What does the current market for CNG look like?
Over the past 10 years there has been significant growth in NGVs worldwide, with on average 30% annual growth reported.
Globally, there are approximately 19 million NGVs with over 1.9 million in Europe, with countries like Italy, Germany, Sweden and Spain leading the market. Ireland lags behind the European and global trends in NGV development largely due to a lack of infrastructure to serve these vehicles.
Chrisander Technologies, with Gas Networks Ireland, are currently addressing this gap in the market by planning to install 70 new public and private refuelling stations nationwide, supporting numerous vehicle trials and providing businesses with information needed to make the switch to a cleaner, more competitive fuel.
Support For CNG
The European Deployment of the Alternative Fuels Infrastructure Directive requires that Ireland establishes a refuelling infrastructure for CNG every 150km by 2025. This will ensure vehicle operators using CNG across Europe security of supply of fuel. The Irish Government’s Finance Bill 2015 confirmed that a set excise duty of €9.36 per megawatt hour will be applied to CNG for the next 8 years.
This represents a significant reduction in the excise applied to diesel or petrol and reflects the Government’s commitment to providing alternatives for Ireland’s future transport energy needs. There are tax incentives for CNG relative to diesel: the mineral oil excise duty applied to diesel (€0.479 per litre) is higher than that applied to CNG (€0.053 per litre).
In December 2015 the Department of Communications, Energy and Natural Resources published its Energy White Paper which outlines a number of areas through which Government intends to support the deployment and use of CNG as a transport fuel, such as:
- Continue to support the adoption of zero and low carbon tailpipe emission vehicles such as electric vehicles and gas vehicles, using natural gas and biogas, through grants and/or tax relief
- Establish a green bus fund to support the purchase of cleaner and greener public transport vehicles in the period to 2020
- Develop a national policy framework to underpin and support the deployment of infrastructure for the use of alternative transport fuels, including compressed natural gas (CNG), liquefied petroleum gas (LPG), liquefied natural gas (LNG) and electricity.”
How To Get Your Business Connected
There are two types of CNG station currently being installed in Ireland where it is possible for your vehicle to be fuelled with CNG:
CNG Installations are supporting the establishment of CNG in Ireland for the following:
1. Private Stations
Dedicated private refuelling station where a customer can refuel a fleet or fleets of vehicles
2. Public Stations
Typically located at an existing fuel forecourt where anyone with a natural gas vehicle may refuel
In order to establish a new CNG station, a connection to the natural gas network is required; this is provided by Gas Networks Ireland. This gas connection will typically be a low pressure connection, but depending on the station requirements and location it may be necessary to provide a high pressure connection.
CNG stations can be supplied with natural gas from the current gas network infrastructure and will allow for the introduction of biomethane (biogas) to NGVs without further conversion, thus providing the transport sector with a completely renewable indigenous fuel source.