MASTERPLAN FOR LNG ON RHINE-MAIN-DANUBE AXIS BUILDING A PIONEER MARKET AND LNG ARTERY FOR EUROPE Manfred Seitz LNG Masterplan: Status April 2015 Project Coordinator 2 RATIONALE FOR LNG IN IWT • Environmental drivers • LNG as fuel reduces air emissions (-10-20% CO2, -80-90% NOx, almost zero PM & SOx) • Further CO2 reduction possible by “blending” (balance) with BIO-LNG • Economic drivers • Price gap Gasoil - LNG and estimated price reduction for LNG due to massive production increase; favourable payback time of investment; significant reduction in fuel consumption; fuel cost savings result into higher profitability/lower transport costs • LNG as cargo will increase transport volumes and will offer energy cost savings to many industries along the Rhine-Main-Danube axis; reduces oil dependency and supports diversification of energy mix • Regulations • EU Directive on Deployment of Alternative Fuels Infrastructure (approved April 2014) demands deployment of LNG fuelling infrastructure (in a sufficient number of maritime ports till 2025, inland ports till 2025, core road network till 2025 & common technical standards for CNG and LNG refuelling points by 2015 • Future air emission regulation: “LNG most effective measure to reach Stage IV for medium and large inland vessels” (NAIADES 2/Panteia-NEA report) • ECA/SECA regulation which fosters built-up of LNG infrastructure in NW-Europe and development of Small Scale LNG Supply Chains LNG Masterplan: Status April 2015 3 SURPLUS IN LNG SUPPLY LNG Masterplan: Status April 2015 4 400 LNG-FUELED VESSELS IN OPERATION THROUGHOUT EUROPE BY 2020 LNG fuelled vessels worldwide & per region per shiptype [#] . DNV expects 1.000 vessels to be running on LNG by 2020 of which 400 will operate in Europe 5 LNG EXPECTED TO ACCOUNT FOR CA. 25% OF OVERALL FUEL MIX BY 2030 IN NWE Market forecast (WoodMacKenzie 2014) Volume LNG bunker market North Western Europe [tpa] Share LNG in total bunker market North Western Europe [m tpa] 10 100% 9 90% 8 80% 7 70% 6 60% 5 50% 4 40% 3 30% 2 20% 1 10% 0 0% 2012 2014 2016 2018 2020 2022 2024 2026 2028 2012 2015 2018 2021 2024 2027 2030 MGO HFO LNG LNG Masterplan: Status April 2015 6 LNG MASTERPLAN – KEY FIGURES • Programme: TEN-T Multi-annual Call 2012 • Timeframe: 1 January 2013 - 31 December 2015 • Est. investment: approx. 120 mil. EUR • Budget (eligible costs): 80,5 mil. EUR (out of which 69,2 mil. EUR are dedicated to pilot activities) • EU funding: 40,25 mil. EUR • Beneficiaries: 33 EU-funded organisations (majority from private sector) and 1 Non-EU funded organisation • Special endorsement: by several Ministries of Transport and CCNR • Non-funded partners: more than 50 public/private organisations participating in IRG and AG LNG Masterplan: Status April 2015 7 LNG MASTERPLAN – WORK STRUCTURE Work plan Comments • Identify supply options & quantify pioneer markets in the hinterland of inland ports • Elaborate technical concepts for inland navigation sector by investigating & assessing of innovative engine, or LNG tank & equipment technologies • Facilitate the creation of a harmonised European regulatory framework considering LNG as fuel and as cargo for inland navigation • Deliver & assess technical concepts for new and retrofitted vessels & terminals & execute pilot deployments (investments) & looking into finances • Develop a comprehensive strategy with a detailed roadmap for the implementation of LNG in line with the EU policies in transport, energy and environment wide scale deployment LNG Masterplan: Status April 2015 8 LNG IS FUEL AND ENERGY RESOURCE LNG SUPPLY CHAINS TO INDUSTRIAL HEARTLANDS OF EUROPE LNG Masterplan: Status April 2015 9 BENEFICIARIES (PROJECT PARTNERS) LNG Masterplan: Status April 2015 10 ADVISORY GROUP & INDUSTRY REFERENCE GROUP Industry Reference Group Advisory Group • Air Liquide Advanced Technologies • MTU Friedrichhafen GmbH (DE) • Bundesministerium für Verkehr, Innovation und (FR) • N.V. Nederlandse Gasunie (NL) Technologie (AT) • Anthony Veder LNG Shipping B.V (NL) • National Company “Maritime Ports • Bundesverband Öffentlicher Binnenhäfen (BÖB) • Batini Traverso Consulting Ltd. (UK) Administration” Constanta (RO) • Bureau Veritas • Bomin Linde LNG GmbH & Co. KG • NAVMAR Inc. SRL (RO) • Central Commission for the Navigation on the Rhine (DE) • Netherlands Organisation for Applied (CCNR) • Bulgarian River Shipping JSCo (BG) Scientific Research - TNO • Duisburger Hafen AG • Caterpillar Marine Power Systems • Odessagaz (UA) • European Barge Unit (EBU) (DE) • OMV Gas & Power GmbH (AT) • European Federation of Inland Ports (EFIP) • Connect LNG AS (NO) • Port of Amsterdam (NL) • European Transport Workers‘ Federation • Cryonorm Systems B.V. (NL) • Pöyry Deutschland GmbH (DE) • European Skippers’ Organisation (ESO) • DNV Kema Nederland B.V. (NL) • PMSC S.A. (CH) • Inland Navigation Europe (INE) • Energy Valley Foundation (NL) • QaGroup Holding B.V. (NL) • International Sava River Basin Commission • Enovos Luxembourg S.A (LU) • Remontowa LNG Systems Sp (PL) • Lloyds Register EMEA • Ennshafen OÖ GmbH (AT) • SEATECH Engineering Ltd. (PL) • Ministerie van Infrastructuur en Milieu (NL) • Galli and associates Marine and Port • Shipyard ATG Giurgiu (RO) • Ministerstvo dopravy (CZ) Consultants (UY) • Steel Trans s.r.o. (SK) • Ministerstvo dopravy, vystavby a regionalneho rozvoja • Gas-und Wärme Institut Essen e.V. • Stevas Shipping (BE) (SK) (DE) • Stroje a Mechanizmy, a.s. (SK) • Ministerul Transporturilor (RO) • Gaztransport & Technigas Sas (FR) • TIS Group of marine temrinals (UA) • Ministry of Transport, Information Technology and • GAZU GmbH • Vanzetti Engineering Srl Communications (BG) • ICS Danube Logistics SRL (MD) • via donau – Österreichische • Port Authority Osijek (HR) • Inros Lackner SE (DE) Wasserstraßen GmbH (AT) • Port of Switzerland (CH) • LIQUIND (DE) • Wartsila Netherlands B.V. (NL) • Romanian Inland Port Union (UPIR) • LNG Europe B.V. (DE) • Westport Innovations Inc. (FR) • Secretariat of Danube Commission (HU) • Mercurius Shipping Group (NL) • Worldenergy (CH) • MOL Hungarian Oil and Gas Plc. (HU) Status: 8 April 2015 11 OUTPUT FRAMEWORK & MARKET ANALYSIS FRAMEWORK MARKET - Danube MARKET - Rhine Status Quo Analysis & Trends (SuAc 1.1) LNG Supply Analysis-Danube (SuAc 1.2) Rhine region study • (Port of Rotterdam, Antwerp, Stakeholder analysis & LNG small scale • Global Energy Market Mannheim, Strasbourg, Basel) logistics analysis • Specific European Energy Market • LNG in maritime (status /trends) • Supply Chain Scenarios & SWOT analysis [Contracted June 2014: Pace, Buck, TNO] • LNG in inland navigation (status /trends) • National Supply Analysis (AT, SK, DE, BG, • • Literature review LNG in shipping LNG in road transport (status/trends) RO) • Existing & future emission regulations (IWT) (SuAc 1.1 - completed in Q4/2014) • Gap analysis & trend assessment • Supply chain analysis & assessment of options for the Completed in Q1/2015 (D 1.1.1) Expected in Q2/2015 (D 1.2.2 - Danube) Rhine corridor - different sourcing options for LNG and the different supply chain options along the Impact Analysis (SuAc 1.4) LNG Demand Analysis-Danube(SuAc 1.3) Rhine corridor (SuAc 1.2) • Safety – summary of properties, hazards, • Methodology (Feb 2014) • Elaboration of dynamic model, safety regulations & incidents connected to • National & regional results of demand development and deployment LNG studies (DE, AT, BG, CZ, SK, HU, IT, RO) scenarios will be generated for the • Ecology – current state & tendency of • Visibility events (AT Jul 2014, others) Rhine Ports Group (SuAc 1.3) transport, its impact on enviro & enviro • Evaluation workshop (to be in Q2/2015) • Brochure “Facts & figures for LNG efficiency of transport (trends) as fuel and cargo in inland • Socio-economic aspects navigation” (SuAc 1.4) Completed in Q4/2014 (D 1.4.1) Completed in Q1/2015 (D 1.3.1.1 - Danube) Expected in Q2/2015 LNG Masterplan: Status April 2015 12 OUTPUT SAFETY & REGULATORY FRAMEWORK LNG bunkering (D 2.3.1) addresses: Rhine Ports’ studies ICGR Group “International 1. Overview of regulatory framework A. „LNG bunkering and LNG loading Coordination Group on Regulatory 2. LNG bunkering procedures and unloading: technical evidence, adjustments” was established … LNG (un)loading (D 2.3.2) addresses: safety and risk assessment leading (Kick-off in Apr 2014) to provisions for harmonised 1. To create a platform addressing 1. Difficulties between LNG vessel & shore European regulations“ [DNV GL] connections & provides overview of B. „Emergency & incident response“ the LNG related regulatory issues regulatory framework 2. To support the regulatory bodies Activity 2.3 Activity [Falck/Gezaemnlijke Brandweer] 2. Standardised installations for LNG C. “Recommendations on Police with expertise on defined LNG (un)loading Regulations” covering (i) overview related topics addressed by LNG 3. Standardisation scenarios & procedures for of existing local & international Masterplan (un)loading LNG police legislation, (ii) consultations 3. To elaborate set of guidelines & to CCNR, (iii) recommendations on recommendations based on input adjustment of Police Regulations Safety & Risk Assessment addresses: from studies delivering: 4.1 Activity [Claire Groenewegen] … Study on bunkering regulations 1. Comparison of risk assessment tools used Expected: Q2/2015 (D 4.1.2) in the Rhine Ports (D 2.4.1) … Study on port regulations 2. Study on operational safety & nautical (D 4.1.3) conditions with regard to LNG bunkering in … Study on police regulations the Rhine Corridor (D 2.4.2) (D 4.1.4)