Autogas: „Underestimated hope of the traffic turnaround“ – Energy supplier Rheingas and fuel system supplier Prins are calling for LPG back on the political scene

21 September 2021

Two major players in the German liquid gas market share their views on the energy transition in the transport sector - and the often underestimated role that liquid gas can play in it. A double interview with Bart van Aerle, managing director of the fuel system supplier Prins Autogassystemen (part of Westport Fuel Systems), and Uwe Thomsen, managing director of the energy supplier Propan Rheingas.

Climate policy pressure greater than ever

2021 is an important year for the environment and industry alike - all political foundations have been set for climate protection, and the goals for reducing CO2 emissions have been clearly set. With the recently tightened German Climate Protection Act - 65 percent CO2 savings by 2030, climate neutrality by 2045 - the Federal Government is responding to the Federal Constitutional Court ruling of April 2021 and the new, stricter requirements of the European Union (keyword: "Fit for 55"). Political pressure is greater than ever, and industry is growing uneasy. Because now it is time to implement, and quickly.

The increased use of (bio) LPG (Liquefied Petroleum Gas) in mobility could already help to reduce not only CO2, but also pollutant and fine dust emissions immediately. A potential that is still largely underestimated, because with emissions of almost 166 million tonnes of CO2 equivalents, the transport sector remains the problem child of the energy transition. When it comes to reducing emissions, the mobility sector has been treading on the spot since 1990.

Liquid gas as an immediate solution in mobility

Although the use of liquefied gas has its origins in Germany, there is a high degree of ignorance within the population and among many political and economic decision-makers with regard to LPG as an alternative energy source in the transport sector. This has to change, explains Thomsen: “In order for liquid gas to develop its potential on Germany and Europe’s roads, it needs appropriate political recognition and an appropriate regulatory framework”.

If LPG is used as a car fuel, it is referred to as Autogas. It offers an environmentally friendly, economical alternative to conventional fuels, through which an immediate reduction in CO2 and pollutant emissions can be achieved - on average 15 percent less CO2 and up to 99 percent less particulate matter compared to gasoline engines.

The very clear advantage: the existing logistics and comprehensive infrastructure of around 7,000 petrol stations nationwide. This means that LPG can be filled up at every second filling station in Germany. This makes it particularly attractive for use in rural areas, as - in contrast to hydrogen or electromobility - it can also be transported flexibly to remote regions. This is where the greatest potential lies for Thomsen, also compared to other alternative drive solutions: “Up to 90 percent of Germany is rural. Having one's own car is still of central importance here - around two thirds of all journeys are made by car. Thanks to the extensive infrastructure, LPG can close the gap in local and commuter traffic that electromobility cannot cover due to the range issue ”. The extremely inexpensive fuel is particularly suitable for price-conscious and environmentally conscious drivers and for people who regularly cover longer distances - such as commuters.

LPG vehicles in Germany are currently already saving considerable amounts of CO2, fine dust and nitrogen oxides. The currently around 350,000 LPG vehicles registered on German roads alone save the atmosphere around 300,000 tons of the climate-damaging gas per year. With LPG in the vehicle fleet, a significant reduction in pollutants can be achieved immediately at an affordable price.

Use the potential of existing fleets now

If the number of LPG vehicles in private transport as well as in public transport, goods and agricultural transport were to increase, further CO2 and pollutant emissions in the transport sector could be saved, and driving bans could even be avoided.

In addition to buying a new LPG vehicle from manufacturers such as Dacia, Renault and Fiat, who sell vehicles with LPG equipment directly from the factory, the option of converting existing fleets is an effective lever, explains van Aerle: “There are currently 48 million cars on Germany's roads , including around 31 million petrol engines. Only a small part of it will be able to be replaced by battery electric vehicles by 2030 ”. With an average car age of currently 9.8 years, there is enormous potential here, as these vehicles can be converted to run on LPG without great effort and at manageable costs.

"As an important transit country in other European countries, Germany should also serve as a role model in terms of the number of registrations for LPG-converted cars and trucks," emphasizes van Aerle. Rheingas is setting a good example here and has already retrofitted 90 percent of its own car fleet with Prins autogas systems.

The future is called "renewable"

In order to make the vision of a climate-neutral Germany and Europe a reality by 2045 and 2050, the liquefied gas industry is also actively working on the development and establishment of sustainable and renewable variants of fossil fuels. The admixture of so-called “green” gases - biogenic or synthetic - will turn fossil LPG into 100 percent renewable, climate-neutral gas in the long term, which makes a decisive contribution to the decarbonization of road traffic. Renewable gases therefore play a key role in the energy transition.

LPG is a "waste product" that arises anyway in the production of oil and natural gas - biogenic liquefied petroleum gas (BioLPG) also offers the advantage that it can be obtained from up to 100 percent organic, renewable raw materials. In the heating sector, BioLPG has been established in the German market for three years and will also be available for the transport sector in the foreseeable future.

“As an industry, we are also doing intensive research into a possibility for the synthetic production of LPG in order to avoid fossil fuel dependency,” confirms Thomsen, “for example in the context of initial pilot projects such as 'FutureLiquidGas'. A fully synthetic, climate-neutral variant generated from renewable electricity must be tested so that it can win its place in the energy mix of the future ”. For a successful traffic turnaround, climate-neutral synthetic fuels are indispensable.

The biological and synthetic path, however, is only possible if the conventional, fossil product is further supported - it is up to politics to create the necessary framework conditions and purchase incentives, explains Thomsen.

The turnaround in transport requires technology openness

“Our vision is to create a greener and cleaner future through collaborative industry initiatives and strategic partnerships. As an industry, we have created all the prerequisites, including a nationwide network of petrol stations. Now it is time for politicians to finally recognize and use this climate potential - I see a lot of catching up to do here,” demands Thomsen. There is great concern on the part of industry that politicians are not taking the concerns of companies seriously with regard to costs, competitiveness and planning security. In order to successfully contest the transport turnaround and to achieve the ambitious climate targets, all future-proof technologies and energy solutions must therefore contribute their part to the green change.

Prins Autogassystems and Rheingas pursue the goal of finding fast, safe and, above all, affordable solutions to the pollution problem in traffic. According to Van Aerle, the ONE miracle weapon does not yet exist: “I would like to put a question mark on whether the ideal drive of the future has already been found in mobility. In my opinion, there is no silver bullet here and it is particularly important to shape the transition to regenerative drives. This requires openness to technology and energy sources that help shape the transformation process in the short to long term ”. LPG drives and fuels have a lot to offer here and should therefore be integrated equally into the energy transition in the transport sector - otherwise considerable opportunities for climate protection would be wasted, Van Aerle added. “What we need is 'fair play', i.e. legal equality with other environmentally friendly alternatives. Don't get me wrong: we don't think that the turnaround in traffic can be achieved with LPG alone. But we want to and can be part of the solution. LPG offers more than just the transition to non-fossil fuel talter ".

This economically sensible and environmentally friendly immediate solution needs to be recognized and, in particular, the potential of sustainable BioLPG to be better used and promoted. This is how the energy transition in transport can succeed.

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Bart van Aerle was appointed Vice President, Strategy and Product Planning at Westport Fuel Systems Inc. in 2020, and is also Managing Director for Prins Autogassystemen - one of the most important subsidiaries and key brands of Westport Fuel Systems. Bart van Aerle heads the strategy and the operational business of the branch in Eindhoven, where he helped to expand the sales of high-quality LPG, CNG and LNG retrofit systems and components for motor and transport vehicles worldwide. With almost 25 years of experience in the automotive industry, van Aerle has held a wide variety of management positions, including sales management, operations and quality. He completed his bachelor's degree in business administration and engineering from Fontys University in Eindhoven.

 

Uwe Thomsen is the managing director of Propan Rheingas GmbH & Co.KG. The graduate in business administration took over the management of the company from his father in 2001 and since then has been in charge of the family business founded in 1925 in the fourth generation. The Rhineland-based energy supplier and solution provider has been using liquefied gas as an energy source since 1950, making it one of the first providers. Under Thomsen's management, Rheingas grew from a 

regional liquid gas supplier, filling station operator and trader of technical gases to a group of companies with around 450 employees and offices in the Netherlands and Poland, among others. Thomsen, who is involved in the association “Die Familienunternehmer e.V.” and is also a member of the Senate of Economics and the Economic Council, is an entrepreneur through and through. Until 2015 he was also deputy chairman of the German Liquid Gas Association (DVFG) for nine years.

 

  

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 You can read the full interview with Bart van Aerle and Uwe Thomsen here:

 

     1 As experts in energy and propulsion - how can the energy transition in the transport sector succeed from your point of view? What is your contribution to this?

 BvA: If we want to take the energy transition and CO2 reduction seriously, it must not be an either / or question. There is no ONE miracle weapon - I would therefore like to add a question mark to the question of whether the ideal drive of the future has already been found in mobility. In my opinion, there is no silver bullet here and it is particularly important to shape the transition to regenerative drives. This requires openness to technology and energy sources that help shape the transformation process in the short to long term. That does not rule out researching new technologies or further improving electric drives. The fact is, however, that LPG is already convincing across the board. It is an established and mature technology with a good climate balance. So what we need is "fair play", i.e. legal equality with other environmentally friendly alternatives. Don't get me wrong: we don't think that the turnaround in traffic can be achieved with LPG alone. But we want to and can be part of the solution. LPG offers more than just the transition to the non-fossil age. Our task as an industry is to use market-ready solutions to further sensitize the public and political perception of the still largely unrecognized potential of this fuel and the existing technology - and to bring the underestimated hope of the traffic turnaround back onto the political scene.

UT: Absolutely. Our vision is to create a greener and cleaner future through collaborative industry initiatives and strategic partnerships. Rheingas pursues the goal of finding quick, safe and above all affordable solutions to the pollution problem in traffic. As an entrepreneur, I think here as an entrepreneur that is open to technology, creative and keen to experiment. The fact is: With emissions of almost 166 million tons of CO2 equivalents, the transport sector remains the problem child of the energy transition. When it comes to reducing emissions, the mobility sector has been treading on the spot since 1990; the concentrations of fine dust and nitrogen oxides in metropolitan areas are an acute problem. In order to achieve the more stringent climate targets, immediate solutions are needed. Liquid gas could already help to reduce not only CO2, but also pollutant and fine dust emissions. As an industry, we have created all the prerequisites, including a nationwide network of petrol stations. Now it is time for politicians to finally recognize and use this climate potential - I see a lot of catching up to do here.

 

     2 The mobility debate in the light vehicle market in Germany seems to have long since been decided with the advance of electromobility - do you actually see LPG as a realistic future scenario for passenger transport? What are the advantages?

 

UT: Liquid gas has a lot to offer with its innovative, immediately implementable and affordable approaches - namely immediate climate protection at a low price. Even with conventional LPG, CO2 emissions are on average 15% below those of gasoline; fine dust and nitrogen oxide emissions are also negligible. This is also confirmed by a study by the Saarland University of Applied Sciences (HTW), which, on behalf of the German Liquid Gas Association (DVFG), compared the emissions of three different types of drive: diesel, direct petrol injection and LPG. Another big advantage are the lower fuel costs: the prices for LPG fluctuate between 0.54 and 0.80 euros per liter - the price for a liter of premium gasoline is around twice as high.

BvA: In addition - and this is the very clear advantage over electromobility - there is a nationwide infrastructure and established supply chains for LPG, which already enable smooth mobility and secure supply. With around 7,000 filling stations across Germany, LPG can be filled up at every second filling station in Germany. The fuel and the technology required for it are immediately available on a large scale, and it can be retrofitted simply, easily and inexpensively.

UT: On the other hand, not every vehicle application can be electrified, and hydrogen will not be able to be implemented in mobility that quickly either. Don't get me wrong, hydrogen in its pure form (we also sell it for filling stations ourselves) or as an intermediate product in the production of synthetic liquefied gas is a regenerative achievement - but it will only become established when a market can develop from it. Other possibilities should not lie idle in the meantime; rather, we should now use all available technology options to reduce CO2 emissions.

As a leading, established and alternative fuel with an existing infrastructure, liquid gas already makes a significant contribution to reducing CO2 emissions from transport and improving air quality in cities and metropolitan areas.

 

     3 In which areas do you see the greatest potential of LPG in mobility, especially in contrast to electric?

 

UT: In the transport sector, liquefied petroleum gas plays an important role as so-called autogas in the environmentally friendly and affordable design of mobility - we see the greatest potential here in rural areas: Up to 90 percent of Germany is rural. The use of one's own car is still of central importance here - the Federal Ministry of Food and Agriculture assumes that around two thirds of all trips in rural regions are made by car. LPG offers a climate-friendly alternative to diesel and gasoline cars, which - in contrast to electric and hydrogen mobility - can be used immediately. Thanks to the extensive infrastructure, LPG can close the gap in local and commuter traffic that electromobility cannot cover due to the range issue. The extremely inexpensive fuel is also particularly suitable for price-conscious and environmentally conscious drivers and people who regularly cover longer distances - such as commuters.

BvA: Overall, the field of application of LPG in mobility is enormous. Also power taxis, light and heavy commercial vehicles, boats and ships, mobile machines and devices as well as hot air balloons, forklifts and industrial trucks. The big advantage here: LPG burns with almost no residue and the legal limit values ​​for the concentration of pollutants in the workplace can easily be complied with with forklifts powered by liquefied gas. This means that it can be used just as easily inside buildings as it is outdoors.

 

     4 What is BioLPG and what is the difference to LPG?

 

UT: BioLPG, unlike conventional liquid gas, is not of fossil origin. It is made from biomass: from vegetable or animal residues and waste materials, oils or fats. The use of biofuels can bring about great reductions in emissions, as the example of Sweden clearly shows. BioLPG is therefore a sustainable and renewable energy source. These environmental benefits need to be recognized and incorporated into the strategies of the federal government.

BvA: I can only underline that. Especially since no adaptation of the vehicle engines or existing LPG systems is necessary for these renewable LPG variants known today.

UT: Renewable LPG is already on the market as a biogenic energy source. Since we have been able to offer BioLPG in the heating sector, the second major area of ​​application for LPG, since 2018, BioLPG's market entry in the transport sector will also not be long in coming - and thus pave the way for a green future for LPG as an energy source.

 

     5 What contribution can renewable gases make to achieving the climate targets for 2030 and to decarbonising the transport sector? And how far are we with synthetic LPG de facto in Germany?

 

UT: In order for Germany to achieve its climate protection goals, CO2 emissions in traffic must decrease significantly. Fuel suppliers must gradually reduce CO2 emissions from fossil fuels by 25 percent by 2030. The share of renewable energies for motor vehicles is to increase to 32 percent by then, according to the decision of the German Bundestag.

Renewable gases therefore play a key role in the energy transition. Liquid gas can be produced up to 100 percent renewable and thus make a decisive contribution to the decarbonization of Germany and Europe. The admixture of “green gases” will turn fossil liquid gas into renewable gas that is climate-neutral in the long term - when using renewable LPG, CO2 emissions can be reduced to almost zero.

BvA: For a successful energy transition in the transport sector, climate-neutral synthetic fuels are therefore indispensable in addition to the biogenic variants. They are currently being researched and are considered great hope for the future. Such electricity-based fuels, together with fuels made from biomass, represent the only technical method with the help of which the CO2 emissions of today's vehicle fleet can be reduced to complete greenhouse gas neutrality.

UT: We as a company and as an industry are therefore researching intensively at the same time into a possibility for the synthetic production of LPG in order to avoid fossil fuel dependency - for example in the context of initial pilot projects such as "FutureLiquidGas". A fully synthetic, climate-neutral variant generated from renewable electricity must be tested so that it can find its place in the energy mix of the future. The generation of synthetic liquefied gas with power-to-gas technology will close an important gap in the future - and once again underlines the future potential of LPG as an energy source in the transport sector.

 

     6 Why do you still rely on fossil fuels at all? Would you describe LPG as a necessary “bridging technology”, or is there real potential for the future as THE fuel of tomorrow?

 

UT: The biological and synthetic path is only possible if the conventional product continues to be supported - here it is up to politicians to create the necessary framework conditions and purchase incentives. Because only as long as we have fossil fuels can we develop a renewable, synthetic fuel. From Rheingas' point of view, LPG offers more than just the transition to the non-fossil age - we are more than convinced of the current and future importance of liquid gas as an energy source in combination with an internal combustion engine. LPG has its place in the drive mix of the future. We have to use everything that reduces CO2 in order to achieve the goal of climate neutrality. I have been committed to this for a long time.

BvA: Yes, (bio) LPG is an indispensable technology on the way to a climate-neutral Europe. The current political developments around “Fit for 55” are fueling the debate about the imminent end of the internal combustion engine. But it is not the combustion engine that we have to say goodbye to, but rather polluting fuels like diesel - by replacing them with renewable gaseous fuels. Our strategic roadmap as a fuel system supplier focuses on providing a “one-for-all” solution based on the classic combustion engine and which can be used for all gaseous fuels: this path begins with fossil LPG and biomethane mixtures, which are replaced by 100 percent BioLPG or even hydrogen in the near future. The technology required for this is already on the road today.

 

     7 How much potential do you think there is in converting German car fleets? And how is a vehicle converted for use with LPG - is it worth it?

 

BvA: There are two options for using LPG: Buying a suitably equipped new vehicle from manufacturers such as Dacia, Renault and Fiat, who offer vehicles with LPG equipment directly from the factory. Or retrofitting the existing car - this is exactly where there is enormous potential: 48 million cars are currently on Germany's roads, around 31 million of which are petrol. Only a small part of this will be able to be replaced by battery electric vehicles by 2030. These vehicles can be converted to run on LPG at around 1,000 trained workshops in Germany with little effort and at manageable costs. Almost any vehicle can be converted, including new vehicles. With an annual mileage of 10,000 kilometers, LPG can save around € 500 in fuel costs compared to petrol. The retrofitting costs of an average of EUR 2,100 amortize - despite the slightly higher consumption of LPG vehicles - after one to two years, depending on the annual mileage. Some car insurers also reward the conversion to alternative fuels such as LPG with a discount. Always good to know for consumers: The ADAC regularly confirms that properly converted LPG vehicles are at least as safe as petrol or diesel vehicles.

UT: The around 350,000 LPG vehicles currently registered in Germany alone save the atmosphere around 300,000 tons of climate-damaging CO2 per year. If the number of LPG vehicles in individual transport as well as in goods and agricultural transport were to increase, further CO2 and pollutant emissions in the transport sector could be saved and even driving bans avoided.

Many companies have already recognized this potential, and we at Rheingas are also setting a good example - 90 percent of our own car fleets have already been converted for LPG operation with Prins autogas systems. At the political level, however, this potential is not yet given the necessary attention. For example, there is a toll exemption for trucks with alternative drives, but only if they are new vehicles. The more environmentally friendly and more economical alternative, namely retrofitting existing fleets with LPG, is not funded.

BvA: Yes, that cannot be in the interest of the community. As an important transit country in other European countries, Germany should also serve as a role model in terms of the number of registrations for LPG-converted cars and trucks.

 

     8 Which political measures and framework conditions are necessary for the establishment of LPG in the transport sector?

 

BvA: LPG drives and fuels should be integrated equally into the energy transition in the transport sector - if you reject this technology neutrality, opportunities for climate protection are wasted.

UT: Absolutely correct. So that liquefied gas can unlock its potential on Germany's and Europe's roads political recognition and an appropriate regulatory framework are required. What we need is the endorsement of the policy of LPG as the alternative fuel with the greatest immediate leverage on climate protection - this also includes legal equality with other environmentally friendly alternatives. Specifically, our demands on politics are:

1. Technology openness
2. Recognition of regenerative LPG as a renewable energy source in the context of the energy transition
3. Political signal to vehicle manufacturers and retrofitting companies that LPG is recognized and promoted - this is the only way that more vehicles will be offered ex works again
4. Renewable LPG can penetrate the market more easily if it is exempt from energy tax
5. Simplified approval procedure for LPG engines
6. Toll exemption also for LPG trucks
7. Vehicles powered by regenerative LPG must in future be eligible for zero-emission CO2 fleet regulation as part of the fleet limit values, as must battery-electric vehicles.

 

     9 There are general elections in Germany in October. What do you wish for the transport policy “Germany of the future” and for Europe? Where should the journey go?

 

BvA: From my point of view, the necessary reductions in energy consumption to achieve the climate goals can only be achieved through a lived technology openness and complementary strategies: improving vehicle efficiency, shifting to energy-efficient means of transport, reducing the volume of traffic. For decarbonization, a shift towards alternative, regenerative drives and fuels is also necessary. I would therefore like the future government to make greater use of and promote the potential of sustainable BioLPG. It is cheap, clean and can be used immediately; no other alternative energy source can do that.

UT: My personal prognosis: As a modern economy, we in Germany will be dependent on affordable and environmentally friendly mobility. Climate protection, energy supply security, affordability and careful use of resources form the future central fields of action for the transport sector. In 2050, the transport system in Germany will be almost independent of fossil fuels and thus largely greenhouse gas neutral (“decarbonised”). The future transport system will follow a model in which air pollutants and CO2 emissions will be significantly reduced.