Natural gas as vehicle fuel in China: A review

Han Hao, Zongwei Liu, Fuquan Zhao and Weiqi Li

Renewable and Sustainable Energy Reviews, 2016, vol. 62, issue C, 521-533

Abstract: Natural gas vehicles offer the benefits of reducing oil use, CO2 emissions and air pollutants. Promoting the use of natural gas vehicles is considered as one of the most important strategies towards sustainable transportation. China made remarkable progress in promoting natural gas vehicles over recent years, and its 4.6 million natural gas vehicles in 2014 represented the world׳s largest natural gas vehicle fleet. In this paper, the development of natural gas vehicles in China is reviewed based on a triple-perspective (Fuel-Vehicle-Infrastructure) technical–economical framework. The review indicates that (a) pricing of vehicle-use Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) is essential in determining natural gas vehicle development. A pricing principle similar to the fixed CNG/gasoline price ratio (0.75:1) should be applied to LNG/diesel price ratio; (b) for CNG passenger vehicles, the modified CNG vehicles, with ¥3000–5000 additional cost, is more attractive to consumers than originally manufactured CNG vehicles, with about ¥10,000 additional cost. Vehicle retrofit should be permitted by the government with the precondition that retrofit standards are strictly enforced; (c) for CNG/LNG transit buses, the deployment is strongly affected by local government׳s preference. In regions with sufficient natural gas supply, the government should prioritize the deployment of CNG/LNG transit buses rather than other technologies; (d) for LNG commercial vehicles, with ¥60,000–80,000 higher cost than their counterpart diesel vehicles, financial incentive is critical for their development. China׳s current vehicle subsidy scheme should be extended to cover LNG commercial vehicles; (e) regarding refueling infrastructures, interference with urban land-use planning and long-time administrative approval are the major barriers. Local governments should launch dedicated plans and strategies to support the further deployment of CNG/LNG refueling infrastructures.

Keywords: Natural gas vehicle; Compressed Natural Gas (CNG); Liquefied Natural Gas (LNG); Natural gas pricing; Refueling infrastructure (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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DOI: 10.1016/j.rser.2016.05.015

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