Compressed Natural Gas (CNG) in Ireland

Denis Twomey

Commercial Manager, Bord Gáis Networks

17 November 2011

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Contents

● Bord Gáis Networks – Introduction

● Natural Gas Vehicle (NGV) – Introduction

● Benefits of Compressed Natural Gas (CNG)

● CNG in Ireland

● Bord Gáis Networks activities

● Summary

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Bord Gáis

● Established in 1976

● Energy & Networks

● Bord Gáis Networks develops, operates and maintains natural gas networks on the Island of Ireland

● Over 640,000 gas customers in Republic of Ireland

● Bord Gáis Networks connects all customers to the natural gas network regardless of supplier

● 1,000 staff: headquarters in Gasworks Road, Cork ● with offices in Dublin, Galway, Limerick and Waterford

● Regulated Market – Domestic market opened to competition in July 2007

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Natural Gas Pipeline Network in Ireland

Compressed Natural Gas (CNG)

● CNG is Natural Gas -

compressed and stored - for

use in vehicles (replacing

diesel / petrol)

● Require:

● Natural Gas Vehicles (NGVs)

● Refuelling equipment

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Natural Gas Vehicle (NGV)

● Provides a real alternative to petrol and diesel

● Main types of NGVs:

● ‘Dedicated’ - run on Natural Gas only

● ‘Bi-Fuel’ vehicles operate on Natural Gas while retaining the ability to use petrol as a reserve fuel

● ‘Dual-Fuel Technology’ – Diesel and Natural Gas

● Ideal for fleets

● Bus, trucks and vans

● Vehicle manufacturers have proven options available

● Purpose built - directly off the production line

● Natural Gas stored in concealed cylinders

● No payload restrictions

● Proven vehicles & technology

● Over 13million NGVs worldwide

‘Normal’ refuel process

High-pressure tanks: protected by a solid

steel frame meet the high safety standards

laid down in ECE R110 and retains full

payload space

Vehicles

Some of the manufacturers

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Benefits of CNG

● Lower fuel costs

● Enhance competitiveness

● Reduce vehicle emissions

● Local emissions

● Nitrogen Oxide (NOx)

● Particulate Matter (PM)

● Sulphur Oxide (SOx)

● Reduce Greenhouse Gas emissions

● Improve quality of air and health benefits

● Reduce noise (night time deliveries)

● Pathway to a renewable fuel source – Biomethane

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Reduced Fuel Costs by 30% to 60%

Source : NGV Europe, From IEA Working Paper 2010

● End user prices

● Trend demonstrates real fuel cost savings

Analysis confirms this saving is achievable in Ireland

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Reduce vehicle emissions

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Ireland’s NOx Emissions

● Ireland is required to limit annual emissions, including NOx,

under the National Emission Ceilings Directive by 2010

● EPA (Jan, 2011) reported Ireland’s NOx is 37% above the 2010

ceiling, with transport continuing to pose a significant challenge

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● Nitrogen Oxide (NOx) ● Human health concerns

include effects on breathing and the respiratory system, damage to lung tissue, and premature deaths

● Environmental concerns include acid rain and smog

Emissions: Diesel v CNG buses

% Change compared to current bus fleet

Pollutant CNG Bio-CNG

CO2 -11 -64

N2O -100 -100

SO2 -100 -100

NOx -83 -83

NO2 -100 -100

PM2.5 -87 -87

PM10 -77 -77

Data sourced from Transport Research; Trinity College Dublin; 2010

● CNG is future proof: ● CNG already meet

Euro 6 limits

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CNG provides pathway to Biomethane – Renewable Transport

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● National target: Renewable Transport (RES-T) -> 10% by 2020

● Biomethane can form part of the solution for RES-T

● Sweden: 65% of gas used in transport comes from biomethane

● Germany: Focus on biomethane and investing in the CNG infrastructure

● 2009 12% of 850 CNG refuelling stations had 10% biomethane at the dispenser

● Aim for 20% biomethane at all dispensers by 2020

CNG can facilitate the development of biomethane industry in Ireland

CNG Opportunities in Ireland

2,467,660 vehicles in ROI in

2009

‘Captive/Commercial’ Market

10,500 buses & 343,000 Goods

vehicles

Initial Market

10% Buses

10% Trucks

5% Commercial Vans

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CNG Development in Ireland

● What:

● 5% of Commercial Vans (16,800 Vans)

● 10% of Buses (1,130 Buses )

● 10% of Trucks (2,720 trucks)

● How:

● Captive fleet with refuelling

● Refuelling infrastructure supported with Public/semi-private facilities

All industry stakeholders work together

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Refuelling options

Private refuelling Public refuelling

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● On-site

● Refuelling equipment sized and designed for specific fleet’s requirements

● E.g. on forecourts / commercial refuelling

● Many fleets could have access

Private supported by Public

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Support access to

CNG refuelling

CNG

CNG

CNG

CNG

CNG

CNG

CNG

● Require CNG refuelling

facilities nationwide

● Strategic locations

● Vast majority of

infrastructure is already

in place – the pipelines

● Support needed to

develop such a refuelling

infrastructure

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Austria – CNG Refuelling Network

Over 220 refuelling stations

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CNG refuelling;

And add BioCNG

● Require CNG

refuelling facilities

nationwide

● Add biomethane

injection facilities

● Sustainable and

renewable fuel CNG

CNG

CNG

CNG

CNG

CNG

CNG

Bio-

CNG

Bio-

CNG

Bio-

CNG

Bord Gáis Networks (2010)

● NGV trial within our own fleet

● Installed a refuelling point and

Purchased NGV

● Details

● Part of the fleet (over 1 year)

● Approx. 8,500km

● Approx. 50% reduction in fuel

costs (compared to diesel)

● Reduction in emissions

● “No difference in performance…

Like driving any other van”

NGV VS. DIESEL

0

10

20

30

40

50

60

70

80

90

100

Nitrogen

oxides

Carbon

monoxide

Carbon

dioxide

Hydro-

carbons

Sulphur

dioxide

Soot

particular/

particulate

matter

-70% -50% -12% -80% -80% -99%

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Bord Gáis Networks – Refuelling (2011)

● Developing a fast-fill refuelling facility

● Second refuelling point

● 5 NGVs for Cork fleet

● Benefit from fuel savings

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CNG market stakeholders

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Fleet Operator

Government

Regulation

CNG Refuelling

facility

Natural Gas industry

Natural Gas Vehicles

Key practical steps

● Work together

● Industry-wide partnership approach

● Develop refuelling infrastructure

● Energy and Transport policy

● Connections policy

● Create awareness

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Are you interested in

participating in

developing NGV market

in Ireland?

Drop your business

card in one of the boxes

Email: cng@bge.ie

Summary

● Real opportunity to transform transport in Ireland

● Reduce costs and increase competitiveness

● Lower fuel costs

● Provide sustainable transport (using biomethane)

● Health and environmental benefits

● Need to work together to develop market

● Proven technology – 13 million NGVs worldwide

● Over 11% growth per annum in Europe