Niemcy - autogaz. Dual-fuel gasoline / LPG engine of Renault. Przyszłość auto-gazu - silniki z bezpośrednim wtryskiem paliwa

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1 Wind / LNG a New Tack for Ship Design Przyszłość auto-gazu - silniki z bezpośrednim wtryskiem paliwa Dual-fuel gasoline / LPG engine of Renault Kooperation zwischen BRC und Kia Italien PHOTO - Acura Press Center Niemcy - autogaz o różnych proporcjach składu chemicznego

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4 no: 68 I-II 2015 Forecast of LD natural gas vehicles 05 to account for 2.8% of global vehicle parc by Hong Kong Taxi Services to Adopt the LPG-fed Nissan NV200 Mobility Taxi Start-up Eco-Motive developing dual-fuel H engine; parallel, independently fueled piston banks Do we need variable 29 composition of LPG in Germany, depending on the season? CNG market info Wind + LNG a New Tack for Ship Design Renault previews new productionbound EV motor and dual-fuel gasoline/lpg engine Włoski długodystansowiec 8 razy dookoła świata Fiatem Croma na LPG Der italienische Dauerläufer: Achtmal um die Welt mit einem Fiat Croma und Autogas Gasmischung: Braucht Deutschland wirklich jahreszeitlich unterschiedliche Autogasmischverhältnisse? Przyszłość auto-gazu - silniki z bezpośrednim wtryskiem paliwa Сотрудничество между BRC и Kia Италия Автомобиль с газовой установкой в цене дизеля Projekt statku z napędem wiatrowo-gazowym (LNG) Italian long distance runner 15 8 times around the world in LPG-driven Fiat Croma Die Autogas-Zukunft liegt bei den Direkteinspritzern The Voice of Mr Juwan Kang of the Korea LPG Association Next Stage of China s Push for 10 Natural Gas Fueled Transportation 600 CNG stations, 200 LNG 16 refueling stations, 20 LNG filling stations for river vessels by 2018 REDAKCJA WE NEED A VISION ON TAXATION OF GAS AS A FUEL Gasnam 26 president Freire highlights challenges for gas vehicles in Spain Fiat 500L Living Gets 0.9-Liter Two-Cylinder CNG Engine Współpraca między BRC a Kia Włochy: samochód z instalacją gazową w cenie diesla Czy w Niemczech potrzebny jest autogaz o różnych proporcjach składu chemicznego, w zależności od pory roku? EDITORIAL OFFICE Fueling Your 39 Natural Gas Vehicle 39 CENY PALIW FUEL PRICES Ukazuje się od lipca 2003 Established in July 2003 WYDAWCA (EDITOR) Amber Media Sylwia Bujalska ul. Myśliwska 8/20, Gdynia, Poland info@amber-media.pl TAX ID: PL ISSN REDAKCJA (OFFICE) tel. (+48) info@timeforgas.com redakcja@czasnagaz.com.pl Skype: czas_na_gaz REDAKTOR NACZELNY (CHIEF EDITOR) Sylwia Bujalska tel. (+48) info@timeforgas.com info@czasnagaz.com.pl OPRACOWANIE GRAFICZNE / SKŁAD Paweł Wójcik graphic@timeforgas.com DYTRYBUCJA w 49 krajach! DISTRIBUTION in 49 countries! TŁUMACZENIA Biuro Tłumaczeń AMBIT Redakcja nie ponosi odpowiedzialności za treść publikowanych ogłoszeń i reklam oraz może odmówić ich zamieszczenia, jeśli pozostają w sprzeczności z prawem oraz charakterem pisma. W razie konieczności, redakcja zastrzega sobie prawo do dokonywania skrótów i niezbędnych zmian w nadsyłanych tekstach. Wydanie bieżące oraz archiwalne dostępne bezpłatnie pod adresem: Present issue and archives are available freely on: The Publisher assumes no responsibility for the content of advertising, sponsored texts or written materials with copyrights of its authors. Opinions, pictures, slogans and logos stated in advertising are solely those of the advertiser. The Publisher reserves the right to reject any advertisement. While every effort has been made to ensure that the publication adheres to industry standard practices, Czas na gaz! magazine, shall not be liable or responsible for errors, omissions or inaccuracies whatsoever for the views expressed or the work provided by its contributors in the magazine. Cover, contents and Website are copyright protected and may not be reproduced in any shape or form without prior written consent from Czas na gaz!. Czas na gaz! does not knowingly accept false or misleading advertising or editorial, nor does the publisher assume any responsibility for the consequences that occur should any such material appear. Czas na gaz! also assumes no responsibility for content, text or artwork of advertisements appearing in Czas na gaz! the printed magazine and &

5 Forecast of LD natural gas vehicles to account for 2.8% of global vehicle parc by 2024 Premium LPG/CNG protection IN A NEW REPORT, NAVIGANT RESEARCH FORECASTS THAT LIGHT-DUTY NATURAL GAS VEHICLE (LD NGV) SALES WILL GROW 119% BETWEEN 2014 AND 2024, CULMINATING IN 42.1 MILLION NGVS ON THE WORLD S ROADS AND ACCOUNTING FOR 2.8% OF ALL VEHICLES ON THE ROADS. Overall, Navigant expects the worldwide market for LD NGVs to grow at a compound annual growth rate (CAGR) of 5.6% between 2014 and 2024, with the number of passenger car sales growing at a slightly slower rate (5.3% CAGR) than light trucks (5.6% CAGR). Asia Pacific will remain the largest market, with more than 2.0 million LD NGVs sales in In North America, the high upfront cost, limited fueling infrastructure, reduced utility, and increased interest in electrification are likely to limit the demand for LD NGVs, the research firm posits. Navigant forecasts only 56,251 LD NGV sales in 2014 in North America. This region seems likely to remain focused on the fleet markets (such as municipal vehicles). MHD vehicles, particularly for local applications, including refuse trucks, delivery vehicles, and transit buses that operate out of centralized depots, will likely be the main market for NGVs. The markets for LD and medium- and heavy-duty (MHD) NGVs are driven by several key factors that differ widely based on location: the availability of refueling infrastructure; tightening tailpipe emissions requirements; and total cost of ownership, which includes acquisition cost and the low cost of natural gas (NG) compared to gasoline and diesel. The mix of NGV types varies broadly based on local market conditions. The report suggests that a number of factors could hinder near-term growth prospects in several regions: Political tensions in Eastern Europe could affect supply and prices of gas exports from Russia to Western Europe. Demand for new vehicle types in Western Europe continues to be sluggish as result of weak economic growth, and falling prices for crude oil globally also threaten to erode some of the price advantage of NG. In North America, where Ford is a major vendor of LD and MD NGVs, a potentially difficult product transition for many of its trucks could limit supplies over the next couple of years. Over the longer term, Navigant suggests, the need to continue emissions reduction and cut operating expenses will continue to spur NGV sales. Source: greencarcongress Cumulative light-duty NGV sales by segment. Millions Trucks Buses LDVs Source: Navigant jlmlubricants.com

6 RUSSIA The international Africa Eco Race 2015 rally, in which a natural gas-fueled sports truck on the KAMAZ-Master team took part, finished in Senegal. Following the results of 12 stages, the gas-fueled KAMAZ driven by Sergey Kupriyanov made it to the top 3 in the overall standing of the race. The KAMAZ-Master team confirmed their Champion s title again: Anton Shibalov s crew came first, Sergey Kupriyanov s crew finished second among the trucks. In the overall standing the team took the 2nd and 3rd places respectively. The gas-fueled KAMAZ is a special model of a sport truck powered by natural gas. The project is aimed at demonstrating the potential of natural gas as a vehicle fuel. SPAIN Madrid Regional Transport Consortium, the public body created to concentrate responsibility for regular passenger transport in the Madrid region, has purchased 3 Euro VI-rated CNG 12.8 metre buses to bring the number of CNG buses it directly operates on regional routes to 60, an increase of 50% over 3 years. Manufactured by Galician company Carrocera Castrosua S.A., the 3 buses are the 1st in Europe with high floors on MAN A 69 chassis using CNG-powered Euro VI engines. Investment in these vehicles, belonging to concession holder Ruiz, is EUR 756,750 (USD 930,000). Bus concessionaire EMT, Madrid s Municipal Bus Company, operates 791 buses run on CNG. Source: Consorcio Regional de Transportes de Madrid SPAIN Gas Natural Fenosa has opened a new natural gas service station for vehicles and lorries in Barcelona, making Catalonia the autonomous region with the most LNG stations in Spain. The company has invested close to EUR 1 million (USD 1.24 m) in the facilities, which are capable of supplying 32 lorries and 115 light vehicles per day. This new station brings the total number of public LNG stations in Catalonia to 5 (highest number in Spain). The public self-service station, with a CNG pump for light vehicles and a LNG pump for lorries, can be used 24 hours a day, 365 days a year. More than 400 vehicles have refuelled since it was opened in July. CZECH REP. ŠKODA AUTO plans to sell 1,800 CNG vehicles in This was stated by ŠKODA AUTO head for the Czech Republic Luboš Vlček. According to his words, the state should motivate firms to buy environment-friendly cars. GERMANY / BELGIUM Deutsche Post DHL further expands its fleet of about 11,500 vehicles with alternative drive systems and aerodynamic modifications. DHL introduces 2 so-called Teardrop trailers as well as one LNG-Truck for the first time in Belgium. The vehicles will be operated by DHL partner Ninatrans. The aerodynamic form of the teardrop-shaped trailers featuring a curved roof reduces air resistance, cutting fuel consumption by 5 to 10% compared to regular heavy-load trucks. The LNG-Truck in addition supports the green transport solution. The teardrop trailers, built by Don-Bur, and the LNG-truck, built by Iveco, will contribute to the continuous efforts of both DHL and Ninatrans to reduce CO 2 emissions. Green transport solutions are a vital part in modern logistics operations. We have been working with our partners and customers to create tailor made answers to their transport needs. The teardrop trailer and the LNG-truck perfectly represent this approach and will help to reduce the environmental impact of the operations, said Patrick Boone, Vice President Road Network Europe, DHL Express. GREECE Italian technology and engineering company CTIP Oil & Gas SRL has presented an investment plan for the development of a CNG network in Greece, aimed primarily at the truck and bus sector. The proposal will focus on Attica (surrounding Athens) and will unfold over 5 years at a cost of EUR 200 million. DEPA S.A., the Natural Gas Corporation of Greece, in cooperation with TÜV Saarland achieved the establishment of new legislation referring to the specifications, installation, operation, maintenance and licensing of CNG stations. In an attempt to open the way for natural gas mobility, is cooperating with Hellenic Petroleum develop new refueling stations in Larissa and Volos, in addition to the 5 stations that are already operating in Athens and Thessaloniki. Expanding the use of natural gas has emerged as a high priority issue on official body agendas in Greece. The publication of the Ministerial Decision for conversion of oil-based engines to bi-fuel operations (CNG and petrol/diesel) is expected this month, subject to the passing of the bill introduced in the House by the Ministry of Transport and Communications Networks. Source: NGVGlobal 06

7 International LPG & CNG & LNG magazine SWEDEN A Joint Industry Project (JIP) LNG-CONV will convert the main engine on the existing vessel Fure West to LNG operations. The industry project group will closely follow the different stages from technology implementation at the yard via bunkering to the operating start to add to the body of knowledge for this growing sector strategy. Project completion is planned for end The conversion-to-lng work on the 144 m (L.O.A.) tanker will be carried out at the Oresund Drydocks in Landskrona, Sweden. LNG CONV is one of 6 projects that is part of the Pilot LNG, co-financed by the EU, where they together are establishing the LNG infrastructure. This structure includes all components required to ship LNG from the gas supplier to the LNG terminal, from the terminal to the bunker vessel, and from the bunker vessel to the LNG fuelled vessels (more about Pilot LNG). Source: Furetank Rederi AB GERMANY In their Auto Test Winner in Green competition, the environmental institute Ökotrend and the trade magazine Auto Test have chosen the Opel Zafira Tourer 1.6 CNG ecoflex the most environmentally friendly vehicle in the van segment for the second year in a row. The compact 7-seater featuring an airy lounge atmosphere wins its class with the lowemission and ultra-economical 1.6 CNG ecoflex turbo engine under its hood. CNG gives particularly clean combustion in the innovative Opel 4-cylinder engine. With fuel consumption of just 4.7 kilograms (7.2 m 3 ) high-grade natural gas per 100 km over the combined cycle, the 110 kw/150 hp Opel Zafira Tourer 1.6 CNG ecoflex model emits only 129 g/km CO 2,which earns it the German A energy efficiency label. RUSSIA / SENEGAL The international Africa Eco Race 2015 rally, in which a natural gas-fueled sports truck on the KAMAZ-Master team took part, finished in Senegal. Following the results of 12 stages, the gas-fueled KAMAZ driven by Sergey Kupriyanov made it to the top three in the overall standing of the race. The awarding ceremony of the Africa Eco Race 2015 rally winners took place near the legendary Pink Lake in Dakar. It was the first time for a gas-fueled KAMAZ to participate in an international rally. The gas equipment installed in the truck operated efficiently and proved its reliability in African conditions. A mobile gas filling station (MGFS) of Gazprom Gazomotornoye Toplivo provided for refueling the sports vehicle with natural gas. The vehicle was refueled every day after being maintained by a mechanic. 200m3 of CNG was enough for the this truck to cover a distance of 600 to 700 km with its engine operating in a combined cycle (gas & diesel). The truck was customized in 2013 by the KAMAZ-Master team with the support of Gazprom and VTB Bank. The project is aimed at demonstrating the potential of natural gas as a vehicle fuel. Source: Gazprom CANADA Westport Innovations Inc., has received certification from the U.S. Environmental Protection Agency (EPA) for its 2015 Ford Transit Van. As Ford s largest qualified vehicle modifier (QVM), Westport is offering the 2015 Ford Transit Van as a dedicated CNG Westport WiNG Power System vehicle. Used to transport passengers and cargo, the 2015 Ford Transit Van model offers a 3.7L gaseous prep engine. Westport has conducted all the same safety testing required for all Ford OEM products. Source: Westport USA Chevrolet has announced the availability of a bi-fuel conversion kit for the 2015 Silverado 2500 and 3500 Heavy Duty trucks, which will enable the vehicle to run on either gasoline or CNG. Available on all 2015 Silverado 2500 HD and 3500 HD configurations, except 3500 models fitted with a dually option, the CNG conversion can save more than $2,000 a year on a truck driven 26,000 miles if CNG is used 75-percent of the time. The bi-fuel truck uses a 6.0-liter engine (LC8) that delivers 360 hp and 380 lb-ft of torque when running on gasoline and 301 hp and 333 lb-ft of torque when using CNG. Chevrolet says the bi-fuel truck has a total range of up to 650 miles, while maximum conventional trailering is at 13,000 pounds when the vehicle is equipped with a 4.10 axle ratio. INDIA Honda Cars India Ltd. (HCIL) has introduced the new enriched range of Honda Amaze and Honda Brio. The Amaze comes with a new VX(O) grade featuring the Audio-Video Navigation. A CNG option of the Amaze is planned. Announcing the new grades for Amaze and Brio, Mr. Jnaneswar Sen, Senior Vice President, Marketing & Sales, Honda Cars India Ltd said: The new grades with Audio Video Navigation have been introduced as a result of customer feedback we have received. We value this feedback and constantly try to accommodate the same in our models. We are also planning to offer a CNG option of the Amaze to our customers shortly. Source: Honda Cars India USA / MEXICO Indiana-based CNG Source is following a record sales year in the U.S. with its 1st international move, selecting Monterrey, Mexico as the starting point for it s eventual move into other Latin American markets. Mexico s recent energy industry reform, geographical proximity and fast growing market have influenced CNG Source s decision. The Mexican branch will operate under the CNG-Source-Mexico brand. The company s products and solutions consist of a variety of equipment and services ranging from CNG dispensers (new line), compressors and complete CNG stations for the NGV market. Source: CNG Source ARGENTINA / PERU Gaspetrol, a network of service stations operated by the Copetrol Group in Peru, has added a new CNG station in the city of Cañete (144 km from Lima). The new station will be officially opened in March and will be equipped with a CNG Microbox compressor. On this occasion, the flagship product of Argentine company Galileo Technologies has been adapted to include a pressure regulating plant (PRP) in its interior. The reason for the PRP inclusion within the Microbox is that CNG will be brought by Copetrol tanker trucks, allowing vehicles of this city to profit from the benefits of CNG in the absence of underground distribution networks. The PRP addition has taken modularity a step further, since the new design has not changed what our clients seek in the Microbox : reduced use of space,intrinsic safety and noise levels and vibrations compatible with public environment said Andrés Pertica, Galileo Technologies Sales Regional Manager. The way Copetrol is expanding CNG consumption, even in the absence of infrastructure, is a benchmark for good practice to be followed internationally said Pedro Briceño, Technical Advisor of The Key, the company that represents Galileo Technologies in Peru. Source: Galileo Technologies S.A. 07

8 Wind + LNG a New Tack for Ship Design RESEARCHERS AT FRAUNHOFER, A MUNICH-BASED APPLICATION-ORIENTED RESEARCH ORGANIZATION, ARE ASSISTING NORWEGIAN ENGINEER TERJE LADE, MANAGING DIRECTOR OF THE COMPANY LADE AS, TO DESIGN AN ECO-EFFICIENT CARGO SHIP. THE OUTCOME IS VINDSKIP A VESSEL POWERED BY WIND AND LNG THAT USES FRAUNHOFER-DEVELOPED SOFTWARE TO ENSURE AN OPTIMUM USE OF AVAILABLE WIND ENERGY. International shipping fueled by heavy fuel oil is transporting 90% of all goods on earth, significantly contributing to pollution. The International Maritime Organization (IMO) wants to reduce the environmental impact of ocean liners. Starting from 2020, ships will only be allowed to use fuel containing maximum 0.1% sulfur in their fuel in certain areas, increasing operational expense. Shipping companies are thus facing a major challenge in reducing their fuel costs while complying with the emission guidelines. With Vindskip, patent-holder Terje Lade has designed a type of vessel that utilizes wind for propulsion in place of heavy fuel oil. The hull of the freighter serves as a wing sail: on the high seas, Vindskip will benefit from free-blowing wind making it very energy efficient. For low-wind passages, in order to maneuver the ship on the open sea while also maintaining a constant speed, it is equipped with an environmentally friendly and cost-effective propulsion machinery running on LNG. The combination of wind and LNG as an alternative to heavy fuel oil reduces fuel consumption to an estimated 60% of a reference ship on average. Carbon dioxide emissions are reduced by 80 percent, according to calculations by the Norwegian company. 08 Researchers from Fraunhofer Center for Maritime Logistics and Services CML, a division of Fraunhofer Institute for Material Flow and Logistics IML, have developed a customized weather routing module for Vindskip that calculates the optimal sailing route based on prevailing meteorological conditions. With our weather routing module the best route can be calculated in order to consume as little fuel as possible. As a result costs are reduced. After all, bunker expenses account for the largest part of the total costs in the shipping industry, says Laura Walther, researcher at CML in Hamburg. For the complex calculations, the researcher and her team apply numerous parameters, such as aero- and hydrodynamic data as well as weather forecasts from the meteorological services, such as wind speed and wave height. Lade explains the physics of wind power: At angles close to headwind the wind generates a force in the ship s direction. The ship is pulled forward. Since the hull is shaped like a symmetrical air foil, the oblique wind on the opposite side leeward has to travel a longer distance. This causes a vacuum that pulls the ship forward. This makes the freighter move at speeds of up to 18 to 19 knots, hence just as fast as conventionally powered ships. Due to its very low fuel consumption, Vindskip can utilize liquefied natural gas (LNG) as fuel and still be capable in the worst case of 70 days of steaming between bunkering. Thus, it can meet all of today s and tomorrow s challenges with regards to fuel economy and emission control. By the end of January 2015, the software will be handed over to the company Lade AS. Vessel types that are particularly relevant to the Vindskip -design, for which the weather routing module is developed, are ships like car and truck carriers, big ferries, container ships and LNG carriers. Terje Lade forecasts that the freighter will set sail as soon as First, the ship model has to pass numerous tests in a marine research model tank. Tests in wind tunnels have already been completed successfully. Source: Fraunhofer

9 International LPG & CNG & LNG magazine Projekt statku z napędem wiatrowo-gazowym (LNG) NAUKOWCY Z FRAUNHOFER, MONACHIJSKIEJ ORGANIZACJI BADAWCZEJ WE WSPÓŁPRACY Z NORWESKIM INŻYNIEREM TERJE LADE, DYREKTOREM ZARZĄDZAJĄCYM FIRMY LADE A, ZAPROJEKTOWALI EKO-WYDAJNY STATEK TYPU CARGO NAZWANY VINDSKIP. JEST ON NAPĘDZANY SIŁĄ WIATRU ORAZ SKROPLONYM GAZEM ZIEMNYM (LNG). STATEK WYKORZYSTUJE OPROGRAMOWANIE FRAUNHOFER ROZWINIĘTE W CELU ZAPEWNIENIA OPTYMALNEGO WYKORZYSTANIA DOSTĘPNEJ ENERGII WIATROWEJ. Międzynarodowy transport morski zasilany ciężkimi paliwami przewozi około 90% wszystkich towarów na ziemi, znacznie przyczyniając się do zanieczyszczenia środowiska. Międzynarodowa Organizacja Morska (IMO) chce zmniejszyć niekorzystny wpływ statków oceanicznych na środowisko. Począwszy od 2020 roku, na niektórych obszarach morskich, statki będą mogły wykorzystywać wyłącznie paliwa zawierające maksymalnie 0,1% siarki, co zwiększy koszty operacyjne. Żegluga morska stoi zatem przed poważnym wyzwaniem dotyczącym redukcji kosztów paliwa przy zachowaniu zgodności z normami emisji. Terje Lade zaprojektował rodzaj statku, który wykorzystuje wiatr jako źródło napędu, w miejsce ciężkiego oleju opałowego. Kadłub frachtowca służy jako skrzydło żagiel: na pełnym morzu, Vindskip będzie korzystać z siły wiejącego wiatru, co oczywiście jest energooszczędne. W miejscach gdzie siła wiatru jest mniejsza, w celu manewrowania statkiem na otwartym morzu przy jednoczesnym utrzymaniu stałej prędkości, będzie pracowała ekologiczna i ekonomiczna maszyna napędowa zasilana LNG. Połączenie wiatru i LNG jest więc alternatywą dla ciężkiego oleju i pozwala na zmniejszenie zużycia paliwa do około 60%, w odniesieniu do jego średniego zużycia przez statek. Według wyliczeń norweskiej firmy, emisja dwutlenku węgla zmniejszy się aż o 80%. Naukowcy z firmy Fraunhofer Center for Maritime Logistics and Services CML, opracowali niestandardowy moduł pogodowy specjalnie dla Vindskip, który oblicza trasę żeglowania w oparciu o warunki meteorologiczne. "Dzięki naszemu modułowi, jesteśmy w stanie obliczyć najlepszą drogę dla statku, uwzględniając optymalne warunki pogodowe, a co za tym idzie sprawić, że statek wykorzysta tak mało paliwa, jak to tylko możliwe. W rezultacie koszty będą znacząco zredukowane." powiedziała Laura Walther, Dla otrzymania wiarygodnych obliczeń, naukowcy muszą uwzględnić liczne parametry takie jak m.in. dane aero i hydrodynamiczne, krótko i długoterminową prognozę pogody aktualizowaną na bieżąco, czy też prędkość wiatru i wysokości fali. Ze względu na bardzo niskie zużycie paliwa, Vindskip może korzystać z LNG i nadal być w stanie w najgorszym przypadku poruszać się do 70 dni od momentu zatankowania. Tak więc, może on być odpowiedzią na spotykane dzisiaj, jak i przyszłe wyzwania w odniesieniu do uzyskania oszczędności paliwa i kontrolę emisji szkodliwych substancji. dodał Terje Lade. Pod koniec stycznia nowe oprogramowanie zostanie przekazany do firmy Lade AS. Statki, dla których pomysł Vindskip oraz projektowany moduł mogą być kluczowe, to m.in. te, transportujące samochody, przewoźnicy promowi, statki kontenerowe i zasilane LNG. Terje Lade prognozuje, że frachtowiec będzie mógł wypłynąć w swój pierwszy rejs w 2019 roku. Do tego czasu model statku musi przejść szereg testów m.in. w specjalnym zbiorniku na badania morskie. Testy w tunelach aerodynamicznych zostały już zakończone powodzeniem. Źródło: Fraunhofer 09

10 International LPG & CNG & LNG magazine Next Stage of China s Push for Natural Gas Fueled Transportation 600 CNG stations, 200 LNG refueling stations, 20 LNG filling stations for river vessels by 2018 THE ASIAN DEVELOPMENT BANK (ADB) HAS SIGNED LOANS OF UP TO $450 MILLION EQUIVALENT TO HELP THE PEOPLE S REPUBLIC OF CHINA (PRC) SCALE UP ITS USE OF NATURAL GAS FOR TRANSPORT TO CURB FAST-RISING EMISSIONS FROM AUTOMOBILES AND RIVER FREIGHT. THE LOAN IS EXTENDED TO CHINA GAS HOLDINGS LIMITED (CGH) FOR THE NATURAL GAS FOR LAND AND RIVER TRANSPORTATION PROJECT (PEOPLE S REPUBLIC OF CHINA), PROJECT NUMBER: Traffic volumes have been rising fast in the PRC, resulting in air pollution problems not just here but also in other parts of Asia, said Hisaka Kimura, Head of Private Sector Infrastructure Finance, East Asia Unit, in ADB s Private Sector Operations Department. Helping motor vehicles, as well as vessels that ply inland waterways, switch from diesel to natural gas will mitigate air pollution, fine particulate matter [PM2.5] in particular. The ADB loans will be extended to CGH to build and operate up to 600 CNG and 200 LNG refueling stations along major land transport corridors, and a further 20 LNG filling stations for river vessels by CNG is ideal for short-haul travel while LNG is more efficient for heavy duty long-distance highway and inland waterways networks. Further, the PRC has the world s largest inland waterway transport network, which represents great potential for further greening transportation, using LNG. ADB s assistance comprises a $150 million equivalent dual-currency loan in dollars and Chinese yuan, and a complementary $300 million equivalent dollar-yuan loan from participating commercial banks. The assistance will also support the PRC s drive to diversify its energy mix. The country has abundant undeveloped natural gas reserves, estimated at about 3.1 trillion cubic meters. Yet, PRC is one of the lowest per capita gas consumption countries globally. While the PRC s natural gas supplies are increasing, demand remains unmet. ADB s support is expected to encourage greater private sector participation in this sector and address bottlenecks in mainstreaming gas use for transportation, particularly in long-distance transport corridors that cross municipal and provincial boundaries. PROJECT DEVELOPMENT IMPACT, OUTCOME, AND OUTPUTS The Report and Recommendation of the ADB President, Mr. Takehiko Nakao, to the Board of Directors states the following project specifics: Impact: Successful implementation of the project and deployment of natural gas for multimodal transportation will diversify the energy mix in the PRC by increasing the proportion of natural gas, and increase the availability of natural gas as a transportation fuel in the country: Proportion of natural gas in the energy mix increases to 15.0% by 2025 from 5.9% in 2013 All major highways and inland waterways have access to natural gas stations by 2025 Outcome: The outcome will be development of a commercially viable lowcarbon transport fuel system. The project is expected to generate new jobs and reduce greenhouse gas emissions while also acting as a catalyst for private sector participation in the sector: 10,000 new long-distance trucks operate under wholesale contracts for LNG with CGH by new vessels convert engines to LNG by 2020 Avoided greenhouse gas emissions are approximately 2 million tons per annum from ,200 full-time equivalent jobs are generated by fuel stations by 2020 Output: The expected outputs include the increased availability of CNG and LNG stations meeting safeguards standards. The project will involve the construction and operation of refueling stations for use by land-based vehicles and LNG refueling stations for IWT vessel use during , all of which will comply with ADB safeguard standards and technical eligibility criteria: 600 new CNG stations for land transport built by new LNG stations for vehicles and 20 new LNG stations for vessels built by 2018 CGH s environment and safeguards systems comply with ADB or the PRC policies ADB HAS FUNDED OTHER NATURAL GAS TRANSPORTATION PROJECTS IN CHINA 2013: ADB earmarked $275 million for up to five top-tier financial leasing companies in PRC to finance leased buses that run on cleaner fuel such as CNG and LNG as well as electric and hybrid buses. 2009: A $150 million loan was approved for Lanzhou, the capital of Gansu Province, to help set up a sustainable urban transport system that will reduce transport time and costs and cut harmful emissions of greenhouse gases. The centerpiece was the establishment of a CNG-fueled bus rapid transit system. ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members-48 from the region. In 2013, ADB assistance totaled $21.0 billion, including co-financing of $6.6 billion. Source: ADB 10