8 October 2012

European Gas Forum has offered EU savings up to € 700 billion

According to the recent study by the European Gas Forum (EGaF), wider use of natural gas in the transport sector would help deliver significant cost savings while meeting the carbon emissions 60% abatement targets set by the European Commission for 2050.

It was found, in particular, that a higher natural gas share – as much as 4-5 times higher than in the European Commission’s baseline scenario - would deliver cost savings of around €60-70 bn in the period to 2030. The EGaF study highlights that average cost advantages would come specifically from the heavy trucks and maritime shipping sectors. In both of these applications, commercial fleet vehicles refuel at their own depots, eliminating the cost of the conversion and maintenance of widespread infrastructure.

The study notes that specific support measures to improve the share of natural gas fuels in the transport sector would be rather common and well-known in EU: it could include vehicle purchase/substitution support and low interest loans for the purchase or conversion of natural gas trucks.

And if we follow the study results across all proposed ways of natural gas implementation - in energy, housing and transport sector put together - then in an "optimized" version of the scenario overall cost savings range from € 400 to 700 billion in the period to 2030, equivalent to € 140-230 per household annually.

"European policymakers need to recognize the important role that natural gas can play both in the transition to a low carbon economy and in providing economic benefits", said Klaus Schafer, CEO of E.ON Ruhrgas AG on behalf of EGaF.

To read the study, please open the following link (PDF file, 2Mb)

European Gas Forum website (opens in a new tab)

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