1. Transport European Strategy on Alternative Fuels - Clean Power for Transport Initiative - Franz Söldner

2. Transport Alternative Fuels for Europe  The issue – why substitute oil?  The alternatives – which solution?  Support actions - what has been done?  The Clean Power for Transport initiative - a European alternative fuels strategy

3. Transport Slide 3 Energy Consumption in Transport Mtoe RoadRailDomestic Navigation Domestic Aviation International Aviation TOTAL Oil Products28736843 347 Electricity4 4 Biofuels13 Natural Gas1 1 LPG5 5 TOTAL Fuels30676843370

4. Transport Oil price Speculative bubble 2007-2008: Cost for EU transport = 90 b€ North-Africa unrest 2010-2011: Cost for EU transport = 40 b€ ($/bl)

5. Transport Issue with Oil Economics - cost Cost for oil up to € 1 billion per day for the EU in 2011 Trade balance deficit in oil: ~ 2.5 % of GDP Energy - security of supply Oil counts for 94% of transport fuels, 84% imported Access to oil vulnerable and prone to interruptions Environment – climate change, pollution Greenhouse gas emissions from use of fossil energy Air pollution from combustion of oil in transport

6. Transport Slide 6 Alternative Fuels Propulsion with internal combustion engines lBiofuels Wide feedstock range with renewable low-CO 2 sources lSynthetic fuels Production from fossil and renewable sources with synthetic technologies lNatural gas Fossil (natural gas) and renewable sources (biomethane; "solar/ wind" gas) lLPG Fossil (oil, natural gas) and renewable sources (bio-refineries) Propulsion with electric motors lElectricity Stored in batteries on board of vehicles; grid supply or recuperation lHydrogen Stored in tanks on board of vehicles; electricity production in fuel cells  Both are universal energy carriers using all primary energy sources

7. Transport Alternative Fuels - Renewable Energy lElectricity Storage of electricity from fluctuating production from renewables (solar; wind) in batteries of electric vehicles Electric grid stabilisation with feed-in from batteries lHydrogen Storage of fluctuating renewable electricity production in hydrogen produced from water through electrolysis Use of hydrogen in fuel cells for electromobility lNatural gas Production from biomass: biomethane Production from hydrogen through methanisation with CO 2

8. Transport Slide 8 EU Actions on Alternative Fuels  Communication on alternative fuels (11/2001) Biofuels, natural gas, hydrogen  Directive on the market share of biofuels (5/2003) Market share 2% in 2005, rising to 5.75% in 2010  Directive on the taxation of energy products (10/2003) Lower taxation of alternative fuels enabled  Renewable Energy Directive (April 2009) Binding target: 10% renewable transport fuels by 2020  Technology Platforms, Joint Technology Initiatives Hydrogen/fuel cells (TP: 2004; JTI: 2008), Transport (2004), Biofuels (2005 )  Green Cars Initiative of European Economic Recovery Plan (2008 ) Focus on electromobility (EU demonstration project Green eMotion: 2011)  Communication on clean and energy efficient vehicle strategy (4/2010) Focus on improvement of internal combustion engine and electric vehicles  White Paper on common transport policy (3/2011) Announcing comprehensive long-term strategy on alternative fuels for all transport modes

9. Transport Slide 9 EU-Support to Hydrogen and Fuel Cells (M€)

10. Transport Financial Incentives for Electric Vehicles

11. Transport Slide 11 Alternative Fuel Infrastructure

12. Transport Alternative Fuel Market in Europe Different national technology choices ➜ Isolated national/regional markets ➜ Fragmentation of the internal market for alternative fuels ➜ EU-wide mobility inhibited by technology borders ➜ Deadlock between missing infrastructure and vehicles

13. Transport Slide 13 Steps to an Alternative Fuel Strategy lEuropean Expert Group on Future Transport Fuels Future Transport Fuels Report: 25 January 2011 Alternative Fuels Infrastructure Report: December 2011 lJoint Expert Group Transport & Environment European Alternative Fuel Strategy Report: May 2011 lConference on Future Transport Fuels 13 April 2011 (European Sustainable Energy Week ) lPublic Consultation 11 August – 20 October 2011 lStudies, including stakeholder consultation Clean Transport Systems study: final report November 2011 Implementation study: final report August 2012 lClean Power for Transport package Commission adoption 23 January 2013

14. Transport Slide 14 Energy Pathways

15. Transport Slide 15 Land Efficiency of Biofuels

16. Transport Slide 16 Land Efficiency of Biofuels 1 ha:

17. Transport Clean Power for Transport Initiative Establish a consistent long-term EU alternative fuel strategy Build a sustainable and competitive transport system in the EU Strengthen the internal market for new technologies in the EU Ensure EU-wide infrastructure to close a major market gap

18. Transport Clean Power for Transport Package European alternative fuels strategy Communication Deployment of alternative fuels infrastructure Directive Action Plan on LNG for shipping Staff Working Document

19. Transport Communication on a European Alternative Fuel Strategy Comprehensive mix of alternative fuels to substitute oil as energy source for all transport modes on the long-term: LPG Natural gas (LNG and CNG) Electricity Biofuels Hydrogen Priority actions: EU-wide infrastructure Common technical standards Consumer acceptance Technological development ➜ Framework for investment and technology development

20. Transport Alternative Fuels for all Transport Mode RoadAirRailWater Range UrbanShort Medium Long Short MediumLongInlandShort seaMaritime Natural gas LNG Electricity Biofuels Hydrogen

21. Transport Directive on Infrastructure Build-up National policy frameworks required Electrical vehicle charging point targets per Member State and shore-side electricity for ships in ports Hydrogen refuelling infrastructure in active Member States LNG refuelling points for ships in TEN-T Core ports and for trucks along TENT-Core roads Natural gas refuelling points for EU-wide mobility Common standards for all alternative fuel infrastructure Consumer information on vehicle/fuel compatibility

22. Transport Alternative Fuel Market Development EU-funded Projects Green Car Initiative FCH Joint Undertaking TEN-T projects Sustainable Market Infrastructure Common standards Regulatory measures CO2; pollutants Fuel quality; renewable energy Green procurement Market incentives Subsidies Fiscal incentives EIB loans Missing Link

23. Transport Action Plan on LNG for Shipping Case for LNG as alternative fuel for shipping Economic aspects of LNG for shipping State of deployment and main obstacles Infrastructure issue Financial support Actions towards an EU framework for LNG for shipping

24. Transport Case for LNG for Shipping  Cleaner fuels needed for most ships in European waters: Low sulphur (<0.1%) marine fuels required in sulphur emission control areas (SECAs) from 2015  LNG has low pollutant emissions: SOx ~0, PM ~0; NOx 10% less than diesel: meets or exceeds future emission standards  LNG has low CO2 emissions: 25% less than diesel  LNG has low cost: ~ factor 2 cheaper than low-sulphur diesel; prospect of increasing spread between LNG and diesel 

25. Transport Slide 25 Cost of Fuels Speculative bubble 2007/8: Cost for EU transport: 90 b€ North-Africa unrest 2010/11: Cost for EU transport: 40 b€ Alternative fuels Infrastructure costs for full EU coverage Electricity 20 million charging posts 40 b€ Hydrogen 100.000 filling stations 50 b€ Natural gas 100.000 filling stations 40 b€ $/bl Oil price Cost

26. Transport Cost - Benefits Cost € 10 billion total (€ 1.5 billion per year) for alternative fuel infrastructure until 2020 Benefits € 4.2 billion per year saving on oil bill € 1 billion per year saving from dampening oil price hikes € 15.4 billion from environmental gains (less CO2 emissions, pollutants, noise) Additional employment from infrastructure build-up Strengthening of competitiveness of European industry

27. Transport Slide 27 Summary Oil dependence major issue for economy - but transport first Oil supplies 94% of energy to transport; 84% imported Cost for oil high and rising; price hikes hit economy Oil is cause for high CO 2 and pollutant emissions from transport Comprehensive long-term European fuel strategy Substitution of oil for all transport modes Fuel mix: LPG, biofuels, natural gas, electricity, hydrogen European action required to ensure integrity of internal market Alternative fuel infrastructure EU-wide coverage important for citizens and industry Public intervention required through action on EU level