NGV / CNG Market Finland Jussi Vainikka, Gasum Oy Malmö, Sweden, /05/ /04/2012, IEE/08/545/SI ,

Transcription

1 NGV / CNG Market Finland Jussi Vainikka, Gasum Oy Malmö, Sweden, /05/ /04/2012, IEE/08/545/SI ,

2 AGENDA Finnish natural gas market and Gasum (short overview) Business environment (drivers/barriers) Traffic fuel market, price differencies, emissions Taxation, incentives Natural and biogas as a traffic fuel Present status / Future Biogas Lessons learnt

3 GASUM'S BACKGROUND Imports of natural gas to Finland began in The natural gas business was incorporated and Gasum Oy established in Sales of natural gas 2008: 45.0 TWh Sales of CNG 2009: 58 GWh GASUM'S OWNERS

4 The Finnish natural gas market differs structurally from the rest of Europe Consumption of natural gas in the EU Consumption of natural gas in Finland % 24 % 36 % 33 % Kiinteistöt Property Teollisuus Industry Sähkön Electricity tuotanto Muu Other generation The key market segment elsewhere in Europe is small-consumer use for purposes such as residential heating In Finland natural gas consumption is strongly focused on large-scale sites.

5 Finnish natural gas transmission network limited coverage ENLARGEMENT Length of high-pressure transmission pipeline around 1100 km 3 compressor stations, network's central control room in Kouvola 200 delivery points and 170 pressure reduction stations transmission capacity around 800,000 m 3 /h (~ 8,000 MW) Plus around 1800 km of low-pressure distribution network Gasum's distribution networks (500km) are located in Kotka, Porvoo, Riihimäki, Lohja, Siuntio, Kirkkonummi, Helsinki, Vantaa and Tuusula (not shown on the map) NATURAL GAS NETWORK UNDER PLANNING GASUM S FACILITY

6 AGENDA Finnish natural gas market and Gasum (short overview) Business environment (drivers/barriers) Traffic fuel market, price differencies, emissions Taxation, incentives Natural and biogas as a traffic fuel Present status / Future Biogas Lessons learnt

7 Traffic fuel - business environment Extensive refuelling network for liquid fuels ~1000 service stations ~1000 stand-alone stations ( automatic/unmanned ) ~800 HDV refuelling stations NesteOil oil refineries refining the future Strategy: Renewable diesel NExBTL ST1 Oy energy company Strategy: Sustainable BioEthanol ReFuel Valmet Automotive Inc. Service provider for automotive industry Strategy: Electric vehicles No special interests from energy, automotive or gas equipment supplier industries towards natural or biogas

8 Traffic fuel - business environment Vehicle taxation changed in Finland year 2004 public refuelling station network development in Finland Vehicle offers Gasoline/Diesel/Hybrid: Business as usual NGVs: VW Passat/Touran/Caddy, MB B170NGT/Sprinter/Econic, Opel Zafira/Combo, city busses ElectricVehicles:?? Finland has made a commitment to reach EU s renewable transport fuels target of 10% by 2020 Finland is also volunteering to raise the 2020 target to 15-20% role of biogas!?

9 CNG business environment Price comparison: Price comparison CNG, 95E, 98E, Diesel 155 c/l and c/ekviv.l CNG GASOLINE 95 GASOLINE 98 DIESEL

10 CNG business environment Emissions: 25% lower CO 2 -emissons vs. gasoline CO 2 -neutrality (biogas) Particulate matter emission (TPM) and nitrogen oxide (NO x ) reductions Essentially lower than emissions from other transport fuels Low noise level, low odour emissions VTT (Technical Research Centre of Finland) has a large emission measurement database good reference Real driving cycles and circumstances

11 Taxation, Incentives Vehicle tax level on new vehicles (as well as annual vehicle taxes 03/2011-) depends on the vehicle's output of carbon dioxide emissions Transport fuel taxation will change in 2011 THREAT/opportunity for CNG and biogas Up to now favourable taxation: low tax on CNG (2,1 cent/nm 3 + VAT 22%) Action needed (Gasum, GasHighWay, Natural gas association, biogas actors, references from other countries, ) Biogas Availability of biogas for transport use will depend on government policy instruments Feed-in tariff for electricity (and heat) production is a threat to traffic utilisation No special incentives for NGVs (besides fuel taxation) Incentive systems may change the market situation quite rapidly (green zones, congestion charges/road tolls, purchase, parking and other benefits)

12 AGENDA Finnish natural gas market and Gasum (short overview) Business environment (drivers/barriers) Traffic fuel market, price differencies, emissions Taxation, incentives Natural and biogas as a traffic fuel Present status / Future Biogas Lessons learnt

13 Natural and biogas as a traffic fuel Status Finland 01/2010 Gasum is developing its own filling station network and other energy companies have also began to construct stations Number of public filling stations: 14 (+2 stations currently under construction) Gasum: Malmi, Ruskeasuo and Roihupelto (Helsinki), Kouvola, Karhula, Tampere, Espoo, Lappeenranta, Riihimäki, Porvoo, Hyvinkää and Lahti ST1/Haminan Energia: Hamina, ST1/Mäntsälän Sähkö: Mäntsälä In Jyväskylä biogas filling facilities, pilot projects in other locations too Home and vehicle refuelling appliances also on the market

14 Natural and biogas as a traffic fuel Status Finland 01/2010 Vehicle availability improving all the time Supply of factory-made (OEM) models has increased Attractive performance and pricing VW Passat/Touran/Caddy MB B170NGT/Sprinter/Econic Opel Zafira/Combo HDVs: city busses Vehicle conversion option available Safety, warranty, maintenance, quality/reliability issues have to be secured 4 authorized workshops ~80 conversions during 2009 Current number of natural gas vehicles in Finland around 700

15 Natural and biogas as a traffic fuel MNm 3 90 Estimated potential of bio and natural gas in traffic utilisation % 1, Busses Lorries Delivery vans Private cars Share of traffic fuels 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0, Estimate: Gasum 8/09

16 Biogas Producing clean transport fuel from waste Biogas distribution can take place efficiently via the existing natural gas network. The natural gas infrastructure enables the efficient launch of biogas while also securing its supply. All in all biogas is a unique transport fuel: it is genuinely renewable, sourced outside the food chain and offers a domestic solution throughout the production chain. Transport Sorting at source Recovery of landfill and other waste gas, biogas plants Biomethane purification/upgrading plant Clean fuel for transport use Gasum purifies, upgrades and pressurises biogas, feeds it into network and takes care of its distribution for transport users. Compression and injection into the natural gas network Distribution via the natural gas network Goal: biogas injection into the grid and offer as a traffic fuel in 2011

17 Natural gas is a bridge into future energy solutions 17 LNG CO 2 -capture (CCS, Carbon Capture and Storage) Energy efficiency Minimisation of local emissions

18 AGENDA Finnish natural gas market and Gasum (short overview) Business environment (drivers/barriers) Traffic fuel market, price differencies, emissions Taxation, incentives Natural and biogas as a traffic fuel Present status / Future Biogas Lessons learnt

19 Lessons learnt Political support is crucial Lobbying requires (human) resources and co-operation Long-term decisions needed Marketing is vital, timing is everything Marketing requires (human and financial) resources Co-operation Vehicle and fuel suppliers, authorities, decision-makers, etc Technical issues Subzero ambient temperatures dew point, dimensioning values Compressor capacity ensure 100% degree of filling (customer demand) Reliability choice of technology and supplier, maintenance Exploit references and lessons learnt from other countries but remember market differencies!

20 Marketing activities - examples Web-sites, newsletters, brochures, print + radio advertising, events, etc.

21 Marketing activities - examples Web-sites, newsletters, brochures, print + radio advertising, events, etc.

22 THANK YOU! Jussi Vainikka Head of Business Unit, CNG Gasum Oy /