Sino-Korea Natural Gas Vehicle Development Exchange Conference was held in the international exhibition center, Century Town, Chengdu on November 5. Mr. PU Chungan (the secretary general of CIGIA), Mr. WU Yongqiao (the president and secretary general of Sichuan Clean Energy Vehicle Industry Association), Mr. BANG Jaehyun (Korea Natural Gas Vehicle Association and Korean Association for NGV) and representatives from related China and Korea natural gas vehicle companies attended this exchange conference. Sino-Korea parties introduced their natural gas vehicle development situations and then answered those issues from each other, respectively.
1 Natural Gas Vehicle Development
According to incomplete statistics, there is a volume market of more than 4,900,000 natural gas vehicles in China by October 2015, including above 265,000 LNG vehicles and nearly 7,500 gas filling stations (including about 2,700 LNG filling stations).
Natural gas vehicles were developed in Sichuan 25 years ago. By the first half year of 2015, 346 gas filling stations for natural gas vehicles (including 316 CNG filling stations and 30 LNG gas filling stations) have been constructed in Sichuan in total; and gas has put into application to about 450,000 natural gas vehicles (including 447,000 CNG vehicles and nearly 3000 LNG vehicles); and Sichuan ranks in the top 3 position in China. The natural gas vehicle plants may be up to 500,000 sets per year. There are more than 15,000 produced (sales) natural gas vehicles in total; and the equipment manufacturing industry production and sales capacity may be up to 212,000 sets per year. The relative complete natural gas vehicle industry chain including gas filling stations, natural gas vehicles and equipment manufacturing and so on is formed in Sichuan. Products are popular in more than 10 countries and regions. Sichuan natural gas vehicles and gas filling station equipment accounts for above 40% in China market; in addition, its gas storage well share is 100% and selling gas machines accounts for 20% in China market.
Diesel vehicles have been replaced by CNG vehicles in Korea since 2000. Korea government provided a lot of fund subsidies for development of natural gas vehicles. As of 2014, the total subsidies were up to USD 662,000,000 dollars (including the purchasing subsidies of USD 432,000,000 dollars, loan subsidies of USD 225,000,000 dollars and other subsidies of 53,000,000 dollars).
As of 2014, there were 36162 urban buses, 1212 trucks and 194 CNG filling stations in Korea. According to the statistics, there have been currently 33324 urban buses and 27220 CNG vehicles in total in Korea; and CNG has been applied to 82% of urban buses.
Natural gas vehicles are popular in Korea to greatly improve the environment. From 2000 to 2014, the content of PM10 in air was decreased from 65μg/m3 to 46μg/m3 and NOx content was lowered from 37ppb to 33ppb.
2 Government Supports
For improvement of environment and development of natural gas vehicles, Korea government presents great supports in policies. Korea government and local governments undertake 50% of purchasing subsidies for CNG vehicles. The subsidies for large, medium CNG vehicles, 11t trucks, 5t trucks and CNG hybrid power motor vehicles are USD 10,000 dollars, USD 5,800 dollars, USD 35,000 dollars, USD 22,500dollars and USD 33,000 dollars, respectively.
The loan subsidies for construction of CNG gas filling stations are different according to the station sizes. The loan subsidies for fixed and moveable CNG gas filling stations are USD 583,000 dollars and USD 166,000 dollars. The repayment modes are to take different interest rate for 5-year extension and 10-year repayment.
In comparison of CNG and diesel oil, their difference for fuel subsidies is primarily above USD 0.058 dollars in price.
In the tax exemption policies, the value added tax for vehicles may be reduced by 10%, and the purchase tax may be reduced by 4%. The tax for CNG filling station companies may be reduced by 3%.
From 2000 to 2014, the total subsidies for CNG vehicles from Korea government are up to USD 644,000,000 dollars (including total purchase and fuel subsidies of 432,000,000 dollars), 50% of which are provided by the environment department and local governments, respectively; and the total loan subsidies for CNG filling stations are up to 212,000,000 dollars, which are invested by the environment department; and the repayment modes are 5-year extension and 10-year repayment.
From 2011 to 2012, Korea government primarily carried out evaluation to those pilot projects of the operation status of urban CNG hybrid power vehicles in major Korea cities and the purchasing subsidies of USD 33000 dollars was presented for each set of CNG hybrid power vehicle.
CNG hybrid power vehicles have been put into applications in stages since 2013; and the steady support system is established and the prices are reduced for replacement of removal of urban diesel and CNG vehicles. As of 2014, CNG hybrid power vehicles were provided in total. The prices of CNG hybrid power vehicles are higher by USD 23,600 dollars than those of CNG vehicles after implementation of the government subsidies.
Korea government is to provide 300 CNG hybrid power vehicles in major cities in 2015. The purchase tax subsidies will be increased from USD 33,000 dollars to USD 50,000 dollars since 2016.
HCNG vehicles are the next generation technology application of NGV. HCNG systems are to use the mixed fuel of natural gas and hydrogen (20%~30%). In comparison with CNG vehicles, CO2 and CO emissions for HCNG vehicles are lowered by 11.3% and 55.4%, respectively. The fuel thermal efficiency may be increased through the steady combustion to lower emissions of greenhouse gases.
The commercialization technologies HCNG engines were under great development in 2015. From June 2011 to May 2016, Korea government is devoted to construction of engines and infrastructure for the environment-friendly vehicle development project. The existing CNG filling stations are reconstructed into the infrastructure and continuous inspections are performed to related HCNG rules and regulations.
Korea government will support the HCNG demonstration projects in 2016 to establish the government promotion policies through evaluation of trial projects and inspect the reconstruction of the hydrogen equipment of the existing CNG filling stations.
HCNG vehicles will be supplied in stages since 2017.