M.Ziosi - NGVA Europe

CNH Industrial
ABOUT NATURAL GAS, POLICIES AND FUTURE
Contains confidential proprietary and trade secrets information of CNH Industrial. Any use of this work without express written consent is strictly prohibited.
CNH Industrial
Key Figures (31 Dec 2013)
1
12
group
71,192
employees
$ 12
million invested
in training
brands
48
62
R&D Centers
6,300
$
2,277
million trading profit
plants
7,710
individuals dedicated to innovation
active patents owned
$
190
33,836
million revenues
national markets
$
1,222
million invested in R&D
$
8,713
million total
available liquidity
2
CNH INDUSTRIAL
Trucks
Skid Steer Loaders
Buses
Engines
and Transmissions
Firefighting Equipment
Tractors
Crawler Excavators
Combines
3
CNHi IS LEADING IN ENVIRONMENTAL SOLUTIONS
REDUCTION OF
CO2 EMISSIONS
PM
NOX
REDUCTION OF
POLLUTANTS
(EURO STANDARDS)
REDUCTION OF
NOISE LEVELS
WORLD CLASS
MANUFACTURING
DRIVER ASSISTANCE
PRECISION FARMING
4
WHY NATURAL GAS IS THE BEST FUEL
SOURCE: GAZPROM
5
CNHi LEADERSHIP ON NATURAL GAS APPLICATIONS
EUROTECH CNG
1998
CITELIS CNG
2000
DAILY CNG
STRALIS LNG
STRALIS CNG
2008
2010
2012
EUROCARGO CNG
2014
NEW DAILY
2015
TRACTOR CNG
6
WHY NATURAL GAS FOR INDUSTRIAL APPLICATIONS?
2000
2013
Main Regions
2025
Main Applications
3.0x
>650
Natural Gas
(methane)
50
230
K units
1.2x
~1.500
1.200
Ethanol
(E85/E100)
400
K units
1.5x
LPG
80
120
180
K units
Oil independence and increasing availability, lower and favorable taxation, allow NG
to be the most promising alternative fuels for Industrial application market and CNHi
7
Volumes include only industrial application
NATURAL GAS DRIVERS

Solving last con’s…
Pro’s
• Fuel economy – ~30-35% fuel cost saving
by using NG replacing gasoline/diesel

• Sustainability –high environmental, safety
and economic performances (operative costs
and TCO) : lower PM and NOx emission (gap
reducing in EVI) and fuel costs savings.
Engine costs: engine cost
offset by no SCR requirement
will reduce the gap

Range: Range limit is highly
reduced by LNG application

Performance: New Engine redesign
allows comparable Diesel
performances

Infrastructure:
increasing
investments (also passenger driven)
are reducing infrastructure barrier
• Noise – urban missions
• Government support- government
policies and funds to encourage NGVs due
to lower CO2 emissions and pollutants
• Energy independence for
• countries with high natural gas reserves
• farmers with biogas domestic production
While Pro’s will remain in the future, main constraints will be solved
8
SIMULATION CASE: POLLUTANT REDUCTION WITH CNG VEHICLES
Azienda Napoletana Mobilità (ANM) – Municipality of Naples
Context
• Public transport urban / suburban
• Annual mileage: approximately 30,000,000 km * Bus Fleet (source ANM)
• Number of vehicles: 734
• Features of the service provided: average speed 12 km/h (source ANM), degree of filling
bus 70% average, slope of the road by 2% (estimates IVECO-SSTC)
Hypothesis
• Renewal of the fleet with NG vehicles
- replacement of vehicles pre-Euro I and Euro I
- replacement of 10% of Euro II vehicles
• Compare current SCENARIO vs FLEET RENEWAL
- pollutant emissions (estimate) : PM, CO, NOx (IVECO CSST on COPERT data-processing)
April 2014
CNH I Natural Gas
9
SIMULATION CASE: POLLUTANT REDUCTION WITH CNG VEHICLES
Azienda Napoletana Mobilità (ANM) – Comune di Napoli
Current Scenario vs. Renewal Scenario
ACTUAL RUNNING PARC
RENEWAL SCENARIO
Euro 0
1%
CNG
11%
Euro 5
11%
Euro 1
7%
CNG
25%
Euro 4
6%
Euro 2
53%
Euro 5
11%
Euro 3
5%
Euro 2
59%
Euro 4
6%
Euro 3
5%
TOTAL ANNUAL KM
CNG
Euro 5
Euro 4
Euro 3
Euro 2
Euro 1
Euro 0
0
2.000.000
4.000.000
6.000.000
8.000.000
RENEWAL
April 2014
CNH I Natural Gas
10.000.000
12.000.000
14.000.000
16.000.000
ACTUAL
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SIMULATION CASE: POLLUTANT REDUCTION WITH CNG VEHICLES
Azienda Napoletana Mobilità (ANM) – Municipality of Naples
Pollutant Emissions: PM, CO, NOx
EMISSIONS AFTER RENEWAL
120.000,00
100.000,00
80.000,00
60.000,00
40.000,00
20.000,00
CURRENT EMISSIONS
0,00
Euro 0
160.000,00
Euro 1
Euro 2
Euro 3
Euro 4
Euro 5
CNG
140.000,00
120.000,00
100.000,00
80.000,00
60.000,00
PM (Kg/y)
-29,0%
CO (Kg/y)
-9,4%
NO (Kg/y)
-7,5%
40.000,00
20.000,00
0,00
Euro 0
Euro 1
Euro 2
April 2014
Euro 3
Euro 4
Euro 5
CNG
CNH I Natural Gas
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EXAMPLE OF BEST PRACTICE IN EU PROJECTS - LNG
LNG BLUE CORRIDORS
The project is co-funded by the European Commission with the amount of 7.96 M€ (total investments
amounting to 14.33 M€) in the context of the Seventh Framework Programme (FP7),
April 2014
CNH I Natural Gas
12
EXAMPLE OF BEST PRACTICE IN EU PROJECTS - CNG
TEN-T FUNDING FOR NG FILLING STATIONS
•
•
•
31,7 billion € in total for transport
infrastructure projects up to 2020.
GARneT LNG-Project winner of 2012
call.
On January 2014, the European Union
published
a
new
transport
infrastructure policy that connects the
continent between East and West,
North and South.
April 2014
CNH I Natural Gas
13
EXAMPLE OF BEST PRACTICE IN NATIONAL LOCAL POLICIES –
ITALIAN MUNICIPALITIES
Opening first LNG refueling station
Milan
Turin
Piacenza
Protocols on City Logistic in Urban Areas
• In 2014, a new version of the new Rome
logistic Protocol will be approved extending
the access to incentives for the acquisition of
new Diesel and alternative traction
vehicles also to national logistic operators
operating within the Rome low emission zone
(LEZ).
Rome
Naples
• The Turin Protocol has already been signed
and will start to operate soon.
• The Milan and Naples Protocols in the
pipeline
October 25th, 2013
Footer
EXAMPLE OF BEST PRACTICE IN NATIONAL POLICIES - ITALY
National Strategic Plan for LNG
• The Italian government has pledged to take steps for the construction of storage facilities
and redistribution as well as rules for the implementation of the distributors of Liquefied
Natural Gas (LNG);
• For these reasons it was established a National Coordination Group (NCG) focus on
the use of LNG in shipping and road transport only on heavy duty vehicles (trucks, buses,
trains). The Coordination Group has the objective of preparing the National
Strategic Plan on the use of LNG in Italy.
NCG PARTICIPANTS
Ministry of Economic Development (Coordinator)
-
Ministry of Transport
Ministry of the Environment
Ministry of Internal Affairs
Regions
Universities and ENEA
October 25th, 2013
- ANCI
- National Associations concerned
- LNG Terminals
- Research Centers (RINA, IGC)
- Other stakeholders (Iveco, NGV Italy)
Footer
EXAMPLE OF BEST PRACTICE - FRANCE
MUNICIPALITIES
The most important fleet in Europe
Served by a CNG fleet of:
 400 buses (150 running biomethane)
 Locally produced bio-methane fuelled
Bus Rapid Transit is an efficient transport system
harmonized and connected with the urban and
city framework, with high commercial speed and
low carbon footprint
Served by a CNG fleet of:
 40 BRT buses
 39 stations on a route of 13.5 km
length, serviced at the frequency of 5
minutes during peak hours
October 25th, 2013
Footer
OTHER CNH INDUSTRIAL NATURAL GAS PROJECTS
prototype
 STEYR PROFI Natural Power: More ecological – More efficient
 Biomethane engine – 6 cylinder NEF– 6,7 litre capacity – 115 - 140 HP
 Reduce fuel costs up to 40%
 Combustion emissions 80% less than a diesel engine
 Quieter engine up to 5db less compared to equivalent diesel engines
 Outstanding step forward to environmental care and operational cost
reduction.
prototype
October 25th, 2013
Footer

NH CNG powered agriculture tractors will have
field tests within.

Energy Independent Farm concept: it focuses on
the ability of farms to produce energy from
natural sources, in this case biomass, that have a
low environmental impact, and to use it to
power the agricultural machines and the farm
itself or even to sell the exceeding surplus
energy to the local grid.
17
EXAMPLES OF EU POLICIES IMPACTING ON NGV SECTOR
Renewable Energy Directive (2009/28/EC)
+ Clean and less pollutant vehicles
+ Environmental Sustainability
CO2 Regulation for Cars and LCVs
EU Communication Strategy for Alternative Fuels
Directive Proposal on Alternative Fuel Infrastructure
TEN-T Funding – LNG Blue Corridor
+ Infrastructure
+ Environmental Sustainability
+ Economic Sustainability
Horizon 2020 Funding for R&D
+ Environmental Sustainability
+ Research & Development
Revision of Directive 96/53 on Weight & Dimensions
+ Mass/length increase to cleaner vehicles
Review of Air Quality Directive
+ Clean and less pollutant vehicles
…not always in the same direction
Revision of Directive 2003/96/EC on Energy Taxation
- Emission Reduction
- Infrastructure development
Directive 2009/33/EC on the Promotion of Clean and
Energy Efficient Road Transport Vehicles
- High energy content penalize
Natural Gas in public tenders.
Need of structured, coordinated and more consistent policies.
April 2014
CNH I Natural Gas
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April 2014
CNH I Natural Gas
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CNG AS A BRIDGE TO GAS FROM RENEWABLE SOURCES BIOMETHANE
Growing interest in «Biomethane»
(properly purified biogas) because:

Renewable energy source

Greater energy independence

Produced by a wide variety of
biomass

Possibility to be put into the
distribution network

Compatible with the natural gas
vehicles in the market

Ideal for agricultural applications
Member States should define, based on the provision of Directive 2009/28/EC, on the use of
energy from renewable sources – the technical standards to put the biogas in the
pipeline and the mechanism to promote the use and diffusion of biomethane.
CONCLUSIONS
• Strong boost for infrastructure development is needed;
• In view of environmental advantages low TCO must be guaranteed by the decision
makers;
• Fuels from renewable sources such as BIOMETHANE have great opportunities for
development and will play an important role in the near future for transport (target of
10% by 2020). Included in the agriculture sector;
• EU institutions and national governments must ensure a coherent legislative framework.
in order to guarantee predictability for industry and customers.
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THANK YOU!
NEW IVECO DAILY
TECHNOLOGY
up to 350 km
ADVANTAGES
Noise
reduction
autonomy
Fuel Cost
-20% vs diesel (*)
(*) EU CNG vs DIESEL average price
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