A growing number of companies are interested in using natural gas vehicles but several obstacles need to be overcome before they can be widely adopted in Europe, a report published by FC Business Intelligence said Thursday.
The rising cost of gasoline, diesel and the environmental benefits of using LNG and CNG-powered vehicles has prompted more companies to explore the possibility of using gas as an alternative fuel for its vehicles.
A lack of vehicle model choices — which has led to high prices hampering development — and a lack of a fueling infrastructure in Europe has limited growth in the market and remains a challenge for companies interested in using natural gas vehicles.
"The success of NGVs depends on the availability of vehicles, the cost of the fuel, the infrastructure that goes with it, support from the energy industry (to help put in the infrastructure), and government support," said Jeff Seisler, chief executive of Clean Fuels Consulting, a Brussels-based consulting group in the report.
Seisler said there are only around four or five European suppliers of NGV trucks and buses making about six different models. In addition, the lack of infrastructure has led many fleet operators to do their own fueling forcing drivers to return to the same fueling facility every night, therefore limiting the daily routes, particularly for heavy duty truck drivers.
To establish a network of fueling stations, there needs to be a more integrated and coordinated approach in Europe, Seisler added.
Currently, a fueling infrastructure is being developed on a country-by- country basis. In Germany, there are about 900 CNG stations and in Italy 850. In France approximately 2,400 or 13.5% of its buses run on CNG and in Spain around 675 CNG waste trucks operate in Madrid and other areas.
Government support also remains crucial in helping the natural gas vehicle market grow.
"There are very few countries where NGVs are successful without strong government involvement, including financial and non-financial incentives, mandates, funding for research, and developing standards and regulations," Seisler said.
Lack of legislation and developing standards for NGV equipment has also limited growth in the market as it has made it difficult to certify engines and NGVs.
LNG MOST VIABLE ALTERNATIVE TO DIESEL
LNG is expected to grow in importance as an alternative fuel as the circulation of LNG increases as a result of new import terminals being constructed in Europe.
LNG has a greater energy density than CNG too. LNG has about 60% of the energy as from diesel fuel compared to about 30% of the energy from CNG.
"LNG is not just the most viable alternative but the only realistic alternative to diesel…..Mercedes-Benz Trucks calls LNG the Champagne of fuels," said Eugene Pronin, director of Gasification and Use of Gas Directorate at Gazprom Export, and president of the Russian NGV Association.
The report was commissioned by FC Business Intelligence in conjunction with the Natural Gas Vehicle Summit to be held in Brussels in October.
