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- NGVs first introduced in 1992
- Buses main class of vehicle, followed by garbage trucks
- Significant price advantage for CNG
- Active Govt support
Natural Gas Vehicles
Natural Gas Vehicles (NGVs)
have been operating on South Korean roads since 1992, increasing in
number after 1997 due to air quality concerns and the focus on Seoul
for the World Cup of Soccer, in June 2000.
Buses form the
majority of NGVs on South Korea’s roads, with 6,600 operational
currently and another 2,400 due to be introduced by the end of 2005,
rising to 20,000 by 2010. 41 garbage trucks are also operational,
with this number expected to rise to 106 by the end of 2005 and 800 by
2010. Recently, older diesel trucks servicing other industries have
also been retrofitted to Compressed Natural Gas (CNG) or Liquefied
Natural Gas (LNG). Conversions of light duty vehicles and cars have
also occurred in small numbers.
Natural
Gas Vehicles in Korea currently use CNG or LNG, however there are
already seven districts where the possibility of LFG (landfill gas or
biogas) vehicles has been anticipated. Initial applications for LFG are
likely to be garbage trucks.
OEMs currently supplying NGVs
(buses) include: Kia Motors (Hyundai Motor Company), Daewoo Bus Corp,
Samsung, and SSangyong.
Refuelling Infrastructure
At
present there are 97 CNG refuelling stations in South Korea, of which
66 are pipeline or mother stations, with a total of 175 dispensers, and
the remaining 31 being daughter stations, with a total of 81
dispensers. The total number of sites is expected to increase to 197 by
the end of 2005 and 400 by 2007.
Fuel Pricing
CNG
currently enjoys a significant price advantage over traditional liquid
fuels and LPG. Fuel prices on a per liter equivalent basis include:
| Gasoline |
1.1 €/l ($US1.38) |
| Diesel |
0.8 €/l ($US1.00) |
| CNG |
0.37 €/l ($US0.46) |
| LPG |
0.53 €/l ($US0.67) |
With
operational considerations taken into account, fuel costs for a CNG bus
are roughly half those of diesel, 0.17 € ($US0.21)/km as opposed to
0.344 €($US0.42)/km.
Government Policy
The Korean
government plays a direct, active and important role, including
providing fiscal support through a range of different projects. The
main projects include G-7 (G-8) project, Eco-Technopia 21 project,
Investment Plan for the Eco-Technopia 21 Project, Major Outcomes of
Eco-Technopia 21, Corporate Environmental Management, and Environmental
Industry.
(Details of these can be found here)
Government initiatives to support NGVs and reduce emissions include:
Item
|
Refuelling providers
|
Bus fleet operators
|
Others
|
|
Exemption
from
various
taxes
|
• Exemption
from the corporation tax when installing refueling stations. (US$
12,500/station)
• About
30% saving for electricity charge by being applied as an industrial price
which is cheaper than normal price.
• 10~20%
discount for environmental improvement charge
|
•
Exemption of VAT and acquisition charge (It’s about KRW 460,000.00)
•
Environmental improvement charge (it’s about KRW 1,660,000.00)
|
• Exemption from customs when importing
relevant vehicle parts of the natural gas vehicles, such as CNG cylinders.
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Financial Support
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•Loan (support for installation such as facilities and installation of CNG refueling station): US$ 0.6
million/station (1 station: 50 buses refueling/day) with low interest rate
about 4~5% year
|
• Subsidy
on purchase (BUS: US$18,750/
1bus Garbage truck:
US$50,000/ 1 truck)
• Fuel cost aid : set CNG price
lower than that of diesel (A differential of less than KRW 115.00/m3 will be
maintained between diesel and natural gas prices)
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• Government award a prize to Champions for refuelling station and Bus fleet once a year to encourage to
use NGV and also give prize money
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