FUTURE FUEL Gas: the way forward for low carbon transport? November 2017
Taking the Flach IVECO’s line up of gas vehicles
The latest developments in the UK’s growing natural gas refuelling network
and
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special supplement in association with 16/11/2017 10:30:44
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CONTENTS 3
We are cooking on gas
Page 4: Taking the Flach: IVECO’s line up of gas vehicles Page 6: Go green, go gas: OEMs join the party
Page 10: Fuelling the future: the UK’s network of gas stations is 17 and growing Page 10: The natural option: going greener with biomethane
el
el
el
Page 12: On the road: operators, home and abroad, using gas vehicles
Page 15: Talk of the town: hot gossip from the LoCity conference
There have been dawns in the era of natural gas as a road transport fuel before – and they proved false. But now, the need to decarbonise transport and find a viable low-emission alternative to diesel is growing truly urgent – and gas is the only show in town. Electric vehicles may prove a viable option for urban transport at some point – but the idea of lugging around hundreds of kilos of batteries on LCVs just doesn't seem right somehow. Trucks and vans should be able to carry as much freight as possible and the loss of payload from heavy battery packs is inefficient. And while electric vehicles may be zero emissions at the tailpipe, charging up all those batteries requires a power station to run somewhere in the UK – because apart from our intermittent wind generation and a handful of ageing nuclear reactors most of our electricity comes from burning coal or increasingly – guess what – gas. Surely a far better use of this gas is to burn it in an efficient, lightweight gas engine. Gas is a well-proven technology – there are hundreds of gas buses on the road in the UK and more than 15,000 gas vehicles running on the continent. The barriers to gas trucks so far in the UK have been the high purchase price of gas vehicles and lack of refuelling infrastructure. But if you run 12 or more vehicles, the chances are it is cost effective to switch to gas and install your own gas fuelling station if your operating centre is still too far from one of the growing number of open access gas stations. So have a good look at the following pages and try to find a reason not to at least try a demo gas vehicle. ■ A big thank you to IVECO for investing in a low carbon future for road transport and sponsoring this supplement. Steve Hobson Editor
Editorial contributors Editor Steve Hobson Contributors Colin Barnett, Hayley Pink, Carol Millett Design & production Grace Wood Sales manager Emma Tyrer
Managing director Andy Salter Published by: DVV Media UK, 6th floor, Chancery House, St Nicholas Way, Sutton, SM1 1JB Tel: 020 8912 2170
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4 INTERVIEW: MARTIN FLACH
Taking the
Flach
IVECO is leading the way in gas CVs and can supply one for most applications between 3.5 tonnes and 44 tonnes. We meet IVECO alternative fuels director Martin Flach
W
hile natural gaspowered trucks and vans are wellestablished on the continent, the UK is yet to adopt this green alternative to diesel in any significant numbers. But all that is set to change and IVECO is ready with the most comprehensive line-up of gas commercial vehicles yet, says IVECO alternative fuels director Martin Flach, pictured. He argues the business as well as environmental case for gas, on high-mileage heavy trucks at least, is irrefutable. Natural gas (methane) compared with diesel reduces NOx emissions by approximately 70%, particulates by 90% and CO2 by up to 90% when using biomethane, and for some operators this will be enough to persuade them to switch to gas. Fuel duty on gas is the equivalent of 18ppl compared to 58ppl on diesel, and the government has pledged to maintain this differential until 2024 to help ignite the gas market. “I hope they recognise fuel duty isn’t doing enough to create uptake as quick as we would like,” says Flach. “We don’t need long term incentives, just one or two things to kickstart the market. Some gas suppliers will peg the price of gas to diesel to give certainty that the business case will remain but I would like to see the government maintain the duty differential on a rolling 10-year period. “One of my pet gripes is that the
road fund licence is the same for gas and diesel trucks. On cars the licence is based on CO2 emissions – on CVs we used to have reduced pollution certificates but they got rid of those. “The government has to give the right message – it likes to put money into innovation but then nothing happens for 20 years. But what can we do to make improvements now by encouraging uptake of existing technology?”
repair and maintenance packages and guaranteed RVs after five years on its gas vehicles at a similar level to a diesel. “If the infrastructure is there, the running costs are lower and if in the future, diesels are charged £100 a day to go into London, then the vehicle will be worth more than a diesel,” argues Flach. “When you’ve done a million kilometres you can chuck the vehicle away because it will have saved you a fortune.”
Counting the pennies
Then why not?
With the existing price differential between gas and diesel, switching to gas already makes financial sense for many operators within the 2024 guarantee. “On the Daily van the issue is not the cost and payback,” says Flach. “The extra cost of a gas Daily is £5,000 and if it uses £5,000 of fuel every year the payback is three years, which is OK.” At the other end of the weight scale gas artics, which do more than 100,000km a year, will also give a threeyear payback, but on medium-duty rigids the sums are not quite as clear. Typically they don’t do enough mileage to benefit from the lower fuel price. “With a Eurocargo at 12 tonne to 16 tonne the spend on fuel is £10,000 a year with mileage of 40,000km a year, which is not enough to get reasonable payback,” says Flach. Another perceived barrier to some operators is the uncertain residual value (RV) of a gas vehicle, something IVECO has removed by offering
Another potential drawback to gas is the weight and cost, and the cylindrical gas tanks. On lighter vehicles however, the payload issue could soon be resolved, as the DfT has recently closed a consultation on allowing low-emission vehicles up to 4.25 tonne to driven on a B (car) licence without an O-licence. “Plating a gas Daily to 4.25 tonne will gain up to 500kg payload on the equivalent 3.5 tonne diesel,” says Flach. “There is no payload penalty on a Stralis gas tractor unit because the weight we take off by removing the SCR unit saves 200kg, which balances out the extra weight of the gas tanks. Where we lose out on the gas Daily is the 3-litre rather than a 2.3-litre engine, the plastic diesel tank weighs next to nothing and the exhaust treatment system is not as heavy as on the Stralis.” There are developments underway to make gas tanks cheaper and easier to fit into the awkward spaces on a chassis. “All our CNG tanks are steel and
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5 set for 200 bar, while in the US 250 bar is common so they hold more gas for a better range,” says Flach. “These are made from a carbon fibre composite and they are lighter – but where a custom diesel tank can be made in any shape you want for £1,000, composite gas tanks are many times more expensive. “The weight of CNG and LNG tanks are similar but the range they give is different. On a 4x2 artic we can carry 400kg gas with LNG and 150kg with CNG, so CNG does about 600km while LNG does 1,500km.” Gas tanks will always be dearer than diesel, but LNG tanks are so expensive because there is only one widelyaccepted manufacturer, in the US. “Companies in Europe are working on gas tanks and they will get cheaper,” says Flach. “Another problem is that gas tanks are cylindrical but there are people out there looking at technology to make different shapes that fit better.” While the network of open access gas
refuelling stations is growing, for fleet operators with trucks returning to base every day, it is worth having a dedicated station on site. “Operators are no longer nervous about refuelling. When we visit them we go with a gas station provider and they can do a skid-mounted unit that can be connected quickly at modest cost,” says Flach. “That is worth doing with 10 to 15 trucks minimum depending on mileage; 12 vehicles doing 100,000km a year get you into the ballpark.” While the Stralis Natural Power 4x2 with its 400hp 9-litre engine is adequate for many applications – especially supermarkets – Flach knows the market is awaiting a higher horsepower 6x2. IVECO has just unveiled its 4x2 Natural Power Stralis with a 13-litre engine rated at up to 460hp. This will be available in right-hand drive in the UK in 2018 and is a prerequisite for a 6x2. “The power and torque of a gas engine is similar to diesel albeit with
The great escape Methane is a ferocious greenhouse gas so preventing leakage is important if the environmental benefits are not to be lost. Dedicated gas vehicles monitor the methane going into the engine on every firing stroke and if methane is detected in the exhaust gas, the injection is turned down on the next stroke. “The last thing we want to do is waste fuel, and methane will cause premature failure of the 3-way catalyst,” says Flach. The filling system is sealed so no methane should escape to atmosphere when refuelling. One potential issue with LNG, which is kept liquefied at -160C, is if the vehicle is stood for more than around a week the gas in the tank will start to boil and if the pressure gets up to 18 bar it will vent to atmosphere. “The way to prevent this is to run the vehicle for a short while,” says Flach.
slightly lower torque at low revs,” says Flach. “With the 13-litre engine we will bring in the Hi-Tronix gearbox with predictive cruise control.”
Starting up For the foreseeable future, IVECO is sticking with the tried and tested spark ignition gas engine technology. “High pressure direct injection (HPDI) is interesting and on a 4x2 it could work well,” says Flach. HPDI uses a small amount of diesel to ignite the gas – the advantage is better efficiency but the disadvantage is it needs a diesel tank, an AdBlue tank and an SCR unit. On a 4x2 where there is lots of space between the wheels, it might work with a reasonable range. “On a 6x2 there would have to be a small LNG tank giving less than 400km range. When we started on the 6x2 my criterion was if it couldn’t give me 600km range don’t do it. That is what a driver can do in a shift so it lends itself to out and back operations.” The Eurocargo gas range includes 12 tonners and 16 tonners, on any wheelbase, with a 210hp engine and 9-speed manual or Allison automatic gearbox. “Because of the lower mileages of this size of vehicle the cost benefit will be free entry into low-emission zones,” says Flach. “The main interest we are seeing at the moment is for road sweepers and bin wagons.” The Daily CNG van comes with a 3-litre engine rated at 136hp available with manual and Hi-matic 8-speed automatic gearbox. Smaller Dailys can be specc’d with a 14-litre back-up petrol tank to get home if it runs out of gas. The DfT has predicted up to 20% of vehicles could run on gas and Flach believes “that’s not impossible”. “On the heavy side that is probable, but on the medium and light duty vehicles it will be difficult,” he adds. “On urban applications there will be a lot of competition from electric vehicles. In five years electric vans will be one reason we might not get to 20% gas.” ■ To book a gas demonstration vehicle call IVECO on 0800 915 0040.
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6 FEATURE: GAS TRUCKS
So, what’s on offer? One barrier to adopting gas in the past has been a lack of ex-factory gas trucks. But that is changing
A
lthough the various forms of gas power are credible alternatives to diesel in the right application, producing a guide to what the major truck manufacturers offer in the UK proved easier than expected.
DAF says it is keeping a watching brief and will react when it considers the market is ready. MAN doesn’t offer anything, and while Renault’s research facility in France is experimenting with all types of alternative fuel, no gas-powered vehicle is available in the UK. IVECO IVECO is the leading proponent of gas, having invested in the technology to give it an edge in the marketplace. We recently had the opportunity to drive an example of its latest product, complementing the existing Daily and Eurocargo models, the Stralis NP460, updated with an Otto cycle (spark
ignition) Cursor 13 engine answering calls for more power than last year’s 9-litre NP400. As well as more power and torque driving through the latest Hi-Tronix (ZF TraXon) transmission and optimised axle ratios, revised packaging provides greater range. Using LNG, with its greater energy density than CNG, the 4x2 tractor and the rigid variants can carry sufficient fuel for up to 1,500km. This is reduced to 750km on the 6x2 tractor, but that is enough for most regional and return-to-base operations. Despite a significantly higher capital cost, IVECO claims whole life costs are up to 9% lower than diesel. IVECO makes the bold claim that while the NP400 was as good as a diesel, the 13-litre NP460 is better. In the words of IVECO brand president Pierre Lahutte: “It will make diesel a thing of the past.” Having driven the NP460, it feels barely distinguishable from a diesel, with its 2,000Nm of torque delivered
only slightly higher up the rev range. Most drivers would find it hard to tell the difference in a blind test; the gas is a bit quieter and noticeably smoother. Although IVECO claims its wholelife total cost of ownership is rather less than a diesel, there are some differences. For a start, the purchase cost is 30% to 40% higher than the equivalent diesel. Running costs may be slightly higher, as oil service intervals, although extended to 90,000km since the NP400, are still more frequent than diesel’s 100,000km. On the positive side of the maintenance equation, most of the diesel’s whole engine after-treatment system is missing, with just a simple 3-way catalyst. Spark plugs should last for 90,000km and are standard items costing a negligible amount. The big variable in costs is how much you pay for your fuel, with relative costs for gas and diesel varying widely across Europe.
Mercedes-Benz Daimler is a relative newcomer to the gas party with its Mercedes-Benz brand. The only gas-powered vehicle it offers for sale in the UK is the CNG Econic 6x2 rear-steer, pictured left, with a selection of wheelbase options.
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7 ON THE ROAD: Commercial Motor takes an IVECO Stralis NP460 for a spin in southern Germany on a visit last month
However, Mercedes plans to introduce the CNG drivetrain as an option next year in the Antos 4x2 and 6x2 configurations. Its engine is a spark ignition adaptation of the Econic’s regular 7.7-litre OM936 6-cylinder diesel, developing 298hp and with 1,200Nm of torque from 1,200-1,600rpm. The gas engine is coupled to a 6-speed Allison automatic transmission. So that leaves the two Swedish brands.
Scania
available. On LNG, the standard tanks give about 550 miles.
Volvo Volvo is about to launch its contribution to the gas-powered market, with LNGpowered FH and FM models with 420hp or 460hp for heavy regional and long-haul operations. Sales of Volvo FM LNG and Volvo FH LNG, pictured below, will start in spring 2018. Volvo has opted to use diesel-like compression ignition instead of sparks, which requires a small amount of diesel to be carried in order to provide initial
combustion. Volvo’s 460hp gas engine delivers a maximum 2,300Nm of torque, and the 420hp produces 2,100Nm, the same as its corresponding diesel engines. It claims fuel consumption is similar to its diesel engines, but 15% to 25% lower than for conventional gas engines. The largest fuel tank variant contains enough LNG for a range of up to 1,000km. Compared with diesel, claimed CO2 emissions reduction are 20% on fossil LNG or 100% on a combination of HVO (hydrogenated vegetable oil) and bio-LNG. “Natural gas offers clear climate upsides, it is competitively priced in many countries, and there are sufficient reserves to justify large-scale use. Our focus on LNG vehicles is creating new prerequisites for our customers to run fuel- and cost-efficient operations. At the same time, we’re making it possible for heavy truck operations to reduce their effect on the climate,” says Lars Mårtensson, Volvo Trucks’ director of environment and innovation.
The first to get the current generation of gas-powered trucks into UK operations is Scania, with its first operator vehicles entering service in the middle of October. In the culmination of a six-month planning partnership with Scania and Don-Bur, Howard Tenens has introduced its first two CNG-powered 26-tonne rigids into service (see page 12 for more). Scania’s gas-powered trucks are spark-ignited and come in two ratings, 280hp/1,350Nm and 340hp/1,600Nm. Range on the standard-CNG steel tanks is 330 miles, with third-part composite tanks giving up to 500 miles
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8 FEATURE: GAS REFUELLING
Preparing for the future As hauliers increasingly consider gas trucks, can they be sure there will be a national gas refuelling network to support their operations?
T
he UK’s national gas refuelling station network pales into insignificance when compared to its diesel counterpart. Unlike diesel fleets, which have access to thousands of stations across the country, gas fuelled fleets must rely on 17 openaccess LNG or CNG stations or their own dedicated on-site stations. Indeed the Low Carbon Truck Trial in 2016 identified the lack of refuelling stations as a key barrier to the adoption of gas-fuelled trucks and its call for government funding for gas refuelling stations has so far fallen on deaf ears. Peter Fjeld, CEO of gas station provider CNG Fuels, pictured, says, while he would like to see government funding, market demand justifies private sector investment in the infrastructure. Much of that demand comes from the rising number of dedicated gas OEM vehicles coming to the UK market. This, combined with increasing concerns about air quality, rising client demand for sustainable transport solutions and lower fuel costs, has brought the market to a tipping point, says Fjeld. “There are orders for several hundred trucks in the pipeline for next year with interest ramping up every day,” he says.
CNG Fuels runs two open access CNG-grid-connected stations, supplying bio-methane fuel sourced from food waste, under a mass balancing system. Its Crewe station has capacity for 100 trucks a day, while its Leyland station, which is the UK’s first high pressure local transmission system (LTS) gridconnected station, can refuel more than 500 trucks a day. Both of these ‘mother’ stations can supply gas via trailer to a customer’s depot or ‘daughter’ station. “From next year we will be opening two to three stations a quarter – and building and operating them for third parties. That growth is driven by the arrival of these dedicated and more powerful gas trucks,” says Fjeld.
Selling and buying vehicles Boosting sales of gas trucks is intrinsic to creating a gas refuelling network, according to Matthew Hunt, business development manager at Gasrec, a supplier of LNG and CNG fuel. “Initial sales of gas-fuelled trucks will seed growth of infrastructure,” says Hunt, who works with IVECO, Scania and, from next year, Volvo, to promote gas trucks. “We spend our time promoting gas trucks, because without them we have no market. Interest in gas vehicles has spiked with the introduction of factorybuilt dedicated gas trucks. Operators like that these are OEM trucks, with all the aftercare, warranties and maintenance they are used to. Interest has increased immeasurably in the last nine months and will continue to do so as new products come to market.” On the back of this surge, Gasrec is committing to build more open access stations over the next 18 months.
But with the low carbon trial identifying planning delays as an obstacle to infrastructure development, could providers face a bottleneck? “In the early days, that was a problem,” says Hunt, “but authorities have a greater understanding of the market and a focus on improving air quality, we’ve found local authorities recently to be very helpful.” Fjeld seconds this view. “It took us seven weeks to get planning permission for Leyland, and that included the Christmas break. We’re building these stations on A-roads and motorways so it’s not controversial. They’re safe, there’s no ground contaminants, the trucks are quieter and the air quality better, so we’re only getting positive support from local planning authorities.” Even in the unlikely event of a planning bottleneck, fleet operators have the option of CNG and LNG providers delivering supplies to site. Gasrec can set up a dedicated depotbased gas refuelling station in four weeks. This service supports its strategy to develop a network of large, public access stations, similar to its station at Daventry International Rail Freight Terminal (DIRFT), pictured, Europe’s largest natural gas refuelling centre, which services up to 200 trucks a day. “It can take 12 months to plan and build a station the size of DIRFT, so we use small stations to allow early market
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9
e
How a gas station works
growth,” says Hunt. Gasrec will set up small on-site stations for clients while seeking to open larger open access stations nearby within 12 months. These smaller stations are the lifeblood of this emergent market, says Hunt. “Larger facilities are required bringing increased fuel security and economies of scale, but the initial adoption curve will require quickly deployable assets.” Calor, which runs the UK’s largest publicly accessible LNG road-refuelling network, is another provider ramping up its roll out. It runs seven public access LNG stations, including five at Moto’s Donington Park, Grantham, Aust, Bristol and Lymm services, and is looking, over the next 12 to 18 months, to have a filling station every 250 miles. Mark Gilks, Calor LNG transport sales manager, says: “We are talking to a number of hauliers about opening stations on their facilities with an option to open that to third party access so we can build up more LNG usage.”
Pricing The pump price is another factor to the sustainability of a gas refuelling network. While the UK’s 10-year fixed duty differential ensures duty on gas remains less than half of diesel, there’s still a price variation between gas stations, ranging from 60p per kg to £1 per kg, depending on the location
and infrastructure. With gas dedicated vehicles costing more than their diesel equivalents, getting a keen price is vital. Steve Carroll, head of transport at Cenex, an independent, not-for-profit consultancy, would like to see greater transparency on gas pricing, pointing out that only one station advertises its prices online. As a rule of thumb, says Carroll, the lower costs stations are CNG grid connected stations, particularly CNG Fuels’ Leyland station, which is connected to the National Gas Grid via an LTS, providing gas at a higher pressure of 20 bar, making it cheaper to raise the pressure to the 200 bar required to fuel trucks. He adds LCNG stations, which compress LNG, shipped to site, into CNG, are the most expensive, while LNG station prices vary, depending on how close they are to the LNG terminal on the Isle of Grain, Kent. As more LTS-connected sites are developed, prices should fall, says Celine Cluzel, Element Energy associate director: “The high pressure points [on the gas grid] create opportunities for high capacity stations delivering cost competitive gas to hauliers. Our research shows the station operator will pay back its station two years earlier if connected to the high pressure network, compared to the medium pressure.” ■ See gasvehiclehub.org/refuellingfacility to find refuelling stations.
Every CNG station has a secure compressor compound containing a gas inlet metering skid, GRP housing for electrical control equipment, standby generator, compressors and ground storage. The compressors will typically compress the gas from a pipeline inlet pressure of 20-30 bar to approximately 250 or 300 bar. This compressed gas is then temporarily stored in ground storage buffer modules. When a vehicle refuels, the CNG flows from the ground storage buffer modules, and not directly from the compressors. When the pressure in the ground storage has been reduced to a set pressure, the compressors start automatically and refill the ground storage buffer modules. Vehicles pull up next to the dispenser where the driver attaches the refuelling nozzle to the gas tank on the vehicle. Customers then present their refuelling fobs to the fuel management system reader. Once the customer fob has been accepted by the system, the driver presses the “start” button on the dispenser. The dispenser will stop automatically when the refuelling is done and the driver removes the refuelling nozzle and drives away. The driver is not required to use any PPE. LNG stations consist of a cryogenic storage tank and a fuel dispenser. LNG is stored and dispensed as a cryogenic liquid at temperatures as low as -160C. The LNG is stored in double-walled vacuum insulated tank to minimise heat leak. Liquid fuel is delivered to a customer vehicle in a similar way to a petrol/diesel dispenser. The main differences are the requirement to wear PPE – gloves and safety glasses – due to the low temperature. The LNG is dispensed at a pressure of between 4 to 8 bar through a stainless steel dispensing hose, and quick connect dry-close coupling, to minimise any losses on disconnection.
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10 FEATURE: BIOMETHANE
Au naturel Natural gas is a clean alternative to diesel – but biogas is even greener. So, how do you get it?
N
atural gas, in both its compressed (CNG) and liquid forms (LNG), can offer an operator a compelling alternative to traditional diesel engines: reduced wellto-wheel carbon emissions, lower fuel costs and quieter running, which is ideal for urban environments. But CNG and LNG are still nonrenewable fossil fuels. For operators looking for a more sustainable alternative to diesel, could biomethane hold the answer?
Why choose biomethane? Biomethane, produced by the anaerobic digestion (AD) of organic matter at a biogas plant or from landfill, is chemically identical to natural gas and can be used in existing gas-powered vehicles in compressed or liquid form. It provides greenhouse gas savings over diesel and even natural gas trucks, as proven in an independent study by Element Energy of trucks using CNG Fuels’ grid-connected, high-pressure biomethane refuelling facility in Leyland. This showed CO2 reductions of 84%
compared with diesel for those filling up on 100% biomethane. For those using the same high-pressure station for fossil fuel CNG, the trucks would still have a 12% advantage over diesel counterparts. Biomethane is included in the government’s Renewable Transport Fuels Obligation (RTFO), a scheme that requires fuel suppliers to secure a percentage of their supply from renewable sources (see box). The DfT announced proposals in September to reform the RTFO, doubling the amount of road fuel required to come from renewable sources. It says this increase is to bring the RTFO in line with its aim to reduce greenhouse gas emissions by 80% by 2050 (from 1990 levels). Such a move has been welcomed by the Anaerobic Digestion and Bioresources Association (ADBA), which believes biomethane is “perfectly positioned” to meet the increased renewable fuel targets. It says that, with more than 80 AD plants across the UK producing biomethane, there is the capacity to provide enough biomethane to power
80% of the UK’s bus fleet and the potential to produce enough biomethane to power 75% of all HGVs in the UK. ADBA chief executive Charlotte Morton says: “The raising of the obligation for renewable-sourced fuels to 12.4% by 2032 goes beyond what was consulted on and will create a positive investment for renewable fuels.” However, while the RTFO may increase, biomethane is only one of a number of qualifying fuels, with more established transport fuels, such as bioethanol and biodiesel, making up the lion’s share. The transport sector faces competing demand for biomethane from the energy sector, which offers subsidies under the Renewable Heat Incentive (RHI), which are more attractive for fuel producers than those under the RTFO.
What is the RTFO? Introduced in 2008, the Renewable Transport Fuel Obligation (RTFO) supports the government’s policy on reducing greenhouse gas emissions from vehicles by encouraging the production of biofuels that don’t damage the environment. Under the RTFO, suppliers of transport and non-road mobile machinery (NRMM) fuel in the UK must be able to show a percentage of the fuel they supply comes from renewable and sustainable sources. Fuel suppliers who supply at least 450,000 litres of road fuel a year are affected. This includes suppliers of biofuels as well as suppliers of fossil fuels. In September this year, following a consultation, the DfT proposed reforms to the RTFO that would require fuel suppliers to increase the amount of renewable fuel they source. The reforms will obligate fuel suppliers to provide 9.75% of all fuels from renewable sources by 2020, a doubling of the current 4.75% obligation. This will then rise to 12.4% of all fuels by 2032. Suppliers may meet their obligation by redeeming Renewable Transport Fuel Certificates (RTFCs) or by paying a fixed sum for each litre of fuel for which they wish to ‘buy-out’ of their obligation.
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How to get hold of it? So, for operators looking to secure a steady supply what options are there? Steve Carroll, head of transport at Cenex, an independent, not-for-profit consultancy, explains some of the methods of securing biomethane. Liquid biomethane (LBM) can be collected at source, such as an AD plant or landfill site, then tanked to an operator or a dispensing site. However, UK commercial production of LBM can be difficult to secure. Encouraging AD plants to invest in the equipment needed to liquefy gas is difficult, says Carroll, as it can be expensive. “They need a lot more gas trucks on the road to generate the demand and justify the cost of the equipment, so it can be transported and used to refuel stations,” he adds. The deployment of between 80 to 85 biomethane-fuelled trucks under an Air Liquide-led scheme in the DfT’s Low Emission Freight and Logistics Trial could be the catalyst needed to kick-start the investment in infrastructure, he says. Operators can also opt to use a virtual biomethane when it comes to CNG. This sees biomethane directly injected into the National Gas Grid where it is produced, thus displacing the equivalent units of fossil-derived gas, and then extracted where needed locally. There are two methods to secure virtual biomethane for use in transport, rather than for heating or in the gas network.
One is through the use of independently-run initiatives such as the Green Gas Certification Scheme or Biomethane Certification Scheme, which guarantee the biomethane has come from a renewable source and tracks it throughout the supply chain. The second is by purchasing gas that has been injected into the grid to fulfil the government’s RTFO. The fuel is given a transport certificate and classed as a renewable transport fuel. “Virtual schemes are a good idea because we have a good natural gas infrastructure across the UK,” Carroll says. “But it’s making sure the right mechanisms are in place so it is cost effective for a producer to inject it into the grid and seal it for transport use.”
Could it work here? Although the UK is one of Europe’s largest producers of biogas, the majority is used to generate electricity, with the remainder mostly for heating and only a small proportion allocated to transport. “It’s for the Department of Energy and Climate Control to decide the best use of this gas and incentivise it,” says Carroll. “If it wants it to be used to reduce transport emissions, then it should make the RTFO scheme more attractive.” CNG Fuels is the first UK fuel supplier to offer RTFO-certified, grid-connected biomethane through its Leyland refuelling site, which opened last year and is used by the John Lewis Partnership.
The company buys the fuel from biomethane suppliers, which is injected into the gas grid at the point it is produced. It is then able to be extracted from the grid at Leyland thanks to a process called ‘mass balancing’. This includes an evidence trail for the biomethane to prove it is used in vehicles, and recognised under the RTFO. CNG Fuels CEO Philip Fjeld says the supply of biomethane is capable of meeting the UK demand from HGV operators. “There is a lot more biomethane chasing vehicles than there are vehicles needing volume,” he says. Even if demand was to surge in the long-term, AD producers will be able to keep pace due to the potential revenue stream available over and above that provided through RHI subsidies, which taper off past a set volume. “We have a long list of biomethane producers that want to supply transport, but there isn’t the demand,” Fjeld says. But operator interest is increasing for gas-powered trucks, and the government’s RTFO focus can only help to stimulate the supply of biomethane to meet this demand, says Low Carbon Vehicle Partnership MD Andy Eastlake. “Biomethane has an increased value for the suppliers and we’ve got a demand-side measure in road transport. So it’s quite a good place to be at the moment, as there is a real appetite to increase the amount of biomethane used in the road transport sector,” he says.
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Bucking the trend Continental operators already love gas. While gas vehicles are still a rare sight in the UK, operators on the continent have been using them for years, and there are more than 15,000 gas vehicles on the road across the Channel
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ast year, French transport firm Perrenot ordered 200 Stralis NP 400hp tractor units and 50 Stralis 330hp rigids to join its fleet of 3,500 vehicles. Founded in 1945, Perrenot has long been a pioneer of environmentallyfriendly transport, and took its first IVECO biomethane trucks in 2012. Speaking when the order was placed, Perrenot founder and president Jacky Perrenot said: “We are taking a key step in our development thanks to IVECO’s advanced natural gas technology. The dual LNG tank, which increases the tractor’s range to 1,500km, opens up business opportunities for us, especially in long distance transport operations.”
France is investing in plant to turn waste into biomethane, making this 100% renewable fuel a viable alternative for road transport operators.
At home In its home market of Italy, IVECO has supplied 10 Stralis NP vehicles to
automotive distributor i-Fast Automotive Logistics – the first car transporters in Europe to run on LNG. The 400hp Cursor 9 engines are mated with EuroTronic gearboxes and these quiet, lowemission vehicles can freely access urban areas in Italy where tough noise and pollution restrictions are being introduced. i-Fast carried out extensive trials of an NP fitted with both CNG and LNG tanks before opting for the LNG version with twin tanks to give the maximum operating range. There are more than 1,000 gas filling stations across Italy.
Jost orders 500 IVECO LNGs One of Europe’s largest logistics firms, Belgium-based Jost Group, has placed the biggest order for gas-powered Stralis Natural Power trucks, ordering 500 LNG vehicles scheduled to enter service between 2018 and 2020. Jost operates 1,400 trucks including 132 Stralis trucks, two of which are powered by CNG. The firm’s owner
Roland Jost said: “This marks a key turning point for our business as we begin a strategic move away from our dependence on diesel and towards green logistics. “Our excellent experience operating Euro-5 EEV Stralis has seen us establish a solid relationship with IVECO and this played a key
role in our decision to take the next step to sustainability, choosing the Stralis NP as the best solution.” Jost is installing dedicated LNG refuelling stations at three of its operating centres in Belgium to fuel its gas fleet and aims to have 35% of its fleet running on LNG within three years.
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The green get greener Howard Tenens, one of the UK’s foremost green hauliers, has taken delivery of two 26-tonne rigid gas vehicles from Scania, the first of their type to operate in the UK. Howard Tenens is a member of the Dedicated to Gas project which is part of the Low Emission Freight and Logistics trial, funded by the Office for Low Emission Vehicles (OLEV) in partnership with Innovate UK. These vehicles will be the first dedicated gas trucks to be deployed under the trial. Neale Ryan, senior programme manager – automotive, at Innovate UK said: “This first deployment is an important milestone in the Low Emission Freight and Logistics trial which will see more than 300 low and zero emission vehicles deployed on UK roads in 2017 and 2018.” The vehicles will be based in
Electric charging firm using CNGpowered vehicles One of the main barriers to the take up of electric vehicles (EVs) is range fear – the real worry that many drivers and operators have of running out of battery capacity on the road, leaving the EV stranded. One company – Zapinamo, with funding from Innovate UK – is looking
Swindon but deliver to customers in cities including London, and during the trial will switch to biogas. The Swedish truck maker is also supplying 32-tonne tractor units to John Lewis Partnership, which has committed to convert its fleet of 500 to biomethane by 2025. Its supermarket chain Waitrose is taking delivery of 54 CNG-powered 4x2 P340 units fitted with specially-built 250-bar carbon fibre gas tanks giving a 500-mile range. Like Howard Tenens, Waitrose extensively tested dual-fuel gas/diesel trucks, but abandoned the project
to ease these fears with its patented rapid mobile charging solution called Zupa. This is stored electrical energy housed in a 7-tonne Daily Blue Power CNG-powered van. With support from IVECO alternative fuels director Martin Flach, Zapinamo has two Dailys on the road and is planning to take a third. Zapinamo founder and CEO Tim Martin said: “This will be transformational for electric vehicles. We are working with Heathrow Airport, Europcar and a rapidly-growing home
when high levels of methane ‘slip’ were discovered. “Long distance transport options are narrow,” said Justin Laney, JLP general manager – central transport. “Your choices are diesel or gas.” Other UK supermarkets are looking at gas trucks for deliveries, and are awaiting the outcome of the government consultation on allowing low-emissions vehicles of up to 4.25 tonnes to be driven on a car licence. This would compensate for the reduced payload that makes these vehicles non-viable at 3.5 tonnes for home delivery operations.
delivery operator on a way to charge EVs using a mobile delivery system.” Zapinamo wanted a green vehicle to reinforce its environmental credentials – but electric vans do not yet provide the operational flexibility it requires so the CNG-powered Daily was an ideal solution. “We need the range and infrastructure without the damage to our brand of using a diesel,” said Martin. “We are covering an area from Bicester and Oxford to Heathrow and there are at least two or three sites where we can refuel with CNG.” Zupa takes electricity from any grid connection and charges an advanced battery system carried in the Daily. This can then rapidly charge EVs. “We will be moving from the trial stage to the commercial phase in the next three months,” said Martin. “It makes EV charging a mobile service.”
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On the buses UK bus operators are already enthusiastically adopting gas, both to save money on fuel and to reduce local pollution. Reading Buses has 35 single decks, five midi buses and five double decks running on gas, with another 17 on order to deliver in January. The company also uses an ex-demo IVECO gas Daily van as a service vehicle. “They’re all Scania chassis with 280hp to 305hp, except for the Optare Solos which were retrofitted with gas tanks and a 6-cylinder Cummins Westport engine from an original diesel powertrain,” said John Bickerton, head of engineering and innovation at Reading Buses. “Our first gas vehicles arrived in 2013 and we fuelled initially from a trailer until our compression station was commissioned a few months later.” Reading has found the gas
WHO DO YOU THINK YOU ARE KIDDING: Readers of a certain age might remember an episode of the popular BBC sitcom Dad’s Army in which Corporal Jones’s butcher’s van-cum-troop carrier was converted to run on methane stored in a bladder mounted on the roof. They say there’s nothing new on this earth.
vehicles are 50% more reliable than their diesel equivalents, which is why it has placed the latest gas doubledeck order. “We attribute this to the simplicity of the engines, with spark ignition and a passive 3-way catalyst so there’s no SCR, associated AdBlue or particulate filters to cause issues,” said Bickerton. “They’re 10% more expensive to buy than a diesel vehicle, but running costs are approximately 80% to 90% of a diesel bus. We’ve secured a longterm price for our gas, which reduces our commercial operating risk and insulates us against a rising diesel price for many years.” One challenge for new natural gas maintenance operation is staff training, but Bickerton says he has had “great support with training” (spark plugs and coil packs are the key differences from a familiar diesel engine) and this has been a “much greater challenge with our hybrid diesel vehicles.” Reading buys biomethane, which allows it to demonstrate a near-carbon neutral operation for these vehicles, at a very small cost. “There’s no easier or cheaper way for us to reduce our well-to-wheel carbon footprint, and with no nasty surprises in TCO,” said Bickerton. “We’ve become advocates of clean biomethane power.”
On the road with the NP Previous generations of gas trucks had a reputation for under-powered engines and limited range, so to prove the Stralis Natural Power suffers from neither of these problems, IVECO took it from one end of the UK to another on one tank. Self-confessed gas sceptic and Commercial Motor editor Will Shiers volunteered to co-drive the LNGpowered combination loaded to 30 tonnes from John o’Groats to Lands End and found the 400hp 9-litre engine linked to a 12-speed AS-Tronic gearbox just as easy to use as its diesel counterpart. “For a driver, the previous generation of gas trucks were about as appealing as a dose of clap,” said Shiers. “But the NP is different. The Cursor 9 with its 400hp and 1,700Nm of torque behaved like an equivalent diesel.” Even better, the gas engine is much quieter. “The first thing we noticed was how silent the truck is,” said Shiers. “The Euro-6 powered Stralis is already stealth-like but this is better again.” With a theoretical 1,500km (930 miles) range from the 400kg of gas, the 850 miles from the tip to toe of the British Isles should have been a breeze, but a combination of bad weather and heavy traffic meant the fuel gauge was deep in the red when the NP rolled up at Lands End. “We had a close call but we did it,” said Shiers. “And we proved if the haulage industry is serious about the environment, LNG is a genuine alternative to diesel.”
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LOCITY ROADSHOW 15 The LoCITY roadshow helped operators understand the benefits of gas-powered CVs
Try it for yourself
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ore than 100 visitors attended a LoCity Roadshow held at The Stoop, Twickenham in September, all keen to understand the implications and opportunities of running gas-fuelled vehicles. LoCITY is programme, developed by TfL, to help the freight sector transition towards low-emission vehicles. Delegates were asked questions on choosing, operating and maintaining gas-fuelled vans and trucks, and saw a range of market-ready vehicles. Speakers were drawn from operators, infrastructure suppliers and manufacturers all offering guidance on introducing and operating gas vehicles. Camden Council fleet manager Richard Clarke, Martin Flach, Iveco alternative fuels director and Adrian Heath, senior sales professional – alternative transport fuels at event sponsor Calor all shared operational experiences, offering tips and information about running gas vehicles. Clarke took delegates through Camden’s gas-fuelled vehicle journey. The council operates 280 vehicles, 38% of which are targeted to be alternativefuelled in the short term. Camden is focused on CNG, said Clarke. While Camden’s fleet is mostly LCVs, Calor’s experience is with heavier delivery vehicles. The company has been running a number of liquefied petroleum gas dual-fuel vehicles for 15 years and is planning trials of singlefuel LNG vehicles in the future. Flach
explained how vehicle manufacturers are developing gas vehicles and the benefits of operating LNG-fuelled CVs.
Useful tips shared included: ■ Good news story – maximise the publicity and goodwill from a shift to alternative-fuelled vehicles ■ Accessibility – gas infrastructure is available; engage with manufacturers and infrastructure providers to ensure you have a reliable supply ■ Beware of “wet gas” – the natural gas in London has a high water content, according to Clarke and this will effect your fuel usage calculations and can cause issues with liquefaction if you don’t install a drier. Operators were keen to explore gas as a fuel for CVs and the cross-section of vehicles on display in the outdoor exhibition gained much interest. Iveco brought three vehicles representing its light, medium and heavy ranges. Scania was represented by its CNGpowered vehicle in the Waitrose fleet, while at the lighter end of the market Autogas brought a Fiat Doblo LPGfuelled van and rental firm Fraikin had a Ford Transit Courier on display. Cadent demonstrated its CNG-fuelled Mercedes Arocs equipped with vacuum excavator bodywork, for pipe laying. A lively panel discussion involving all the infrastructure companies who
were exhibiting at was one of the features of the roadshow and delegates were able to quiz the panel on a range of matters. Gasrec CEO Rob Wood, pictured above, gave an overview of the work the company has been doing with Veolia at its Alperton, London site installing a gas refuelling facility. The site services 17 refuse trucks, with planned capacity for 34 vehicles. The company has similar refuelling sites nationwide and is working with Sainsbury’s, Tesco, Nisa, B&Q and UPS.
Proof in the pudding CNG Fuels’ CFO Baden GowrieSmith, pictured left, gave delegates an overview of the work CNG Fuels is doing to develop a network of public access CNG stations across the UK. Gowrie-Smith revealed the results from data at its Leyland and Crewe sites where 10 companies have trialled CNG-fuelled vehicles. The results speak for themselves: ■ CO2 savings of as much as 85% compared to diesel equivalent vehicles on the same routes ■ More than 40 pence per mile fuel savings.
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