CNG Vehicle Programme

CNG Vehicle ProgrammeCNG Vehicle Programme

June 2006

CNG Vehicle ProgrammeCNG Vehicle Programme

1. Objective1. Objective

2. History, Current Status and Future Targets2. History, Current Status and Future Targets

3. Support Policy on CNG Vehicle Supplies3. Support Policy on CNG Vehicle Supplies

3/23

1-1. Objective1-1. Objective

1) To replace urban buses with low emission clean natural gas buses

(NGV) for air quality improvement in metropolitan cities

Over 65% of air pollution in Greater Seoul Area is caused by automobile

exhaust

Over 36% of these automobile exhaust is discharged from large diesel

vehicles, which only comprises 5.5% of the total registered vehicles

1. Objective

19971997

19971997

47% by HD vehicles47% by HD vehicles

PM released (1bus/day)PM released (1bus/day)

8/23

1-2. Emissions reduction from NGV1-2. Emissions reduction from NGV

1. Objective

41%37%

16%0%

0%

50%

100%

PM HC NOx CO

DIESELCNG

PM : Particulate MatterHC : Hydro CabonNOx : Nitrogen OxidesCO : Carbon Oxides

( Reduction rate relative to Diesel )

Clean EnergyClean Energy

10/23

1-3. Characteristics of CNG Bus1-3. Characteristics of CNG Bus

1. Objective

Cleanness and QuietnessCleanness and Quietness CNG Bus emits close to 0% particulate matters(PM) and to 70% less ozone substan

ces such as NOx(nitrogen oxides) and VOC(volatile organic compound).

CNG Bus is 2~3dB quieter than Diesel Bus.

SafetySafety Natural Gas is safer than LPG, Gasoline and Diesel fuel, due to its high ignition tem

perature, fast dissipatedness into the air and non-toxic fuel.

CNG Bus has on-board gas detectors and other safety equipment specially designed to ensure safe operation

Efficiency and EconomyEfficiency and Economy Because of CNG’s cleaner combustion process, contamination of engine lubricatin

g oil is greatly reduced compared to diesel. This cleaner internal operation results in less engine wear.

LNG garbage truckLNG garbage truck

LNG busLNG bus

Refueling Refueling

13/23

14/23

1-4. CNG Vehicles Over the World1-4. CNG Vehicles Over the World

1. Objective

There are more than 6 Million of natural gas vehiclesThere are more than 6 Million of natural gas vehiclesoperating all over the world. operating all over the world.

Canada

USA

Brazil

ArgentinaNew Zealand

Australia

Japan

China

Pakistan

Egypt

Italy

RussiaGermany

Korea

18/23

2-1. History2-1. History

1) 1992 ~ 1998 : CNG vehicles technology development under the joint

R&D project by the Ministry of Environment, the Ministry of Commerce,

Industry and Energy, and the Ministry of Science and Technology

2) 1998 ~ 1999 : Test operation of CNG Vehicles

3) 1999 ~ present : Legal and system improvement to establish a better

environment for CNG vehicle supplies

- Enactment and amendment of laws and regulations, provide tax exemption,

subsidies, and loans

4) 2000 ~ : CNG vehicle supplies with the government support

2. History, Current Status and Future Targets

19/23

2-2. Yearly status 2-2. Yearly status

1) 22,000 CNG buses by 2010

2) 1,000 CNG garbage trucks by 2010

3) 440 CNG refueling stations by 2010

2. History, Current Status and Future Targets

YearYear Total Total (today)(today)

2000~20042000~2004 20052005 2006.52006.5

Urban Buses 12,940 6,121 2,544 1,361

Garbage Trucks 136 41 23 21

Refueling Stations 231 172 40 2

2-3. Future Targets2-3. Future Targets

20/23

3-1. Subsidies and loans3-1. Subsidies and loans

1) CNG city bus purchase = Subsidized with USD$22,500 per vehicle from

the National Treasury ( ￦ 22,500,000)

2) CNG garbage truck purchase = Subsidized with USD$60,000 per vehicle

from the National Treasury ( ￦ 60,000,000)

3) CNG refueling station = Supported up to USD $0.7 million of low-

interest loans (4.5% annual interest rate) ( ￦ 700,000,000)

3. Support Policies

21/23

3-2. Support for CNG bus operators3-2. Support for CNG bus operators

1) Fuel Cost Aid : The fuel price between natural gas and diesel are

maintained at USD$0.1/ ㎥ ( ￦ 115)

2) Empty Operation Cost Aid : compensation for bus operators with

nearest refueling stations at a distance of 4km or more.

3) Refueling Station Operation Cost Aid : The refueling station with the

capacity of 100 vehicles/day is compensated if there are less than 31

vehicles refueled per day

3. Support Policies

22/23

3-3. Various Tax Exemption3-3. Various Tax Exemption

1) VAT and acquisition tax deduction for one CNG bus purchase :

USD$3,000/bus( ￦ 3,000,000)

2) Environment improvement charge exemption :

USD$1,660/bus( ￦ 1,660,000)

3) Corporation tax exemption for installing CNG refueling stations :

USD$15,000/station( ￦ 15,000,000)

4) Exemption from basic customs duty when importing parts like

cylinders for CNG vehicles

3. Support Policies

Thank YouThank You