Briefing note – the case for LPG taxis

Briefing note – the case for LPG taxis
1. Cleaning up the UK’s taxis
1.1.
1.2.
1.3.
1.4.
1.5.
1.6.
1.7.
Taxis are a major source of urban air pollution. Transport for
London‟s ULEZ plans to require all taxis and new private hire
vehicles new to licensing from January 2018 to be Zero Emission
Capable (ZEC) will have unintended adverse consequences for
metropolitan areas across the rest of the UK. Unable to operate in
London, the worst polluting diesel taxis will be displaced to other
areas of the country.
However, such taxis can easily and economically be converted to
run on LPG autogas, enabling taxi drivers to run cleaner vehicles which still meet their operational needs now
and in the future. We are calling on TfL to extend the life of LPG taxis in London to five years as the cost of
buying a new electric taxi is unaffordable for many taxi drivers but, by converting to LPG, drivers can
immediately lower vehicle emissions.
Metrocab state that its new ZEC model will cost around £42,000 and we should not expect cash strapped
local authorities to single-handedly run a diesel scrappage scheme as we have seen in London. Even with
London‟s scheme, many taxi drivers will not be able to afford such high prices. Alternatively, at £8,000 plus
VAT, it is considerably less costly to convert a diesel taxi to run on LPG, which can be converted at no loss to
the performance of the taxi.
PETROL
DIESEL
LPG
Drivers of LPG taxis experience savings of around 20 per cent on
their fuel bills, meaning the operator would recoup the cost of
Average cost
conversion after driving approximately 70,000 miles.
correct as of
118.69p
110.74p
55.62p
14/10/15
Taking the cost into account, we have called on TfL to extend the
life of LPG taxis to five years as it is far cheaper for taxi drivers to
Tax
58.0p
58.0p
15.8p
convert their TX4s to LPG than to buy a new electric model a
In order to better demonstrate the environmental performance of LPG taxis, we recently converted a TX4
diesel to run on LPG autogas – similar to many of the taxis that will be pushed out of London (if the ULEZ
consultation fails to recognise the benefits of LPG taxis in London as a support technology to the total
introduction of an electric fleet).
Testing at Millbrook revealed that, when running on diesel, the TX4 was below Euro 3 emission standards
under real life conditions – despite the fact that the taxi, which is a 2010 model, should have been meeting
Euro 4. As shown in the NEDC graphs below, after being converted to run on LPG, the TX4 met Euro 6
N1Class3 emission standards. And then also exceeded expectation by achieving Euro 6 passenger vehicle
emission standards.
LPG TX4 taxi conversion – testing at Millbrook over NEDC cycle
1.8.
The above graphs refer to the emission data from the NEDC test cycles from Millbrook; giving the
converted LPG taxi its Euro 6 certificate. However additional test data gathered from the PCO Cenex
London taxi drive cycle tests has revealed that the LPG taxi had reduced emissions not only for NOx and
PM but also for CO2.
LPG TX4 taxi conversion – testing at Millbrook over PCO-CENEX cycle
Inner London
Diesel TX4
LPG
converted
TX4
Difference
(%)
1.9.
1.10.
1.11.
1.12.
Central London
Outer London
Consolidated figures
CO2
NOX
PM
CO2
NOX
PM
CO2
NOX
PM
CO2
NOX
PM
336.9
1914
162
407.9
2039
86
258.9
1514
89
358.7
1896
105
g/km
mg/km
mg/km
g/km
mg/km
mg/km
g/km
mg/km
mg/km
g/km
mg/km
mg/km
CO2
NOX
PM
CO2
NOX
PM
CO2
NOX
PM
CO2
NOX
PM
334.3
g/km
288.2
.001
387.2
492.9
.001
248.9
149.9
.002
334.7
369.7
.001
mg/km
mg/km
g/km
mg/km
mg/km
g/km
mg/km
mg/km
g/km
mg/km
mg/km
-84.94
-99.99
-5.07
-75.83
-99.99
-3.86
-90.09
-99.99
-6.69
-80.50
-99.99
-0.77
With approximately 1,400 refuelling sites across the UK, the refuelling structure for LPG autogas is
already in place for taxis and public sector fleets and can be expanded at no cost to the taxpayer. Local
refuelling tanks, for example, are widely used and can be cheaply and easily installed, with the cost borne
by the suppliers. Furthermore, the competitive nature of the supply industry will ensure choice for
consumers as consumption grows. This is in stark contrast to ZEC technologies that often cannot meet
the driving needs of many taxi drivers such as access to infrastructure and driving range.
It should also be noted that the UK‟s LPG infrastructure is far more developed than in other European
countries. For example, Spain have only 600 refuelling stations and yet the Spanish Government have
identified LPG as an opportunity fuel and plan to introduce incentives to increase its uptake.
Whilst no LPG taxis are currently manufactured for the UK market, global developments suggest that
there is demand for OEMs to develop LPG taxis as a means of reducing transport emissions. For
example, Toyota has developed an LPG/Electric hybrid, the JPN Taxi, which will be sold to Tokyo‟s taxi
drivers from 2018. In fact, at present, 90% of Tokyo‟s taxis run on LPG and LPG taxis are widely used in
Hong Kong, New York and Istanbul.
In addition, the UK will benefit from a huge new supply of biopropane from 2016. With this in mind, and
taking into account the international demand for the inclusion of LPG taxis in the new vehicle market, LPG
offers a long term solution for taxis fleets.
2. Putting in place the right government support
2.1.
2.1.1.
2.1.2.
2.1.3.
We welcome government initiatives, such as the Department for Transport grant to Birmingham City
Council which will facilitate the conversion of 80 black cabs to LPG. However, in order to fully exploit the
potential of LPG to clean-up the UK‟s taxi fleets, LPG taxis need to be deployed on a much larger scale.
This will require government support mechanisms that will encourage local authorities and drivers to
convert diesel taxis to LPG. This should include, but is not limited to:
Inclusion within the Department‟s Clean Air Zones (CAZ) framework;
Financial incentives for taxi drivers to convert to LPG, such as those that were previously in place under
„Powershift‟;
Inclusion of R115 approved LPG converted vehicles on the governments buying standards (GBS)
formerly the crown procurement list.
Briefing note – map of refuelling points in the UK
Briefing note – ‘How the supply of bio-LPG from 2016 offers long-term
prospects for LPG autogas as a transport fuel’
Background
In its 2014 Consultation on proposed amendments to the Renewable Transport Fuel
Obligations Order 2007, the Department for Transport suggested to support gaseous fuels
on the basis of their energy content rather than their weight, putting gaseous fuel suppliers
on a more level playing field. The Department did, however, express its assumption that
“biomethane will continue to be the only gaseous renewable fuel supplied under the RTFO
between now and 2020”, not least because “bio-LPG is not currently sold in the UK”.
Opportunity
Following the recent agreement between Calor‟s parent company SHV and Nesté Oil in
October 2014 to supply around 160,000 tonnes of biopropane (“bio-LPG”) over four
years from 2016, the Department for Transport‟s assumptions will have to be revised. The
availability of bio-LPG in the UK some four years earlier than originally envisaged offers a
breakthrough opportunity for the UK to take a global leadership position – so long as the
Government creates the right political and regulatory incentives.
With 1,400 refuelling sites supplying 155,000 cars and vans, LPG autogas is already
widely used as a transport fuel in the UK. Created from renewable sources, bio-LPG is
a waste product of bio-diesel production. Vitally, it is chemically indistinct from
conventional LPG and can therefore be blended and used by all existing appliances
without the need for equipment modifications, making it a „drop-in fuel’ for existing
infrastructure and conversions, the first for the UK.
At the same time, the availability of bio-LPG in the UK in less than two years‟ time
highlights the long-term future for LPG autogas, particularly in light of current political
ambitions to promote the use of gaseous fuels. Indeed, the Department for Transport
assumes that from 2015, 5% of new HGVs will be gas vehicles, and there is a huge
opportunity to lower emissions from non-road mobile machinery (NRMM) such as fork lift
trucks and generators, particularly in built up areas.
Challenge
To ensure that the benefits can be maximised once bio-LPG becomes readily available
from 2016, we consider it vital that the Government promotes an increase in uptake of
LPG autogas now and incentivises further investment in the LPG autogas
infrastructure, including refuelling sites, conversions and manufacturing of LPG
autogas ready cars. In addition to allowing UK consumers to take advantage of the
financial and environmental benefits offered by conventional LPG autogas in the period up
until 2016, the creation of a conducive political environment will cement the UK‟s
leadership in renewable transport fuels.