel cells

European development scenario by 2020
• 23.5 million vehicles using natural gas
• 47 billion m3 of natural gas as motor fuel
• 200 thousand of natural gas filling stations

Year 2012
• total NGVs in EU 985,000
• 2,371 public CNG stations in EU

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CUSTOMER PREFERENCE

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NGVs available

                 14th European Forum on Eco-innovation
NGVs available

                 14th European Forum on Eco-innovation
RANGE OF CNG REFUELLING
 TECHNOLOGIES

  MJ COMPACT 05                MJ VARIANT          MJ COMPACT PLUS                  MJ SAT

  Direct (slow) filling                                 Fast filling

1 compressor              2 - 4 compressors        1 - 2 compressors          1 - 2 compressors
                          Storage capacity up to   Storage capacity 1680 l    Storage
                          980 l                    Dispenser                  Dispenser
                          Dispenser                Compact product            Payment terminal
                          Building
5 m3/hour                                          20 - 40 m3/hour            > 70 m3/hour
15.000 m3/year          10 - 20 m3/hour            60 - 180.000 m3/year       > 200.000 m3/year
20 - 200 thous. km/year 20 - 60.000 m3/year        800 – 2.400 thous.km/y     public station
1 – 5 pas. Car          200 – 800 thous.km/y       20 – 60 pas. cars          buses
                        5 - 20 pas. cars
                                                                        14th European Forum on Eco-innovation
SWOT ANALYSIS

                               Strengths                                                     Weaknesses
• ecologic and economic benefits                                   • current EU goals vs. goverment policy and realization
• NGVs produced by strong OEMs                                     • car buyers are not informed about CNG - no real PR
• turbocharged engines optimal for CNG (not for LPG)               • weak range of car models
• filling technologies are available (small and big compressors)   • vehicles with "short" driving range
• nationwide gas network                                           • poor volume of public filling stations
• valid standards for vehicles and filling stations                • energy agents are not motivated for selling of CNG
• fuel resources are growing                                       • unilateral support of the E-mobility
                                                                   • still problematic underground parking
                             Opportunities                                                     Threats
• growing market                                                   • driver scepticism/conservatism
• bio-methane availability                                         • oil lobby (LPG incl.)
• natural gas and bio-methane are part of EU reduction targets     • equal tax treatment for CNG and LPG
• further vehicle launches are expected (Skoda, Audi)              • energy tax appreciation
• further expansion of public filling station                      • marginalization of well to wheel analysis
• home VRAs and small filling stations in companies
• close cooperation of vehicle manufacturer, gas company and
   supplier of filling technology
• win-win effect for environment and health of inhabitants,
  support for competitiveness, science and research and also
  savings for drivers

                                                                                                14th European Forum on Eco-innovation
SUMMARY AND GOALS

• CNG is worldwide, well proven, ecological friendly and ecomonic alternative for
  oil fuels. It is solution which can quickly contribute for the sustainable mobility.

• customers look for savings of fuel costs and they are getting to interest in
  environmental aspects of transportation => improve marketing of CNG

• insufficient refueling infrastructure and poor portfolio of NGVs constrain potential
  customers => extension of the number of vehicles; increase of running range.

• Extension of all sizes of filling infrastructure (home, company, public), increase of
  CNG production and vehicle filling efficiency is needed.

                                                                  14th European Forum on Eco-innovation
SUMMARY AND GOALS

• general support from public sector (not only for busses and in named regions)
  is crucial factor for extension of CNG and BIO-CNG in this phase (using NGVs,
  legislation, taxes, infrastructure, direct support, temporary compensation of higher
  purchase prices of NGVs etc.)

• reduction of legislation limitations; research support

• assessment of fuels according to “well-to-wheel“ potential

• closer cooperation of vehicle, filling technology manufacturers, gas companies
  and R&D subjects is needed

• verify biomethane effect on CNG technologies

                                                                14th European Forum on Eco-innovation
WWW.JIKOVCNG.CZ   WWW.NGVAEUROPE.EU   WWW.NGVA.CZ

Kral Vaclav
member of the board of Czech NGV Association
CNG sales manager of MOTOR JIKOV Strojirenska
mobile: 00420 606 964 440
email: vkral@mjs.cz

                                                    14th European Forum on Eco-innovation
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