Gas Supply Mechanism Session - · PDF fileGas Supply Mechanism Session Chair: ... Ben Sawford...
Transcript of Gas Supply Mechanism Session - · PDF fileGas Supply Mechanism Session Chair: ... Ben Sawford...
Gas Supply Mechanism SessionChair:
Andrew Whittles (Low Emission Strategies)
Ed Carter (National Grid)John Baldwin & Robert McKeon (CNG Services)
Ben Sawford (Gasrec)Phil Lowndes (Gas Alliance Group)
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Road Tanker Loading at Grain LNG
January 2014Ed Carter
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Grain LNG
Largest terminal in Europe and 8th largest in the World. 1,000,000m3 storage space 15 million tonnes per annum capacity (equivalent to 20% of UK gas
demand) 2 purpose built jetties (Qmax capable) Independent terminal operator, giving equitable customer service Key geographical location – close to London and at the gateway to/from
continental Europe Proven track record of delivering on its commitments and has over 30 years
experience in the LNG industry
Largest terminal in Europe and 8th largest in the World. 1,000,000m3 storage space 15 million tonnes per annum capacity (equivalent to 20% of UK gas
demand) 2 purpose built jetties (Qmax capable) Independent terminal operator, giving equitable customer service Key geographical location – close to London and at the gateway to/from
continental Europe Proven track record of delivering on its commitments and has over 30 years
experience in the LNG industry
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Conversion to importation terminal
Originally built 1980 as apeak shaving plant
£140 million low costconversion
Purpose-built jetty 4.5km cryogenic corridor 55 berthing slots 20 yr fixed income
contract withBP/Sonatrach
~4% of UK demand
1959 1964 1980 2005 2008 2010
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Phase 2 – Background / status
£390 million investment Tripling capacity to ~12% of UK demand Customers Centrica, GDF-Suez,
Sonatrach
Three tanks each of 190,000m3
Additional 110 berthing slots Commissioned November 2008 Ready for Difficult supply through Winter
1959 1964 1980 2005 2008 2010
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Phase 3
Commissioned December 2010 £310 million investment Total storage 1,000,000 m3
Total capacity ~20% of UK demand ~15mtpa of LNG (~20bcm/y of gas)
2nd jetty – Qmax compatible ~250 berthing slots sold Customers E.ON, Iberdrola &
Centrica
1959 1964 1980 2005 2008 2010
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STFERGUS
TEESSIDE
BARROW
BACTON
THEDDLETHORPE
EASINGTON
ISLE OF GRAIN
DYNEVOR
AVONMOUTH
PARTINGTON
GLENMAVIS
Glenmavis• Commissioned 1971 – 1975• 2 tanks, 505 GWh• ~ 311 days to fill• Closed April 2012
Partington• Commissioned 1972• 4 tanks, 1122 GWh• ~ 459 days to fill• Closed April 2011
Dynevor• Commissioned 1983• 1 tank, 304 GWh• ~ 117 days to fill• Closed April 2009
Avonmouth• Commissioned 1978• 3 tanks, 876 GWh• ~ 374 days to fill
National Grid UK Peak LNG Storage Facilities
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Market & Drivers Stricter environmental controls in
cities & ports LNG highly competitive against
gas oil on price Demand outstripping supply Facilitate Blue Corridor project
due to ideal location Enabling market for other areas
such as marine in the UK
Breakdown below in LNG equivalent
Total HFO Market = 3,564k tpa
Potential growth opportunities
Road Fuel ~ 200k tpa ( by 2020)
I&C ~ 600k tpa
Marine & Rail ~ 609k tpa
Avonmouth is currently UK’s only source of LNG for truck loading services
Historic Growth of NGVsin EU (~ 1.1M 2013)
DECC Energy Report - Gas/Diesel Oil 2011-2012
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2005 2006 2007 2008 2009 2010 2011 2012
Volu
me
(000
s To
nnes
)
Gas/Diesel OilLNG Equivelant
Grain LNG
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Truck Loading Facility
Go LIVE
Initial capacity up to 36 tankers/day
Expandable to 4 bays
Rear & Side loading
Weighbridge & Gas Chromatograph
Up to 40 m3 Tankers
Target go-live 2015
Regulatory consent given to the project
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Truck LoadingCommercial & Business Model
GLNG intends to invest 100% on RTLF and take all the risk
Tanker Operators must secure LNG supply from Grain Shippers
Tanker Operators secure slots from Grain LNG
GLNG RTLF
Shippers Operators
Invests100%
BuysLNG
Buys RTLFServices from
Grain LNG
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Challenges Speed to market LNG Supply
Uncertainty supply post Fukushima No quality or volume guarantees Competition
Rate of development of the LNG fuel truckmarket
Scalability Government Support
Tax regime guarantees Regulatory clarity on Small Scale LNG Planning – Perception of LNG
challenges UK safety standards Vs ‘perceived’ lack of
technical standards
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Why Grain LNG?
GLNG has obtained board approval
GLNG currently has the capacity to cater for market demand
GLNG is in an ideal location to cater for UK and NW Europemarkets
GLNG has over 30 years experience in the LNG industryachieving consistent, flexible and reliable operational performance
GLNG is an independent terminal operator giving equitableservices
GLNG has 6 Shippers enhancing competition on supply
Biomethane to GridMarket Update
30th January 2014
John BaldwinManaging DirectorCNG Services Ltd
0121 247 8160
Robert McKeonProject ManagerCNG Services Ltd
0121 707 8581
Biomethane Market Overview
1. CNG Services Ltd2. Project Review3. Market forecast4. Green Gas Certificates and CNG5. Conclusions
CNG Services Ltd
• Supports projects to injectbiomethane into the gas grid– Didcot, Poundbury, Vale Green,
Stockport, Doncaster, Minworthetc.
• Bio-CNG as a fuel for trucks– Own UK’s largest CNG filling
station– Sell Bio-CNG (20% biomethane)
We are independent from all makers of plant, vehicles, clean-up, compression....wehelp clients get the best solution for their projects
Our Biomethane Projects Team
• Biomethane Projects– Iain Ward, Lee Firth, Alison Cartwright, Terry Williamson, Robert
McKeon, Greg Lee• Pipelines and Compression Project
– Ian Roughley, Bob Ingmire, Mick Beddows (LTS), Phil Winnard,Tony Pym
• Commercial (RHI, NEA etc.)– Peter Rayson
• Project Support– Angela Bagshaw, Chris Toase, Christine Venables, Lauren Hamer
We support Biomethane Projects for a living
Didcot – UK’s First BtG Project
Biogas upgrader
Propane StorageGas bag
Energy & quality Measurement
Propane Injector
Telemetry
H2S and
Siloxane filters
Flow of biogas - 100 m3/hrFirst gas to grid on 3rd Oct 2010
Anaerobic
Digesters
Poundbury• UK’s first commercial scale biomethane to
grid project• 500 m3/hr. into grid (around 1 million therms)• Membrane CO2 removal plant• SGN providing biogas to biomethane
conversion service• Development is a JV between Duchy of
Cornwall and some of its tenants
Prince Charles opened the project in Nov 12
Springhill (Vale Green) near Evesham• Approximately 600 m3/hr biogas• 490 kWh CHP• Go live – August 2013• CO2 separated via membrane and cryogenic system – used to grow more tomatoes
Future Biogas - Doncaster• Agricultural feedstock• Approximately 900 m3/hr biogas to biomethane• 499 kWh CHP• Went live Oct 2013
Severn Trent Water - Minworth
• Sewage derived biogas• Approximately 1,200 m3/hr biogas• Existing 9 MWh CHP• Go live Q2 2014
Project in Scotland
• Waste• 2 water wash plants, each capable
of 2,500 m3/hr biogas
Chesterfield Biogas selected to build UK’s largest biomethane-to-grid project.COMChesterfield BioGas (CBG) has announced a new order for its biogas upgraders which will be central to aground-breaking UK renewable energy project. The company, which is based in Sheffield, UK, is to supplygas-scrubbing water-wash upgraders and ancillary equipment to a site in UK.When commissioned in late 2014, not only will it be the first facility of its kind, it will be the largest of anybiogas-to-grid project so far announced or operating in the UK.Raw biogas - derived from anaerobic digestion (AD) will be converted to biomethane suitable for injection into thenational gas grid.Such is the anticipated raw biogas input from the AD, upgrading units will need to be coupled in parallel to optimise anoutput of up to 5,000 cubic metres per hour of 98% pure biomethane. The model being supplied is the Totara + , thelargest in the Greenlane® range.Included in the service elements of the contract are a 3-year warranty, a guarantee of 98% system availability, and amonthly site visit by a CBG engineer.The Greenlane water-wash process is proven in operation over the last 20 years and requires no heat and nochemicals. More 75 sites are operating successfully around the world, 30 of which employ the Totara model.When the project is completed in late 2014, CBG will have six similar systems of various capacities installed in the UK- more than all other types of biogas upgrading units operational in the country put together, and more than any othersingle supplier.
Other Projects in 2014• NWL Howdon
– Northumbrian Water’s STW near Newcastle– 2,000Nm3/hr biogas – Malmberg WW
• Euston Estates– High Pressure LTS Connection project in Cambridgeshire– IP main with remote compressors and ROV – 1st project to use this
model– 1,000Nm3/hr biogas – Pentair Haffmans plant
• Pretoria Energy Chittering– AD plant in Cambridgeshire– 2,000Nm3/hr biogas – MethaPower membrane plant
In total 15 projects will go ahead in 2014 and around 20 more in 2015helping meet 2020 renewable energy targets
Annual Biomethane to Grid and RHI for 2012-2015
£778,719 £4,943,425
£88,005,740
£148,736,270
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
2012 2013 2014 2015
Annual RHITWh
Financial Year End
Forecast Biomethane to Grid TWh & RHI Awarded per FinancialYear
Feedstock Categories
Projects were also categorised according to sectors determined by the EUGreen Gas Grids Project:
1. Sewage Sludge2. Agricultural
a. Animal manure (slurry)b. Agricultural by-products and residuesc. Crops for Energyd. Agricultural biomass is modelled as one sub-group as projects will often contain
elements of all 3 streams3. Industrial Food Processing waste4. Food Waste (commercial, domestic, local authority)5. Biodegradable waste (e.g. from an MBT plant or garden waste collected by
local authority)
Proportion of Projects in Each Feedstock Category
Proportion of Projects in each Feedstock Category
Sewage Sludge
Agricultural
Food Waste
Industrial FoodProcessingBiodegradable
GGG Feedstock Category Number projects in Category %
Sewage Sludge 9 15%Agricultural 25 42%Food Waste 12 20%Industrial Food Processing 10 17%Biodegradable 3 5%Unknown 0 0%Total Projects 59
Biomethane Market Forecast
• UK total gas demand now is around 800 TWh/annum– Around 50% domestic heating, 25% power gen and 25% industry– Stretch maximum biomethane by 2030 is around 20 TWh
• For heat in cities there are few practical/economic alternatives– Biomass (air quality), heat pumps (do not work in very cold weather), district heating (too
late to dig up cities)
Green Gas Certificates
• GGCS tracks commercial transactions of biomethane throughthe supply chain
• Each unit of green gas injected into the grid displaces theneed for a unit of conventional gas
• Unique identifiers ensure there is no double-counting ordouble-selling of green gas
• Producers, network operators, suppliers and consumers canall participate on a voluntary basis
• Rules similar to those that operate in Germany andNetherlands where market more advanced
• In Germany, 350 CNG filling stations sell CNG with a GreenGas Certificate
• Range of RGGOs• Total amount kWh• Country• Technology (waste
water, AD)• Feedstock (food,
crop, slurries etc.)• Producer• Supplier• CO2 emissions• Pin Code
Certificate Information
REAL Green Gas Certificate Scheme
• Designed to allow ‘tracking ofbiomethane from injectionpoint to customer’
• Integrity - no ‘double counting’• Separate from the gas to
provide flexibility• Can only be used once
• National Grid• British Gas• E.ON• Thames Water (Didcot)• Adnams Biogroup (Adnams)• Milton Keynes City Council• CNG Services Ltd• http://www.greengas.org.uk/
GGCS Launch Members
GGCS is the only UK scheme associated with the recent agreementto harmonise registry Green Gas Certificate rules(http://www.greengasgrids.eu/info/news.html )
Gas shipper
AD DeveloperOrganicMaterial
GasDistribution
Network
Sale of
‘Certificates’Normal grid gas
Purchase ofbiomethane
energy
Inject gasinto grid
Processing viaAnaerobicDigesters
AD Developer Sells Certs Direct to Gas Consumer
Clean-up plantand grid injection
Gas can beused to fuel
trucks on CNGor for CHP
Sale of gas
Customer
Green Gas Certificates
• GGCS is not-for-profit and governed by its participants• Participants pay a small annual membership fee (£500)• A small gas throughput fee (0.01p/kWh)is levied as identifiers
are retired• GGCS does not legally confer any additional ‘value’ on the
green gas contracts that flows through it (apart from buses –see later)
• GGCS does indicate ‘origin’ of the gas• GGCS is closely linked to the RHI• Participants are independently
audited to ensure registrationsare accurate
Opportunities for Green Gas Certificates
• Green Gas Certificates are included in guidance of Dept forTransport Low Carbon Emission Buses (LCEB) – buses can useGGC as proxy for biomethane– The bus operator is allowed to claim a credit of 6p/km if a Green gas
Certificate is presented to match gas used
• John Lewis has called for ‘DEFRA and DECC need to recogniseGreen Gas Certificates for transport carbon reporting
• Opportunities for Green Gas Certificates in GovernmentAllowable Solutions programme for zero carbon buildings
• Sainsbury’s using for ‘carbon neutral store’ – next slide
Crewe CNG Station
• Official opening of our Crewe CNG fillingstation on 8th March 2013 – largest evercollection of CNG vehicles
• Filling dual fuel trucks for GIST/M&S, BritEuropean
http://www.youtube.com/watch?v=orxBtoXyjos
Largest grid supplied CNG station in UK – now selling biomethane via Green GasCertificates
Brit European
• Provide transport services for JCB• Run 36 dual fuel diesel-CNG trucks• Purchase Green Gas Certificates to demonstrate gas sourced
from UK organic feedstock
UK Gas Distribution Network
• Extensive UK and Ireland Gas Network• Good for biomethane injection
• High Pressure LTS network ideal for CNG• it would cost >£15 billion to build NTS/LTS
• Shale gas industry about to start in UK• Reducing gas and oil imports
UK gas system – Local Transmission System
LTS is a vital national asset - ideal for CNGHigh Pressure CNG can help reduce diesel demand and CO2 emissions from
HGVs
• www.greengas.org.uk• Twitter: @GreenGasCert• Non for profit scheme
• http://greengastrading.co.uk/
• Multiple shareholders
Biomethane to Grid Conclusions
• It has taken 6 years but the regime looks good:• Over 50 projects in next 3 years is possible, all technologies
• Majority of biomethane from waste feedstock• Need to focus on reducing capital costs
• Grid Entry Unit costs reduced by 50% in last 5 years• New processes being developed for high pressure connections• 7 active biomethane equipment providers in UK – competition
• Green Gas Certificates• CNG for trucks and buses and CHP/District Heating for new housing• REAL not for profit scheme is helping to facilitate biomethane projects
The biomethane market is set to grow, delivering significant benefits andhelping meet 2020 renewable energy targets
Gasrec - Introduction
• The leading supplier of bio-LNG in Europe - Gasrec owns andoperates its own biomethane liquefaction plant. Gasrec liquefies themethane from landfill and blends it with LNG to create bio-LNG andthereby offers enhanced CO2 savings
• Operates a vertically integrated supply chain – Gasrec produces itsown bio-methane (and is developing options to liquefy natural gas);it owns its own road tankers which deliver to its own refuelingstations
• Largest supplier of gas to transport in the UK - Gasrec has developed11 LNG/LCNG refueling stations, 5 in the last 6 months and suppliesfuel to more than 60% of gas powered HGVs on UK roads
• Secured TEN-T Grant – Gasrec has secured grants to build 5 refuelingstations in the UK and 2 mobile stations in continental Europe. Theknowledge gained by Gasrec will contribute to the development ofLNG refueling standards and LNG station deployment across Europe
• Experienced management team – Gasrec has an experiencedmanagement team and proprietary knowledge of all aspects of thesupply chain
Vertically Integrated Business Model
Supply Security Trading Distribution Sales andMarketing
• Collect and liquefymethane from landfill
• Developed plantdesign and operatingknow how
• Project developmentfor UK sourcedstranded gas supplied
• Purchase LNG from 3rd
parties under term andspot agreements
• Own LNG road tankerfleet and distribute bio-LNG
• Develop refuelingstations and sell bio-LNG and LNG asalternatives to dieselfor use in HGVs
• Bespoke station design
• Bias to open accessstations
Refueling Station Systems• Gasrec offers a range of refueling station options to match the
specific customer requirement and number of vehicles to berefueling in as cost effective way as possible.
• Open access station - developed at or close to strategiccustomer locations, Gasrec owns and operates thestation and sells bio-LNG, LNG, or L-CNG at thedispenser
• Dedicated station - designed and built by Gasrec andowned and operated by the site operator or by Gasrec.Typically this includes a full maintenance and repairservice
• Design recognition for rapid filling experience (sub 5min); mitigating vent to atmosphere; and, customerintegrated dispensing electronics (Triscan/SAP)
• Station options include purpose-built, factory assembled ormobile.
• G15 to G60 - Permanent facilities designed and built toGasrec’s specification. Pumped refueling for fastrefueling and full vent recovery with zero loss.
• G10 to G15 - Factory assembled semi-portable facility.Pumped refueling and full vent recovery. Option fordual fuelling of CNG and LNG in combination.
• G6 - Commonly available cryogenic storage tankadapted for LNG refueling. Typically decant filling andno vent recovery. Short term solution
Gasrec existing refueling stations (Dec 2013)
Gasrec designed and built refuelling stations:
1.Camden (Camden Council) - Dec 10
2.Enfield (Coca Cola) - Jun 12
3.Enfield (Tesco) - Feb 12
4.DIRFT (Gasrec) - April 13
5.Swindon (B&Q) - May 13
6.Scunthorpe (Nisa) - Jun 13
7.Tamworth (UPS) - Sep 13
8.Bristol (Sainsbury) - Oct 13
9.Lutterworth (Gasrec) - Dec 13
10.London (Arla) – Dec 13
11.Buckinghamshire (Arla) - Dec 133
1 1
1
3
3
1 2
1
4
• All open Access
• Hatfield – Supporting existing customer base on back to base operationsand tramping
• Southampton – combined LNG/CNG supporting exiting expandingcustomer needs
• Bridgwater (Somerset) – strategic location adjacent to M5 supportingexisting and future customer needs
• West Midlands (Solihul) M6/M42 – seeded through existing customersupport (LNG/CNG combined)
• Derby – regional infrastructure seeding and support to existing customer
• NW UK (Warrington) – supporting national infrastructure roll-out
Proposed 2014 UK Station Deployment
2014 – Station Deployment
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
HG
V re
gist
ratio
ns
High
Mid
Low
Vehicle deployment model
Trans-European Network Co-funding
• In October 2013 Gasrec was awarded EU funding tostudy the potential for bio-LNG as a fuel for HGVs
• The study co-funds the deployment of a nationalnetwork of 5 open-access refueling stations acrossthe UK and 2 units in continental Europe by the endof 2015
• Gasrec’s experience will be used to contribute tothe setting of LNG refueling standards and theroadmap for deploying LNG stations across theTEN-T network
• Dirft; Avonmouth; Thurrock; Wakefield; Livingston
Proposed TEN T refueling station locations
• Gasrec was originally formed in 2003 tocommercialise its technology and knowhow forlandfill gas liquefaction.
• Built as a commercial scale pilot plant; startedoperation in 2008.
• Capable of fuelling fleet of 1500 HGVs.• It remains the only landfill gas liquefaction plant
in Europe – Gasrec manages the gas collectionsystem; processes gas to remove impurities andliquefies to LBM.
• Gasrec has developed unique operatingknowledge and experience of landfill gasliquefaction over the 6 years of plant operation
• Accreditation for Gasrec processes and fuel fromthe UK Government
Albury - Bio-methane liquefaction (LBM)
Government support for biogas by source and use
The example assumes 2,000m3/hr of methane
AD2xROCs
ADFiT
ADRHI
ADTransport
L'fill1xROC
L'fill0.2xROC
L'fillTransport
WWT1xROC
WWTRHI
WWTTransport
£/m
3C
H4
CapEx
OpEx
Govt. Subsidy
Revenues
Net Contribution
AnaerobicDigestion
Landfill Gas WWT
Future LBM and LNG – transportation fuel
• Compelling argument to level biogas subsidy playing field
• CO2 from road transportation = 27% UK emissions• HGVs (1% of UK road vehicles) = 17% UK CO2 emissions
• RTFO vs power production (RO/RHI); perverse incentives• Landfill gas – incentive multiple of 2-3 for power production over use as
transportation fuel (based on energy content)
• Gasrec currently progressing• Incentive schemes – Government lobbying• Additional LBM landfill production sites• Stranded UK gas reserves (UK sourced LNG)• Additional trading agreements with European LNG terminals
What’s important to Gasrec in 2014
• Strengthen the supply chain – Gasrec is looking to invest inadditional LBM and LNG production to diversify the sourcesof supply and provide greater supply security. Also placingorders for additional LNG road tankers.
• Offer a range of refueling stations - Building on itsoperating experience and knowledge of the UK marketdevelop a range of fit for purpose refueling stations designs
• Secure TEN-T locations – Work with industry leaders toidentify and build gas refueling infrastructure to supportEuro 5 and Euro 6 HGV deployment
• Gain subsidy equivalence for bio-methane to transport –Seek Government recognition of bio-methane to transportand adjustments to subsidies.
• Air Quality - Helping stakeholders and Governments meettheir carbon target and contribute to a air qualityimprovement
Contacts
19 Eastbourne TerracePaddington StationLondonW2 6LG
Gas Alliance – The Company
oFormed 2009
oMission Statement:
‘To provide the UK Bus & Commercial Vehiclesector with a complete Compressed Biomethanesolution which will reduce Carbon Footprint andOperating Costs’.
Gas Alliance - Partners
Gas Alliance Group
Gas Vehicle Alliance Gas Bus Alliance
• Partners: Wartzilla (Hamworthy)Crouchland FarmsScotia Gas NetworksCeres
Anaerobic Digestion
o Bio-methane:• Non Fossil Fuel• Renewable Fuel
o Feedstock + Bacteria + Temperature =
Biogas
Anaerobic Digestion
Digester
CHPElectricity
Fertilizer
Gas CleaningProcess
UK National GasGrid Network
Anaerobic Digestion
Digester
CHPElectricity
Fertilizer
Gas CleaningProcess
UK National GasGrid Network
Station
Dispensers
Transport
Biomethane – Carbon Negative
o In 2014 Crouchland will collect all CO2produced from the Digester.
o Crouchland Biomethane will be CARBON NEGATIVE
Anaerobic Digestion
Digester
CHPElectricity
Fertilizer
Gas CleaningProcess
UK National GasGrid Network
Station
Dispensers
Transport
CO2Collection
Current Capacity
oSingle farm
o2200 cubic meters/houror
o1700 kgs/hour
o1 truck: 60 kgs/day
o Further 3 Projectsplanned for 2014
Gas Alliance Model
o Utilitiy Surveyo 100% Compressed Bio-Methane
(CBM)o Gas Station – Design, Build & Maintaino Health & Safetyo Trainingo Project Managemento Fixed pricing modelso Future expansion included in priceo Guaranteed Carbon Neutral
Progress to Date
Truck Sector: VolvoM.BenzIvecoMAN
Duel Fuel Clean Air PowerPrinsG-volutionHardstaff
Fuel Bio-methane,CNGLiquid Natural Gas