The following is an edited and updated summary of a presentation at NGV 2006 by Mr Kwangchill Park, Deputy Director, NGV Supply, Environmental Transportation Policy Division, Ministry of Environment, Republic of Korea. (Presentations from NGV 2006 are also available for sale on the IANGV website).

Objective of NGV Program
To replace urban buses with low emission clean natural gas buses (NGV) for air quality improvement in metropolitan areas.

Background
•    Over 65% of air pollution in the greater Seoul area arises from automobile exhaust.
•    Over 36% of automobile exhaust is discharged from large diesel vehicles, which only comprise 5.5% of the total registered vehicles.

Characteristics of a CNG Bus -Cleanness and Quietness
•    CNG Buses emit close to 0% particulate matter(PM) and up to 70% less Nox (nitrogen oxides) and VOC(volatile organic compound) (ozone precursors.)
•    CNG Buses are 2~3dB quieter than diesel buses.

Safety
•    Natural gas is safer than LPG, Gasoline and Diesel, due to its high ignition temperature, fast dispersion into the air and natural gas is non-toxic.
•    CNG bus has on-board gas detectors and other safety equipment specially designed to ensure safe operation

Efficiency and Economy
Because of CNG’s cleaner combustion process, contamination of engine lubricating oil is greatly reduced compared to diesel. This cleaner internal operation results in less engine wear.


History
1)    1992 ~ 1998 : CNG vehicles technology development under a joint R&D project by the Ministry of Environment, the Ministry of Commerce, Industry and Energy, and the Ministry of Science and Technology
2)    1998 ~ 1999 : Test operation of CNG Vehicles
3)    1999 ~ present :
•    Establishment of a better economic environment for CNG vehicle supply
•    Enactment and amendment of laws and regulations,
•    Provision of tax exemptions, subsidies and loans
4)    2000 ~ : CNG vehicle manufacture with the government support


Statistics

 
Targets

1)    22,000 CNG buses by 20102)    1,000 CNG garbage trucks by 2010
3)    440 CNG refueling stations by 2010

Support Policies
A Subsidies and Loans
1)    CNG city bus purchase – Subsidy of USD$22,500 per vehicle from the National Treasury
2)    CNG garbage truck purchase – Subsidy of USD$60,000 per vehicle from the National Treasury
3)    CNG refueling station - Supported up to USD $0.7 million of low-interest loans (4.5% annual interest rate)

B Support for the CNG Bus Operator
1)    Fuel Cost Support : The fuel price differential between natural gas and diesel is maintained at USD$0.1
2)    Empty Operation Cost: Compensation for bus operators with nearest refueling stations at a distance of 4km or more.
3)    Refueling Station Operation Cost Support : The refueling station with the capacity of 100 vehicles/day is compensated if there are less than 31 vehicles refueled per day

C Tax Exemptions
1)    VAT and acquisition tax exemption for CNG bus purchase : USD$10,000/bus
2)    Environment improvement charge exemption : USD$1,660/bus
3)    Corporation tax exemption for installing CNG refueling stations : USD$15,000/station
4)    Exemption from basic customs duty when importing parts such as cylinders for CNG vehicles

Ministry of Environment Republic of Korea
www.me.go.kr