LNG Masterplan for Rhine/Meuse-Main-Danube 2012-EU-18067-S

1. LNG Masterplan for Rhine/Meuse-Main-Danube2012-EU-18067-S Session TEN-T Innovations and New Technologies • Manfred • Seitz

2. Rationale for LNG Masterplan Environmental drivers • LNG as fuel reduces air emissions (-10-20% CO2, -80-90% NOx, almost zero PM & SOx) • Further CO2 reduction possible by “blending” (balance) with BIO-LNG Economic drivers • Price gap Gasoil - LNG and estimated price reduction for LNG due to massive production increase; favourable payback time of investment; significant reduction in fuel consumption; fuel cost savings result into higher profitability/lower transport costs • LNG as cargo will increase transport volumes and will offer energy cost savings to many industries along the Rhine-Main-Danube axis; reduces oil dependency and supports diversification of energy mix Regulations • (Draft) Directive on Deployment of Alternative Fuels Infrastructure (COM 2013 18/2) demands implementation of LNG infrastructure • Future air emission regulation: “LNG most effective measure to reach Stage IV for medium and large inland vessels” (NAIADES 2/Panteia-NEA report) Implementation of LNG requires co-ordination of public and private actions, a critical mass of initial investment along supply chains and public financial support

3. European framework – It is the right time to act! • Several initiatives to use LNG as fuel for maritime vessels due to forthcoming ECA & SECA regulation • Built-up of basic LNG infrastructure in Northern Europe • First LNG fuelled vessels on Rhine based on derogations from technical provisions (RVIR/Directive 2006/87/EC) and ADN (transport of dangerous goods) • Incomplete regulatory framework and lack of guidelines for use as vessel fuel, transportation, bunkering and storage of LNG hampes fast deployment together with supply restrictions • Key LNG technology available on market - but still very expensive • High potentials for use of LNG in road transport sector • Example: 6.000 trucks in US, 4.000 in China, 300 in Europe but strong efforts to increase number (e.g. NGVA Europe activities) • EU program period 2014-2020 will offer new opportunities • CEF- Connecting Europe Facility, Structural Funds, Horizon 2020

4. LNG Masterplan - Objectives • Identify and quantify pioneer markets and customers in the hinterland of inland ports • Analyse costs and savings/benefits of LNG use • Transfer know how from maritime into inland navigation sector and raise awareness • Facilitate the creation of a harmonised European regulatory framework considering LNG as fuel and as cargo for inland navigation • Deliver technical concepts for new and retrofitted vessels • Elaborate supply chains to reach end-consumer • Execute pilot deployments of vessels and terminals • Developa comprehensive strategy with a detailed roadmap for the implementation of LNG in line with the EU policies in transport, energy and environment • Prepare wide-scale deployment with the help of CEF & other EU programs

5. LNG Masterplan – KEY FIGURES • Programme: • TEN-T Multi-annual Call 2012 • Timeframe: • 1 January 2013 - 31 December 2015 • Est. investment: approx. 120 mil. EUR • Budget (eligible costs): 80,5 mil. EUR (out of 69,2 mil. EUR pilot activities) • EU funding: 40,25 mil. EUR • Beneficiaries: 33 organisations, majority from private sector • Special endorsement by Ministries of Transport of NL, AT, CZ, SK, RO, BG and CCNR • Non-funded partners: 40 public/private bodies & professional associations (as of 11.10.2013)

6. Major Activities IN Rhine REGION Havenbedrijf Rotterdam N.V. Studies, LNG bunkering, technical evidence & Safety and Risk Assessment, Masterplan, Provisions for Regulatory Framework, Coordinator Rhine Scenario Stichting STC-Group Education & training requirements, standards, curricula, materials Universität Duisburg Essen & DST Entwicklungszentrum für Schiffstechnik und Transportsysteme e.V. Studies for engine technologies & vessel concepts , assessment of concepts, trials & pilot deployments, education & training LNG terminal Port Authority of Antwerp Bunker station for inland vessels with all the necessary fuelling facilities BodewesBinnenvaart B.V. (Damen) LNG propelled chemical tanker - EcolinerDepl.: Q3/2014 LNG gas tanker (Chemgas Barging Sarl.) Innovative LNG gas carrier. Depl.: Q3/2015 Kooiman Marine B.V. LNG propelled pusher Depl.: Q3/2015 Staatliche Rhein-Neckar-Hafengesellschaft Mannheim GmbHStudies and preliminary designs for terminal Argos Bunkering B.V. Combined LNG-MGO tanker Depl.: Q3/2015 E-LNG Motion BV LNG inland tanker Depl.: Q2/Q3 2015 Case study on bunker (Port Autonome de Strasbourg) DCL Barge B.V. (Danser Group) LNG propelled container vessel (retrofitted) Depl.: Q2 2014 Case study on bunker (Associated non-fundedpartner Port of Basle)

7. Major Activities IN DANUBE REGION LNG Supply & Demand Study(NGVA CZ) Time: Q3/2014 LNG Supply & Demand Study(FHOÖ & Linz AG) Time: Q3/2014 Study for LNG Terminal in Komarno & vessels (Danube LNG) Studies and preliminary designs for terminal & vessels (fuel & cargo) Retrofitting of 3 vessels for LNG propulsion (NAVROM Galati) Depl.: Q2-Q3/2015 LNG Supply & Demand Study(EVN) Time: Q3/2014 Study for development of LNG terminals on the Romanian maritime Danube (Port Authority APDM) LNG gas tanker (Chemgas) Innovative LNG gas carrier; connecting terminals on Danube Depl.: Q3/2015 Combined LNG/CNG fuelling stations & LNG fueled trucks with LNG trailers (Bulmarket) as part of the logistic chain to the end-customers Depl.: Q3/2015 Study & Design of intermediate LNG terminal in the Port of Constanta (TTS Group) Small scale LNG terminal in Ruse (Bulmarket) incl. fuelling devices for vessels & trucks; Depl.: Q3/2015 LNG Coastal Carrier (Bernhard Schulte) Multipurpose LNG carrier fuelled by LNG and used for trans-shipment / bunkering Depl.: Q3/2015

8. LNG is fuel and energy resource LNG supply chains to industrial heartlands of Europe Rhine/Meuse-Main-Danube- LNG Artery of Europe • Inland navigation functions as pioneer consumer and facilitator

9. Beyond the LNG Masterplan • The LNG Masterplan generates a first strategy, pilot deployments, a knowledge basis and a critical mass of stakeholders in the Rhine-Main-Danube region. • Full exploitation of LNG potentials requires parallel/follow-up actions such as: • TEN-T Preparatory Action for road & IWT sector similar to maritime sector, providing market intelligence, awareness actions and integrative gap studies • Integration of Preparatory Actions into a LNG-Strategy Initiative for the entire European transport sector (including LNG fuelled machinery & equipment) • Creation of European LNG technology industry cluster facilitating growth of LNG technology providers in line with raising demand and strengthening their competitiveness • Adequate industry support measures: LNG will trigger multi-billion Euro investments which is opportunity for European industry to grow and to create jobs, e.g. European shipyards • Dedicated LNG technology agenda in Horizon 2020 with projects in for first calls 2014 & 2015 • Flagship implementation project for IWT sector in CEF Call 2014 • Similar lead projects for road, maritime and equipment sector with a co-ordination for synergies • The market-oriented concept of TEN-T innovation and the possibility of Studies with integrated pilot deployment correspond to the needs of the private industry. • It must be followed in the CEF with dedicated attention to project selection mechanism, increased flexibility in project implementation and the need of higher co-finance for integrative (gap) research studies.

10. Conclusions • LNG is the most relevant alternative fuel for inland navigation offering high environmental and economic benefits. Use of LNG supports major EU transport, environment and energy policy objectives • Only inland vessels can deliver high volumes of LNG cost-effectively from seaside import terminals to the economic heartlands of Europe. The barging sector therefore is pioneer consumer of LNG and enabler of LNG supply • Inland terminals will functions as satellites to the hinterland enabling to reach other pioneer markets like public transport and heavy duty transport sector • Rhine/Meuse-Danube axis will serve as main European LNG artery contributing to a more balanced European energy mix • LNG Masterplan breaks up the chicken and egg situation and prepares sector for wide-scale deployment in follow-up EU projects. Public financial support is essential as well as supply chain approach involving end-consumers • European LNG technology industry cluster will support implementation and facilitates economic growth and job creation • CEF - Connecting Europe Facilitywill have to play a key role for further implementation; Horizon 2020 shall provide a dedicated LNG research agenda

11. Thank you for your attention Manfred SEITZ Project Coordinator Pro Danube Management GmbH Handelskai 265 1020 Vienna, Austria seitz@prodanube.eu