Working together to introduce LNG as clean transport fuel

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Frederick Rodgers
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1 Working together to introduce LNG as clean transport fuel Patrick Cnubben Board member National LNG Platform Hamburg, 20 January 2016 [date]

2 Index 1. Why introducing LNG? 2. The Dutch National LNG Platform 3. Dutch vision on the future sustainable fuel mix 4. Some recent developments 5. Dutch Lithuanian cooperation 2

3 LNG as transport fuel: the Dutch perspective Europe s largest harbor: Rotterdam Located at mouths of three major European rivers (Rhine, Maas or Meuse, and Schelde). 50% of Europe s inland shipping fleet is Dutch. Most of inland shipping in Europe passes through Rotterdam and Dutch river system. Transport produces about 5% of GDP 3

4 Why LNG as a transport fuel? A new, cleaner and quieter fuel for road transport and marine navigation: Reduction of CO 2, nitrogen, sulfur and particulate matter. LNG fueled engines have a lower noise production compared to diesel engines. It opens the path for further greening of the chain by introducing bio-lng (LBG). Lower dependency on oil; worldwide gas reserves are ample available and well spread. 4

5 Index 1. Why introducing LNG? 2. The Dutch National LNG Platform 3. Dutch vision on the future sustainable fuel mix 4. Some recent developments 5. Dutch Lithuanian cooperation 5

6 Green Deal Policy in the Netherlands Green Deals aim to stimulate a sustainable growth of the economy. By taking away bottlenecks (regulation, laws, permits), activating cooperation or helping to source funds, in order to support the realization of the plans. Companies take initiatives that meet the targets set by the government in the field of climate and environment. Topics are: energy, water, climate, transport, mobility, food. LNG combines several items in the Green Deal Rhine and Wadden. Parties involved: government, NGO s, companies, knowledge institutions All working together in the Dutch National LNG Platform 6

7 The Dutch National LNG Platform New territory, new markets, different players: Platform connects business firms and government agencies that are working on LNG. We work on the introduction of LNG as a new, cleaner and quieter fuel for road transport and marine navigation. Collaboration between the North Netherlands (Energy Valley), Rotterdam (Deltalinqs and Rotterdam Climate Initiative), companies and TNO (Netherlands Organization for Applied Scientific Research). Focus: remove barriers, encourage innovations. Economic crisis! reduced level of investments (end-user, trucks, ships). Founded in July of 2012, term until the end of Positive expectations, but a longer time horizon would be appropriate. 7

8 Implementation by five task forces: Task force 1: Regulatory framework and safety: Aims to remove restrictions in LNG distribution per lorry and grant licences. Task force 2: Road transport: Aims to eliminate barriers regarding the economic viability and unprofitable run, market development, environmental impact and LNG infrastructure. Task force 3: Shipping Aims to remove barriers regarding climate profit, economic feasibility, infrastructure and regulations. Task force 4: Strategic environmental management: Dialogue with NGOs and joint fact-finding on issues. Task force 5: Bio-LNG: Aims to achieve an increase of Bio-LNG and improvement of the environmental and climate-related advantages. Task force 6: International: Co-ordination with neighbour countries, harmonisation of standards EU 8

9 1. Lobby: LNG on the political agenda. 2. Dialogue with nature conservation and environmental protection organizations. 3. Bio-LNG added as prime focus. 4. Safety issues receive much attention (National LNG Safety Programme). 5. Subsidy projects: among others TEN-T projects. 6. Research and assessments: environmental aspects and economic impact. 7. Knowledge exchange and availability 8. Stimulate tank infra capacity. Results achieved thus far 9

10 Objectives: State of affairs in The Netherlands (november 2015): 6 short sea vessels (10 planned) 5 river vessels (19 planned) 280 trucks (target is 5% growth of the replacement fleet) 13 fuel stations (14 planned) 10

11 Index 1. Why introducing LNG? 2. The Dutch National LNG Platform 3. Dutch vision on the future sustainable fuel mix 4. Some recent developments 5. Dutch Lithuanian cooperation 11

12 Dutch Sustainable Fuel Vision for Transport The SER (Social and Economic Council of the Netherlands) Energy Agreement lists agreements on the long-term targets for the mobility and transport sector. Including a maximum emission of 25 megatons of CO 2 for this sector in Over 100 parties from the corporate sector, civil society organizations, the public sector, research and educational institutes joined forces. Result: Dutch Sustainable Fuel Vision on Transport (an elaboration of the SER Energy Agreement). Objective 2050: 60% reduction of CO 2 emissions Objective 2030: 32% reduction of CO 2 emissions 12

13 Shipping (short sea & inland waterway) (Bio-)LNG is the most promising option, next to sustainable biofuels and efficiency measures, such as diesel replacement in ships. Darker arrow colours indicate a corresponding increase in the level of contribution to the transition. 13

14 Targets Shipping Doelen Infra SSS Binnenvaart bunkerpunten zeeen binnenvaart 50 schepen 40 schepen ?? 100 schepen 300 schepen 14

15 Trucks (long-distance and heavy road transport) (Bio-)LNG is considered the most promising option (partly as a result of the fact that prices are expected to fall around the world), together with sustainable biofuels and electric city and lighter transport. Darker arrow colours indicate a corresponding increase in the level of contribution to the transition. 15

16 Targets Business case Action plan fuel mix Truck of the future Green Deal Zero Emission in the City New market: Container transport 16

17 Conclusions Dutch Sustainable Fuel Vision for Transport The Sustainable Fuel Vision describes an ambitious yet realistic path towards a sustainable fuel mix in the mobility sector. This vision specifically mentions LNG as an important element, both for marine navigation and heavy road transport. LNG is indispensable for the reduction of CO 2 emissions, the transition to a sustainable economy (green growth) and the security of energy supply. The report describes LNG and Bio-LNG as an important element in the transition towards a sustainable fuel mix for several modalities. There is a shift from Tank To Wheel to Well To Wheel. Next step is to translate the vision into a set of public and private measures and action plans. 17

18 Index 1. Why introducing LNG? 2. The Dutch National LNG Platform 3. Dutch vision on the future sustainable fuel mix 4. Some recent developments 5. Dutch Lithuanian cooperation 18

19 Recent Developments 19

20 Rotterdam as starting point of the LNG chain LNG IMPORT TERMINAL LNG RE-EXPORT LNG BUNKERING LNG TRUCKING INLAND SHIPPING 20

21 LNG Storage Eemshaven 21

22 Safety deal closed with Minister

23 Shipping 23

24 Index 1. Why introducing LNG? 2. The Dutch National LNG Platform 3. Dutch vision on the future sustainable fuel mix 4. Some recent developments 5. Cooperation issues 24

25 Master plan LNG and the Wadden Sea Wadden Sea World Heritage site Three priorities Infra, Users, Human Capital & Innovation Cross Border opportunities 25

26 Cooperation with other countries Our King visited the city of Hamburg in Germany to close the deal LNG Cooperation topics: Safety Infrastructure

27 Infra structure fuel stations 27

28 Connect

29 Contact information National Dutch LNG Platform Deltalinqs / / info@nationaallngplatform.nl Twitter: twitter.com/natlngplatform

TaskForce LNG Noord-Nederland. The Northern interregional approach Rotterdam, 7-8 november 2013 Patrick A.J.P. Cnubben Energy Valley Foundation

TaskForce LNG Noord-Nederland. The Northern interregional approach Rotterdam, 7-8 november 2013 Patrick A.J.P. Cnubben Energy Valley Foundation TaskForce LNG Noord-Nederland The Northern interregional approach Rotterdam, 7-8 november 2013 Patrick A.J.P. Cnubben Energy Valley Foundation Agenda Energy Valley Foundation a short introduction Liquefied