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The future of gas Transport June 2016

June 2016 The future of gas - Northern Gas Networks CNG · 2019. 8. 19. · globally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG,

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Page 1: June 2016 The future of gas - Northern Gas Networks CNG · 2019. 8. 19. · globally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG,

The futureof gasTransport

June 2016

Page 2: June 2016 The future of gas - Northern Gas Networks CNG · 2019. 8. 19. · globally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG,

Contents

01 FOREWORD

02 THE CHALLENGE

04 THE STORY SO FAR

08 COMPRESSED NATURAL GAS

10 THE FUTURE

13 CALL TO ACTION

14 REFERENCES AND GLOSSARY

16 OTHER PUBLICATIONS IN THIS SERIES

Page 3: June 2016 The future of gas - Northern Gas Networks CNG · 2019. 8. 19. · globally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG,

THE FUTURE OF GAS 01

Forewordby Richard Court Head of UK RIIO Delivery

Did you know 25 per cent of the UK’s total greenhouse gas emissions come from thetransport sector? And around a quarter of that is directly attributable to road surfaceemissions from HGVs and buses?

Given the huge impact that the HGV and In addition, we have a gas transportationbus sectors have on overall transport network well-placed to connect and createemissions, we need to explore all the a national filling station infrastructure andoptions on how we could help this sector are investing in trials because we believeto make its contribution. this represents a huge opportunity to use

the existing gas network infrastructure.Here at Cadent we understand there Indeed, we have connected the firstis no silver bullet to achieve a significant commercial compressed natural gas (CNG)reduction in emissions from HGVs and refuelling station to our transmission systembuses overnight. Providing clean, quiet in Leyland, which is currently being used byand cheap alternatives to diesel sounds the John Lewis Partnership to fuel their fleeteasy, but this is a complex commercial of dedicated CNG heavy goods vehicles.environment, where price sensitivitiescan be acute; so simply replacing vehicle We are also working to raise awarenessfleets or retro-fitting engines can’t be done of other infrastructure that provides awithout significant planning. However, we capability for road use of CNG and liquefiedthink natural gas has a fantastic potential natural gas (LNG)Although emissions are graduallyto play a major role in the UK in a similar .falling, (in 2013 levels dropped by 1.1way to how it has driven benefits in otherper cent thanks to the lower carbon In this latest paper in the Future of Gascountries around the world.intensity of cars and vans) as the UK series, we consider the challenges and

economy beings to grow again, and The question is, how do we exploit this opportunities for the use of gas for thetherefore the demand for transport potential? Do we build new filling stations transport sector, as well as the investmentrises, any gains may be outweighed to ensure alternative fuels are more widely required, how we tackle hearts and mindsvery quickly. available, or build the vehicle fleet first? at the same time as technology and what

And how do we ensure we have enough the tipping point for take-up might be.engineers trained in new technologies to I hope this paper stimulates debate andmaintain those fleets? offers some insight into how CadentThis is a prime area where we need to can help tackle transport emissions,work together as an end-to-end industry because this isn’t just our story to tell. I lookand Cadent is actively taking on forward to your feedback and ideas.some of the challenge of doing this. Weare stimulating debate and driving thedevelopment of gas as an alternative, greenfuel source for commercial vehicle fleets,and have also helped set up the NaturalGas Vehicle network with representativesand expertise from across the supply chain.

Page 4: June 2016 The future of gas - Northern Gas Networks CNG · 2019. 8. 19. · globally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG,

02 THE FUTURE OF GAS

The challenge

Cadent's gas network already ensures the safe and reliable transportationof gas to 23.2 million customers around Great Britain; providing millions of households withessential energy for heating and cooking. But could gas also be part of the solution fortackling the decarbonisation of the transport sector?

Currently, 25 per cent of total greenhouse Analysis to date which aims to quantifyVehicles and infrastructuregas (GHG) emissions comes from CO2 emissions in transport has been

Put simply, more vehicles andtransport, and of that, around a quarter inconsistent and contains a numberinfrastructure – and the supporting supplyis produced by HGVs and buses. But of uncertainties. To address this, thechain – are needed. But the previousbecause these vehicles actually account Department for Transport (DfT) haslack of available CNG vehicles is just onefor only about 1.5 per cent of all road developed a consistent vehicles testof the factors holding up gas as a viabletraffic in the UK, their emissions are protocol, with the Low Carbon Vehiclealternative fuel option. Until recently,disproportionately high. Of course, they partnership carrying out real world missionvehicles had to be retro-fitted to run on are used much more intensively than testing under controlled conditions atCNG, or run on a blend of diesel andthe family saloon car and relied upon to facilities including Millbrook ProvingCNG.help deliver the UK’s tentative economic Ground. It is hoped that the results from

growth, so we need them to keep moving these tests will strengthen the case for The current lack of national filling stationsday and night, up and down the country. CNG for use with trucks and buses.to support a bigger fleet of CNG vehicles

is also a barrier, with only 15 dedicatedAnd it’s not just carbon we need to besites currently in operation, five of whichmindful of; air and noise quality are major Driving changeare public access. Where companies areissues in most UK cities. Nearly 9,500 investing in CNG fleets, they have tendedpeople die early each year in London due The potential of gas as a road transportto build their own support infrastructure to to long-term exposure to air pollution; fuel is incorporated in the Low Carbonrealise the benefits.and London, Birmingham and Leeds are Vehicle Partnership’s infrastructure road

among the UK cities that have breached map to 2030. Having a clear policyFinally, a supply chain needs training inEU safety limits on nitrogen dioxide (NO2) framework could make a significantnew engine technologies to maintain thefor the last five years. In the USA, heavy- contribution to reducing transportvehicles, and must be able to manage,duty trucks comprise about 10 per cent of emissions in the medium term.supply and transport the fuel itself to the total nitrogen oxide (NOx) pollutants.1 support thousands of CNG HGVs and But of course any move to CNG must This NOx contributes to the formation buses. It would also require a policy work in commercial terms for fleetof ground level ozone, smog and fine framework which supports operators who operators – providing the freight andparticulates. move to gas. bus sector with reliable returns on theirAs such, the focus on renewable and low investment. Getting this balance rightcarbon energy sources is being taken between costs, noise and emissions asEfficiency and emissionsvery seriously by the freight sector. But well as certainty of supply of CNG shouldwhile the use of CNG for HGVs and buses attract more and more companies to opt Natural gas engines produce fewerisn’t new, it certainly hasn’t reached its for this lower carbon technology and awayemissions, have a lower carbon footprintfull potential. So why is this, and how can from diesel.and are 50 per cent less noisy than dieselCadent help facilitate and accelerate engines, so they’re ideal for enablingthis decarbonisation? night-time deliveries, for example.

Tests show they outperform Euro VIdiesel engines on NOx, Sulphur Oxide(SOx), Particulate Matter (PM) and CO2emissions.2

With retro-fitted vehicles, ‘methane slip’could be an issue due to incompletecombustion of the methane in the engine,which escapes into the atmosphere. Asmethane itself is a significant greenhousegas – more powerful than CO2 even –any slippage might negate some of thebenefits of using gas as a greener energysource for vehicles.

Page 5: June 2016 The future of gas - Northern Gas Networks CNG · 2019. 8. 19. · globally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG,

THE FUTURE OF GAS 03

The less carbon weburn the lowerthe impact on commerceandconsumers: lower operating costsof CNGvehicles ultimately meanscheaper products.

Affordable

Theexisting Cadentnetworkis adaptableand can help provideasolution tostimulateand acceleratetheuseof alternativevehicle fuels.

ENERGYTRILEMMA

Secure

Sustainable

Using compressed natural gas forlong haul vehicles will act as abridge to the low carbon economyby helping todecarbonise thesector and get us on the journeytowards 2050. But HGVs could beGas:Thefuel of choicefor HGVsandbusespowered by renewablegas for ahundred years or moreand bea

Of total GHGemissions truly sustainablealternative.c.24% c.1.5%Road surface of UKvehicles25%emissions fromareattributed to HGVs and busestransport

Cadentbelieves that gas could and shouldbe the fuel of choice for HGVs and buses in the UK• Support UKCO2 reductions and cleaner air in cities• Thorough utilisation of the gas network into the future• Gas network forming the backbone of a national filling station infrastructure

Aclean, quiet and cheap alternative to diesel

Page 6: June 2016 The future of gas - Northern Gas Networks CNG · 2019. 8. 19. · globally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG,

2,50

0

1,60

4

1,47

7

1,32

9

537

480

410

355

293

118%CAGRCompoundAnnual GrowthRate

33%CAGRCompoundAnnual GrowthRate

04 THE FUTURE OF GAS

The storysofar

We need to balance an increased fuels. Even the big oil producing countries, and buses has become self-sustaining.energy demand for transport such as Iran or Venezuela, encourage the Several of the large trucking companiesglobally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG, including aour dependence on fossil fuels. This to ensure they can export as much of their major snack food producer. And sincerequires a mix of alternative fuels to oil as possible. 2011, the buses in Los Angeles’ transitbecome more readily available, and for system have run entirely on CNG.In Singapore, the Ministry of Transportvehicles to become more efficient. In passed a law back in 2005 requiring all In the heavy-duty, long-haul truckingthis chapter, we look at how alternative public transport vehicles - buses, trucks market, both CNG and LNG are beingfuels have been adopted around the and taxis - to run on CNG, with a green promoted in certain regions and refuellingworld, in Europe and here in the UK. vehicle rebate offered to incentivise take- infrastructure is being built along keyThe question is, what more can the UK up. A grant was introduced as far back as corridors. The current US NGV populationlearn and do as we strive to meet our 2001 for 40 per cent discounts on the open is 130,000 and by 2035 that number coulddemanding emissions targets? market value cost of newly registered green increase to 16 million – quite a considerable

passenger vehicles in order to help reach a growth rate!critical mass of CNG vehicles and then endGlobal perspective Recently, Canada has seen significantthe incentives. investment in CNG and LNG vehicle fleetsAlmost 85 countries from all five continents The graphic illustrates that when there’s as well as natural gas fuelling stations.use natural gas vehicles, and the growth an apetite, the market will repsond very Natural gas vehicle adoption is spreadopportunity, as shown in the graph below quickly. Beyond Europe there is clearly a across the country with 650 new vehiclesfor China, is significant. mature market for natural gas powered in operation in British Columbia, Alberta,vehicles using trusted technology. Manitoba, Ontario, and Quebec. Of these,Despite the recent oil price crash, pump

59 per cent are CNG vehicles and 41 perprices aren’t likely to see any sustained dipcent are LNG vehicles. Between 2012 andand so the economic case for alternative2014 there has been significant investmentfuels is recognised by more and more North Americawith 23 new fuelling stations to servegovernments. Not only are they keen to In the United States, CNG products and return-to-base refuelling of transit buses,promote natural gas as a key component in engine technology have been evolving refuse and highway trucking fleets, as wellthe energy mix, but many will want to break since the 1980s, and the Natural Gas as the regional trucking corridors.their dependence on imported liquefied Vehicle (NGV) market for commercial trucks

Global truck market opportunity3

The rate of vehicle growth in China is exponential and is supported by a network of filling station that has grown eight-fold.

Natural Gas stations in ChinaChinaLNGVPopulation (Thousands)

3,00014 35013.3

12 2,500LNGstationCNGstation10

2,000

1238 20

1,500 155.86

1,0004

7432.1 5002

0.7 0.90.3

00

2003 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘112003 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11

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THE FUTURE OF GAS 05

Europe UK The business case for renewable gas in transportAs we can see from the graphic belowAcross mainland Europe, 32 countries

the growth of the NGV market around thehost a combined total of over 3,400 CNG/ For renewable methane (bio and syntheticworld has taken off very quickly, but weNGV filling stations.4 EU policy, supported natural gas) used in transport, incentivesas a country and indeed in Europe areby the Clean Power for Transport (CPT) can be claimed through the Renewablelagging behind - not just in the HGV andpackage, is pushing for natural gas and Transport Fuel Certificates (RTFC), whichbus sectors but across all vehicle types.biomethane to play a major part in road is essentially a subsidy like the Renewable

and maritime transportation. According Heat Incentive (see Future of Gas -Here in the UK, there are over 700 gas-to Directive 94/2014/EU, Member States Domestic Heat chapter). The scheme ispowered HGVs on the road network,will have to develop a National Policy currently restricted to gas transported fromoperated by around 25 leading householdFramework to establish a network of the source of production straight to thebrands. Additionally, a number of lighterrefuelling stations for natural gas vehicles vehicle being fuelled. However, this cangas powered delivery vehicles are alsoin cities, ports and along the Trans- place limitations on the use of biomethane,being used in urban areas and fleets of European-Network for Transport (TEN-T). especially where the source of productionnatural gas powered buses are operating

is located away from the point of demand.in Reading and Sunderland5. This includesMember States have to provide refuelling This means the fuel would have to beJohn Lewis Partnership, which is runningpoints for: transported by road tanker, diminishing itsone of the largest alternatively fuelledenvironmental benefits (the well-to-motion• CNG in cities/densely populated areas heavy truck fleets in the UK.emissions footprint).by 2020

Cadent believes RTFCs should apply• CNG and LNG along the TEN-T coreto bio gas injected into the distribution grid,network by 2025with a certification scheme to authenticate

• LNG in sufficient TEN-T seaports the source of supply and use. This wouldby 2025 remove the need for tankering fuel from

production to vehicles, thereby realising• LNG in sufficient TEN-T inland portsthe benefits of utilising the gas distributionby 2030network for delivering fuel. It would alsodecouple the geographic restriction ofdemand and supply, and act as a catalystto incentivise the use of renewable gases intransport.

Top10 countrieswith the largest NGVvehicle fleet – 2013

Registered fleet in millions

1 2 3 4 5 6 7 8 9 10Iran Pakistan Argentina Brazil China Italy Colombia Uzbekistan Thailand Indonesia

3.5 2.79 2.28 0.82 0.46 0.45 0.42 0.381.75 1.58

World total = 18.09 million NGVvehicles

Page 8: June 2016 The future of gas - Northern Gas Networks CNG · 2019. 8. 19. · globally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG,

n Gas Cert

Waste

06 THE FUTURE OF GAS

The storysofar

So, whilst the UK may be lagging • Producers of renewable gasses fromBio methane or behind some of our global competitors waste trade ‘green gas certificates’ withBioSNG and transportthat certainly doesn’t mean that those wishing to by ‘green gas’, thereby

Well-to-motion CO2 emissions are reducedno progress has been made. The authenticating its validityeven further when renewable forms of gasGovernment has invested in testing • Support a circular economy where refuseare used as a transport fuel. This can workand modelling and vehicle fleet trucks run on gas from rubbish andin the following way:operators have been working with the supermarkets run delivery trucks on fuelenergy sector to develop the options • Renewable gas made from waste made from waste food.and technology that will support us out and rubbish injected into the Local

to 2050. Transmission System (LTS), giving a lowcarbon footprint for the delivery of fuel

Refuse truckBioMethane or BioSNGandTransport

CNG FuelsRubbishGas Network

BIOGAS

Green gas certificates

John Lewis

Gree ificates

The Energy Technologies Institute (ETI) for using CNG as a vehicle fuel for trucksTesting and modellinghas also been working to develop a well and buses, especially if the source of gas

The DfT has invested in testing to better to motion model that predicts the carbon is from low leakage, higher pressure gasto understand the benefits of gas versus intensity of diesel, CNG and LNG from distribution mains. Indeed, it is thought thatdiesel. The Low Carbon Vehicle Partnership varying sources, through to use on the vehicles fuelled with CNG from Cadent'sis in the process of carrying carried out vehicle. LTS will have the lowest carbontailpipe emissions testing to compare CO2 footprint of any fossil fuel.It is expected that results from the DfT’sand particulate matter emissions and the

real-world emissions testing, coupled withefficiency of comparative vehicles fuelled bythe ETI’s well-to-motion modelling study,methane, diesel, and dual fuel.will create a compelling environmental case

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THE FUTURE OF GAS 07

The prosandconsof alternative fuels:

Coverage of transport modes and travel range by the main alternative fuels (COM (2013) 17)

Transport modes and technical possible energy carriers for today and in future. European Road TransportResearch Advisory Council (ERTRAC 2014)

Fuel

Modeand rangeof transport

Road passenger Road freight

short medium long short medium long

Electricity

CNG

Hydrogen

LPG

LNG

Biofuels (Liquid)

All possibilities Target areasfor CNGinUK

Fuel Modeof Transport (Passenger and Goods)

Today/Future/ Car: Urban Car: Long Distance LCV20 Delivery Truck/Bus:

Long Distance Bus: Urban

Gasoline / / / / /

Diesel / Kerosene / / / / /

CNG / / / / /

LPG / / /

LNG / / /

Biodiesel Fatty Acid MethylEsters (FAME) / / / / /

Advanced gasoline(cell ethanol. butanol) / / / / /

Hydrogen / / / /

Electricity / / / / /

Page 10: June 2016 The future of gas - Northern Gas Networks CNG · 2019. 8. 19. · globally with the desire to reduce use of natural gas in their domestic markets have adopted CNG or LNG,

08 THE FUTURE OF GAS

West MidlandsLocal Transmission Mains

Intermediate Pressure Main

Motorway Network Freight Site

Distribution depots

Major distributiondepots are in close BIRMINGHAMproximity to theexisting gas networkand the motorwaynetwork

How competitive ismethane asa fuel

• Industrytellsusthepayback periodfor additional cost of natural gasvehicles(dedicatedor dual-fuel) hastobelessthantwoanda half years

• TheadoptionratesurgedinNorthAmerica whenthepayback periodwastwoyearsmaximum• Simplecalculation:

- Additional cost of dedicatedgas truck = £30,000 (CNGFuelsestimate)- Prevailingdiesel price= £0.85/litre (Freight Transport Association(FTA)bulk diesel websitefuel price)- Annual mileage= 100.000 miles- MPG= 9.0- Annual fuel cost = £42,935- Fuel savingsper year for two-year payback = £15,000, or 35%below current cost of diesel

• However, a dedicatedgasengine iscurrentlyaround10 per cent lessefficient comparedtoa diesel engine,sothefuel cost savinghastobecloser to40 per cent toachievea two-year payback period.

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THE FUTURE OF GAS 09

Compressednatural gasWhat is CNG? How is it used? Case studyCompressed natural gas is made by CNG is used in internal combustion In March 2016, CNG Fuels, in partnershipcompressing natural gas (mainly methane), engine trucks that have been modified with Cadent, unveiled a new state-of-to less than 1 per cent of the volume or in vehicles which were manufactured the-art filling station in Leyland, Lancashire,it occupies at standard atmospheric specifically for CNG use, either alone enabling vehicles to fill up with CNG directlypressure. It is stored at high pressure and (‘dedicated’), with a separate gasoline from the high-pressure LTS. The new facilitycan be used in place of petrol and diesel system to extend range (bi- fuel) or in is the first of its kind in the UK and is capableand has many benefits: modified diesel engines which burn a of refuelling more than 500 HGVs per day.

mixture of diesel and CNG (dual fuel).• CNG produces lower levels of NOx Located near to junction 28 on the M6,and particulates than diesel the CNG filling station will be accessible

all day, every day throughout the year. The• CNG produces lower GHG on a well Cadent – a facility also supplies 100 per cent renewableto motion basis compared to diesel, network built to cope biomethane (Bio-CNG) and is an importantwith a saving in the range 10 – 20 per part of the UK’s rapidly growing CNGThe existing gas supply network –cent from today’s CNG trucks. refuelling infrastructure. The biomethane is284,000km of pipes – has sufficient capacitymade from waste at anaerobic digestion• CNG vehicles are up to 50 per cent to support a UK-wide chain of filling stationsplants and delivered to the filling stationquieter than diesel supplying CNG to commercial vehicles,through the gas pipeline system.with no adaption required to meet expected• CNG is a cheaper fuel source and can demand. And as the predicted transport Waitrose has a regional distribution centresave up to 40 per cent in costs6

load in 2050 is just six per cent of today’s less than one mile from the new CNG fillingdemand, the network is built to cope,• CNG is safer than other fuels when there’s station and will be its anchor customer. Johnmaking CNG a viable long term solution.a spill because natural gas is lighter than Lewis Partnership is committed to running aair and disperses quickly when released sustainable logistics operation, and the useAlso, the environmental benefits of fuelling

of low carbon fuels in our vehicle fleet is atrucks with CNG from the Cadent are• CNG can be found above oil deposits;key element of that. This filling station is anfurther improved when filling stations areit’s also collected from landfills or important step that will help us continue toconnected to pipelines within the networkwastewater treatment plants, where it’simprove our fleet sustainability.that operate at higher pressure than thoseknown as biogas and is equally suitable

supplying domestics properties. The LTSfor use in CNG vehicles.has near-zero leakage, so the environmentalfootprint is reduced compared withtraditional fossil fuels that emit CO2.

Tail pipe vWell-to-Motion(WTM) emissions

DfTEmissionstestingproject WTMCO2 emissions are reduced even • Producers of waste trade‘green gasfurther when renewable forms of gas are certificates’ with thosewishing tobuyGasfuelledHGVsoffer potential CO2used as a transport fuel. ‘green gas’, thereby authenticatingsavingsbut thesemight beoffset by

it’s validityengineefficiency lossesandmethaneslip • Injected into theLTSsystemsono(dual fuel conversions). Nomethaneslip processing or shipping CO2 implications • Examples: refuse trucks runningfromnew dedicatedCNGEuro6 trucks. on rubbish, supermarkets running• Waste food or rubbished turned intogas

delivery trucks on waste food.that fuel transport

Well to Terminal Terminal to Tank Tank to Motion

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10 THE FUTURE OF GAS

The future

Providing clean, quiet, affordable We don’t know the answers to all theseTowards a critical massalternatives to diesel is a complex questions but the roadmap below aims

What comes first – the vehicles, or thechallenge that goes beyond simply to demonstrate the key points in time forfilling stations to supply alternative fuels?replacing vehicle fleets or retro-fitting decisions to be made and actions taken to And how do we ensure we have a networkengines. However, the future is ours ensure that we can support an alternativeof engineers trained to maintain newto influence, and the key is working in fuel fleet and meet our sustainability targets.technologies? As is the way for emergingpartnership with industry, technologytechnologies, the tipping point for CNGinnovators and the Governmentwill happen through a combination of towards a shared vision of a futureinvestment, innovation and commercialtransport network powered byviability. The will of policy makers is alsocleaner energy.an important factor.

Hydrogenpoweredvehicles

Throughout theFutureof Gas series and diesel vehicles fromits fleet bywehaveexplored about theoption 2050. Other car manufacturers areto introducehydrogen into thegas also investing in hydrogen.network. If wedochoose tomove to • Fuel-cell technology – which isahydrogen economy there is alsoa effectively hydrogen-electric hybridspotential role for hydrogen powered – is alsobeing developed by othervehicles: car manufacturers whosee it as an• Hydrogen is finally coming on stream integral part of a fossil-free future.

as aviable fuel topower vehicles • In California, theauthorities are• Twodecades after they launched investing heavily in filling stations on

petrol-electric hybrids,Toyota recently the‘hydrogen highway’ which willstarted producing fuel-cell vehicles, eventually stretch fromCanada tounderlining its plan toeliminatepetrol Mexico.7

Network CharacteristicsRegulatorybarrierswill betheprimaryfocusfor enablingnatural gasinfrastructure, whilst a number of technical issuesmust alsoberesolved

2015 2020 2025 2030 2050

Total stations <50 c.130 c.370 800 – 1,000

Station Capacity Stationsizerange:2, 5, 10, 15 tonnes/day

MultiplesafetystandardsmaylimitLNGstorageto15-20t

Larger LNG andCNGstations

LNGsafety regulations modifiedMulti compressors for CNG

CNG Prioritisehigher pressuregridconnection (2-70 bar, Local TransmissionSystemand IntermediatePressure)wherepossible. L-CNGstationdeployment whereLNGlogisticsaremoreaccessiblethangridconnection.

LNG Optimiselogistics for deliveryof LNGtostations, improvingoverall WTMemissions

Strategic deployment of new LNGimport terminals tominimisedeliverydistancetoLNGrefuellingstations

LocationCommercial deployment alongkey trucking routesTargetedsupport for lower throughput regions

Wider national network expansionexpected tobefullycommercial

EUDirectiveguidancemet: CNGand LNGstations onTEN-TCoreNetwork, <150kmand <400kminter-station distancerespectively

AccessContinueddevelopment of cooperativesemi-publicinfrastructuresharedbetween fleets

Greater fleet uptakeprovidessufficient investmentconfidencefor largepublicstationsdeployment

Communicate real-timestation availability and fuel pricedata toend users

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THE FUTURE OF GAS 11

“John Lewis Partnership is committed to running asustainablelogistics operation, and theuseof low carbon fuels in our vehiclefleet is akey element of that. Our strategy is todisplacedieselwith bio-methanewherepractical, and werun oneof the largestalternatively fuelled heavy truck fleets in theUKtoenableus todo that.This filling station is an important step that will help uscontinue to improveour fleet sustainability.”JustinLaney, Central Transport General Managerfor the JohnLewisPartnership

2020 2030 2050

Vehicle stock: (no. of buses) c.2,000: c.10,000: c.17,000:

Energydemand: (tonnes/year) c.50,000: c.220,000: c.340,000:

c.80 (2t per day, c.130 (5t per day, c.200 (5t/day,Requiredstations:80%utilisation) 90%utilisation) 90%utilisation)

Vehicle stock: (no. of HGVs) c.8,000: c.50,000: c.190,000:

Energydemand: (tonnes/year) c.200,000: c.1,000,000: c.4,000,000:

c.45 (15t per day, c.230 (15t per day, c.800 (15t/day,Required10t per daystations:90%utilisation) 90%utilisation) 90%utilisation)

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12 THE FUTURE OF GAS

CNG: Benefitscase

The2014/94/EUdirectiveon‘thedeploymentof alternativefuelsinfrastructure’ aimsto:• Harmonise technical specifications

for recharging and refuelling stations

• Develop clear, transparent fuel pricecomparison methodologies

• EnsureEUMember States developnational policy frameworks tosupportthedeployment of alternative fueltechnologies and infrastructure.

Lower well-to-motion

CO2 emissions

Cleaner airand lower noise levels

3.5t to3.8tEUalternative fuels – additional weight 40%allowance for alternative fuel vehicles

fuel cost savingcompared withdiesel

HGVs account for

20%of the greenhousegas emissions

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THE FUTURE OF GAS 13

Call toaction

Here in the UK, the gas network standsready to deliver green fuel to help Urgent actionsfor the UKGovernmentdecarbonise transport and ensure asecure and affordable supply. This willalso help the UK government to meet itscommitment to reduce total emissions by • Investment support isneeded, but not • Support for useof biomethaneviaat least 80 per cent in 2050 from 1990 in theformof incentives GreenGasCertificates (sohaulierslevels. canbook GHGsavings in their carbon• Invest £150 million inLTSconnectedThe next step is to deliver a national filling reporting)CNGstationssoleast 100 HGVfriendlystation infrastructure and a supply chain to refuellingstationsarebuilt coveringall • Preferredaccess for gasvehicles insupport it. Cadent has started this in

major UKtruckingroutes low emissionzonesLeyland by connecting the first commercialCNG refuelling station to the transmission • Encourageand incentivisetheuseof • Allow night timedeliveries for lowsystem; and on the Isle of Grain National natural gasvehicles in thetransport noiseNGVsGrid operates a LNG depot which is of mix • Encouragepublic sector fleetstrategic importance to the UK energyinfrastructure. • Improvetailpipeemissions testingand procurement toconsider alternatively

imposingsanctionsonfailingvehicles fuelledvehiclesLife after oil • Enact theEUWeightsandDimensions • Increasethedifferential fuel levyWe can no longer plan around fossil fuels; Directive betweendiesel andgaspumppricesit is not a long term secure source, it is

• Allow Blicenceholders todrive3.5not sustainable, and as it runs out willtonnecategorydeliveryvehiclesbecome more and more expensive. Vehicle

manufacturers know this, and it is why for withadditional weight of lowthe last 20 years or more they have been emission technology, i.e. increasetodeveloping petrol-electric, hydrogen-electric approximately3.8tand other types of hybrid power units.

We are calling on the Government,technology innovators, the road transportindustry and vehicle manufacturers to worktogether to implement the infrastructure to deliver alternative fuel solutions. There are Investmentmany views about how BioSNG and othernatural gas should be used, but we believethere is a major opportunity to achieve

• Support neededfromGovernment for • Support for QUIETtrucks tobeallowedsignificant benefits from using CNG to R&Dbut not incentives todeliver intocitiesat night – CNGpower commercial vehicles.

ideal for this• Fuel pricedifferential must bemaintainedbecauseCNGtrucksare • Support for useof biomethaneSmall investment, big returnslightlymoreexpensivetobuy than viaGreenGasCertificates (sohauliers

Building the infrastructure covering all diesel equivalent canbook GHGsavings intheir carbonmajor UK trucking routes for at least reporting).• Weight allowancefor vans100 HGV friendly CNG refuelling stationswill require an investment of around£150 million. The funding could be sharedbetween private companies and theGovernment, and over time, these stationscould dispense increasing amounts of renewable gas.

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14 THE FUTURE OF GAS

References

1. Edmond Toy, a Ph.D. candidate at 4. http://cngeurope.com/Harvard University, Cambridge, Mass. 5. http://gasrec.co.uk/wp-content/2. http://gasrec.co.uk/wp-content/ uploads/2015/12/Gasrec-report-Driving-uploads/2015/12/Gasrec-report-Driving- change-to-low-emission-transport-change-to-low-emission-transport- December-2015.pdfDecember-2015.pdf 6. http://www.cngfuels.com/why-3. http://www.ngvjournal.com/50- cng/#cost-savingsreasons-for-using-ngvcng/ and http:// 7. The Sunday Times, 29.11.2015www.ngvjournal.com/en/magazines/asian-ngv-communications

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THE FUTURE OF GAS 15

Addressing thedemands oftheenergy trilemmawill notbeeasy, but when it comesto theuseof natural gas fortransport weneed toworktogether toachieveacriticalmass and find the tippingpoint where investment,commercial viability andtechnologies converge.

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16 THE FUTURE OF GAS

Other publications in thisseries

The Future of Gas series seeks to address the challenges and opportunities to help the UKmove towards a low carbon economy. These include efficiency measures that customerscan take to reduce their consumption, and new sources of gas that could deliver energy in amore sustainable way. Look out for the following publications:

December 2015 February 2016

The future The futureThefuture Thefuture of gas of gasof gas of gasDelivering for our customers Supply of renewable gas Domestic Heat Network capability

Introduction to the Future Supply of renewable gas Domestic heat Network capabilityof Gas The benefits of renewable How gas networks can help How our networks andOverview of the challenges gas in relation to the energy deliver low carbon solutions network investment will lookin meeting the UK’s carbon trilemma to heat our homes in the futurereduction targets Coming soon

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DisclaimerThis paper is intended to help and encourage discussion of some challenges facing the UK’s energy needs. Any views expressed are those of theauthors and do not necessarily reflect the policy or position of any organisation and/or any UK Government body unless specifically stated. It doesnot replace the Gas Ten Year Statement or the Electricity Ten Year Statement (or any other document containing substantially the same information asthose) published respectively by Cadent Gas Ltd and National Grid Electricity Transmission plc (“National Grid”) in accordancewith relevant licence conditions.

Whilst reasonable care has been taken in the preparation of this paper, no representation or warranty, either express or implied, is made as to itsaccuracy or completeness. Parties using the information should make their own enquiries as to accuracy and its suitability for their purposes. Save inrespect of death or personal injury caused by its negligence, or fraud, or for any liability which cannot be excluded or limited in law, neither National Gridnor any other group company, nor any director or employee of any such company, shall be liable for any losses, liabilities, costs, damages or claimswhatsoever as a result of the content or use of, or reliance on, any of the information in this paper.

Printed on 100%recycled paper

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For more information about how to getinvolved please contact us [email protected] papers will be published online acadentgas.com/futureofgas