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Hitting the Road in Green Mode

Hitting the Road in Green Mode. Local Renewables 2007 Freiburg, June 14, 2007. Marieke Reijalt. Dissemination Coordinator. Project and Objective. Procura is a General Action project of the Intelligent Energy for Europe programme of the Directorate General Transport and Energy.

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Hitting the Road in Green Mode

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  1. Hitting the Road in Green Mode Local Renewables 2007 Freiburg, June 14, 2007 Marieke Reijalt Dissemination Coordinator

  2. Project and Objective Procura is a General Action project of the Intelligent Energy for Europe programme of the Directorate General Transport and Energy. The project started the beginning of February 2006 and will last three years. The total budget is Euro 1.748.546. PROCURA aims at contributing to the EU objective of 20% substitution of oil-based motor fuels by 2020, by overcoming market barriers for large-scale procurement of Alternative Fuel Vehicles (AFVs).

  3. Problems and Solutions The problem lack of infrastructure (chicken-egg problem) lack of maintenance and repair facilities lack of knowledge of fleet owners and consumers lack of economics lack of second-hand market. buyer pools (permitting centralised infrastructure and servicing); certification systems for AFVs. a focus on private fleet owners (e.g. Greenlease); the start-up development of second hand markets The solution PROCURA’s strategy consists of developing and testing models for centralised AFV procurement via:

  4. The Target Groups Local authorities; Private fleet owners Regional and national agencies.Maintenance and repair shop Infrastructure developers Branch organisations (automotive) Automotive manufacturers The deliverables manuals developed in collaboration with, and to be applied by fleet owners in 5 pilots in the Netherlands, Italy, Portugal, Poland and Spain.; 200 Alternative fuelled vehicles, AFVs will be procured; 150 fleet scans will be carried out, 1500 relevant stakeholders will be involved in events

  5. Procura Partners Ecofysb.v. . FAST Federazione delle associazioni scientifiche e tecniche . EuropeanNatural Gas VehicleAssociation Terberg Leasing bv ETA RenewableEnergies . EmpresaMunicipal de Tranportes de Valencia . MunicipalityofNijmegen. NTDA Energia . InstitutoSuperior Tecnico University Utrecht Ford Motor Company Europe KrajowaAgencjaPoszanowaniaEnergiiS.A

  6. Alternative motor fuels? Compressed natural gas [CNG] Bioethanol (will cost Euro 2,00 t o2,25 per gallon) Vegetabel oil Biodiesel UK Target 3,5% in 2010 EU target of target 5,75 % in 2010 France target 7% in 2010

  7. Deliverables Preparation material (WP2-3) AFV-manuals / training guidelines for different target groups (WP2) Fleetscan tool Procurement models Pilot cases (WP4-8) Applied by fleet owners in 5 pilots in the Netherlands, Italy, Portugal, Poland and Spain Deliverables: 150 fleet scans carried out 200 Alternative fuel vehicles procured 1500 relevant stakeholders involved in events 5000 relevant stakeholder informed

  8. Workpackage progress: WP2: Manuals Current status: WP2 rounded off Three manuals delivered, Market barriers overview, Incentive systems overview (best practices) Some conclusions - Great deal of market information available – now integrated and customized - Great deal of incentives available – opportunity for procurement model - Limitations in availability AFVs (differences per country) - Chicken-egg problem prominent  focus on fleets logical

  9. Workpackage progress: WP3: Procurement Current status: Rounding off WP3 Economic and ecologic tool developed In dvt: Set up of a Certification system green vehicles In dvt: Greenlease concepts Some conclusions: Tool provides insight for fleet owners Procurement Models: Combinations of (i) type of fleet, (ii) type of fuel, (iii) incentive systems (compensation), (iv) 3rd party involvement (ownership, exploitation) Certification is important, but requires great efforts GreenLease provides opportunities

  10. Workpackage progress: WP3: Procurement Procurement models- example 1: Taxi company with >50 vehicles in fleet CNG option  higher initial cost + lower fuel cost Financed by third party (ownership) Option: Incentive systems – particular lane usage. Procurement models- example 2: Large fleetowner: central operation, city logistics Biofuel interest – but higher costs Compensation through incentive systems: access to city centers + local subsidies Own tank station

  11. Workpackage progress: WP4.1 Nijmegen Status: in progress Focus on CNG procurement: buses and cars (200 AFV) Municipality as partner Several workshops with relevant parties Fleet scans with interested fleet owners Some conclusions Condensed knowledge valuable (manuals) for municipalities and stakeholders Relevant to include complete supply chain: e.g. bus companies, end users, concession authority Integration on public tender process Municipality to regional level to increase leverage

  12. Workpackage progress: WP4.2 Greenlease (Green)LEASE: A fixed long-term commitment to rent an asset, e.g. a vehicle • Why is vehicle lease relevant for the AFV market penetration? • Main market barriers become irrelevant when leasing those vehicles • Full service lease contract, including maintenance & repairs • Risk reduction for customer, with lease company providing the service • Leasing cars indirectly stimulates the second hand market • Both vehicles as infrastructure can be leased • No initial capital expenditures (but higher lease costs) • Vehicle availability increased through lease company • Knowledge of incentives and technology

  13. Workpackage progress: WP5: Lisbon Current status: In progress Municipality of Lisbon fleet 11 urban transport companies targeted + 3 municipal fleets First workshops with stakeholders held Some conclusions Market barriers large: vehicle availability + high costs of fuel No infrastructure available  municipality takes the lead

  14. Workpackage progress: WP6: Italy Current status: Focus on biofuels CNG is well integrated in Italy Florence is integrated as pilot Some conclusions Political difficulties Limited fleet owner interest High fuel prices and infrastructure availability (success CNG largely explained through lower fuel prices)

  15. Workpackage progress: WP7: Poland Current status: In progress Focus on CNG buses > 20 bus operators were contacted 7 letters of intent for AFV procurement Seminars held with complete supply chain Some conclusions: Buses form an attractive AFV market Infra, volume, central logistics Interest in CNG for lower fuel prices

  16. Workpackage progress: WP8: Valencia Current status: in progress Supply chain analysis Valencia region  identification 200 stakeholders (leasing, fleetowners, car dealers, maintenance services etc) Focus on FFV and biofuels Spain is target market for Ford FFV First fleet scans performed Some conclusions: Local support OEMs of large influence (vehicle availability) Incentive systems as cost compensation method envisioned to be crucial

  17. Workpackage progress: WP9 - Evaluation An evaluation of all pilots is taken into account at the end of the project Based on the evaluation a last version of manuals will be produced where necessary. Not applicable at this point.

  18. Workpackage progress: WP10 Dissemination Current status: Up and Running Website set up Seminars organized in Brussels Participation in internationl events (mobility week, fleet forum, other EU projects (e.g. BEST), Green Purchasing Conference) Meetings with dissemination partners Set up of contact database Some conclusions Large interest to provide information on AFVs Many events Growing interest of end users – but large barriers

  19. Conclusions PROCURA M16 - Despite growing interest, large barriers exist for large-scale AFV procurement - Cost of fuels - Vehicle availability limited - Chicken egg problem: infra-vehicle - Limited push and incentives - Limited environmental motivation Second order barriers: 2nd hand market repair&maintenance

  20. Conclusions PROCURA M16 Possible strategies Tax exemption (e.g Germany-biodiesel, Sweden-ethanol, CNG-Italy) Large-scale procurement focus Buses, large fleets Cross-border (logistics companies) Supply-chain approach Incentive systems can compensate, but with limitations AFV-mandate for fleet owners Mandating a certain percentage for fleet owners Learn from US example

  21. OutlineforsuccessfulGreenLeaseconcepts Deliverable D 3.4 Michaela Mönter NTDA Energía

  22. Greenlease Concept Green VehicleRental Fleet Analysis Label Ecodriving GREENLEASE Fleet Management Maintenance & Repairs Reconditioning & second-hand vehicle auctioning

  23. Greenlease concept Fuel saving measures which can be applied by any fleet owner & driver 1 Switch of engine, when waiting at a traffic light / railway crossing / picking someone up Assure that tires have the correct pressure & possibly get low-rolling-resistance (LRR) replacement tires. 2 • Reduction of: • noise • CO2 • local air quality pollutants • number of accidents Stick to moderate speed & drive foresighted to diminish unnecessary braking / sudden acceleration. 3 Drive in high gear & shift soon into next gear to avoid a high engine speed 4 BASIC ECODRIVING RULES 5 Apply a fuel management programme, e.g. a fleet fuel card Eliminate superfluous weight, e.g. unnecessary things in the trunk 6 Schedule maintenance to increase fuel economy due to constant clean air filters, etc. 7 Enhance driver awareness for energy consumption, e.g. no use of air conditioning as a fan 8

  24. ProcurementModels Michaela Mönter NTDA Energía

  25. Bulk Procurement

  26. Bulk Procurement

  27. Bulk Procurement

  28. AFV-Quick Scan tool

  29. AFV-Quick Scan tool screenshot 1 Exit Button: Allows user to close the interface Create Vehicle Button: This button allows user to include vehicles currently not inserted in the data base Country Buttons: By clicking onto country buttons the tool selects pre-set country data for vehicles are (tax, fuel price, etc). In case that the country of interest is not represented, it can be created manually by clicking onto the “Custom” button!

  30. AFV-Quick Scan tool screenshot 2

  31. Results: province of Gelderland (2) Economics & CO2 emissions Yearly costs (incl depreciation) Per AFV option (x € 1000,-) CO2 emissions (ton/year)

  32. Results: province of Gelderland (3) Local air quality PM10 emissions (kg/year) NOx emissions (kg/year)

  33. AFV-Quick Scan tool Current status >40 fleet scan performed Mostly in Netherlands Logistics companies and fleet owners with different size • Early outcomes • For some fleetowners AFVs are attractive economically • Taxation is leading in economic attractiveness • Further work • Make quick scan tool internationally available (including national taxation schemes) • Report on type of fleet owners eligible for AFVs

  34. Contact Information For more information please visit www.procura-fleet.eu or contact: Menno Chang, project coordinator, m.f.chang@ecofys.nl, +31 30 2808 449 MariekeReijalt, dissemination coordinator, marieke@h2it.org, +39 340 791 4751

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