REPORTS 5/2017 Alternative transport fuels infrastructure Finland’s National Plan Ministry of Transport and Communications Vision Well-being and competitiveness through high-quality transport and communications networks Mission The Finnish Ministry of Transport and Communications seeks to promote the well-being of our people and the competitiveness of our businesses. Our mission is to ensure that people have access to well-functioning, safe and reasonably priced transport and communications networks. Values Courage, equity, cooperation Date 28 March 2017 Title of the report Alternative transport fuels infrastructure. Finland´s national plan Author(s) Compiled by Saara Jääskeläinen on the basis of the report of the working group for Alternative Fuels Infrastructure Directive Implementation Commissioned by, date Number of the report ISBN (online) 978-952-243-512-5 Reports 5/2017 URN http://urn.fi/URN:ISBN:978-952-243-512-5 Keywords Alternative fuels for transport, distribution infrastructure, Alternative Fuels Infrastructure Directive, AFI Directive Contact person Language of the report Saara Jääskeläinen English Other information Abstract Directive 2014/94/EU of the European Parliament and of the Council on the deployment of alter- native fuels infrastructure entered into force in October 2014. According to the Directive, all Mem- ber States must draft a national policy framework for the development of an alternative transport- fuel market and deployment of a related infrastructure by November 2016. The national policy framework must specify the alternative transport fuels and their distribution infrastructure targets for 2020 and 2030 as well as the measures by means of which the targets will be achieved. The Finnish Government accepted the National Alternative Fuels Plan in February 2017. Accord- ing to the plan, the distribution station network of different fuels and the public charging points required by electric vehicles be built in Finland primarily on a market basis. Commercial operators, such as energy companies, shopping centres and parking operators, would primarily be responsi- ble for construction of the infrastructure. The most profitable areas, i.e. large and medium urban regions, would be built first. Other areas and measures for their construction will be assessed by no later than 2020. It has been estimated in Finland, that even if the distribution network were to be constructed on a market basis, numerous new measures would have to be taken in order to open alternative fuel markets. The most important of these measures are amendments to the Act on the Promotion of the Use of Biofuels for Transport, the use of existing economic instruments (e.g. car, motor vehicle and fuel tax, energy subsidies), a procurement subsidy for new technologies, developing the taxa- tion of company car benefits, making use of public procurements, developing information guid- ance, exerting influence at the international and EU level as well as research and development. This is the English version of the Finnish report number 4/2017. Contents 1. Introduction .................................................................................................5 2. Alternative transport power sources – current state ................................7 2.1 General points ...............................................................................................7 2.2 Electricity .......................................................................................................8 2.2.1 Electricity as a transport power source ..........................................................8 2.2.2 Electric machinery and goods vehicles ........................................................10 2.2.3 Shore-side electricity supply in ports ...........................................................10 2.2.4 Electricity supply for stationary airplanes at airports ....................................11 2.2.5 Rail transport and electricity ........................................................................11 2.2.6 Electric solutions for waterborne transport ...................................................12 2.3 Natural gas and biogas ................................................................................12 2.3.1 Natural gas and biogas as transport power sources ....................................12 2.3.2 LNG and LBG in waterborne transport ........................................................14 2.4 Hydrogen.....................................................................................................16 2.5 Liquid biofuels .............................................................................................16 2.5.1 Renewable aviation fuels .............................................................................19 2.5.2 Renewable fuels for rail transport ................................................................20 3. Finland’s national targets for alternative transport power sources .......21 3.1 Power source targets...................................................................................21 3.2 Infrastructure targets ...................................................................................21 3.3 Targets for vehicles .....................................................................................22 3.4 Other targets ...............................................................................................25 4. Measures needed to reach the national targets ......................................26 4.1 Act on the Promotion of the Use of Biofuels for Transport............................26 4.2 Fuel tax .......................................................................................................26 4.3 Car and vehicle taxes ..................................................................................27 4.4 Support for purchasing new technologies ....................................................27 4.5 The Transport Code ....................................................................................28 4.6 Changing the tax treatment of company cars ..............................................28 4.7 Promoting the deployment of new technologies by means of public procurement ................................................................................................29 4.8 Guidance by information ..............................................................................30 4.9 Energy grants ..............................................................................................30 4.10 Rural business and energy support .............................................................31 4.11 Promoting the use of biofuels in aviation .....................................................32 4.12 Promoting natural gas and biogas use in waterborne transport ...................32 4.13 Promoting alternative energy use in ports and at airports ............................33 4.14 Using EU financial instruments in building distribution infrastructure ...........33 4.15 Influencing EU objectives and actions .........................................................34 4.16 Influencing international objectives and measures .......................................35 4.17 Research, development and innovations .....................................................35 4.18 Legislative changes .....................................................................................36 4.19 Monitoring ...................................................................................................36 5. Finland as part of the TEN-T network – designated areas and networks37 5.1 Designated areas in 2020: electricity ...........................................................37 5.2 Designated areas in 2020: natural gas and biogas (CNG, CBG) .................37 5.3 Designated areas in 2030: hydrogen ...........................................................38 1 5.4 Designated areas in 2020: liquid biofuels requiring a separate distribution network........................................................................................................ 38 6. Conclusion ................................................................................................. 39 6.1 Objectives ................................................................................................... 39 6.2 Proposed measures .................................................................................... 41 APPENDIX 1 Well-to-wheels emissions of different technologies APPENDIX 2 Maps and tables 2 Abstract Directive 2014/94/EU of the European Parliament and of the Council on the deployment of alternative fuels infrastructure (the AFI Directive) entered into force in October 2014. Under this Directive, all Member States shall draft a national policy framework for the development of an alternative transport fuel market and deployment of the related infrastructure by No- vember 2016. The national policy frameworks must contain both targets for alternative transport fuels for 2020 and 2030 and the measures necessary to ensure that these targets are reached. Finland’s national target for road transport in 2050 is near-zero emissions. The target for shipping is a 40% reduction in greenhouse gas emissions by 2050 as a result of LNG and biofuel use and other measures. In aviation, the target is to bring the share of renewable or other emission-reducing solutions up to 40% as minimum by 2050. Finland’s target for vehicles using alternative fuels is that all new vehicles sold in Finland are compatible with alternative