Experts discussed the prospects for use of alternative fuels

20 august 2014

The roundtable on “Use of alternative transport fuels: current situation and prospects” was held at the Analytical Center.

During the roundtable experts discussed prospects and practicability of increasing the use of alternative fuels for different types of transport and the existing set of measures aimed at increasing the use of alternative transport fuels in Russia. Specialists will consider current implementation results of the order of the Government of the Russian Federation of May 13, 2013, №767-p which establishes the main directions of the regulation regarding the relations in the field of engine fuel use, as well as measures for promoting its usage expansion.

“It should be noted that according to the order of the Government of the Russian Federation №767-p the use of natural gas as an engine fuel for public transport and road utility transport depends on the size of population and in 2020 it should be up to 50% for vehicles in cities with a population of over 1 million, up to 30% - with a population of over 300 million, and up 10% - with a population of over 100 thousand”, - said the Head of Department for Fuel and Energy Sector of the Analytical Center Victoria Gimadi, opening the roundtable. The expert noted the significant impact of road transport on environment and climate changes. She cited the IEA’s data for 2011, according to which about 16% of global greenhouse gas emissions has originated from the road transport.

A number of measures to support the development of alternative fuels in Russia already exist and the introduction of others is planned. Thus, import duties on equipment and machinery has lowered for engine fuel (EF), pilot regions for expanding the use of EF are selected, subsidies for purchasing the vehicles which operates with the EF, are provided by the subjects of the Russian Federation. In 2014, 3.77 billion rubles has already been allocated. “At the same time, import duties for electromobiles were abolished, free parking in Moscow has been developed”, - added the expert.

According to the Director of Strategic Development of the Russian Automotive Market Research Alexander Kozlov, the inhibiting factors which affect the Russian engine fuel market is the lack of a developed network of fuel stations, insufficient number of mass-produced gas equipment, and the legislative deficit. “There are two ways to increase the “green” vehicles - said the expert. - That is the introduction of engine fuel, and thus increasing the number of natural gas fuel stations and lineup of gas-powered vehicles, as well as increasing environmental class of vehicles and traditional fuels. “According to him, even using the second option, we will return back to the first one, because its economic benefits are much higher. “The use of engine fuel can reduce the road transport costs by 20%, - said Mr. Kozlov. - And it can give reduction in the price of goods from 20 to 16%”.

Head of the Department for energy saving technologies and alternative fuels of the FSUE “NAMI” Vladislav Luksho raise an issue regarding economy. “The main factorthat will facilitate the transition to alternative fuels, is the economic benefits, - believes the expert. - We do not need to raise the issue regarding the reduction of emissions, because the switch from one fuel to another does not give any advantage”.

The roundtable’s participants noted that without appropriate subsidies, financial investment that is necessary for infrastructure and staff training, regions and transport organizations will not meet the requirements of the order of the Government of the Russian Federation №767-p.

Representatives of federal executive authorities, companies from the fuel and energy complex and independent industry experts have participated in the discussion.