LP Gas: Exceptional Energy for Asia A developmental tool for urban and rural Asian communities without access to grid power 3 November 2010, Singapore
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1 LP Gas: Exceptional Energy for Asia A developmental tool for urban and rural Asian communities without access to grid power 3 November 2010, Singapore Michael Kelly Deputy Managing Director WLPGA
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4 The Unique Global Association representing the LP Gas Industry for 20 years More than 175 members operating in 90 countries in the world Representing the interests of the full LP Gas value chain from producer to distributor Partnering with key global organisations such as the ADB, UNFCCC and the WHO As the authoritative, global voice for LP Gas, the WLPGA promotes the use of LP Gas worldwide to foster a cleaner, healthier and more prosperous world. 4
5 A powerful Industry Association
6 Asian Development Bank Energy for All (E4 All) 1 billion people in Asia and the Pacific region without access to modern energy E 4 All will: Promote decentralized energy systems for urban and rural communities New financing mechanisms for the poor such as Microfinance schemes E4 All has set a target of providing access to modern energy services for 100 million people in the region by 2015 E4 LPG: WLPGA is leading a working group on LP Gas as part of the E4 All initiative Working group formed in Timor Leste Formation of a working group on island developing states Interventions in Bangladesh, India, China, Papua New Guinea 6
7 Why LP Gas is the right fuel for rural Asia LP Gas is propane or butane or a mixture of the two. It is always present as a product of oil refining and also is always present naturally in natural gas (methane) fields and crude oil fields. It can be distributed in relatively cheap, small containers and used for cooking, heating, lighting and commercial/industrial activities. LP Gas has significant health, safety and environmental benefits compared to traditional solid fuels, such as wood/biomass and coal, or other refined fuels such as kerosene or paraffin. Neither Propane nor Butane is on the IPCC list of Greenhouse Gases. LP Gas is a very low emitter of Black Carbon 1
8 LP Gas is accessible LP Gas is propane or butane or a mixture of the two. It is always present as a product of oil refining and also is always present naturally in natural gas (methane) fields and crude oil fields. Portability: Bottles can be can be stored indefinitely Easily transported Used virtually anywhere -- from urban centres to remote regions Flexibility in applications When and where costly, grid-based energy services are unavailable 8
9 LP Gas is an Acceptable alternative Because it s a clean fuel: It burns cleanly No smoke or residual particulate matter Relatively low pollutant emissions Low Green House Gas (GHG s) emissions Helps fight deforestation by substituting traditional fuels Frees women and girls from drudgery of searching for firewood 9
10 LP Gas has a low GHG footprint LP Gas is NOT a zero GHG fuel: However in most cases it can make major and immediate contributions to real emission reductions including major immediate reductions in Black Carbon emissions KG CO2 Equivilant per million BTU Natural Gas LPG Ethanol(E85) Motor Gasoline Kerosene Diesel Heavy fuel oil Bituminous Coal Electricity from Coal
11 LP Gas reduces indoor air pollution According to the landmark 2006 WHO study Fuel For Life, Household Energy and Health smoke from indoor cooking fires kills 1.6 million every year, more more people than malaria, and almost as many as unsafe water and sanitation smoke in the home is the fourth greatest cause of death and disease in the world s poorest countries WHO have highlighted LP Gas as the cost effective solution for reducing pollution from cooking fuel Investing US $ 13 billion per year to halve, by 2015, the number of people worldwide cooking with solid fuels by providing them with access to LP Gas shows a payback of US $ 91 billion per year. 11
12 IEA-UNDP report to be published this month IEA-UN report to publish next month Energy Poverty: How to make modern energy access universal Some 40% of the global population 2.7 billion people rely today on the traditional use of biomass for cooking In model 445 million people switch to LPG by 2015, 730 million by 2030 Additional oil demand associated with access to LPG in 2030 is equivalent to 5% of oil demand in the US today Estimates that 26% of a total 56 billion USD needs to be invested between in providing LPG stoves to achieve universal access to clean cooking facilities 12
13 LP Gas allows for incremental development Stage 3: LP Gas bulk tank, fuelling stove, refrigerator, water boiler and generator Stage 2: LP Gas cylinder outside, piped in to fuel stove, refrigerator and light Stage 1: LP Gas cylinder inside feeding stove 13
14 A Possible Solution The Rasoi Ghar Pioneered by Hindustan Petroleum in India The Rasoi Ghar is a Village Kitchen Communities share a central facility LP Gas cylinders supply a number of hot plates Facilities are managed by a village focal point Creates opportunities for hot water and electricity too Consumer pays a rental - no upfront capital
15 LP Gas reduces outdoor air pollution The cost of fuel and its impacts on the economy are making headlines. But. we hear little about the hidden economic and social issues: Transport fuels make people SICK Transport fuels KILL people 15
16 LP Gas reduces outdoor air pollution Air pollution in Asian cities is directly responsible for the death of thousands in Beijing, Jakarta, Seoul, Bangkok and Manila (The World Bank) More than people die each year in China because of air pollution. Beijing has the highest mortality rate in East Asia followed by Jakarta and Manila (WHO) Air pollution in China leads to high incidence of respiratory diseases, costing China 3.8% of its GDP or approximately US$16Bn per year (The World Bank) people in Manila suffer from severe chronic bronchitis, costing the government 7% of its GDP (WHO) Hong Kong's polluted air costs the city about 21.2 billion Hong Kong dollars, or $2.7 billion, a year in hospital admissions and productivity loss (University of Hong Kong) 16
17 LP Gas is Flexible 17
18 A word about global supply LP Gas Supply, Million Tons NOTE: 1.0 Million Tons per Year is Approximately 32,000 BPD. LP Gas Production is Rising in Nearly Every Region of the World. Global Prod (2007) is 230 MM Tons Other Africa Europe Latin America Asia Middle East North America Supply is expanding rapidly a 60 million ton increase expected between 2006 and 2015 The Middle East will Surpass North America Around 2010 to Become the Largest Producing Region Supply Growth will be Very Strong in the Middle East with LP Gas Production Expanding by Over 60% Between 2007 and 2015 Source: Purvin & Gertz 18
19 Conclusions LP Gas supply is increasing in supply LP Gas is an ideal fuel for a rapidly changing and urbanizing Asia as it is clean, low carbon, acceptable and accessible and requires minimal investments in infrastructure or R & D. Strong endorsement of LP Gas has been received from key global authorities Innovative applications for LP Gas can be found in both the developed and developing world The World LP Gas Association is ready to assist 19
20 Thank you
21 21
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