Korean policy for NGV Promotion Clean Gas! Clean Drive! Clean Life! Deputy Director Kuk. Hyun Soo...

Korean policy for NGV Promotion


Clean Gas! Clean Drive! Clean Life!

Deputy Director Kuk. Hyun SooEnvironmental Transportation DivisionMinistry of Environment , Republic of Korea


01 Background

02 Progress

03 Policy Achievements

04 Government Support

05 Future Direction

ContentsKorean policy for NGV Promotion


Increasing Number of Vehicles in Korea

Need for responding to the increas-ing demand for automobiles• Increasing car ownership with economic

growth- 130K cars in the 70’s→ 19.40 million cars by the end of 2013

Background

Deepening problems of air pollution such as PM• Seoul : 71 ㎍ / ㎥ , London : 20

㎍ / ㎥ , Tokyo : 40 ㎍ / ㎥

3


Characteristics of Metropolitan Air Pollu-tion

Main Sources of air pollu-tion(PM10) in Metropolitan Area

PM10 emission by vehicle type in the Road Traffic Sec-tor

* Source: National institute of Envi-ronmental Research(2010)

* Source: National institute of Envi-ronmental Research(2010)

4


Main Policy Measures for Address-ing Air Pollution

Strengthening EmissionStandard

Promoting Low Emission Vehicles

Adopting Global Standards※ EURO 5, SULEV

Electric Vehicle Hybrid CarNatural Gas Bus

Retrofitting ExistingVehicles

Emission Reduction Equipment(DPF)

Natural Gas Bus is the most cost-effective method for reducing PM

5


• Lower emission of harmful exhaust gas (compared to diesel)

- Exhaust (PM): 100% reduc-tion

- CO: 90.6% reduction - NOx: 38% reduction - HC: 64.6% reduction

Characteristics of Natural Gas

Vehicles!

• Already commercial-ized engine technology

• 19 million NGV in the world (as at Jan. 2014 – The GVR)

• Lower price compared to other fuels (based on natural gas buses; savings of 58K US$/year)

• Low carbon content al-lows reduced CO2 emis-sion

• CO2 Emission Factor (LNG : LPG : Diesel = 100 : 113 : 132)

Clean Practicality

Economic Low Car-bon

Characteristics of CNG BUS

6


Emission from NGV

Emission from Diesel and NGV Bus

7


CNG Vehicles Worldwide

More than 19 Million NGVs operating globally (Jan. 2014)

Argentina

Brazil

India

Korea

China

PakistanIran

Italy

Iran 3,500 K

China3,000

KPakistan 2,790

KArgentina 2,288

KBrazil

1,753 K

India1,800

KItaly

823 K

Colombia 457K

Thailand 422 K

USA 250

KKorea

35 K

: :

Total 19,820K

* Source : The GVR (The Gas Vehicles Report)

8

USA

ColombiaThailand


• G7 Project : Develop CNG Bus (MOE, MOKE, MOST) • Pilot Operation of CNG Bus

• 「 Clean Air Conservation Act 」 amendment• Establish a legal basis upon NGV supply

• Beginning of CNG Bus Supply

• 「 Special Act on Metropolitan Air Quality Improvement Act 」 enact• Obligation of Low Emission Vehicles

• Beginning of Mass Production for CNG Waste Truck and Supply

• Extend the type of vehicles to intercity bus/airport shuttle bus/commute bus/school bus

• Set the CNG Hybrid Bus supply plan • Planning Test Drive(11.7)

• Organize "Eco Friendly Vehicle Development Agency"• Research on HCNG, CNG Hybrid Bus Technology and Infra

• CNG Hybrid demonstration project

Progress

Major Progresses

9

’92~’98

’99.4

’00~

’03.12

’05.07

’04~’06

’10.1

’11.6

’12.7


Growth of Natural Gas Bus Distribution

• The Natural Gas Bus Supply Project helped improve the atmospheric environment of Seoul and reduce pollutant emission.

• Environment Improvement Benefit : 1,466M US$

• Job Creation & Increase of Export Amount : 1,017M US$ ('05~'11, for 7yr)

Improvement in fine dust conditions (PM10) in Seoul

Reduction in pollu-tant emissions ('00~'08)

Achievements

PM 7,794 tons

NOx 190,126 tons

CO 74,236 tons

10

34,297

42


• Subsidies for Purchases (S-tate /Local Funding : 50% each)- Large Size Bus : 17K US$- Medium Size Bus : 14K US$- 11ton Street Sweeper : 37K US$

- 5ton Street Sweeper : 24K US$

Subsidies for CNG Bus Pur-chases

• 5-year and 10-year re-payment period with variable interest rate

Loans for CNG Station construc-tion

• Maintain over 0.06 US$/ ㎥ price dif-ference from diesel

Fuel Cost Assistance

• CNG Station : Corporate Tax ($17,849/station)

Tax Exemption

Natural Gas Bus Support

PolicyBasis on : Atmospheric Environment

Preservation Act

Government Support

11

• Loan Size varies according to type - Fixed Station (625K US$)- Mobile Station (178K US$)

• Vehicle : VAT, Acqui-sition Tax ,Tariff ($13,976/bus)


• Accounting : Special Account for Environmental Improvement- Purpose : expand investments in environmental improvement - Funding : environmental improvement charges, waste charges, etc.

• Period : ‘00~ ‘13• Amount : 447M US$• Conditions : Matching Fund (State/Local Funding :

50% each)• Implemented by : Ministry of Environment/local gov-

ernments

• Period : ‘00 ~’13• Amount : 234M US$• Condition : 5year deferment, 10years amortization • Implemented by : Ministry of Environment

Purchase/Fuel Cost

Loan For CNG Station

Support Amount : 681M US$ (’00~’13)

Scale of Government Support

12


Planning & support of CNG Bus Promo-

tion

CNG Bus Safety Manage-

ment

CNG Station Safety Manage-

ment

• Clean Air Conser-vation Act

• Special Act on Metropolitan Air Quality Improve-ment

• Automobile Man-agement Act / en-forcement decree / enforcement rules

• Automobile Safety Standard Rules

• High Pressure Gas Safety Control Act / enforcement decree /enforce-ment rules

• Technology Stan-dard (KGS CODE)

Major NGV Regulations

13


• EURO VI standard has come into effect. Diesel cars from 2014, CNG buses from 2013. GHG restriction starts from 2015 allowing 140g/km with 17km/ℓ fuel efficiency.

• The HCNG technology is considered as the next generation technol-ogy applicable to natural gas vehicles, which can result in better fuel efficiency and lower GHG emissions.

Future Directions for Natural Gas Bus

Low EmissionsLNG/CNG

Low Emissions+ Low CO2

CNG Hybrid/HCNGNear Zero Emissions

?

Future Directions

HCNG• Natural Gas +

Hydrogen(20~30%) mix• Increased thermal efficiency and

GHG reduction with combustion stabilizing

CNG Hybrid• Natural gas + electric energy• Recovers and reuses energy during

deceleration• Fuel efficiency potential: more than

30%

14


• Over 30% Fuel Efficiency increase and GHG Reduction is expected

Pilot Project & Evaluation

(’11~’12)

Pilot Project for Running Performance Evaluation

• Pilot Project : Targeting on nationwide Metropolitan Area• Support Scale : 36K US$ Purchase Subsidy (per unit)

- Total price is estimated to be 58K US$ higher than CNG Bus

Phased Promo-tion

( ’13~)

Establish Stable Supply System with price reduction

• For Replacement/Dismantlement of urban Diesel/CNG Bus• Supplied 34 CNG Hybrid Buses by the end of 2013• Full-scale promotion in 2014 with 300 target supply

CNG Hybrid Bus Promotion

15


• HCNG Bus reduces 11.3% of CO2 and 55.4%(max.) of CO compare to CNG Bus


(’11)

Promote Pilot Project for Evaluation of Running Perfor-mance

• Pilot Project : Test Supply for 30buses in Metropolitan Area• Support Scale : 36K US$/Unit Purchase Subsidy

- Purpose : expand investments in environmental im-provement


(’11)

Establish Stable Supply System with price reduction, Phase in

• Target : Diesel/CNG Urban Bus Replacement• Support Scale: Considering 27K US$/Unit Subsidy after

‘13yr

TechnologicalDevelopment

(’09~’15)

HCNG Engine Commercialization Technology Development (’15) • Eco-Friendly Vehicle Dev. Project (’11.6~’16.5) : Engine/Infra.

building• Method for building Infra. with existing CNG station

utilization(KOGAS)• Examine related law and Regulation for HCNG SupplyDemonstration

Project(’16)

HCNG Demonstration Project (’16)

• Establish Govt. Promotion Policy through evaluation of the Pilot Project

• Test operation of Hydrogen reforming equipment on existing CNG Station

Phased supply of HCNG Bus from 2017

HCNG Bus Promotion

16



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Korean policy for NGV Promotion Clean Gas! Clean Drive! Clean Life! Deputy Director Kuk. Hyun Soo...

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