Alternative fuels

January – February 2005.

Alternative Fuels

GNC – LNG

A vision about the actual and future
business around the world

Suggestion for development strategies.

A.Ramenzoni

1.- Introduction

In the current times, the original crisis regarding the liquid fuels derived from the distillation of oil (gasoline and diesel) begun at the end of ´80 (Revolution in Iran), when theoil prices have reached levels near the 20 USD/barrel, has became, after the Iraqi war, with the consumption increased in China and India, countries that as consequence of its own development program, the necessities of this source of energy, clearly will remain in a continuos increase, has installed the oil requirements in special for transportation, in a definitive crossroads.
The actual crudeoil prices (> 50 USD/barrel), have a fantastic impact in the global economies, but their effects are more intensive in the nominated “Countries in Development”.
In such countries, the strong economical unbalance has generated the imperious necessity to apply in search of alternative substitutes for the fossil liquid fuels, based in enough tested technologies, easy to implement with lower prices(in investments and fuel prices), and simultaneously could reduce the actual dependence from liquid fuels.
These alternative fuels, today, could be reduced to only one source: Natural Gas
Some examples around the world show with total transparency that Natural Gas is a valid alternative (see the actual situation in countries like Argentina, where 30% of the private transportation is impelled bythis type of fuel), reliable, with minimum of public and private investments (in infrastructure – no requisition of refineries, the refuelling stations and car’s conversion are available in prices inside the capabilities of the final users). And as probably the most important issue, the Natural Gas has a wide fields distribution around the world without necessities of sophisticated technologies forthe production (the exploitation of oil fields are become more and more pending of specific and concentrated technologies).
Same situation has been happened in the past when Natural Gas replaced with total success charcoal or liquid fuels in heating, and with the actual situation again the natural Gas appear as a solid alternative:

[pic] Cheaper prices.

[pic] Low pollution levels(specially appreciated in the urban conglomerates).

[pic] Easy transportation.

Only show a limitation for the full scale application:

[pic] Low autonomy for the transportation. This difficulty is coming from the weight of the vessels installed in vehicles.

This is the main reason that limit the actual applications to captive fleets within a defined circuits of movements (case oftaxis, buses or distribution fleets).

For transportation in long distances, the LNG is in strong process of development, as a derivation of the initial technology reached in the ´20 (past century) only for storage of Natural Gas, or peak shaving plants.
Actually in USA there are truck´s fleets (several thousands), running with LNG. The LNG´s production and transportation cost have beenreduced in the last years, could suppose an important growth in the next years in heating and vehicles application. Actually some small plants (14.000 gallons/day), are under development in USA, Russia and also in Iran, country where the first installation is under evaluation.

A.- Compressed Natural Gas (CNG)

1.- Markets - Products
On this analyse we will not include USA, wherethis program has been postponed as consequence of shortage in the Natural Gas resources (the main destination of Natural Gas today is addressed to generation and heating, where more of 52% of these activities are coming from Natural Gas), and principally, as consequence of the lobby activities coming from the Oil Companies and Automobile Industry.

1.1.- Vehicles applications

1.1.2.- Market...