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Italy’s NGV Industry Aims to Stimulate Economy

June 16, 2009 | Italy
NGV System Italia - workshop convenor

Triple growth projections for employment and value supported by research

A range of measures to promote natural gas fuel technology and infrastructure development and stimulate the economy, have been proposed by natural gas vehicle (NGV) manufacturers in a landmark meeting with Italian government representatives, organised by NGV System Italia. Michele Ziosi, NGV System Italia Director and EU Affairs Manager for the Fiat Group hailed the meeting a success, saying, “The meeting achieved a synthesis of the industrial, environmental and institutional expections and that is going to open the door for further concrete political actions, now clearly identified, for a real development of the NGVs market and the Italian industrial chain.”

Industry participants included representatives from Fiat Group Automobiles, ENI, Fiat Powertrain Technologies, IVECO, Landi Renzo and Gas Natural Vendita Italia S.p.A.

Research consultant Nomisma Energia delivered a report demonstrating the market could grow threefold over the next five years, increasing current employment from 8,000 to 25,000 and value from EUR 1.5 billion to EUR 4 billion (USD 5.53 billion), if given a supportive policy environment. Nomisma pointed out the positive environmental benefits from reduced emissions and emphasized the excellent level of experience and technological capacity of Italian industry as the foundation for in-country and export growth. (Market share grew from 0.96% in 2005 to 3.66% in 2008.)

The meeting, held in the Conference Hall of the Palazzo Marini di Montecitorio, acknowledged the existing support for the industry by the government, recognised the already significant contribution the NGV industry makes to the economy and recommended further exploitation of this resource.

Mr. Caria, Senior Vice President of ENI and M. Escolier-Miro, Managing Director of Natural Gas Vendita Italia, representing the gas suppliers, insisted on their commitments for a further development of the fuel supply network, especially on highways, and asked for a reduction of administrative burden for getting possible to open new stations. Improved take-up by public administration and public transport fleets and stability of fuel supply and pricing were put forward as important elements for growth. Additional tax incentives, especially for the full range of commercial vehicles, were also argued for.

Fiat, a committed advocate of methane as a vehicle fuel, expects its natural gas power vehicle sales to exceed 2008 sales by 20%, rising to 120-140 thousand units. The share of the Fiat Group will be 90%, said Fiat Group Automobiles Senior Vice President Product Planning, Daniele Chiari, who emphasized the need for a more structured fuel distribution network. Chiari wants the current ratio of 1 refuelling station per 700 cars to improve to 1:300. The Turin group has plans to expand the range of methane models on its list.

Palazzo Marini di Montecitorio
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Categories: Business, Market Developments, Policy | Tags: fueling stations, NGV System Italia | Comments (0)