korean policy for ngv promotion clean gas! clean drive! clean life! deputy director kuk. hyun soo...
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Korean policy for NGV Promotion
Korean policy for NGV Promotion
Clean Gas! Clean Drive! Clean Life!
Deputy Director Kuk. Hyun SooEnvironmental Transportation DivisionMinistry of Environment , Republic of Korea
Korean policy for NGV Promotion
01 Background
02 Progress
03 Policy Achievements
04 Government Support
05 Future Direction
ContentsKorean policy for NGV Promotion
Korean 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 ㎍ / ㎥
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Korean policy for NGV Promotion
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)
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Korean policy for NGV Promotion
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
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Korean policy for NGV Promotion
• 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$/year)
• Low carbon content al-lows reduced CO2 emis-sion
• CO2 Emission Factor (LNG : LPG : Diesel = 100 : 113 : 132)
Clean Practicality
Economic Low Car-bon
Characteristics of CNG BUS
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Korean policy for NGV Promotion
Emission from NGV
Emission from Diesel and NGV Bus
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Korean policy for NGV Promotion
CNG Vehicles Worldwide
More than 19 Million NGVs operating globally (Jan. 2014)
Argentina
Brazil
India
Korea
China
PakistanIran
Italy
Iran 3,500 K
China3,000
KPakistan 2,790
KArgentina 2,288
KBrazil
1,753 K
India1,800
KItaly
823 K
Colombia 457K
Thailand 422 K
USA 250
KKorea
35 K
: :
Total 19,820K
* Source : The GVR (The Gas Vehicles Report)
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USA
ColombiaThailand
Korean policy for NGV Promotion
• G7 Project : Develop CNG Bus (MOE, MOKE, MOST) • Pilot Operation of CNG Bus
• 「 Clean Air Conservation Act 」 amendment• Establish a legal basis upon NGV supply
• Beginning of CNG Bus Supply
• 「 Special Act on Metropolitan Air Quality Improvement Act 」 enact• Obligation of Low Emission Vehicles
• Beginning of Mass Production for CNG Waste Truck and Supply
• Extend the type of vehicles to intercity bus/airport shuttle bus/commute bus/school bus
• Set the CNG Hybrid Bus supply plan • Planning Test Drive(11.7)
• Organize "Eco Friendly Vehicle Development Agency"• Research on HCNG, CNG Hybrid Bus Technology and Infra
• CNG Hybrid demonstration project
Progress
Major Progresses
9
’92~’98
’99.4
’00~
’03.12
’05.07
’04~’06
’10.1
’11.6
’12.7
Korean policy for NGV Promotion
Growth of Natural Gas Bus Distribution
• The Natural Gas Bus Supply Project helped improve the atmospheric environment of Seoul and reduce pollutant emission.
• Environment Improvement Benefit : 1,466M US$
• 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
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Korean policy for NGV Promotion
• 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 ($17,849/station)
Tax Exemption
Natural Gas Bus Support
PolicyBasis on : Atmospheric Environment
Preservation Act
Government Support
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• Loan Size varies according to type - Fixed Station (625K US$)- Mobile Station (178K US$)
• Vehicle : VAT, Acqui-sition Tax ,Tariff ($13,976/bus)
Korean policy for NGV Promotion
• Accounting : Special Account for Environmental Improvement- Purpose : expand investments in environmental improvement - Funding : environmental improvement charges, waste charges, etc.
• Period : ‘00~ ‘13• Amount : 447M US$• 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
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Korean policy for NGV Promotion
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
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Korean policy for NGV Promotion
• 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%
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Korean policy for NGV Promotion
• 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
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Korean policy for NGV Promotion
• HCNG Bus reduces 11.3% of CO2 and 55.4%(max.) of CO compare to CNG Bus
Pilot Project & Evaluation
(’11)
Promote Pilot Project for Evaluation of Running Perfor-mance
• Pilot Project : Test Supply for 30buses in Metropolitan Area• Support Scale : 36K US$/Unit Purchase Subsidy
- Purpose : expand investments in environmental im-provement
Pilot Project & Evaluation
(’11)
Establish Stable Supply System with price reduction, Phase in
• Target : Diesel/CNG Urban Bus Replacement• Support Scale: Considering 27K US$/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
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Korean policy for NGV Promotion
Korean policy for NGV Promotion
Thank You