CNH’s Outlook on LNG for Transportation

 | Source: United Kingdom, Basildon
Iveco Stralis Hi-Way LNG system

Iveco Stralis Hi-Way LNG

CNH Industrial, with its FPT powertrain brand, is a European leader in natural gas engines and natural gas commercial vehicles. The company presented its initiatives in alternative fuel solutions at the “GNL Conference” in Genoa, hosted by the Italian arm of the World Energy Council (WEC), the UN-accredited international organisation dedicated to the energy sector.

The premise of “GNL Conference” was to take stock of the current outlook regarding the global supply and demand of Liquefied Natural Gas (LNG) as well as the opportunities for its use in the shipbuilding and road transport sectors. During the CNH Industrial presentation, CNH Institutional Relations provided insight into the company’s stance on Liquefied Natural Gas (LNG) as both an environmentally and cost friendly solution for the transport sector.

NGV Global News asked CNH Industrial about it’s insights (underlined text highlights key point for CNH):

Why is investment so important?

  • Innovation and technological progress are two levers that allowed all Iveco and CNH Industrial brands to ensure:
    • a competitive advantage in the development of conventional engines which are more efficient and with low emissions (NOx, PM10, etc.) and greenhouse gases (CO2);
    • a global leadership, especially regarding alternative traction: from electric (in the Iveco ranghe since 1986) and hybrid, up to the widest range of compressed natural gas (CNG) and liquefied natural gas (LNG) for road transport in which Iveco is recognized as a technology leader.
  • The EU Commission aims to dramatically reduce Europe’s dependence on imported oil and cut carbon emissions in transport by 60% based on 1990 levels by 2050.
  • Methane (Natural Gas/Biomethane) is one of the alternatives and can play an important role to help in achieving the 2050 key goals.
  • In particular, with the approval of the new EU Directive for the “Deployment of Alternative Fuels Infrastructure” that foresees the expansion of  the infrastructure of alternative fuels, the use of natural gas vehicles is expected to further increase – whether in compressed or liquefied form – paving the way for the spread of bio-methane.

Iveco Bus Urbanway 12mWhat are the key points of CNH’s 2025 forecast?

  • Keeping the current tax advantage compared to conventional fuels
  • Need of structured, coordinated and more consistent policies to support the Natural Gas market
  • Availability of LNG refueling stations in ports and freight ports following the EU Directive for the “Deployment of Alternative Fuels Infrastructure”
  • Availability of vehicles at a competitive price
  • Collaboration, Integration and Consolidation between EU institutions, Local and National Authorities, Customers, Energy Providers and Delivery companies are the key to support NG/LNG Market

What obstacles stand in the way?

  • In order to further support natural gas vehicles, EU institutions and national governments must ensure a more holistic approach when it comes to aligning competitiveness, environment and safety policies.
  • A huge risk imposes the discussion on the revision of the energy taxation directive.
  • A lower minimum taxation level is needed for CNG and – particularly- for LNG for the buildup phase of infrastructure and to give room for technology investments, also in order to support Member States’ future efforts in this direction.
  • It’s important to have a more balanced and coherent approach not to jeopardize the development of one of the most promising alternative fuels for transport.

IVECO Stralis Hi-Way (Euro VI)For over 25 years, CNH’s powertrain brand FPT Industrial has developed and produced natural gas engines for on and off-road vehicles as well as for marine and power generation applications. Iveco has over 200 LNG vehicles currently in circulation throughout Europe and continues to receive and deliver orders.

(Source: CNH Industrial)

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