In an era dominated by discussions around electric and hydrogen-fueled vehicles, fleet managers and business owners find themselves at the crossroads of deciding on the most efficient and sustainable fuel option for their operations.
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Among the abovementioned, there’s another contender making waves on the market – Liquefied Natural Gas (“LNG”).
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Joost Jansen, Business Development Manager at Dover Fueling Solutions® (“DFS”) commented: “Ultimately, consumers seek energy that is affordable, reliable, available and environmentally friendly. LNG meets these criteria, and its competitive costs make it a promising choice for commercial transportation.”
DFS takes a closer look at LNG as a compelling alternative fuel and delves into its environmental, cost, and business impacts to determine if it could be the perfect solution for your fleet fueling business.
As supply concerns are fading away across the continent, buyers and governments are now refocusing their efforts on lowering CO2 emissions to meet decarbonization goals.
LNG is a natural gas that has been reduced to a liquid state through a process of cooling, and it is the cleanest burning fossil fuel. It produces 40% less carbon dioxide than coal and 30% less than oil.
Its primary component is methane (85-89%), which releases fewer pollutants during combustion, making it a sustainable choice that improves air quality.
Another key player on the market is Bio-LNG, which emits 85% less CO2 than diesel and is a key solution in minimizing emissions from the heavy goods vehicle (“HGV”) sector.
LNG fuel station deployment comes with a challenge in the race to net zero. During the storage of LNG, Boil-Off Gas (“BOG”), continuously evaporates, which causes the pressure inside the LNG storage tank to rise. However, venting BOG into the atmosphere is costly and become illegal as part of the Europe (Green) Deal. In order to manage this, and to illustrate a real world example, Gasrec implemented DFS’s patented LIQAL BTU Boil-off Gas Treatment Unit (the “BTU”) that converts BOG back into liquid form, avoiding venting and preserving LNG stock, thus reducing losses – both financial and environmental.
Moreover, the LIQAL BTU offers unlimited holding time for LNG with no need for active management of LNG tank storage pressure, posing a significant opportunity for the reduction of operational costs.
Fuel poverty is a real problem, and providing affordable energy is critical. LNG emerges as a cost-efficient solution, thanks to the ample supply of natural gas resources and the steadiness of its prices, in contrast to the fluctuations observed in the oil market.
During the first half of , LNG imports into Europe were predominantly led by nations located in East Asia and Europe. China, Japan, and South Korea emerged as the top three global importers, followed by the UK, France, and Spain, where the majority of European regasification capacity is housed.
Access to a diversity of suppliers can not only reduce prices but can also afford DFS the flexibility to move to more reliable shippers or avoid geopolitically sensitive markets.
The affordability of vehicles powered by LNG is on the rise, supported by an expanding infrastructure catering to specific fueling fleet requirements.
Furthermore, LNG engines typically incur lower maintenance costs, yielding long-term savings for businesses. Unlike electric vehicles, which often demand substantial upfront investments in charging infrastructure, LNG presents a more gradual transition without the necessity for a massive initial financial commitment.
A recent study has highlighted the effects of ongoing advancements in liquefaction and shipping technologies on the reduction in production, transportation, and regasification costs, fueling the swift expansion of the global LNG industry. The purification and liquefaction costs of natural gas have seen a decrease of 35%–50%, while the transportation cost per unit of LNG has declined by 40%, making LNG a price-competitive solution for today and for the future.
“Businesses have the opportunity to invest in LNG fuel technology and LNG dispensers that provide truck drivers with an intuitive refueling experience and exceptional uptime. When paired with the LIQAL BTU to ensure consistent performance, businesses can upgrade their fuel sites with a low total cost of ownership while embracing the latest clean fuel technology,” commented Joost Jansen, Business Development Manager at DFS.
Transitioning to LNG can positively impact businesses in several ways. Firstly, LNG engines often boast a longer lifespan than traditional diesel engines, enhancing the overall durability of a fleet. The gas is also readily available, with a growing network of LNG refueling stations worldwide, ensuring operations are less likely to face disruptions due to fuel shortages.
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“LNG infrastructure may be embryonic, but it is fast growing. There are around 713 LNG stations on the continent, with the bulk concentrated in Western Europe, and its cost-competitive benefits mean it has strong potential for commercial transport,” said Lise-Lotte Nordholm, Vice President and General Manager of Clean Energy and Global Platforms at DFS, in an interview for Fuel Oil News.
As of July , the majority of LNG stations in Europe are in Germany (128), followed by Italy (125) and Spain (88).
LNG is especially well-suited for long-distance road freight transport, given the limited availability of alternatives to diesel in this case. Moreover, its familiar refueling method and speed should appeal to drivers. With the emergence of reliable and convenient LNG refueling units, such as the compact LIQAL LNG Mobile Refueling Unit that Gasrec incorporated to suit numerous locations, it becomes easier for fuel retailers to implement clean energies with minimal work or additional costs – this can even be in addition to conventional fuel dispensers at larger service stations, covering a multitude of drivers
As the UK expects a colder winter and, in lieu of the paradigm shift in gas imports due to the Russian invasion of Ukraine, we see a subsequent increase in LNG imports as the primary fuel supply.
“LNG, especially BioLNG, is not only a cost-effective solution, but it also has the ability to reduce emissions, and that’s highly attractive to the heavy-duty transport industry and other adjacent carbon-intensive sectors.”
According to the European Commission, LNG development into a global commodity can improve the security of energy supply in general by boosting the use of natural gas as fuel for transport. LNG provides a long-term solution, as The International Energy Agency predicts there are enough resources to last 230 years if consumption remains at current levels.
“With its environmental advantages, cost-effectiveness, availability and positive business impacts, LNG is on the way to becoming one of the most in-demand fuels globally for heavy-duty transport. It can contribute to future energy security measures and help facilitate the worldwide transition to decarbonize major carbon-emitting economies. We’re witnessing the evolution of the consumer experience in fueling and convenience retail,” concluded ____, _____ at DFS.
https://www.doverfuelingsolutions.com/customersuccess/the-liqal-%7C-dfs-boil-off-gas-management-solution
https://www.cornwall-insight.com/wp-content/uploads//10/The-shifting-sands-of-Liquified-Natural-Gas-in-Europe-Oct-.pdf?utm_source=website&utm_medium=website#:~:text=The%20role%20of%20LNG%20in%20decarbonisation&text=LNG%20produces%%25%20less%20CO2,harmful%20to%20the%20earth’s%20atmosphere.
https://fueloilnews.co.uk//09/greening-the-sector-dover-fueling-solutions-considers-the-future-for-fuels/
https://www.statista.com/statistics//number-of-lng-refueling-stations-in-europe-by-country/
https://www.doverfuelingsolutions.com/customersuccess/reliable-bio-lng-refueling-for-gasrec
Published on July 04,
Despite the move towards decarbonisation, internal combustion engine (ICE) vehicles are still prevalent in most markets.
Up to , nearly 80% of all passenger vehicles sold in the leading European markets were petrol or diesel, with the average lifespan of road vehicles being 10 years.
Clearly, the road to carbon-neutrality is a rocky one with barriers to adoption including price, range and refueling/charging anxieties. However, news that UK electric vehicles sales outpaced ICE sales for the first time in December offers cause for optimism in the race for adoption.
As motorists continue to embrace greener transport, many drivers will be considering which clean fuel is best for them. For fleet managers and sustainability directors, many will be wondering which is best for business?
At present, market leaders appear to be hydrogen, electric, Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) – each with their own advantages. But which is right for you, your business sector or personal driving habits?
We drill down into the data and review what your fuel of the future might look like.
Hydrogen would appear to be a strong choice for long-haul, heavy-duty vehicles and other commercial transport and we are starting to see the first fuel cell trucks recently appearing on the European market.
The Hydrogen truck lends itself naturally to the mass mileage demands of HGV haulage. Hyundai’s current Xcient model, for instance, can travel 400 miles on a single tank, while Volvo is pouring millions into the development of its own hydrogen-powered alternative with a range of km.
Volvo’s simple nozzle-to-pump dispensation will also appeal to motorists, with no need for time-consuming charging which may complicate electric, battery-powered alternatives.
To fully flourish, however, greater infrastructure is needed to support future fuel development. Hydrogen investment is growing but not as quickly as that of electric vehicles (EV). Market leaders, Germany provide a neat case study with total German hydrogen refueling stations expected to reach 85 by and 300 by . Despite this, cumulative hydrogen investment totals €40 billion, which lags behind EV at €51 billion.
One other thing to note, when it comes to this future fuel is cost. In Germany, the average price of fuel per 100km is 7.60 euros for Hydrogen, compared with 9.05 euros for diesel and 11.74 euros for petrol.
One lesser known option is CNG which is widely accepted to be the ‘cleanest fossil fuel’. Its chemical properties mean it’s compressed to less than 1% of its volume while it reduces carbon monoxide emissions by 90 to 97 percent.
Although it’s a non-renewable source, having been formed millions of years ago from decomposing plants and animals, CNG is non-toxic and has fiscal benefits too. Every 1% increase in natural gas production can create 35,000 jobs.
Statistically, CNG is 30% more efficient than petrol with a vehicle able to travel the same distance on 6/7 litres of CNG as 10 litres of petrol. As with any fuel, pricing is subject to global market conditions, but it remains the cheapest non-renewable energy source. Its nozzle-to-pump refuelling method is also a clear user benefit.
Despite this, CNG adoption is currently in its infancy. There are currently only 4,159 refilling stations across Europe, which makes it more of an option for fleet owners as opposed to the everyday motorist. This is not to say that CNG doesn’t have mainstream potential, with the fueling option accepted in Europe for passenger vehicles. Almost any petrol vehicle can be retrofitted with a CNG system for around € - €, which could make it a shrewd alternative to other clean fuels. This may appeal to businesses or commercial fleets that require its efficiency benefits.
In Germany – CNG market leaders – the fuel compares favourably in terms of price too. The average cost of fuel is 6.48 euros per 100km for CNG, compared to 9.05 euros for diesel and 11.74 euros for petrol.
LNG is another derivative of the abundant natural gas, formed when natural gas is compressed and cooled to -162 degrees Celsius. The International Energy Agency estimates that if consumption remains at present levels, there are enough resources to last 230 years.
Again, much like its counterpart CNG, LNG is a cleaner fossil fuel, producing 40% less carbon dioxide than coal and 30% less than oil. It’s clean and quiet burning, while its familiar refilling method should appeal to drivers.
LNG infrastructure may be embryonic, but it is fast growing. There are around 635 LNG stations on the continent with the bulk concentrated in Western Europe – Germany with 162, Italy with 130 and Spain with 90, This represents a network that has doubled in size in less than two years. Ultimately, consumers want energy to be affordable, secure and capable of driving down Carbon emissions. LNG ticks all these boxes. Its cost-competitive benefits mean it has strong potential for commercial transport.
While the hydrogen propulsion method first gained traction in the early s, this has been supplanted in recent years by the rise of EVs.
The European market is currently leading the charge on the global stage with 1,390,000 units sold across the continent per year. By , every second car sold is expected to be powered by electricity. This has serious potential for the general motorist. Massive investments are being made across EMEA as countries pour billions into charging infrastructure. The Netherlands is currently blazing the trail with 90,000 charging points as of , while Europe plans to have 1.3 million public chargers in place by and 2.9 million by .
Price points also offer mainstream charging potential. In the Netherlands, the average cost of electricity per 100km is 5.31 euros compared to 8.66 euros for diesel and 12.32 euros for petrol. Home and workplace charging stations, meanwhile, remain safe and easy to use where drivers can simply ‘plug in’ their vehicle to the charge point. Despite this, charging times, range anxieties and initial cost remain main barriers to adoption.
David Mc Guinness, Director of Product Management, Electric Vehicle Charging at Dover Fueling Solutions® expands on reasons for this: “While price and range concerns are being addressed by automotive manufacturers, more needs to be done by authorities to improve access to ‘the plug’.
“Dependable, renewable energy infrastructure is required to feed the grid with a need to create a consumer-centric recharging model that serves the practical needs of EV drivers.
“As local governments begin to embrace this, companies can deliver high-quality fast chargers to market.
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