European Union Announces Ambitious Alternative Fuels Plan

The proposal would establish more alternative fuel distribution infrastructures across the European Union.

January 28, 2013

BRUSSELS - The European Commission announced last week an ambitious package of measures to ensure the build-up of alternative fuel stations across Europe with common standards for their design and use, stating that policy initiatives so far have mostly addressed the actual fuels and vehicles, without considering fuels distribution.

The EC notes on its website that three main barriers are holding clean fuel back: the high cost of vehicles, a low level of consumer acceptance and the lack of recharging and refueling stations. The EC says that refueling stations are not being built because there are not enough vehicles, and that vehicles are not sold at competitive prices because there is not enough demand.

The EC is proposing a package of binding targets on its Member States for a minimum level of infrastructure for clean fuels such as electricity, hydrogen and natural gas, as well as common EU wide standards for equipment needed.

EC Vice President Siim Kallas said: "Developing innovative and alternative fuels is an obvious way to make Europe's economy more resource efficient, to reduce our overdependence on oil and develop a transport industry which is ready to respond to the demands of the 21st century. Between them, China and the U.S. plan to have more than 6 million electric vehicles on the road by 2020. This is major opportunity for Europe to establish a strong position in a fast growing global market."

The main measures proposed are:

Electricity: Electric charging points vary across the European Union, with Germany, France, the Netherlands, Spain and the United Kingdom as the leading countries. Under the EC??s proposal a minimum number of recharging points, using a common plug, will be required for each Member State. The goal is to put in place a critical mass of charging points so that auto manufacturers will mass-produce the cars at reasonable prices.

A common EU-wide plug is an essential element for the roll out of this fuel. To end uncertainty in the market, the Commission announced the use of the "Type 2" plug as the common standard for the whole of Europe.

Hydrogen: Although Germany, Italy and Denmark already have a significant number of hydrogen refueling stations, some are not publically accessible. Common standards are still needed for certain components such as fuel hoses. Under the EC??s proposal, existing filling stations will be linked up to form a network with common standards ensuring the mobility of hydrogen vehicles. This applies to the 14 Member States that currently have a hydrogen network.

Biofuels: Representing nearly 5% of the market, biofuels do not require any specific infrastructure. A key challenge will be to ensure their sustainability.

Liquefied natural gas: Used mainly for trucks, there are only 38 LNG filling stations in the European Union. The Commission is proposing that by 2020, refueling stations are installed every 400 km along the roads of the Trans European Core Network.

Compressed natural gas: Used mainly for cards, 1 million vehicles currently use CNG, representing 0.5% of the fleet. The auto industry wants to increase this figure ten-fold by 2020. The EC proposal will ensure that publically accessible refueling points, with common standards, are available Europe-wide with maximum distances of 150 Km by 2020.

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