From Prototype to Product. the Development of Low

This report is published within the KFB Program on Biobased Fuels for Vehicles

TfflS DOOM# 6

wr'l From Prototype to Product The development of low emission natural gas- and biogas buses

Mats Ekelund Strateco DISTRP^- - - •'$ DOCUMENT IS UNLIMITED uiidiiiN SALES PROHIBITED

A follow up of the KFB- and Nordic Industrial Fund sponsored "Co-Nordic GasBuss Project" KFB-Rapport 1997:19 FORFATTARE/AUTHOR SERIE/SERIES Rapport 1997:19 Mats Ekelund ISBN 91-88868-41-9 ISSN 1104-2621 utel /htle PUBUCERINGSDATUM/DATE PUBLISHED From Prototype to Product January 1998 UTGIVARE/PUBLISHER KFB - Kommunikationsforsknings- KFBs DNR 88-194-732 and 1993-0270 beredningen

REFERAT (Syfte, Metod, Resultat) Syftet med rapporten ar att beskriva utvecklingen for natur- och biogasdrivna bussar och andra tunga fordon sedan “Nordiska GasBuss Projetet”, for vilken TFB/KFT var en huvudfinansiar och en av initiativtagarna. Idag finns ca 325 tunga metangasdrivna fordon i landet. Projetets uppstallda mal naddes, da signifikant reduktion av avgasnivan kunde demonstre- ras. Volvo, och senare Scania, omsatte de laga nivaerna pa saval bussar som i lastbilar. Hela den etablerade busstilverkarindustrin har darefter, foljt efter till samma laga avgasnivaer. Sve rige leder utvecklingen av biogas som drivmedel och har narmare 100 fordon. Biogas ar ur fdrsorjningssynpunkt en undervarderad fdrsdrjningskalla som teoretiskt kan ersatta minst halften av dieselanvandningen i Sverige. Utvinningen av biogas kommer att oka ju mer avfall som sorteras och atervinns. Scanai och Volvo har tillverkat ca 500 gasbussar till 6 olika lander. Den utveckling som behover aga rum omfattar; kontrollen av avgasutslappen for att oka sta- bilitieten av over tiden, den omfattar utvecklingen mot lattare och billigare tankar och kompressor-Zreningsanlaggningar, fdrbattringen av verkninsgraden for att na lagre drivmedelsforbruk- ning och avgasutslapp av bla CO2, NOx och CH4. Samhallets kostnader, oavsett vem som betalar, for natur- och biogasdrivna tunga fordon ar i annu nagot hogre an for basta dieselteknink med CRT-filter. Da kommersialiseringen okar och priset pa gasfordonen fdrvantas sjunka, ar det sannolikt att de samlade aktorskostnaderna (industri, stat och anvandare) kommer att ligga klart under kostnaderna for dieseldrift. ABSTRACT (Aim, Method, Results) The objective of this report is to show the development of natural gas and bio gas buses and trucks since the termination of the “Co-Nordic GasBus Project”, to which KFB was a major contributor and one of the initiators. Sweden have some 325 heavyduty methane vehicles of which almost 100 are bio gas operated. Scania and Volvo have produced, or have orders for, 500 gas buses to 6 different countries since 1990.

The Project objectives were obtained and the significantly reduced emission levels aimed for, were shown. The international bus manufacturing industry followed, and have since shown the same low levels of emissions from gas bus engines. Sweden has taken the lead in the use of bio gas, by operating nearly 100 buses and trucks. Bio gas is still an underestimated fuel when it comes to supply, as it can provide fuel for 50 % of the domestic use of diesel oil.

Future development need to include control systems for more stabile emissions, lower weight cylinders, less costly compressors, cleaning equipment and storage cylinders as well as more fuel efficient engines that can reduce mainly the discharge of CO2, NOx and CH4 further.

Societal costs, regardless of who pays, for methane operated buses is still somewhat higher compared with best use of diesel + CRT technology. As commercialization develops, it is expected that the price of the vehicle will be reduced and emissions improved. It is therefore expected that the stake holders costs will be lower then that of diesel technology in the future.

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From Prototype to Product The development of low emission natural gas- and biogas buses

Mats Ekelund Strateco

KFB-Rapport 1997:19 From Prototype to Product

Foreword The “Co-Nordic GasBus Project" was initiated during a conference in Esbjerg in december 1986. The Nordic Council of Ministers had invited bus operators- and manufacturers to discuss more rapid means to reduce exhausts from public transportation - buses in particular.

May 31, 1988, the technical managers of the public transit companies in tha Nordic area and in Malmo decided to get into action. The pro ject was started and the group constituated them selves into a Stee ring Committee. More specifically, they were: o Rolf Berg SL (Stockholm, S) o Ingvar Bluckert ML (Malmo, S) o Claus Lund HT (Copenhagen, DK) chairman o William Theisen OS (Oslo, N) o Seppo Vepsalainen HST (Helsinki, SF)

Mats Ekelund, Strateco Development, Sweden, was assiged project manager and Rolf Egnell, Aspen Development, was assigned project engineer. Ragnar Thdmblom, SL, was invited as a specialist to join the Steering Comittee.

The project was terminated in April, 1994, by giving a seminar in Trondheim, Norway, hosted by the Nordic Council of Ministers and Statoil.

The report is funded by KFB, the Swedish Transport and Communica tions Research Board and aims at presenteing some of the vital steps of delveopment that has occured after the project. KFB have an inte rest in the development of alternative fuels and more so in fuels where the feed stock is bio based. Natural gas is not bio based, but the bio gas technology is basically identical with that of natural gas vehicles - it does note really matter if the CH4 molecule is old (fossil) or new (re newable).

The Nordic Industrial Fund was the main funding organsiation, who's early comittment to the project, provided early involvement by many others. In all, 44 companies and organsiations have contributed the MSEK 20 (MUS$ 3).

A special thanks also to James Hasten from San Jose, California, and Kristoffer Wren from Heber City, Utah, for making this report be more English then “Swenglish".

Handen, Sweden, in January 1998 Mats Ekelund

Strateco 1 After the "Co-Nordic GasBus Project" From Prototype to Product Summary The objective of this report is to show the development of na tural gas and bio gas buses. Some 300 or more heavy duty methane vehicles operates in the Scanidnavian countries, most of them in Sweden. Scania and Volvo, being the OEM project partners, have produced 500 gas buses to 6 different count ries. Their production has been going on since 1992.

The Project objectives was to show that "significantly reduced exhaust emissions” could be obtained, mening exhaust levels so low that they at that time was not thoughed to be obtainable with any other fuel in an internal combustion engine. The ob-jective was met, including for instance a NOx- level of 2 g/kWh (ECE R49) and 2.5 g/kWh (US FTP).

The international bus industry have since shown the same low levels of emissions, possibly triggered by the resuts from this project, initiallay presented in Buenos Aires in 1990.

Since the project, Sweden has also taken the lead in the use of bio gas, by operating nearly 100 buses and trucks as well as some 150 cars. Bio gas is still an underestimated fuel when it comes to supply, as it statistically can provide fuel for 50 % or more of the domestic use of diesel oil, i.e. 10-15 TWh.

Future development need to include control systems for more stabile emissions - especialy when using different fuel quali ties, lower weight cylinders, less costly compressors and clea ning equipment and storage cylinders as well as more fuel efficient engines that can reduce mainly the discharge of CO2, NOx and CH4 further. Methane from renewable sources are not accounted for as greenhouse gases, as they already exist in the natural cycle. Un-bumed mehtane from natural gas is measured as C02-equivalent in order to reduce confution of HC-emissions.

Societal costs, regardless of who pays, for methane operated buses is still somewhat higher compared with best use of die-' sel + CRT technology. As commercialization develops, it is ex pected that the price of the vehicle will be reduced and emissi-ons improved. It is therefore expected that the stake holders costs will be lower then that of diesel technology in the future.

Strateco 2 After the “Co-Nordic GasBus Project" From Prototype to Product

Contents

Foreword 1 Summary 2 Contents 3

1 Background 4 1.1 History and achieved objectives 4 1.2 Purpose and objective 4 1.3 Relations 5 2 Technology 8 2.1 New technology, step by step 2.2 Bio gas- and natural gas operations 11 2.3 Further needs 14 3 Environment 16 3.1 Measured results 16 3.2 Comments on methane 18 3.3 Future impact 19 4 Economy 21 4.1 Vehicle production 21 4.2 Gas prices 21 4.3 Infrastructure 22 4.4 Economies of the society 23 5 Market 27 5.1 Heavy Duty Vehicle Sales 27 5.2 New decisions at stake holders 28 5.3 Results compared with objectives 29 6 A gives B, gives C... 31 7 Important experiences 33 7.1 Cooperation 33 7.2 The organizations as a competitive tool 33 7.3 A “balanced effort” 34 8 Future 35 8.1 Market developments 35 8.2 Suggestions to the stake holders 35

Strateco 3 After the "Co-Nordic GasBus Project" From Prototype to Product

1 Background 1.1 History and achieved objectives Malmo Energy and Mahno Transit Authority are neighbors and after closing a trial project with LPG buses, a new test was planned. This time with natural gas as a propellant. Three buses were retrofitted and at the same time, the fuel supplier, Malmo Energy, investigated and purchased a large Italian Nuevo Pignone compressor and instal led it across the street from the bus garage.

The speed of reducing pollutants from standard buses went too slow at that time. A conference for only invitees was therefore held in Esb- jerg, Denmark in December 1986, where the Nordic Council of Minis ters had invited the industry branches, TNO from Holland and some government bodies from the Nordic countries. The outcome, beside the conference report, lasted until May 31, 1988 when Rolf Berg, Manager of Technology at Greater Stockholm Transit Authority arranged a me-eting with his colleagues from the other capitol cities at the Stockholm Fair, prior to the Nordic Public Communication Biennial Conference. - The “Co-Nordic GasBus Project” had started

Facts and contacts had been collected at the initiative of Vattenfall (at that time the Swedish State Power Board). Operational and emis sion facts had been collected from North America, Holland, Italy and from other Nordic countries. Some 100-125 companies, individuals and organizations were carefully interviewed in the preparations for this project, all funded by Vattenfall, STU (now NUTEK) and KFB.

Achieved objectives after the project involved having presented the results at a conference in Buenos Aires in 1990. The targeted emission levels had been talked of as impossible to reach. Within two years af-ter having reported the “impossible”, all OEM's and laboratories had presented similar levels of emissions.

1.2 Purpose and objective Natural gas buses and trucks had, up till then, virtually only been talked of as “clean burning", as no black smoke was visible behind the tailpipe. For that reason, the objective was set to “investigate the pos-sibilities of a "significantly reduced exhaust emission level”

Up to that time, Cummins and Iveco engines in operation had proven the best exhaust emission levels.

The philosophy of the project, was that it is not for durability, econo- nomy, acceptability or safety reasons a diesel bus will be replaced in the future. Diesel bus replacement will come because of the diesel

Strateco 4 After the “Co-Nordic GasBus Project" From Prototype to Product

With only a limited supplyof natural gas, the introduction of bio gas was primarily a matter of supply to begin with. Since the supply, clea ning and vehicular technology has proven its viability - equal to that of natural gas - the benefit in using a renewable and non CO2- contri buting gas that is "more natural than natural gas” has been obvious.

Since the Summit in Rio in 1992, the global agreement has focused more and more on renewable energy, the bio gas seems to be a comp lement to natural gas and a diesel- as well as gasoline replacement.

Renewable energy will be in shortage if explored as intended, if there is no break-through on the supply side. Therefore, natural gas supply is expected to be the fore-runner for a long time, especially abroad.

Bio gas can be transmitted in a natural gas pipeline. There is no technical reason for the gas industry to keep bio gas outside their business. The issue of involving bio gas in the business has not been raised in most areas. Politically, the bio gas is not yet accepted, it is not even on the agenda, probably because there is no shortage of natural gas, neither a market or political pressure is enough to re route. Using bio gas in the business, would be a way for the gas industry to increase their credibility in the environmental debate, probably a necessity in the 21st century western transport world.

Funding Nordic Industrial Fund and KFB may be considered as main- and ini tial contributor to the funding of the project. The Fund was the lar gest individual contributor, supplying MSEK 2,9 (14,5 %). Beside that, total funding from public (tax) funds were 31 % and the rest, 69 %, was contributed by the Industry. Mutual Nordic Industrial Funds contributed some 19 %, Sweden 21 %, Norway 15 %, Finland 10 % and Denmark 4 %.______i

Scanta's first bus to Sydney after engine development completed

Strateco 6 After the “Co-Nordic GasBus Project" From Prototype to Product

Svmeco 7 After the ‘Co-Nordic GasBus Project" From Prototype to Product

2 Technology 2.1 New technology, step by step Substantial emission reduction at the time the project started, focu sed at NOx and aimed for a reduction from a 10-15 gram NOx/kWh to 2 g/kWh and at low extra fuel consumption. Carbon Oxide (CO) and Particulate Matters (PM) did not seem to be an issue as opposed to Hydro Carbons (HC) in terms of unbumed methane.

The Scania 11 liter bus engine was converted to stochiometric opera tions with a three way catalytic (TWC) operation at Ricardo in Eng land, while the 9,6 liter Volvo bus engine was converted to lean bum operations at Southwest Research Institute, SwRI, in Texas, US.

The HC strategy in a stochiometric engine was less of an issue com pared with the lean bum engine. On the other hand, the fuel con sumption of the lean bum engine showed to be some 20-30 % better than stochiometric at that time.

Results from various measurements is presented in section 3 "Environment" of this report.

The Ricardo TWC/EGR (Exhaust Gas Recirculation) allows for further reduction of exhaust emissions, yet offering the greatest challenges when it comes to the control system and the combustion chamber design. A "fast” combustion chamber was required to make use of the large flow of EGR.

The Ricardo concept for fast bum was a piston crown, originally developed for a much larger lean bum engine, called "nebula". The design creates two major flows at its upper position where small swirls are created, i.e. turbulence, at the center of the piston. After the igni-tion, the flame front and the speed of combustion increases.

SwRI suggested a pre-chamber solution, where a smaller amount of fuel, say 2-3 %, should be ignited at stochiometric conditions forming a jet-stream with enough energy to ignite a much leaner mixture of air and fuel. The hope was for the average mixture to be at lambda 1.7-1.9, to meet both the drivability and emission criterias.

SwRI technology was not expected to provide the same low levels of emissions as the TWC technology. But as the technology was expec ted to be more stabile, the drivability good, the fuel consumption low er, this route seemed to have as many advantages as any other route.

Strateco 8 After the “Co-Nordic GasBus Project" From Prototype to Product

Now... In as much as the choice of technology was successful and the emis sion levels was met as intended, the 1998 level of technology needed further development. The diesel oil- and diesel engine development is now able to meet the gas engine emission levels. The researchers have seen substantial routes to develop gas engines further.

Three different routes have been tested in laboratory and in stationary applications, indicating further dramatic changes, not only in emis-sions, but also in thermal efficiency resulting in a great reduction in fuel consumption.

Micro-Pilot Injection The first, developed by Marintek, Trondheim, Norway, is a well used power- and heat technology. It takes its position in the limitation by using an ignition system and a spark plug. Instead, the compression ratio (CR) is increased and a very limited amount of diesel is injected to be ignited by compression and then to fire the gas.

This technology allows leaner combustion compared with today's (1998) best available technology, it provides a dramatic increase of fuel efficiency and the noise is still kept noticeably lower then during diesel oil operation. Three advantages can be noted: o Increased availability/drivability o Further reduction of emissions (NOx, CO, HC and CO2) o 25-40 % fuel consumption reduction

Another 3-5 years is needed before the tests in laboratory and “over- the-road" are completed and commercialization is possible.

Preheating Methane can be ignited by compression if the CR is high enough and/ or the temperature is high enough. By preheating methane to 110- 125° C and using a 20-23:1 CR, the fuel self ignites. Also in this case, the diesel cycle comes in use but this time without using another fuel. The advantages can be listed as follows: o Increased availability o Increased drivability o 25-40 % reduction in fuel consumption o Further reduction of emissions (NOx, CO, HC and CO2)

Commercial vehicles may be in operation, using this technology, just after the turn of the century. They who work with this technology do not yet wish to be mentioned by name.

Strateco 9 After the “Co-Nordic GasBus Project’ From Prototype to Product

Further refinement At TNO in the Netherlands, the strong need for further reduction of emissions is identified as the progress of the European emission stan dards develops. Euro 5, year 2010, is expected to mandate 1,5 g NOx/ kWh and a 0,08 g/kWh PM, all according to the European test cycle ”ECE R49". They expect these levels to be less of a challenge for the engine builders when using methane instead of diesel oil. TNO expects the following technologies to be needed for Euro 5:

Diesel Methane, (lean burn) Better fuel quality Same fuel quality Retarded ignition timing Increased turbo charging Modified injectors Smaller engine displacement Higher injection pressure OBD (On Broad Diagnostics) 4-valve cylinder heads Lambda 1.6 (instead of 1.5) Un-cooled EGR Close loop control Refined electronic control Variable turbo geometry De-NOx catalyst with SCR No slippage of ammonia TNO expects the fuel consumption in terms of energy to develop as follows:

—Diesel methane

Expected thermal efficiency injuture methane engines according to TNO

The expected development by TNO does not involve the same increase of thermal efficiency as the two former routes. Emissions are expected to be reduced and some figures will be presented in section 3.

One of TNOs main conclusions is that the methane engine has some 10 year advantage in emission reduction development over the diesel engine.

Strateco 10 After the "Co-Nordic GasBus Project" From Prototype to Product 2.2 Bio gas and natural gas operations There is no difference in the operation when using any of the two gas es when it comes to the vehicle. The difference in methane contents and Wobbe Index is adjustable. Lean bum engines have not been able change from the one gas to the other, and still keep the low emission levels, while TWC engines can. Scania, Volvo and Cummins have announced close loop technology also for lean bum engines.

The gas qualities that predominately exist in Europe are the follo wing2 (bio gas according to draft Swedish standard included):

% CH4

North sea German/Belg. Russian Bio gas

Level of methane 1n different gases

Wobbe-Index indicates the amount of energy that can pass a needle- eye. The gases presented above have the following Wobbe Indexes*3 2:

HU North Sea 0 Geman/belg. EH Russian 00 Bio gas

Wobbe index ;

Wobbe index for different gases The Wobbe-number really indicates what variables an engine needs to handle from an operations and emission point of view. When new technology allow for operations using any of the gases, the market for

2 Naturgas, Hasla och Mil jo, Vattenfall 1986, Bio gas for fordonsd rift, KFB 1997:4, Hans-Ake Maltesson 3 Naturgas som kolvmotorbransle, STU 1989, Ekelund, Egnell, Gabrielsson Strateco 11 After the “Co-Nordic GasBus Project' From Prototype to Product buses and trucks driving on bio gas or natural gas increases propor tionally to the areas where other qualities are used. It seems clear that it is easier to design the engines for different qualities of gas than to expect that the gas industry would harmonize their qualities.

To demand a gas industry harmonization would be to limit the num ber of supply sources and demand that all other recipients of gas must adjust accordingly. The inffastructual need is overwhelming as different wells, fossil or non-fossil, offer different composition. Russi an GazProm wonder why a western European vehicular market need harmonization while no other market requests the same.

The natural gas infrastructure, i.e. the pipeline, is usually the limi tation of where the gas can be made available to the end user. During developmental stages, the “mother - daughter” distribution system has been used, mainly in New Zealand.

During the last year, a “mother - daughter" system has been planned for bio gas in Stockholm. The Bromma sewage plant, in the western area of the city, produces enough bio gas to provide another three refueling stations in different directions with bio gas.

The surplus gas is distributed in containers to another site where the re is no pipe line supply. With the help of compressors, the gas is transmitted to the vehicles, and when emptied, the container is repla ced with a filled one.

The mother-daughter system is expensive and has not lasted for many years in other areas. It has mainly been used when waiting for expan sion of the pipe line network into the actual area.

For bio gas use, extra equipment is needed for cleaning and removing COz as well as moisture. The following picture presents the main stream and equipmentneeded for cleaning bio gas.

The example of Linkoping

Smrreco 12 After the "Co-Nordic GasBus Project" From Prototype to Product

Three methods of cleaning bio gas Three methods have been investigated and tried for suitability for the purpose of meeting vehicular demand. They are: o Scrubbing, cleaning in water4 5 o PSA, Pressure Swing Absorption, using active carbons o Membrane diversion

In scrubbing, CCkz-absorbing water and raw bio gas flows opposite directions in tubes as described in the following graph. Water absorbs the CO2. and after de-moisturize the gas, after which is ready for use.

1. Incoming raw biogas 2. Cyclone 3. Compression to approx.*”3 bar ~

Stage washing purified wastewater 5. Pressurizing wastewater 6. Water with 00s to outgoing wastewater 7. Stage 2, washing with sodium hydroxide 8. Metering pump (dosing unit) for sodium hydroxide solution 9. Circulation punp for sodium hydroxide solution 10. Sodium carbonate to outgoing sewage 11. Cooling stage 12. Cyclone 13. Four-stage compressor 14. Interim storage 15. Container (6*2.4*2.5) 16. Container (3*2.4*2.5) Scrubber schematic, aimed for use at Danvikstullfor Stockholm Transport. 4 Natral Gas and bio gas propelled buses, Ekleund et al., TFB/STU, 1988 5 "Lita pS Biogas, Ekelund, NUTEK/KFB1996, Biogas som drivmedel, Brolin NUTEK/KFB1995 Smareco 13 After the “Co-Nordic GasBus Project- From Prototype to Product

In the PSA installation, the raw gas is injected'in a tube filled with ac tive carbon. The gas pressurizes and the CO2 is separated before the tubes are opened. At the time for opening, the methane leaves one way and the CO2 leaves the other way.

Membrane technology has not been tested, as the manufacturers can not secure stabile contents of the gas at a high percentage of methane (97 %) without major gas losses in the system. This is opposite to the two previously presented technologies, where the stability lies within the interval of + 0.5 %. ProduMgas

ReaMkmsbehSlare

kompressor The PSA-lnstaUatlon in Linkoping, a schematic Rumor has it that the gas stability leaves much to be desired. This was true in Linkoping during the first year of operation, but has not occured in any of the Swedish installations since. Experiences so far have been limited to cleaning gas from sewage installations, but should not create any other difficulty when cleaning bio gas from landfill sites with organic waste, provided the suction and thereby air leakage is not too high (>3-5 % NO). Cleaning bio gas from older and nonsepara- ted sites may cause difficulties. Bio gas cleaning installations need lit tle service and overhaul. The lifetime of active carbon in a PSA instal lation is not yet known, as no deterioration of efficiency in the Linko ping site has been registered yet. It has been in full use since 1990.

2.3 Further needs The methane operations over all largest limitation is the cost and size of cylinders. The gas storage of energy uses approximately five times the volume for the same distance, and more than twice the weight compared with diesel.

Liquification to LNG is a major US route, but Europedoes not seem to be mature enough for LNG for several reasons^ . LNG has the same density as ethanol and comes in much handier for the end user com pared with compressed natural gas and bio gas (CNG). 6

6 ENGVA LNG Seminar. Amsterdam, november 1996 Smrreco 14 After the "Co-Nordic GasBus Project" From Prototype to Product

The cylinder development has been favorable so far, but still too slow. The weight of different cylinders at different times are:

Cylinders Faber, steel ' . SCI, ABB carbon Ullit glass Raufoss, alu/ 1985-96 alu/composit fiber fiber carbon fiber Weight 1,22 0,87 0,45 0,65 0,38

Weight of different kind of cylinders The requirement seems to be 0.20-0.25 kg/1, but there is no request, domestically or internationally, for an increased cylinder pressure. The current standard of 200 bar is on the brink of where the compressibi lity is economical.

Secondly, the price of compressors and cleaning equipment for bio gas is too high. Since 1989, the international NGV-industiy has acknow ledged the problem. B.C. Research, Vancouver, Canada, was the first to computerize the compressor design, leading to a 20 % increase in efficiency and a 10 % price cut. Several activities have been done since and the IANGV's (International Association for NGV's) calls for a com pressor cost-cut seminar in Salt Lake City in September 1997. The objective is to reduce prices 50 %. There is a similar need for reduction of price with bio gas cleaning equipment. Larger volumes and more competition would help.

Bio gas installation in Trollhattan

Srimect) 15 After the "Co-Nordic GasBus Project" From Prototype to Product 3 Environment 3.1 Measured results Emissions development can be divided into three steps, before the 1990's, during the 1990 s and what is expected after the 1990's.

Emissions reported in the following table are measured in the Euro pean ECE R 49-cycle and in the US FTP cycle. ECE R49 measures 13 different stationary steps, and measures emissions in relation to how much energy has effectively been used. The US FTP cycle measures a driving cycle including acceleration and retardation. The "Co-Nordic GasBus Project” did set the target according to both cycles as the ECE cycle represents the European legislation and the FTP cycle more represents an urban driving environment 7:

ECE „ ECE ECE ECE FIT FIT FTP FTP CO HC NOx m CO UC NOx PM ! 1VECO, ORF, 1.7 2.2 | 23.4 { 0.04 - 1 - I - i - | 1988, operational 1 i i_____ 0 TNO test engine, 8*7 VV w R KV $988 DDC 1990 opera 9.8 39 ; 5.8 | - 1,8 ! 33 j 6.3 j 0.05 | tional engine Project latenJ opera o.or 1 2 <0.0$ 136" 1.48 " 248 "d02~ banal re*. Vb-WSwnh ■ [veco, 1993 o.u 0.24 I 1.16 j 0.01 0.13 ! 0.31 j 1.24 : - i operational results Erpeattxl opetatioml <01 ' <0.2 "63 ~ <6.df 03 03 0.7 <0.01 ; results, year 2002

NOx emissions have been the focus for engine development as the use of catalysts reduce CO and HC. The suspected source of PM is the lub ricant oil, where the research has not yet been reported to any extent.

Methane operated buses are the cleanest buses available, measured in terms of health aspects, as long as the engines are optimized for low emissions as in the lower part of the table above. Looking at metha-ne from a "well-to-wheel" perspective, including refining, distribution and cleaning looks promising. Catalyst deterioration is suspected to be large after using catalysts for a while. The air-to-fuel mixture is also a source for insabile emissions, as very small shillings, may cause dramatic change of NOx or HC's - or both. This issue is not realty delt with yet.

In the following graph, the additional kWh needed to produce one (1) kWh of fuel is reported8 :

1 NGV 88 conference report, WW on Alt Fuels, 1990, Co-Nordic Project Report, Thermie Programme action Report No T98, Interviews 8 Life of Fuels, Johansson, Ecotraffic, 1992, Livscykelanalys av drivmedel, Blinge et. at. Chalmers University of Tehnology, 1997 Strateco 16 After the "Co-Nordic GasBus Project’ From Prototype to Product

El Diesel Mkl ^ Unleaded 95 D Natural gas Bio gas 1 ^ Bio gas 2

Additional kWh to produce 1 kWh of fuel

Efficiency comparison in producing different fuels When looking at the refining of these fuels in terms of fossil energy in put to produce 1 kWh of fuel, the following graph may give a lead to what can be expected9 10:

m Diesel Mkl M Unleaded 95 D Natural gas ES Bio gas 1 ^ Bio gas 2

Fossile energy input, in kWh, to produce 1 kWh fuel

Total Input of fossil energy in kWh when refining dtfferentjuels "Bio gas 1” is waste water or gas from organic landfills, "Bio gas 2" is an estimated case of landfill gas from an average commercial site").

CO2 has grown to be a major subject and is expected by many parties in the "Co-Nordic GasBus Project" to become much more of an issue. Likewise, the use of natural resources, both fossil and non fossil, ne ed more attention as high consumption/demand pushes up the price.

The CO2 emissions from natural gas and bio gas from "well to wheel" is compared in the following table. Figures are based on numbers already presented in this report, diesel at tail pipe is given index 100:

9 Life of Fuels, Johansson, Ecotraffic 1992, Linkoping Biogas AB, 1997 10 Authors estimate after inteviews

Strateco 17 After the "Co-Nordic GasBus Project" From Prototype to Product

Gasoline Bio gas no- Natural gas —Diesel

tflffnnnooniirmriifififtnoeogct.... ' ...... •......

Calculated and expected total emissions of fossil CO2 from using different fuels in a vehicle, net refining losses and engine use included. The expected results of one or more of the three presented future tech-nologies (see page 9-10) are expected to be In use in the year 2004. At that time, fuel consumptionin gasoline operated cars are expected to be reduce by 1/3, according to the automotive industry!1.

3.2 Comments on methane The methane operations Achilles heel so far during the 1990's has been the discharge of unbumed methane, measured as HC. It is an active greenhouse gas and is suspected to contribute to the greenhou-se effect. Bio-methane on the other hand already exist in the natural system and it may be argued weather or not this methane should be counted for in the official reports, just as bio based CO2 is not accoun-ted for or reported1112.

Regardless of the expected outcome of a scientific discussion on non- fossile methane, a major catalyst degradation of HC oxidation occurs in fairly new catalysts. This mainly effects the unbumed HC's, i.e. the methane. New catalysts usually show a conversion rate of up to 80 %, but degradation occurs after only a couple of hundred hours. After 1,000 hours, the efficiency can be under 50 - or even 30 %13.

11 Telephone interview with ACEA, Paris, Various published articles from SAE etc. 12 Exhaust gas Catalysts for HDV's, KFB 1997:11, Pettersson et.al. 13 Co-Nordic GasBus Project, Ekelund, Egneil 1990, Johnson-Matthey Strateco 18 After the "Co-Nordic GasBus Project’ From Prototype to Product

3.3 Future impact Benefits and limitations stand opposite to each other. The higher thermal efficiency and the reports on current and future low emis sions are naturally favorable.

Opposite is the lack of infrastructure such as gas pipeline and refuell ing facilities, making gaseous fueled vehicles at large still a fuel for fleets in urban areas. The more bio gas that is used along and outside of the natural gas pipeline, the bigger the chance of acceptability.

As long as the gas is kept gasified, the competitive advantage of liquid fuels such as low blends of ethanol/ETBE or similar, DME and with neat ethanol, can not be met for long distance vehicles or vehicles with a critical load factor. The largest limitation is the lost volume when pay- or private load is measured - except for modem buses where 350-500 km drive range cylinders are mounted between the roof and the sealing. Weight is also a concern, though smaller compared to that of volume.

The impact of alternative fueled buses is expected to grow, this inclu des methane to a large extent.

Mercedes Benz natural gas bus outside the ’'Finlandia ’'-buildingduring the European Transport Minister Conference, late in June, 1997. The Trollhattan project presents their bio gas concept as the natural cycle system it is. The cycle is presented at the following page where it explains how they view the system they have been a part of introdu cing. The Trollhattan project, phase 1, aims to provide bio gas for 11 city buses, two waste trucks and some local cars of which the first methane SAAB is in operation along with some Volvo's.

Smareco 19 After the ‘Co-Nordic GasBus Project" From Prototype to Product

Biogas - part of the natural cycle of the environment

Transports are necessary in Carbon dioxide discharge The combustion of fossile fuel today’s society! But no matter comes, for instance, from the disturbs this balance - there is how we travel, the traffic is a combustion of fossile fuel such more carbon dioxide produced disturbance to the environment. as oil, carbon, natural gas, etc. than what can be naturally con The emissions from the traffic Carbon dioxide is also naturally sumed. are an environmental threat to • produced, for instance when Biogas has some great advan all living things - human beings, we breathe and when wood is tages. As it is produced from a animals, plants, the soil, the air burnt. This is part of the natural renewable source it does not .and the water. cycle of the environment. contribute any gas which could The discharge of carbon Furthermore, carbon dioxide add to the greenhouse effect. dioxide is one of the main fac is naturally consumed the Biogas is a part of the natural tors behind the greenhouse plants need it to grow. There is cycle of the environment and effect, i.e. the increased tem a delicate balance in nature provides a more environmen perature on earth and a world- between the production and the tally friendly traffic. From Prototype to Product 4 Economy

4.1 Vehicle production Short series and expensive fuel storages are the most price driving fac tors for methane operated buses and trucks. During the time since 1986, the price development has been favorable. In the following table, the premium prices for different gas bus purchase are indicated, in SEK at 1997 currency value: First 3 busesin Malmo,: ; . KSEK 720 ; ' Carbon fibre cylinders 1986-87, "hand made” First 5 hand made hio gas KSEK 620 Steel cylinders buses, Linkoping, 1990 First 20 buses to KSEK 520 • - Steel cylinders GStehorg, 1992 ! Commercial buses for KSEK 350-400 Alu-steel cylinders south Sweden 1995-97 Bio gaff buses for Ljnho- KSEK 375-580* Steel & Alu- ping 1997 composite Cylinders

*) KSEK 375 accounts for normal 12 meter buses, KSEK 580 accounts for articulated Neoplan buses, equipped with Cummins L10 bio gas optimized with high performance engines.

Volvo, being the main supplier of gas buses in Sweden, has made the gas bus an “off-the-shelf product’with the intent that any one in Swe den and a few other countries could buy a gas bus or a diesel bus at commercial conditions. Service manuals are issued, spare parts are computerized and staff is educated to facilitate the after market ser vice at the different locations where Volvo buses are in use. Similarly, Neoplan has taken uponthemselves to accommodate the same level of service in Linkoping where their articulated bio gas buses are used.

US developments are in the lead in developing lighter cylinders, where the powerful GRI (Gas Research Institute) have issued development contracts to several firms to make cylinders “half price and half weight”. Brunnswick, EDO (Can) and Structural Composites are some of the recipients.

4.2 Gas Prices Contrary to many other commodities, there is no market price for bio gas nor natural gas. Ethanol can be purchased at world market price as well as weat, oil, steel, gold and many other products. The method, however, by which gases has been sold over the years is named “alter native pricing”, meaning “what must the price be for this customer/ group of customers to attract their business ”. If the buyers price exce-

Smrreco 21 After the “Co-Nordic GasBus Project- From Prototype to Product fore, the gas price varies from market segment to market segment, be it natural gas or bio gas.

This method of pricing has attracted massive criticism even in market driven societies like the American, not to mention more regulated markets like the French or the Scandinavian.

Bio gas is not a new source of energy. Several cities have used it for heating or production of electricity. From knowing other business, a gas price can be calculated. The case of electricity has several known factors worth using: One kWh of electricity sell for some SEK 0.22. Knowing that the efficiency of a gas engine is 50 96, we understand that the gas price, the generator included, is SEK 0.11. The gene rator price range anywhere from SEK 0.03-0.07/kWh, giving us a net gas price of SEK 0.04-0.08/kWh.

Economies of a bio gas installation, an example The Linkoping, Sweden case gives an example of the components that may make an impact in future bio gas production for transportation. Their income is divided into three, like this:

Depositing slaughter deposits has a price at the land Jill site. Depositing the waste at the bio gas production plant instead, accounts for the samefee, theJbst source of income..

Secondly, the plant produces two products, one is the bio gas containing 55-65 % methane. The gas is sold to a customer at an alternative price, related to what his current price for ener gy is. There may be a local C02-market, improving sales further Thirdly, the second commodity that is sold is die fertilizer which is the sludge of die bio gas plant. What is sludge in the plant, is a high quality product for the farmers, who pay market price for a product that Jits die cycle of nature.

All three sources of income vary between seasons and markets. There fore, what is an acceptable price at one time may not be acceptable another time. The acceptable price of gas for Linkoping Bio gas Ltd is likely to be that which they believe will give an acceptable return on investment (MSEK 70) over a longer period of time.

4.3 Infrastructure The natural gas infrastructure, i.e. the pipeline, is usually the limi tation of where the gas can be made available to the end user. During development stages, the “mother - daughter” distribution system has been used, mainly in New Zealand, and since January 1998, also for the distribution of biogas in Stockholm. -

Strateco 22 After the "Co-Nordic GasBus Project' From Prototype to Product

During the last year, the “mother - daughter" system has been plan ned for bio gas distribution in Stockholm. The Bromma sewage plant, in western Stockholm, produces enough bio gas to provide three more refueling stations in different directions of Stockholm with gas.

The surplus gas is distributed in containers to another site where the-re is no pipe line supply. With the help of compressors, the gas is transmitted to the vehicles and when emptied, the container is repla ced with a filled one.

The system is expensive and has not lasted for many years in other areas, mainly due to the expansionof the pipe line network into the actual area.

Three methods Three methods have been investigated and tried for suitability for the purpose of meeting vehicular demand. They are o Scrubbing, cleaning in waters o PSA, Pressure Swing Absorption, using active carbon 1415 o Dividing in membrane

The price of the cleaning installation usually accounts for the same or half the size of the investment as the compressor, making the need for profitability when selling the gas higher than for natural gas, which takes away some of the benefits of a generally lower price for the raw bio gas compared with the transmitted natural gas.

The cost for compression and cleaning accounts for the energy use which is some 3 % of the total gas delivered depending on the con tents of the raw gas.

4.4 Economies of the society Many measures have been discussed how to create fiscal and regula tory incentives for cleaner fuels, methane gases being one route out of several. Generally it is said that any long term subsidies will not be acceptable to the politician. The federal need of tax revenue from fuels

14 Natural Gas and bio gas propelled buses, Ekleund et at., TFB/STU, 1988 15 -uta pi Bio gas, Ekelund, NUTEK/KFB 1996, Biogas som drivmedel, Brolin NUTEK/KFB 1995 Strateco 23 After the “Co-Nordic GasBus Project" From Prototype to Product does not allow for reductions. On the other hand it is argued whe ther or not a lower tax for cleaner fuels, exhaust and noise emissions realty is a subsidy. The internalization of the external costs for trans portation does not demand the same income from cleaner fuels. Taxes can be divided into environmental costs, road production and over haul costs, as well as safety/accident costs16. Unless the full cost for the society for exhaust and noise emissions is introduced, there does not seem to be enough margin today to account for the difference needed to provide the full tax incentives.

Many methods of diversifying the taxes to charge the inefficient and the polluting systems more, to create space for the efficient and clea ner fuels has been discussed. The debate seems to mature for such a development in Sweden as well as in Europe. Tax revenue does not need to be reduced in such a diversification, while internalizing the external costs of the alternatives available.

Bio gas is preliminary ranked as the most environmentally beneficial of the available fuels in Sweden. The ranking is done by the Atemati- ve Fuels Committee1?. The committee suggests to the government that taxes should be reduced to make bio gas more favorable than other alternative- and conventional fuels.

SIKA, the Swedish Institute for Transport Analysis has made an attempt to internalize the societal price for regulated pollutants in urban areas and outside. Whether or not this is correct can always be argued, but as there is an official figure given it may as well be used. The prices are given in SEK per kilogram and are:

CO HC NQ k PM G02

] 66 92 1.084 0.38

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■I In calculating the costs, including the societal price and operational costs, a price can be shown. Who pays - and when is not shown.

This example includes a standard Euro 2 diesel bus equipped with a CRT filter, operating on Mkl diesel (low sulfur). It involves one etha nol bus, one natural gas bus and one bio gas bus. The assumption is an annual driving distance of 70,000 km and a 10 % higher energy use for gas buses compared with diesel. 4.5 kWh diesel (Mk 1) is used every km and a 33 % thermal efficiency is calculated for diesel- and ethanol buses and 30 % for gas buses:

16 Getting the prices right, KSgesson, T&E, 1993. Svenol, Ekelund, KFB report 1996:9 17 SOU 1996:184

Strateco 24 After the "Co-Nordic GasBus Project" From Prototype to Product

The exhaust emissions in this calculations are (g/kWh, ECE R49) 18 :

CO HC

Euro 2 0.01 0.08 5.83 0.02 3,

001 0.V“ , 0S1 22“

Bio gas 0.01 0.01* “ 2 0.01 2**

Efhqnoi 0.01 4.2 0.01 B

* = Includes CO2 emissions from exfraction, refining and distribution ** = Includes CH4 greenhouse effect *** = Excludes CH4

The formula for calculating the societal cost consists of the following: g/kWh X 70,000 X 4.5 X 0.33/0.30 X price = P.

bfesei +CRT Na«kdt gas Slogtts Ethdhdi p.4 19.5 18.6 38.1

The following table provide the results in terms of KSEK of annual so cietal costs.

Diesel + C8T Nqltsrdgqs ethnaol 30 350 350 75

The following table show the premium investment for different options. With a real rate of interest of 5 % and a 10 year mortgage, the following annual cost for investment is given: T'NaKi rii'ps"'" So gas Eihanal Dies# *CRf * 2.3 27 27 5.8

Fueling a bus costs differently when using different fuels. The follo wing table reports the annual fuel cost. The gases are priced alter natively to diesel per km, whereas they end up the same. Ethanol price per liter is equal to diesel, but the consumptionis 1,78 times that of diesel Mk lie (KSEK).

3W NdfurcS gas Sagas Ethanol 142 142 142 252

18 Volvo Bus Coip, 1997. 19 According to the Svenol project

Strateco 25 After the “Co-Nordic GasBus Project* From Prototype to Product

Service and overhaul is still needed to a greater extent, and only few measurements have been done. In this case natural gas and bio gas is equal, and the facts are in this case brought from natural gas ope rations (diesel figures from Swebus, gases from Linjebuss and ethanol from Skaraborg transit authority, all in rough figures).

NoMgoe Ethanol 10 . 30 30 30

Adding all costs together, the following is the sum that someone nee ds to pay at some time. This report does not take a stand on who and when. Costs are annual at a 70,000 km drive range per bus (KSEK): Diesel NoWgas Biogss Ethanol ' nvestment 2 27 27 6 tuei .. j q ' - ' > - 0 no Service 10 30 30 30 Sum to * ' ' m External cost 59 20 18 38 Gmtidsiats 6* 1....ft...... iiff»fit

Expectations are that the overhaul for all options will be reduced to half, that ethanol premiumcost will be KSEK 40 under full commer cial conditions and the premium for gas buses will be KSEK 200.

Natural $«6 8*>$a* Ethanol

Premium costs 10 34 34 138

09 54 52 m

VsVsV/iY/SAV/SS//<-VS/;/SSS/SS.' •vf.V.V.V.V.V.V.V.V/.-.V.V.V.V.V.V Further, the diesel price is likely to go upas taxes will increase, while prices for gases following the diesel price at a distance and ethanol are expected to be stabile during the forseable future.

If a fully commercial situation should occur, provided same external costs, the sums from the table above would get the following con tents:

Strateco 26 After the 'Co-Nordic GasBus Project* From Prototype to Product

5 Market 5.1 Heavy Duty Vehicle Sales The first three Swedish buses in Malmo were produced to make NGVs credible. Following the first buses, the 20 buses to Goteborg were or dered after negotiations between Volvo CEO Pehr G Gyllenhammar and the Goteborg Mayor Goran Johansson. No fiscal incentives or government support funds were made available for the first 23 buses.

After that, Malmo, Lund, Goteborg, Linkoping, Trollhattan and Upp sala have introduced buses that almost without exception have recei ved from 25 % up to 80 % support for the incremental cost.

When buses were well on their way, the Swedish State Power Board (Vattenfall) and Goteborg Energy made a pre-study covering the facts when using natural gas as truck fuel in urban areas. The process took place in 1989-1990 and initiated the "LB 50-project”, where Syd- gas, Goteborg Energy and Vattenfall initiated the purchase of 30 natural gas trucks, financially supported by NUTEK.

SJ, the major Swedish rail operator, one ICA Super Market and the waste collection organizations in Goteborg and Trollhattan, have incorporated individual gas trucks to their fleet. At the time of this report, some 33 natural gas and 3 bio gas trucks are in operation.

The "LB 50” objective was to buy 50 natural gas trucks. NUTEK sug gested 50 bio gas trucks but the gas industry meant that the market and the availability was not mature enough. The task for the "LB 50” stake holders was to initiate and maintain a 20 bio gas truck project. Instead, a group of shipping companies, controlling some 15-18,000 trucks has initiated the bio gas project, made it larger and aim for 50- 70 trucks. Operations start in 1998, including some 18 % cost support from NUTEK.

Gas trade The Goteborg Waste Treatment Utility is involved in an EU Thermic project where 23 bio gas trucks will be installed. The project is of grea ter interest for one special reason, the trade of bio gas for natural gas.

Bio gas is produced far from the truck garage and the pipeline can not transmit the bio gas up-stream. Instead, the gas producer commit to inject the same amount of energy to the pipeline as the trucks use. The bio-molecules will never reach the truck, but the truck market has created the demand needed to open the trade, the same way Sweden and other countries trade "green electricity”

Strateco 27 After the ‘Co-Nordic GasBus Project" From Prototype to Product

After the KFB supported "Co-Nordic GasBus project", the following amount of heavy duty vehicles are in operation or purchased:

manMii Bob* NGBUS lillill mum iVlalmo - 138 - 12

,bnd *, 24* ” ■. -H s 1 Goteborg - 38 24** 20 ®!S",JI";i'1... 11 - 2 Linkoping 38 - - - 1 ~ ' - Uppsala 16 - - - - totally 45 #8 27 33 Norway 40 Denmark 0 Finland 15 Total 55

* = does not include the larger project under creation (January, 1998) ** = includes the ordered trucks described, at Goteborg Waste Management *** = includes all city buses.

In all, 325 heavy duty vehicles, operating on methane are sold in Swe den. 233 are natural gas operated and 92 operate on bio gas. In addi tion, some 350 cars operate on methane. About 200 operate on natu ral gas and 150 on bio gas. Sweden hosts some 675 methane operated vehicles (January 1998). This figure changes.

Natural gas buses has become somewhat of an export product, where Scania's 252 bus deal for Sydney is the largest NGV export deal ever. Above that, Scania and Volvo have sold in all, some 40-50 buses to Denmark, England, Germany, Spain and Ireland.

5.2 New decisions at stake holders Iveco produced the first gas truck for use in northern Europe. One by one, the OEM's (Original Equipment Manufacturers, engines and vehicles) decide to start a gas fuel project. The focus in Sweden is mainly the bio gas route and other countries are expected to take advantage of that source of energy too. As a matter of fact, the Lin koping project stood model for the projects running at four French locations and one in the US. Estonian and Chinese delegations also visited Linkoping.

Volvo, Scania, DAF, MAN, Mercedes Benz, Iveco and Russian Liaz have made decisions to introduce methane operated city buses. Some body builders like Neoplan and Camis/Wiima produce bodies to gas chassis for buses.

Strateco 28 After the "Co-Nordic GasBus Project" FromPrototype to Product

Scania and Volvo offer trucks. On June 13 1997, Volvo Sr Vice Presi dent, Per-Erik Molin, announced that methane operated trucks are now commercially available from manufacturing. They are thereby the first OEM to commercialize a full gas truck concept and Volvo is thereby also the first OEM to provide a full range of alternatively fuelled vehicles, buses, trucks and cars.

In an 1994 report from the European Federation for Transport and Environment (T&E) in Brussels, the following list of OEM alternative fuels priorities was published:

Manufacturer European market Home market P-AEINU 1 Natural Gas LPG 2 LPG Natural Gas lveco (I) 1 Natural Gas Natural Gas MAN (D) 1 LPG LPG 2 Natural Gas Natural Gas MB (D) 1 Natural Gas Natural Gas and RME 2 Vegetable Oils Renault (R 1 Natural Gas Natural Gas 2 Bio-diesel Scania fS) 1 Natural Gas Ethanol 2 Ethanol Natural Gas Volvo (S) 1 Natural Gas Natural Gas 2 LPG & Alcohols Alcohols “Natural gas" can be replaced by “methane” in most of the above cases. Since the printing of the T&E report, DME (Di Methyl Ether) has entered the scene, which may have altered the rating slightly.

5.3 Results compared with objectives The “Co Nordic GasBus Project" objective after the engine development phase, was to make mutual field tests. As Goteborg's and Sydney's request for buses went in commercial orders, the field test phase be came a matter for the OEMs. After that, development has gone faster than anticipated. Emission control was expected to develop faster, but as late as 1997, the parts in need of further development to provi de stabile emissions, has been properly identified.

Strateco 29 After the ‘Co-Nordic GasBus Project" Kevin D. Beaty, SwRI, Texas, receives IANGV award for best Technical Paper, describingdevelopment one project engine, Buenos Aires, 1990

One of Goteborg's waste collecting trucks Smneco 30 After the 'Co-Nordic GasBus Project’ From Prototype to Product

6 A gives B, gives C... The graph at pace 32, is an effort to describe what has resulted in what. There is no absolute truth in a view like this, but there is a good likelihood of its validity. Most certainly, other factors are invol ved too, like political decisions, other projects and the belief of indivi duals and corporations in a possible potential.

One factor not yet mentioned is the safety factor, and the matter of standards. The IANGV initiated an ISO standard for cylinders in 1989, which is now a draft ISO and CEN standard. No standards were in place at the time the first buses entered into operations. At the Project initiative, a “Code of Practice” was developed. The objective was to provide an interpretation of the standard that existed at that time, to be used until the regular standards were put in place. A team of repre sentatives from the Nordic Bus Industry producedthis document, necessary for the market development of gas buses.

Representatives from the Project, the chassis builders, the bus body builders and cylinder manufacturers during a standard meeting in Katrineholm.

Norske Veritas made an independent safety study of how safe - or un safe - a gas bus is. Their findings were that “a gas bus, despite the high pressure cylinders, is not less safe compared with a diesel bus. If there is a difference, it is to the gas bus advantage”. This study has been spread around the Nordic countries, Europe, the North Ameri cas, Japan and South East Asia.

Snmeco 31 After the "Co-Nordic GasBus Project" Three buses in Nordic Conference in Mahno, retrofitted in Bus use in the 1986 Americas and in New Malmo Energy infrastructure Zealand on natural development gas and bio gas s production

AX ^Natural ga^, f buses, cars \ Malmo M l Lund \\ Goteborg jf / Trucks ; ----- ; ^ Goteborg \ Trollhdttan J VX jp FromPrototype to Product

7 Important experiences 7.1 Cooperation Starting the project involved two main items, to: o Develop objectives, a plan and a budget o Raise the funds Those who may have a long term interest in developing gas buses and similar markets would be interested in making sure a project of this kin d came on its way. For that reason four different categories of orga-nizations were approached. They were: o Bus manufacturers o Bus and truck users o Gas importers and distributors o Governments bodies (in their interest of reduced emission)

In all, 44 different organizations from all four categories funded the MSEK 21 that the project needed. Some MSEK 14 were cash and the rest was own work, valued at standard engineering consultant rate.

The project steering committee consisted only of Transit Authorities, who from time to time invited the OEMs and the gas industry to their meetings. Much of the coordination was put in the hands of the Pro ject Manager, who issued a monthly news and financial status news letter to all funding organizations. Six times during the project, all 44 organizations were invited to one day seminars and negotiations.

As long as Scania and Volvo did not think of this project as competi tive, the engine development was done mutually. As the product beca me commercial, standards and other non-competivie issues were sub ject for cooperation.

Getting all parties to the same table is not always easy. In this case, the “subscription” of expensive results was a more driving instrument than the possible competitive issues between industries and compa nies in the same area.

7.2 The organization as a competitive tool Many participating parties make many mouths talk the same message and language. The project involved senior management as well as engineering capacity to make sure that decisions were made and that engineering never stopped.

A lot of engineering may make the Project look like an engineering project - which is partly true. By involving different professions, such

Strateco 33 After the “Co-Nordic GasBus Project" From Prototype to Product as market and PR staff, the information about the technical progress, probably made more of an impact to make the development lead to a marketable product. With the thesis “what can't be seen - does not exist to the market", the exposureof skilled engineering - the com bination - made the change.

7.3 A balanced effort Natural gas and bio gas is by no means "the solution”, it is only a part of it. City bus operation account for less than 10 % of urban area pollution, depending of means of measuiment, whereas many other solutions will be needed to provide further emission reduction.

Better conventional fuel qualities, other alternatives, blends of vege table oils or alcohols etc will make a difference in different segments.

The heavy NGV's Achilles heels that need to be looked into deeply, are: o Unstable emissions and aging catalysts o Cost and weight of cylinders o Cost of refueling and bio gas cleaning installations, o Reduced fuel consumptionand further reduced emissions o Introduce bio gas in a range of applications, also outside transportation

Strateco 34 After the “Co-Nordic GasBus Project’ From Prototype to Product 8 Future 8.1 Market development The availability of natural gas makes NGV's the most widely recogniz ed alternative fuel internationally.

There is a belief that emission reduction potential with piston engines has the largest potential when operating on methane. Including also bio gas, the reduction of greenhouse gases may make the source of supply wider than with only natural gas. Should the higher thermal efficiency engines for HDV's develop favourably, there is an even wider market potential for the gaseous fuels, at the selcted niches.

Taking current and future limitations into account, NGV's are not li kely to have a substantial market outside of metropolitan areas, com pared with liquid fuels vehicles. Urban bus fleets, portions of distribu tion trucks and some commercial car fleets like taxies and express de livery cars/vans may prove to be the most likely market segments.

8.2 Suggestions to stakeholders Swedish authorities have invested substantial efforts in building knowledge about the best use of ethanol. As bio gas is equal in terms of supply and possible market penetration, it is suggested that future investments in alternative fuels aim to build the same level of compe tence also for bio gas as is done for ethanol.

Further, a larger use of bio gas in the Nordic countries may prove be neficial for two reasons, one is the lower emissions (greenhouse gases included) and the second is the lack of natural gas distribution.

Fiscal incentives need to be adjusted in terms of diversification to sti mulate the environmentally friendlier system solutions and charge the less friendly (PPP, Polluter Pay Principle) in a fairly permanent pattern.

Further technical development is needed to reduce cylinder weight and cost, to reduce cost for refueling installations and to develop engine control systems for more accurate and longer lasting emission control and catalysts for unbumed Hydro Carbons. A wider range of engine alternatives will widen the market for the use of NGV's. Two, maybe three sizes of engines may fill all heavy duty urban transportation needs. Introducing more efficient and cleaner combustion systems may lead to a dramatic decrease in fuel consumption and exhaust emissions. Such a development may make governments more likely to also accept natural gas in the more intense greenhouse gas debate.

Strateco 35 After the "Co-Nordic GasBus Project' Smrreco 36 After the 'Co-Nordic GasBus Project" From Prototype to Product

Five out of 20 first gas buses in Brussels, all MAN made

Czeckia

Svuneco 37 After the "Co-Nordic GasBus Project" Finansiarer Referensgrupp Sponsors, Reference groupe

Lokaltrafikforetag och anvandare Konsortium, Styrgrupp Transit Authoroties and users Consortia, Steering Committe Helsingfors Stads Trafikverk (SF) HovedstadsomrSdets Trafikselskab (DK) Oslo Sporveier (N) Storstockholms Lokaltrafik (S) ML, Malmo Trafik (S) Trondheim Trafikselskab (N) Svenska Lokaltrafikforeningen (S) Finlands Lokaltrafikforening (SF) AS Oslo Sporveier Danska Lokaltrafikforeningen (DK) Aria (S) Gas- och energiintressenter Gas- and Power Utilities Malmo TrafikAB Nordisk Gasteknisk Center (M Vattenfall (S) Statoil (N) Neste Gas (SF) Swedegas (S) Naturgas Syd (DK) Dangas (DK) Sydgas (S) ’? Goteborg Energi (S) Malmo Energi (S) HKL Lund Energi (S) HST Tillverkare Manufacturers (OEM:s) Volvo Bussar JlTiDBORGS Saab-Scania / Scania-Bussar Arna Busser (N) Carrus (SF) Raufoss (N) Inbjudna styrgruppsmedlemar Offentliga bidragsgivare Invited to Steering Committe Governmental Sponsors Nordisk Industrifond Norges teknisk- naturvetenskapliga forskningsrdd (N) Kommunikationsforskningsberedningen (S) NUTEK(S) Nordisk Gasteknisk Center Samferdselsdepartementet (N) Handels- och Industriministeriet (SF) Energistyrelsen (DK) Goteborgs Sparvagar ^ Goteborgs Stad (S) Lunds Kommun (S)

Projektledare Huvudfinansiar Initiativtagare Project management Main Sponsor Initiator Information NonSsk Industrifond STMT6C0 Nordic Council Nordic Council of Ministers Development AB Box 90,136 22 Haninge, Sweden +46-8-745 55 65, fax 745 50 50 e-mail:[email protected]