LNG as fuel: demand opportunities and supply challenges in Austria

Abstract

The transport sector is one of the most energy consuming and highest emissioncausing sectors. In order to counteract this circumstance, the European Commission has developed a European alternative fuels strategy. This strategy also encompasses the use of liquefied natural gas (LNG). In Austria, as well as in other landlocked European countries, LNG offers new market opportunities. However, there are lots of uncertainties and hurdles like no existing LNG infrastructure and very limited supply options to overcome. To make a significant contribution for the introduction of LNG as a fuel in Austria, the aim of this paper is on the one hand to identify pioneer customers to define interest and demand for LNG as a new fueling alternative and on the other hand to investigate different supply options and their economic performance. The analyses were conducted through desktop research, inquiries to LNG suppliers and transport companies as well as interviews with operators. First results of the supply analysis revealed LNG transportation costs, depending on the choice of transport mode (train, truck or inland vessel) and the reference terminal (Rotterdam or Zeebrugge). Findings of the demand analysis have highlighted that some interview partners already considered switching to LNG for very different purposes, whereby for other partners LNG is not an option. In fact, the missing LNG infrastructure and various hurdles in different supply options have been identified as the most apparent obstacle, which is impeding LNG usage.

Is the Green Wave Really Green? The Risks of Rebound Effects When Implementing “Green” Policies

“…Although GHG emissions indicate a decreasing trend in some sectors, this is not the case for the transport sector [3]. In the European Union, for example, road transport causes around a quarter of GHG emissions and a fifth of CO 2 emissions [3]. Consequently, CO 2 emissions from the transport sector accounted for 21% of total CO 2 emissions in the EU in 2017 [4], and the total emissions from the transportation sector rose by 36% compared to 1990 [3].…”

“…In particular, human-induced CO 2 emissions, of which 88% come from the consumption of fossil fuels, are a decisive factor in this context [2]. Although GHG emissions indicate a decreasing trend in some sectors, this is not the case for the transport sector [3]. In the European Union, for example, road transport causes around a quarter of GHG emissions and a fifth of CO 2 emissions [3].…”

“…In the European Union, for example, road transport causes around a quarter of GHG emissions and a fifth of CO 2 emissions [3]. Consequently, CO 2 emissions from the transport sector accounted for 21% of total CO 2 emissions in the EU in 2017 [4], and the total emissions from the transportation sector rose by 36% compared to 1990 [3]. Globally, there is a transition towards a low-carbon, circular economy, which means that the European Union must also take action to remain competitive and meet people's needs for enhanced mobility [5].…”