Scania, Iveco and Shell push LNG as road transport fuel across Europe

A consortium called BioLNG EuroNet announced a commitment to further the expansion of LNG (liquefied natural gas) as a road transport fuel across Europe with new infrastructure that should ensure the long-term success and mass scale adoption.

The consortium, comprising Shell, Disa, Scania, Osomo and Iveco will each deliver separate activities that will see 2,000 more LNG trucks on the road, 39 LNG fuelling stations and the construction of a BioLNG production plant in the Netherlands. The project aims to help the European Union meet its goal of a 60 percent reduction in CO2 emissions by 2030.

The 2,000 new LNG Heavy Goods Vehicles will be leased to end users through competitive financing and trucking solutions to reduce the cost of them. Only the additional costs of an LNG HGV compared to a diesel truck will be financed. The average eligible costs for each LNG truck are capped to a maximum of €30,000 (Rs 24 lakh).

The LNG retail stations will form part of a whole-European network and be built in Belgium, France, Germany, the Netherlands, Poland and Spain. The stations will be located approximately every 400km along core road network corridors from Spain to Eastern Poland.

“LNG is an increasingly affordable fuel for heavy goods vehicles which will make it an important energy source as the transport sector evolves,” said Istvan Kapitany, executive vice-president, Shell Retail.

The BioLNG facility will produce 3000 MT/year of BioLNG and will use biomethane produced from waste. This will be sold to end-users via the LNG network. According to the consortium, the energy density of BioLNG means that trucks can travel longer distances, which is better suited for the needs of transport operators at present and in the future too. Due to the use of industrial organic waste as a resource, the CO2 emissions will be much lower than the CO2 emissions of traditional fuels. The consortium asserts that BioLNG is essential in achieving the long-term aim of further decarbonisation for the road transport sector in Europe by 2030 as it virtually eliminates sulphur and offers a reduction in NOx and particulate matter.

“This program covers filling stations, biofuel production and subsidies which are all necessary for progressive customers to invest in the trucks, despite the extra initial cost,” said, Jonas Nordh, director sustainable transport solutions, Scania. “Whilst LNG which reduces CO2 emissions by about 20 percent, is more broadly available today, biogas, which reduces CO2 emissions by over 90 percent, can increasingly be blended in with the natural as production of biogas is ramped up.”

Each BioLNG EuroNet consortium member will receive 20 percent funding from the EU towards the cost of their commitments. The EU funding received by the BioLNG EuroNet consortium members falls under the connecting Europe facility (CEF) for the transport sector.

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