FINAL REPORT - Viridis Technologies Inc.

F I N A L R E P O R T Study Group 5.3

Utilization of natural gas in transport sector in the name of the group:

Davor Matic [email protected]

Committee Session 5.3: Methane – A Global Eco‐Efficient Mobility Solution

N.I.G.C.

Worldwide Network and Organization of the Study Group

Total NGV car parc 10 9

7,55

8 Million NGVs

9,44 Rus s i an Federa tion & C.I.S. Latin America a nd the Ca ribbea n

7

4,64

5 4

North America

5,35

6

3,20

Middle Ea s t

3,83

Europe As i a ‐Pa cific

3

Africa

2

Tota l:

1 0 2003

2004

2005

2006

2007

2008

Market Development and Present Market Situation

Regional NGV market shares in total NGV market 60%

56%

57%

57% 52% 46%

50%

(%)

40% 30% 20%

Afri ca

40%

Latin America and the Caribbean

Europe

37%

Asia‐Pacific region 28% 22%

23%

24%

2003

2004

2005

As i a ‐Pa ci fi c

32%

Mi ddl e Ea s t North Ameri ca La ti n Ameri ca a nd the Ca ri bbea n Rus s i a n Federa ti on & C.I.S.

10% 0% 2006

2007

2008


Share of NGVs in total vehicle parc (regional and total) 14% 12%

Rus s ia n Federa ti on & C.I.S. Lati n Ameri ca a nd the Ca ribbea n

(%)

10%

North Ameri ca Middle Eas t

8%

Europe Asi a ‐Pa cifi c

6%

Afri ca 4%

Tota l :

2%

0,38%

0,44%

0,79%

0,58%

0,51%

0,97%

0%

2003

2004

2005

2006

2007

2008


Estimated natural gas consumption by NGVs 16,80

18 16 14

bcm

La tin America and the Caribbea n

9,99

10 8

Rus s ian Federation & C.I.S.

11,69

12

North America

8,27

Mi ddle Eas t

6,91

Europe

6

As ia‐Pacifi c

4

Africa fi Total :

2 0 2003

2004

2005

2006

2007


Share of NGVs in total natural gas consumption (%) 8% 7%

Rus s ia n Federation & C.I.S.

6%

La tin Ameri ca and the Ca ribbea n

(%)

North America

5%

Middle Ea s t Europe

4%

Asi a ‐Pacific

3%

Afri ca Tota l:

2% 1%

0,31%

0,27%

0,57%

0,41%

0,36%

0% 2003

2004

2005

2006

2007


1st g. cylinders in luggage space 1997 – 2000: Volvo S70/V70 > cylinders in luggage space In 1998: Fiat Multipla > under floor cylinders

2001

2nd generation: Volvo S80 / V70 / S60 > under floor cylinders

2002

VW Golf & Opel Astra > under floor cylinders

2003

2nd g. 2004

European development

Italian and French models: Fiat Punto and Doblò Citroën Berlingo, Peugeot g , g Partner, Renault Kangoo, Citroën CX3 > cylinders in luggage space Opel Zafira and Combo > under floor cylinders Mercedes Benz E 200 NGT with compressor engine > cylinders in luggage space

2006

VW Caddy and Touran > under floor cylinders

2007

Fiat Panda > under floor cylinders

Mercedes Benz E 170 NGT > under floor cylinders 2008

Opel Zafira, 1.6 litre turbo engine, 150 hp

. . . 2012

3rd generation, Passat TSI, 1.4 litre, twin compressor plus turbocharger , > 450 km range, 150 bhp, 0 – 60 in 9.5 sec, ~120 g/km CO2

3rd g.

4th g.

4th generation – adding of stop‐start technology & regenerative braking, lower CO2/km to same vehicle available in different configurations: vans, trucks, or small b buses (Iveco Daily, Mercedes Sprinter…) (I D il M d S i ) LDV / MDV class (): Fiat Ducato, Volkswagen Transporter and Ford Transit (QVM), in France: Citroën Boxer, Peugeot Jumper models, Renault Master LPG market mainly retrofitting of light duty gasoline powered vehicles Summary of Technology Development and an Overview of NGV Industry Today

Asia‐Pacific Still Still dominated by a wide range of different quality retrofit systems dominated by a wide range of different quality retrofit systems OEM availability in India, Korea, China (coupled with innovative technologies from Western countries): ‐

Should provide the required range of vehicles for long term NGV demand

‐

Currently tend to be Euro 3 (some Euro 4) quality ‐ depending on national emissions standards

China ‐ the single most actively growing OEM market worldwide ‐

18 engine manufacturers offered 98 types of NGV engine models (64 kW to 250 kW) in 2007

‐

Cummins and Iveco engines present

‐

International equipment and European NGV conversion systems suppliers present

‐

L‐NGVs fleet use expanding

NG HD trucks development in Japan (25 ton class) Replacement with natural gas of two‐stroke and three‐wheel vehicles Summary of Technology Development and an Overview of NGV Industry Today

United States OEM light duty sedans (American Honda Civic GX) Small Vehicle Manufacturers (SVM) sedans, commercial work trucks and vans HDV and MDV segments received the most marketing focus from the NGV industry ‐

High‐pressure, direct injection LNG engines (Westport Innovations) with same characteristics as base diesel engines (Cummins)

‐

HD engines (Cummins Westport) already meeting U S EPA 2010 emission standards HD engines (Cummins Westport) already meeting U.S. EPA 2010 emission standards

‐

Dedicated spark‐ignited replacement (Emissions Solutions) engines for the popular diesel HD engines models

‐

Aftermarket conversion system manufacturers for medium gasoline‐powered trucks and shuttle bus chasses

Summary of Technology Development and an Overview of NGV Industry Today

Russia Mostly HDVs and MDVs conversions Customers looking for OEMs Restarted development and production in OEM HDV segment: ‐

Trucks and special purpose vehicles (KAMAZ)

‐

Buses (NEFAZ – Kamaz engine), LIAZ and PAZ (Cummins engine)

Off‐road applications in use or tested: airplane, watercrafts, construction pp p , , equipment, agricultural tractors, rail road locomotives…


Latin America Quick growth rates on retrofit market (up to 20‐25% annually) in Argentina then Brazil throughout the mid‐to‐late 1990s and into 2000s Although the retrofit market has been strongest, the quick growth rate has brought more OEM (LDVs), in particular into the Brazilian market The active NGV markets in Argentina and Brazil have had concurrent p positive effects on other countries; Peru, Venezuela, Colombia, Bolivia, and ; , , , , to a lesser degree in Chile


Vehicles Technology Improvements gy p New OEM NGVs will likely use downsized, supercharged engines and possibly also micro or soft hybrid solutions: ‐

Before 2012 the car manufacturers will start introducing downsized turbo Otto engines for their standard mainstream product lines

‐

These engines would be well suited also for natural gas applications

Dual fuel turbo vehicles operation on natural gas with pilot diesel injection, possibly also with micro or soft hybrid solutions might enter the market The impact of biomethane can bring the emissions down further when considering well‐to‐wheel emissions

Potential and Promising New Technologies and Assessment of the New Technologies Opportunities

Filling Stations Technology Improvements To cut costs and to guarantee safety and reliability To cut costs and to guarantee safety and reliability Ionic compressor (iKompressor)(*) replaces metal piston with liquid ‐

Reducing number of moving parts and frictional losses

‐

Increased energy efficiency and lower wear and tear

Gas compression at constant temperature (water cooled jacket around compression cylinders)

RFID – Radio Frequency Identification (**) a way to ensure only certified vehicles are filled vehicles are filled ‐

RFID antenna located in the fuelling nozzle reads vehicle tag > RFID control system at the dispenser validates data from the vehicle > allows fueling if everything is ok

‐

Programmed data determined by the regulatory body issuing the tag > typically: vehicle ID, license number, owner, conversion company ID, date of conversion, inspection, expiry date etc. (*) – JV Flowserve & Linde Group (**) ‐ Virdis

Potential and Promising New Technologies and Assessment of the New Technologies Opportunities

Average conversion costs ‐ LDVs 14000 12000

Asia‐Pacific Asia Pacific

Middle East

Europe

Latin America

Russia

10000 8000 6000

Global ‐ average

4000 2000

Russia ‐ minivan 4x50 l

Brazil ‐ 5th generation kit

Russia ‐ personal car 2xx50 l

Argentina ‐ aveerage

Brazil ‐ 3rd generation kit

Iran ‐ min

Iran ‐ max

Switzerland ‐ min

Switzerland ‐‐ max

Poland ‐ max

Spain ‐ aveerage

Polan ‐ min

Netherlands ‐ average

Czech Republic ‐ average

Croatia ‐ min

Croatia ‐ max

Bulgaria ‐ max

Bulgaria ‐ min

Austria ‐ min

Austria ‐ max

Malaysia ‐ min

Malaysia ‐‐ max

Japan ‐ vans ‐ aveerage

U.S $

Japan ‐ cars ‐ aveerage

0

NOTE: Highly dependant on type of equipment; cylinder volume, type and number; new or recycled components; approvals and certification etc.

IGU NGV Technical & Commercial Data Base

Average conversion costs ‐ HDVs 70000 60000

A i P ifi Asia‐Pacific

Middle East

E Europe

50000

Latin America

R i Russia

40000 30000

Global ‐ average

20000 10000

Rus sia ‐ bus

Russia ‐ truck

Argentina ‐ max

Argentiina ‐ min

Iran ‐ average

Swed den ‐ max

den ‐ min Swed

Poland ‐ max

Polaand ‐ min

Netherlands ‐ aaverage

Bulgaria ‐ dual fueel ‐ max

Bulgaria ‐ dual fueel ‐ min

Malaysia ‐ dual fuel

ono‐fuel Malaysia ‐ mo

Japan ‐ medium sizze bus ‐ average

U.S $

Japan ‐ micro bus ‐ aaverage

0

NOTE: Highly dependant on type of equipment; conversion type (dedicated / dual fuel); cylinder volume, type and number; new or recycled components; approvals and certification etc.


Supportive measures Europe Austria Bulgaria

vehicles

methane as fuel methane as fuel

filling stations filling stations

◙◙ ◙

◙ ◙ ◙ ◙

◙

*

*

◙ ◙ ◙ ◙ ◙

◙ ◙

Croatia Czech Republic Italy France

◙◙ ◙◙ ◙◙

Netherlands Poland Portugal Spain Sweden Switzerland United Kingdom

◙ ◙ ◙ ◙ ◙◙

◙ ◙

Asia Pacific Asia ‐ Pacific

China Japan Malaysia Middle East Iran

Latin America Argentina

vehicles

methane as fuel methane as fuel

filling stations filling stations

◙ ◙◙ ◙

◙ ◙ ◙

◙◙ ◙◙ ◙

vehicles

methane as fuel

filling stations

◙

◙

◙

vehicles

methane as fuel

filling stations

◙ ** ◙

Brazil

◙ ◙

Russia Russia

◙

◙ ◙

vehicles

methane as fuel

filling stations

subsidies / grants / loans tax reductions / exemptions

*

although not reported through questionnaire should be available

**

in Buenos Aires


Standards, regulations and codes for vehicles and filling stations Europe Austria Bulgaria Croatia Czech Republic France Netherlands Poland Portugal Spain Sweden Switzerland United Kingdom

Russia Russia

garages incl. vehicle incl. vehicle incl conversion / conversion / filling stations filling stations underground inspection maintenance shops incl. inspection parking

◙ ◙ ◙ ◙ ◙ ◙ ◙ ◙ ◙ ◙ ◙ ◙

◙ ◙ ◙ ◙ ◙ ◙

◙

◙ ◙ ◙ (◙) ◙ ◙

(◙) ◙ ◙

n.a.

◙ ◙

garages incl. vehicle incl. conversion / filling stations underground inspection maintenance shops incl. inspection parking

◙

◙

China Japan Malaysia

◙ ◙ ◙ (◙) ◙

◙

◙

◙ ◙

Asia ‐ Pacific

◙

◙

Middle East Iran

Latin America Argentina Brazil

United States United States

garages incl. vehicle incl. vehicle incl conversion / conversion / filling stations filling stations underground inspection maintenance shops incl. inspection parking

◙ ◙ ◙

◙ ◙ ◙

◙ ◙


◙

◙

◙

◙

garages incl. filling stations vehicle incl. conversion / underground incl. inspection inspection maintenance shops parking

◙ ◙

◙ ◙

◙ ◙


◙

◙

◙


Collecting real life experiences from fleets operators using NGVs One‐on‐one interviews (audits) with fleet operators Sharing experiences from real life day‐to‐day operations Maintenance and life‐cycle costs, repair intervals, fuelling time and flexibility, safety, additional technical and infrastructure requirements, feedback from drivers, users, mechanics and overall business efficiency compared to liquid fuels Advices to future users (what to do, what to avoid, how to improve) Ad i f ( h d h id h i )

Real Life Experiences – Lessons Learnt

◙

Collecting real life experiences from fleets operators using NGVs Natural gas buses, garbage trucks and taxi fleets Natural gas buses garbage trucks and taxi fleets

Paris

Dual fuel trucks powered on LNG/CNG

Moscow

Kuala Lumpur

Lille

Hamilton (Canada)

UKLisbon

Lille

Madrid


Collected experiences – Lessons Learnt and Recommendations There are operational differences with NGVs (i.e. buses) compared to diesels > which can be effectively managed Careful preparation of the system logistics and organization is needed: ‐

compression capacity, CNG buffer stock, maintenance, manpower, CNG vehicles specifics (autonomy, maintenance procedures based on diesel)

Training and experience of mechanics is diesel oriented (NGVs = challenge ‐ perceived over‐sophistication ): perceived over sophistication ): ‐

Training to be integrated with other staff training needs

‐

Diesels also becoming more sophisticated (to meet the new emissions standards)


Collected experiences – Lessons Learnt and Recommendations CNG station owned by gas company and not the transport enterprise: CNG station owned by gas company and not the transport enterprise: ‐

PRO: Facilitate decision on NGVs (no investments for transport enterprise)

‐

CON: Filling station capacity (and other) improvements more complicated (contractual issues)

NGV related costs could be stabilised by optimising the reliability and costs of the NGV specific spare parts ‐

Advice to carry a higher ratio of spare parts to ensure that maintenance tasks are not constrained by parts supply

Problems with first generation of CNG buses (complexity, reliability, thermal efficiency, lack of manufacturer's support) > significantly overcame in new generations models Higher costs for NGVs are balanced by lower fuel costs compared to diesel fuel (in general, resulting in lower life cycle costs) Real Life Experiences – Lessons Learnt

R i Regional NGV distribution ‐ 2020 l NGV di t ib ti 2020

Regional NGV distribution ‐ 2005 i l G di ib i 200 Rus s ia n Federa ti on & C.I.S. 3.6%

La ti n Ameri ca a nd the Ca ri bbea n 56.7%

Africa 1.3% As i a ‐Pa ci fi c 24.2%

Europe 9.4% Mi ddl e Ea E st 1.4% North America 3.3%

Rus s ia n Federa ti on & C.I.S. 7.3%

Africa 0.4%

La ti n Ameri ca a nd the Ca ri bbea n 27.9% North Ameri ca 1.4% Mi ddl e Ea s t 15.7%

Regional NGV market development scenarios

As i a ‐Pa ci fi c 43.1%

Europe 4.1%

Conclusions There has been a dramatic increase in the numbers of OEM NGV models in the worldwide vehicle market New developments such as high pressure direct injection and turbo charging should increase efficiency, vehicle range, and reduce emissions New generation of vehicles are likely to move into the other regions in parallel with the development of more stringent national and local standards Generally Generally the life cycle costs of NGVs are comparable or even better to the life cycle costs of NGVs are comparable or even better to traditionally fuelled vehicles Comparative reports of NGV maintenance experiences shows a positive influence of a ‘learning curve’ related to improved ‘best practices’ and the development of second generation technologies Conclusions & Recommendations

Recommendations Appropriate and competitive fuel pricing system relative to petrol and diesel (based on: energy equivalencies, fuel margins desired, favourable taxation that supports cleaner fuels) Fuel quality/composition and the sale units of CNG (LNG) at the fuel pump ‐ important considerations into the future Efforts to continue harmonization of worldwide standards and regulations is needed Natural Natural gas industry should further evaluate the opportunities for biomethane gas industry should further evaluate the opportunities for biomethane as part of their overall fuel supply portfolio (consistent with many government policies) Emerging technologies and natural gas‐based fuels are showing strong future potential and should be encouraged for further study and development (incl. Government sponsored R&D) Conclusions & Recommendations

ACKNOWLEDGEMENTS

This report would not be possible without kind assistance and support of (in alphabetical order):

Dinara Baisheva – Gazprom ‐ Russia

Nuno Nascimento ‐ Galp Energia ‐ Portugal

John Baldwin – CNG Services Ltd. ‐ UK

Pavel Novak – Czech Gas Association – Czech Republic

Peter Boisen – NGVA Europe ‐ p Sweden

B. Ochani ‐ NIGC ‐ National Iranian Gas Company – p y Iran

Olivier Bordelanne ‐ GDF SUEZ – France

Kevin Park – NGVI ‐ Korea

Jovica Budimir – Srbijagas ‐ Serbia

Hasin Parvez ‐ Green Fuel CNG conversion center ‐ Bangladesh

Erik Buthker – Dutch4 ‐ Netherlands

Jonathan Parcer ‐ PT. Wendell ‐ Indonesia

Osvaldo Casagrande – Inflex ‐ Argentina

Ian Patterson ‐ Virdis

Ollie Clark

Juan Plana – Sedigas / Gas Natural – Spain

Gerco Van Dijk – Gasunie ‐ Netherlands

Eugene Pronin – Gazprom – Russia (Study Group Vice‐Chairman)

Mats Ekelund – Taxi Stockholm ‐ Sweden

Gracjan Ramut – PGNiG ‐ Poland

R. Fernandes – Praxair / ALGNV – Brazil

Thierry Renaudie ‐ GDF SUEZ – France

Jorge F. G. de Figueiredo – APVGN ‐ Associação Portuguesa do Veículo a Gás Natural – Portugal

Mike Sato ‐ Tokyo Gas – Japan

Guan Saw ‐ Cummins Westport ‐ China

Trevor Fletcher – Hardstaff (and NGVA Europe) – United Kingdom

Martin Seifert – SVGW ‐ Switzerland

Punnachai Footrakul – PTT ‐ Thailand

Peter Seidinger – OMV Gas & Power – Austria

Juan Carlos Fracchia – Inflex / IANGV /

Jeffrey Seisler – Clean Fuels Consulting – Jeffrey Seisler – Clean Fuels Consulting – United States United States

Björn H. Halldórsson ‐ Metan Ltd – Iceland

Vasiliy Shashukov – Gazprom ‐ Russia Ton Smit – Aardgasmobiel ‐ Netherlands

Garth Harris – IANGV (retired) – New Zealand

Katie Kim – NGVI – Korea

Rich Kolodziej – NGV America / IANGV

Lee Giok Seng – Petronas / ANGVA ‐ Malaysia

Manuel Lage – NGVA Europe / Iveco – Spain

S.H. Taheri – IFCO ‐ Iran

Alexander Stroganov ‐ Gazprom – Russia

Irina Malenkina – Vniigaz ‐ Russia

Henk Verbeek – Rolande LNG ‐ Netherlands

Flavio Mariani – ENI Gas & Power – Italy

Svetlana Videnova – Avtometan – Bulgaria

Alicia Milner – Canadian NGV Alliance ‐ Canada

Mkrtychan Yakov – Vniigaz ‐ Russia

Davor Matic – OMV Gas Adria – Croatia (Study Group Chairman)

Koen Wiersma – Gasunie ‐ Netherlands

Robert Mellema – Gasunie – Netherlands

M. Haikal Zubir – Petronas – Malaysia

T H A N K Y O U ! ! !