Pilot Study for the introduction of Biofuels in the Lisbon area Portugal
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1 Pilot Study for the introduction of Biofuels in the Lisbon area Portugal Alternative Fuel Vehicles the PROCURA project Lisbon, 17 July 2007 Deliverable n.º D 5.1 Dissemination Level Public Work Package Authors Status (F: Final, D: Draft) F WP 5 Procurement Models in Lisbon (Portugal) Local Coordinator: Lara Moura - Technical University of Lisbon Technical Support: Ana Cardoso - Technical University of Lisbon; Gonçalo Gonçalves - Technical University of Lisbon General Reviewing: Prof. Tiago Farias - Technical University of Lisbon File Name Project Start Date and Duration PROCURA_Deliverable D5.1.doc 1 January 2006, 36 months This product is a result of the PROCURA project n. EIE/05/
2 Supported by: Disclaimer: The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein. This product is a result of the PROCURA project n. EIE/05/
3 Table of Contents 1. Introduction Lisbon Area Case Study The Lisbon Municipality Fleet of Lisbon Municipality Main Activities to Develop References This product is a result of the PROCURA project n. EIE/05/
4 1. Introduction In the framework set by the EU objective of 20% substitution of oil-based motor fuels by 2020, PROCURA Project was designed to facilitate the large-scale procurement of Alternative Fuel Vehicles (AFV) by identifying traditional market barriers and furthermore, promoting guidance for their mitigation. In addition, PROCURA also aims to contribute to intermediate EU goals to substitute 2% of conventional fuels by Biofuels in 2005, and 5,75% in 2010, by providing guidance to potential clients that are willing to adopt AVF to their fleets. PROCURA s strategy consists of developing and testing models for centralized AFV procurement via: i) buyer pools (permitting centralized infrastructure and servicing), ii) a focus on private fleet owners (e.g. Greenlease), and iii) the start-up development of second hand markets and certification systems for AFVs. In addition the project also included the development of manuals and guidelines for the introduction of these new technologies that can be applied in the development of the case studies in the different countries. The main objective of the present deliverable is to present one of the pilot studies to develop, in this case in Lisbon, Portugal, for the introduction of biofuels. The present report is organized in the following manner: In chapter 2 a brief description of the municipality of Lisbon is made, as well as the fleet considered for the project and the main activities to be carried out, while chapter 3 summarizes the main activities to be performed. This document is aimed to those who are interested in achieving namely better environmental local conditions at the fleet operation region (i.e. City Councils in urban environments, Municipality Fleets), and also private fleet owners that can also be motivated by the project in doing the same in their own fleets. This product is a result of the PROCURA project n. EIE/05/
5 2. Lisbon Area Case Study The European Council set an objective towards the sustainable development in which the increase of biofuels use was an extremely important point. The European Union assumed the commitment of until 2020 replace 20% of the conventional fuel used in the road transport sector by biofuels, or other type of alternative fuels. In Portugal the circumstances, concerning air pollution, are no different than in the rest of the European Union. One of the results of the last National Emissions Inventory (2004, Instituto do Ambiente) was the conclusion that the transport sector represented 25% of the total pollutant emissions for The report stressed that «between 1990 and 2002 these emissions increased approximately 92%, due to the boost of the number of vehicles and road traffic». The same situation occurred with pollutants which affect air quality and public health, as particulate matter and ozone. In this sense, it was settled that to assure the national commitments set by the Kyoto Protocol, and the National Programme for the Climate Changes (in Portuguese, Programa Nacional para as Alterações Climáticas - PNAC), actions to promote the development of the biofuels market and to implement tax incentives should be taken immediately. This policy led to the Law-Decree 62/2006 (the Portuguese application of the European Directive 2003/30/CE), related with the usage of biofuels and other renewable fuels in the transport sector, and to the Law-Decree 66/2006 (from the European Directive 2003/96/CE), concerning petrol and energetic products taxes and one of the main incentives for the increase of biofuels usage. This Law-Decree consecrates the total and partial exempt of the tax on biofuels, when incorporate in diesel and in gasoline used in transports. In fact, the intensification of the use of biofuels is an important aspect of the current Portuguese strategy to reduce the dependence on oil products imports, which can be observed by the large investments that are being made in the country over the last two years, and that are already projected for this one. Many national industries are investing in the production of biodiesel, not only from seed and mineral oil imported, but also from used cooking oils. It can be observed an increased activity in Lisbon and its surrounding municipalities on this theme, mostly on biodiesel and in particular cases compressed natural gas, not very well spread around the country due to the lack of specific supporting infrastructure. Many local authorities are not only concerned with the profitability of the introduction of alternative fuel vehicles, but also on the noncommercial aspects, as image of the city, public perception of the new fuel, impacts on the health and local labour, indirect impacts on the local trade, etc. 2.1 The Lisbon Municipality The Metropolitan Area of Lisbon has a total area of km 2 and approximately million inhabitants (in 2001), being the largest urban agglomeration in Portugal. The population density (in 2001) was Inhabit/km 2 (INE, 2003), and this region is This product is a result of the PROCURA project n. EIE/05/
6 constituted by 18 municipalities, as it can be seen in Figure 1. The Municipality of Lisbon, is also included in the metropolitan area, and is represented in the figure with an orange circle. Due to its particular characteristics, presented in more detail in the next chapter, and also because of the energetic and environmental strategy recently defined for the city, the fleet of the municipality of Lisbon presents itself as an excellent pilot study for the procurement of alternative fuel vehicles in this project. Figure 1 - Metropolitan Area of Lisbon [3] The extensive Atlantic Coast, as well as the existent two estuaries in the area and the protected landscapes confer to this area an environmental, economical and leisure potential that is important to preserve and to value. In the Lisbon Metropolitan Area take place daily around 4 million travels, from which 3 million are motorized. This reality has registered a crescent evolution which causes the increase of traffic and an enlarged difficulty for the mobility management. Allied to this there is a notorious growth of the fuel consumption, due not only to the motorized travels but also to the generalised raise of the distances travelled. This product is a result of the PROCURA project n. EIE/05/
7 Figure 2 - Lisbon Area [4] Therefore, with the intend to accomplish the goals set by the Kyoto Protocol, namely the reduction of the emissions of Greenhouse Gases, it was considered imperative by the Municipality to find new ways to decrease the emissions from road transports. One of the paths to follow was the promotion of the use of biofuels and other alternative fuels, since the transport sector is one of the main responsible for pollutants emissions. The Lisbon Municipality wanted to promote this initiative by settling an example itself and introducing alternative vehicles in its fleet, in order to substitute the conventional ones whenever it is possible. 2.2 Fleet of Lisbon Municipality The Municipality of Lisbon fleet is quite diversified and comprises around 1149 vehicles. It is possible to observe the number of vehicles and the annual fuel consumption (divided by category) of this fleet in the next table and graphics. Table 1 - Municipality of Lisbon fleet and fuel consumption Category Number of vehicles Passengers 567 Light Duty 329 Heavy Duty 242 Buses 11 Annual consumption [L] (diesel) Annual consumption [L] (gasoline) This product is a result of the PROCURA project n. EIE/05/
8 From Table 1 we are able to see that the major fuel consumption is achieved with diesel vehicles, although gasoline represents an important share. Indeed, the fleet is constituted by 768 diesel vehicles and 381 gasoline vehicles. 21% 1% 49% 29% Passenger Light Duty Heavy Duty Bus Graphic 1 - Municipality of Lisbon fleet From Graphic 2, we can see that the biggest share of fuel consumption is related with the heavy duty vehicles with 66%. These vehicles are most of them for waste collection and street cleanness in the Lisbon municipality. The variety of vehicles and fuels existent in this fleet, and the different types of solutions performed by each are an opportunity for a wide variety of alternative vehicles solutions. 1% 14% 19% 66% Passenger Light Duty Heavy Duty Bus Graphic 2 - Annual fuel consumption This product is a result of the PROCURA project n. EIE/05/
9 3. Main Activities to Develop In order to achieve a large scale introduction of alternative fuel vehicles for the fleet of the municipality of Lisbon, it is necessary to develop a number of activities. Main activities listed below: Assessment on existing fleet and identification of the number of vehicles that can be adapted to new fuel, the cost of fleet adaptation, fuel mix options, consumer acceptance issues, considering the characterization of the fleet renovation municipal strategy; Analysis on the necessary purchase of auxiliary support infrastructure and training (considering the different alternative fuels options), to identify the minimum critical mass necessary to achieve sustainability of the AFV use for the municipality. Some activities that could be performed include workshops and interviews with relevant target groups for the intended fuel switch, in order to better understand the necessary changes and options available for the fleet; Identification of the profile and key characteristics of the target region, such as technological and infrastructure focus and opportunities, market barriers and conditions, incentive systems and current procurement experiences, to serve as a base for the introduction of the alternative fuels in the area; Identification of the approach to procure alternative fuel vehicles considering the management of the main packages of services required for the integration of the alternative fuels considered in the fleet; Identification of particular market barriers for large-scale procurement of AFVs in this city/region, which could also be present in other places/cities; Assessment of the indirect gains envisaged when to pursue the incorporation of an alternative fuel vehicle in the fleet. The non-financial gains, like environmental, and how much this would be considered in the process to decide towards the AFV. This product is a result of the PROCURA project n. EIE/05/
10 4. References [1] Instituto do Ambiente (IA), [2] Instituto Nacional de Estatística (INE), [3] Área Metropolitana de Lisboa (AML), [4] Câmara Municipal de Lisboa, [5] Agência Municipal de Energia e Ambiente Lisboa E-nova, This product is a result of the PROCURA project n. EIE/05/
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