LEADING THE WAY IN LPG Newsletter about LPG, an exceptional energy

Winter 2010 3

Interview Studies Rural energy Agenda 4

Wessel Muytsens, Manager Strategic Support Micro-CHP and CO2 emissions SHV Gas and the FREE initiative The Belgian LPG market

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Energy in rural areas, a new challenge for the European Union

Although rural areas represent 90% of the incentive to insulate and little access to smart territory and 56% of the European population, technologies, rural homes are likely to remain the considerable challenges they face tend to energy inefficient. “Today’s rural communities are faced be overlooked, especially as regards access with serious challenges and many of to energy. There is currently little awareness about the these are linked to the question of unique energy needs of rural areas. An alter- access to sustainable and reasonably Energy supply is just as crucial to rural native for a cleaner rural energy mix does priced energy. Ensuring that these development as the better known, and much however exist. communities remain competitive in the vaunted, transport infrastructure, public increasingly globalised and technology services and broadband access. Many homes Solutions for the future of rural energy led markets requires the right policy and businesses are off-grid, with no access LPG choices and adapted solutions.” to natural gas. Due to a lack of investment Solar Thermal and PV in modernising infrastructure, power cuts Wind Philip Lowe, are still commonplace and tend to be more Biomass Director-General of DG Energy frequent. Rural inhabitants have a more Heat pumps Speech delivered at the first Rural limited choice of energy solutions. Micro-CHP Energy Day, 24/06/2010 Energy-efficient glass and insulation People living in rural and remote areas in materials often do not benefit from the As the cleanest available fossil fuel available in national district heating network or rural areas, LPG gives rural communities access natural gas network which covers 75% to modern energy, being used most notably in of the country. Micro-CHP (Combined Heat and Power). Rural areas also present obvious opportunities in the field of renewable energy production. Energy-efficient Rural communities are forced into choosing rural issues are taken into consideration in technologies­ such as insulation and heat pumps high-polluting energy sources, such as coal, can also help tap the considerable potential for upcoming policy strategies such as the heating oil or wood. As a consequence rural energy savings. EU Energy Strategy 2011-2020 and the communities tend to have a higher carbon revised Energy Efficiency Action Plan. footprint than urban areas. Filling the gap: the FREE initiative Activities are now undertaken both in In rural , only 3% of new homes To address these challenges and missed Brussels and in nine Member States across use natural gas. About 75% of new opportunities, SHV Gas played a major role Europe. The initiative has received the individual homes are using only heating in launching FREE – Future of Rural Energy support of the Director-General for Energy oil. This is also the case in , where in Europe. A cross-sector alliance, FREE is in the European Commission, Philip Lowe. 74% of rural dwellers use heating oil. designed to stimulate debate within the FREE has also recently been recognised political community. The platform, which as an official partner of the European Energy efficiency in housing is expensive, already brings together a dozen official Com­mission’s Sustainable Energy Europe limited and therefore scarce. With little supporters, aims to ensure that specific programme.

LPG is cleaner, affordable and available. Now. 2 Winter 2010

Innovation Case study Investing efforts in efficient Micro-CHP systems

Interview with Wessel Muytsens, Manager Strategic Support Group, SHV Gas An intelligent heat and What is Micro-CHP? What can the EU do to encourage Micro-CHP is the process of generating its full market use? efficiently both electrical power and useful SHV Gas would like Micro-CHP to be power system for rural heat from a single source, LPG in our case. recognised as part of the EU’s efforts to reduce Micro-CHP just looks like a regular boiler and energy consumption, alongside CHP and does not require customers to make any district heating. The upcoming revision of the homes in the UK modifications to their home. Micro-CHP fuelled Energy Efficiency Action Plan can provide a by LPG can be up to 90 per cent more efficient general framework, notably by supporting the Lodge Farm, in the scenic countryside of Nottinghamshire, UK, consists of extensive than a conventional boiler and can also reduce expansion of Smart Grids. The revision of the parklands, stables, a farmhouse and a newly installed summer house containing a pool, carbon emissions by up to 50 per cent per CHP Directive – which is now probable – will sauna, hot tub, kitchen and living area. When looking at the different options available household. then give the EU an opportunity to upgrade to off-grid customers, the owner felt that an LPG Micro-CHP unit was the best option standards for highly-efficient CHP and in terms of reducing energy costs and carbon emissions. Why is SHV Gas interested in that Micro-CHP. Allowing for the higher upfront Not only does Micro-CHP provide highly efficient central heating and hot water, it is technology? costs of a Micro-CHP boiler (30%-40% more also the first widely available domestic boiler that can generate electricity, which is Micro-CHP is a new market where LPG can than conventional boilers), the EU would need eligible for the UK Government’s Feed-In Tariff. The appliance installed to heat the offer immediate and environmentally sensitive to encourage Member States to provide a swimming pool creates 1kw of electricity per hour. This output is able to keep the pool energy solutions. As a Micro-CHP unit stimulus for this promising technology. With at a consistent temperature, heat the sauna and hot tub, power the immersion heater, generates electricity, it can also be part of the appropriate incentives in place, customers can and light the summer house. solution to create Smart Grids. SHV Gas expect to be paid back in less than five years. acknowledged the need to support these opportunities throughout Europe by facilitating cooperation activities between its business units and equipment manufacturers. With this Study in mind, the Strategic Support Department was recently created, bringing together specialists from several countries. With our own back­ground and expertise, we aim to explore Is Micro-CHP low-carbon, and for how long? and implement the opportunities presented by Micro-CHP for energy users, energy Electricity produced through Micro-CHP is significantly less carbon-intensive than electricity coming from the grid. Micro-CHP reduces the demand transporters, energy producers and the for centrally generated electricity and replaces conventional boilers. In the case of the UK, LPG-fuelled Micro-CHP can lead to carbon savings up environment. to 2030, as illustrated below.

Is the technology already available? Source: Delta Energy and Envir onment, 2010 Yes. Various proven technology concepts 0.8 are on offer by a wide range of equipment Marginal grid 0.7 manufacturers. Today customers can choose carbon intensity between Micro-CHP solutions running on

0.6 conventional engines and more efficient Stirling Carbon savings today to around 2030 engines. All manufacturers are also researching 0.5 new fuel cell appliances. Fuel Cell Micro-CHP Micro-CHP running on LPG are expected to be ready early 0.4 2013. The potential for Micro-CHP use is considerable, if we consider it as a 0.3 ) replace­ment for old and inefficient boilers across Europe. If we see this as a solution to 0.2 /kWh electricity grid optimalisation the potential is 2 Carbon savings extend to 2035 even bigger. To make this a reality, we need 0.1 and beyond with increased policy and financial instruments to assist its efficiency and gas decarbonisation Carbon intensity of electricity development. (kg CO 0 2010 2015 2020 2025 2030 2035

LEADING THE WAY IN LPG Winter 2010 3

Rural energy SHV Gas & the FREE initiative www.rural-energy.eu A greater voice for rural communities in the energy debate

The Future of Rural Energy in Europe (FREE) FREE is already supported by a wide variety initiative gives a voice to all those who believe of stakeholders committed to realising the that rural energy needs are important issues potential of rural communities through greater both for those who live in the countryside and energy choice. If you would like to know more for European society as a whole. FREE also about FREE or if you are an organisation that aims to provide solutions for a sustainable and wants to support this initiative, please email competitive countryside. [email protected]. FREE aims to raise awareness - amongst other issues - about the reduced choice of energy solutions, the critical challenge of The FREE initiative is now supported by: energy efficiency in rural buildings, the Rural stakeholders dependence on high-carbon fuels and the • CEJA, European Council of Young Farmers untapped potential for renewable energy • ACRE, Action for Communities in Rural Energy production. There is currently no integrated approach to these problems and FREE wishes Regions to provide the missing link between energy, • Podlaskie region () rural development and cohesion policies. Energy stakeholders The launch event, taking place just outside • SHV Gas the European Parliament last June, brought • COGEN Europe together more than 300 people including Philip • Glass for Europe Lowe, Director-General of DG Energy and • National Energy Action (UK) Antonis Constantinou, Director for Rural • Renewable Energy Foundation (UK) Development in DG Agriculture. That success­ • AEGPL, European LPG association ful event was only a first step towards more • Polyurethanes activities in Brussels and in nine different Manufacturers Member States across Europe. This will include • Baxi Group direct contact with policy makers to better • Rinnai integrate the rural dimension within national • Tecnocasa Climatizzazione and European energy policy strategies.

free in Europe The UK Energy poverty, a rural concern

Belgium In the UK, 2 million homes are situated Bringing together energy off the natural gas grid. In these areas, and rural life the most popular fuels are heating oil (55%), solid fuels (11%) and LPG (10%). The FREE initiative in participated Rural areas in the UK are faced with the in the important and very popular rural combined challenges of climate change, and agricultural fair ‘Foire de Libramont’ energy efficiency and the specific issue on 23-26 July. This popular event attracted of fuel poverty. 183,000 people interested in Belgium’s Paul Verwilghen, FREE representative in To start off, FREE undertook a rural life. Belgium, with H.R.H Queen Paola of Belgium comprehensive mapping exercise of fuel poverty across the country. It came to Paul Verwilghen, FREE representative in Belgium, presented the initiative to a variety of key the conclusion that rural residents are at officials, including the Prime Minister of Belgium, the Walloon Minister of Agriculture and least twice as likely to experience fuel Rural Affairs, the Walloon Minister of Environment and even H.R.H. Queen Paola of Belgium. poverty than urban inhabitants (up to 20% of households in North East, North West and York Walloon Environment Minister Henry said “The FREE approach putting the environment and Humber). According to the research, one of the main factors of fuel poverty is the level of energy energy debate on the rural level is incredibly accurate.” efficiency of the property and the type of heating system employed. Rural properties are often larger, with higher ceilings, therefore requiring more energy to heat, than the average home. Representatives of a local rural energy project (NPO d’Millen, Beckerich and Biogaz du In this context, FREE will launch a series of roadshows in 2011 to deliver energy advice to Haut Geer) fully endorsed the initiative towards stakeholders and potential partners and communities and individuals as regards energy consumption, schemes and incentives available, the Belgian Young Farmers Association also expressed an interest in the initiative. as well as energy technologies.

LEADING THE WAY IN LPG 4 Winter 2010

SHV Gas at a glance The Belgian LPG Market Primagaz Belgium supplies more than 22,000 providing access to modern energy through domestic and professional customers with innovative technologies combining LPG with LPG. It also provides LPG to an extensive renewable energy. Primagaz now works with network of 200 Autogas stations around the specialised partners to deliver highly-efficient country. The company was founded in June energy solutions. For example, customers can 1990 as the result of the merger of four choose for their home an energy package Belgian companies, Combugaz, Cargas, whereby solar PV panels generate electricity Meagas and Dewijngaert. ACP, also known and LPG provides hot water and gas for as Ultrabutane and established in 1938 in heating and cooking. Sustainable development Belgium, joined Primagaz in 1993. also drives the company’s strategy in the field of transport. Primagaz is currently developing The company now 81 employees and dieselgas for heavy-duty vehicles. Engines its activities are mainly run from the cylinder running on dieselgas deliver 20 to 30% more filling plant in Tessenderlo (Flanders). Because power than diesel, while reducing NOx of the changing energy market, the focus is emissions by 30% and CO2 emissions by 10%. no longer on just selling LPG. Primagaz is also concentrating on delivering energy advice to For further information: customers. The company is committed to www.primagaz.be

Agenda SHV Gas in Europe

10 November 2010 > Breakfast meeting with Paolo De Castro MEP organised by the British Chamber of Commerce, Brussels, Belgium http://www.britcham.be

15 – 16 November 2010 > The Strategic Energy Technology Plan conference 2010, Brussels, Belgium http://www.setplan2010.be

18 November 2010 > Europe’s Energy Revolution: Opportunities and Constraints, Brussels, Belgium http://www.friendsofeurope.org

11-15 April 2011 > Sustainable Energy Week, Brussels, Belgium http://www.eusew.eu

Did you know that... Autogas is a clean alternative transport fuel: it emits 50% Colophon less carbon monoxide (CM), 40% less hydrocarbons (HC), Head office SHV Gas N.V./ Taurusavenue 19 / 2132 LS Hoofddorp / The / T: +31 (0) 23 5555 700 35% less nitrogen oxides Group Public Affairs Manager Andrew Ford / T: +44 78 03 02 11 27 / [email protected]. Subscribe to the newsletter; please send an email to [email protected] or visit the website www.shvgas.com (NOX) and 23% less CO2 The sources for data and statistics featured in this publication are available from [email protected] compared to gasoline.* * Source: ‘LP Gas Exceptional Energy’, ISC in conjunction with the WLPGA, 2009. LPG’s Carbon Footprint Relative to Other Fuels A Scientific Review, Atlantic Consulting, 2009.

LEADING THE WAY IN LPG