EU Clean Fuel Strategy

EU proposes "Clean Fuel Strategy" following an increase in estimated low carbon vehicle sales

During 2012 in Europe, hybrid cars, plug-in hybrid cars and electric cars accounted for just 0.7% of automotive sales. However, alongside incoming EU regulation to create infrastructure and force development, sales of low carbon vehicles are estimated to rapidly increase over the incoming years.

EU Clean Fuel Strategy

On the 24th of January last Thursday, Commission Vice President Siim Kallas revealed the launch of the EU Clean Fuel Strategy, to be reached by 2020. The plan will cost €10 billion mostly funded by industry and intends to tackle the lack of infrastructure for low carbon vehicles.

The plan has set out quotas to increase the number of filling stations for electric, hydrogen, compressed natural gas and liquefied natural gas.

So what does this mean for the UK?

An increase in the number for electric vehicle charging points from 703 last year to 1.22 million (Germany: 1,937 to 1.5 million, France: 1,600 to 970,000).

A maximum distance between hydrogen refuelling stations of 300km to tackle "range anxiety".

A maximum distance between liquefied natural gas terminals of 400km for trucks.

A maximum distance between compressed natural gas points every 150km.

Common standards for hydrogen, CNG and LNG filling stations should be developed by December 2015.

Electric Vehicles

The verdict of a study by Pike Research has forecasted that the percentage will leap to a 4% share of the market by 2020 to 827,000 vehicle sales annually within the EU.

The website nextgreencar.com has also predicted a large increase in sales and recently told the Observer it expects the total number of electric cars in the UK to double from around 3,000 to 6,000 in 2013, as cheaper models go on sale and more charging points are installed.

The United Kingdom, Germany, France, Norway, the Netherlands and Sweden are estimated to purchase the most electric cars within the EU, accounting for 67% of the market.

What are the benefits of driving electric?

Some electric vehicles cost as much as a quarter per mile to drive compared to petrol and diesel vehicles.

The UK government offers a £5,000 grant to help people buy an electric vehicle (launched in January 2011).

They are generally silent, removing associated noise pollution.

They are becoming increasingly affordable (for example Renault's £13,650 ZOE, which comes with a £70 monthly battery hire fee)

Prices of electric cars are decreasing rapidly, for example the Nissan Leaf recently dropped in price by £3,800.

Hydrogen Fuel Cell Vehicles

Electric vehicles are viewed as inferior by many when compared to hydrogen fuel cell vehicles. These vehicles are powered by combining hydrogen with oxygen from the air.

So why are they superior to electric? (Benefits)

They can fill up in minutes at a hydrogen pump, much like a petrol one, compared to many electric cars which can take up to 8 hours to recharge.

And they do not have the "range anxiety" experienced with electric vehicles as they can drive several times more than the average 160km electric battery vehicle.

If superior, why aren't sales taking off?

These vehicles are seriously expensive, and are still too expensive for the average consumer.

There is currently little infrastructure for these vehicles, the oil companies owning petrol stations are yet to jump on board and install pumps.

Unlike electric cars and plug-in hybrids they cannot be charged at home via an electric plug, normally this takes place over night as it takes several hours.

Luckily though businesses within the EU are storming ahead with plans to develop infrastructure for these vehicles. For example Daimler has joined with gas company Linde to install 20 hydrogen filling stations in Germany.

Hydrogen fuel cell vehicles have been notoriously expensive and are not yet as cheap as electric vehicles, however prices are significantly lowering. For example the South Korean group Hyundai has revealed expectations to halve production costs for these vehicles to £29,300.

Conclusion

So it seems there are increasing sales of low carbon vehicles, particularly for electric cars. However taking into account the Hydrogen fuel cell vehicles practicality, if the price drops to that of electric vehicles it will be interesting to see which comes out on top.

At least the EU is taking the important steps to reduce our dependence on oil.

Sources

http://www.thegreencarwebsite.co.uk/blog/index.php/2013/01/03/report-electric-vehicles-set-for-huge-spike-in-sales/

http://in.reuters.com/article/2013/01/28/us-daimer-ford-nissan-idINBRE90R0CO20130128

http://www.guardian.co.uk/environment/2013/jan/08/electric-car-sales-2012

http://www.greenchipstocks.com/articles/electric-car-sales-growth/2181

http://www.euractiv.com/climate-environment/brussels-clears-road-electric-ve-news-517378

H.Cavill