Sean Blythe looks at Australia’s natural gas vehicle industry, from its establishment in the 1980s, its development to date and what the future has in store for vehicles powered by Australia’s ‘natural’ fuel.
Australia’s ‘natural’ fuel
Natural gas reserves in Australia are estimated to be approximately 50,000 – 100,000 petajoules (PJ), and with an annual demand of 1,700 PJ, Australia has between 25 – 50 years natural gas supply. Currently, the country imports approximately 40 - 50 per cent of crude oil to meet its needs, while natural gas exports are in the order of 40 per cent of production. Australia, therefore, exports a ‘lower economic value indigenous fuel’ – natural gas – and imports a higher economic value fuel – crude oil.
This picture paints some obvious conclusions and presents the nation with a great challenge as well as an exciting opportunity. Australia is relatively ‘short’ on crude oil, and relatively ‘long’ on natural gas. Moreover, supply and operational realities suggest that natural gas can have a significant role in Australia’s medium to long term transport fuel balance. In terms of transmission, Australia is well equipped to pipe gas around the country and the infrastructure is expanding.
The Australian NGV industry, a history
The period between 1985 and 1999 saw optimism and investment in the natural gas vehicle (NGV) industry.
Gas monopolies characterised the period, with much collaboration between the state-based monopoly natural gas utilities. It has been estimated that approximately $20 million was invested by AGL (Sydney & Canberra), Gas & Fuel (Melbourne), Algas (Brisbane), SAGASCO (Adelaide), and SECWA (Perth). Local investment focused primarily on compressed natural gas (CNG) cars, buses, forklifts and rigid dual fuel trucks.
European standards were soon to be implemented, however, during these 14 years there was minimal focus and/or support available from engine or vehicle original equipment manufacturers (OEM) and minimal government initiative and support.
The period from 1999 to 2005 was characterised by confusion and development.
In the late 1990s, the Australian Federal Government introduced the Alternative Fuels Conversion Program (AFCP) and the Compressed Natural Gas Infrastructure Program (CNGIP) to facilitate the growth of the NGV industry.
The CNGIP was developed in order to expand the CNG public refuelling stations in Australia, with up to 50 per cent of the capital required to build such stations to be funded by the Federal Government. The Australian Greenhouse Office (AGO) developed a confidential and competitive bidding process, which was an absolute failure primarily due to the lack of support by the Australian gas industry.
The Federal Government’s AFCP had the aim of increasing the use of alternative fuels in medium to heavy duty road vehicles. The program was to fund up to 50 per cent of the additional cost of a CNG or liquefied natural gas (LNG) vehicle over the equivalent diesel vehicle, and it was well supported financially by the Federal Government and by fleet users of natural gas.
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