In early 2013, the Commissioner for Transport and European Commission Vice President Siim Kallas presented the European Union’s Clean Fuel Strategy, which includes goals for the future of Europe’s road transportation sector. Compressed natural gas (CNG),
In early 2013, the Commissioner for Transport and European Commission Vice President Siim Kallas presented the European Union’s Clean Fuel Strategy, which includes goals for the future of Europe’s road transportation sector. Compressed natural gas (CNG), a fuel that is currently only used by about 0.5% of the total fleet, is aimed to increase ten-fold by 2020. The policy also aims to reduce the maximum distance between publicly accessible CNG refueling points to 150 kilometers (km).
Noting the economic and environmental benefits of natural gas, some countries have already achieved the second milestone of reducing the distance between CNG fueling stations. But the market for natural gas vehicles (NGVs) is not yet well developed. This is unfortunate – because increasing Europe’s NGV market could help reach the EU’s target of 95 grams Carbon Dioxide (CO2) per km as the average emissions for the new car fleet by 2020. This blog overviews the many economic and environmental benefits of natural gas for road transportation.
Benefits of Natural Gas Vehicles
The Clean Fuel Strategy encourages a way out of the vicious circle that has characterized the European NGV sector. On the one hand, it’s not profitable for filling stations to offer natural gas with so few vehicles on the road. On the other hand, too few refueling stations for customers and a relatively higher purchase costs for NGVs prevent the market from developing.
Customers often don’t take into account future savings when they make the decision to buy a new car. In 2011, natural gas in Germany was much more cost-efficient than petrol and diesel for transportation. For 20 euros, an NGV could drive 468 km, compared to 297 km for diesel and 179 km for petrol. Yet consumers face confusing pricing information, since conventional fuels and natural gas are reported in different units that ignore their different energy content. Even when taking the relatively higher purchase costs into account, NGVs are more profitable than conventional vehicles in the long run.
In addition to the more economical fuel efficiency, NGVs are also m