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Policy Priorities | SpeedGas

Climate change constitutes a problem of unprecedented scope, complexity and importance for humanity in general and for the policy community in particular. Achieving a global consensus on how and when to act while balancing competing environmental, social, political and economic imperatives is a challenge but it is a challenge that must be met.

As citizens and as representatives of a clean and low carbon gaseous fuel, the Nigerian LPG industry strongly supports the emergence of an ambitious nigerian climate strategy and is committed to optimising LPG’s role in the transition towards a more climate friendly energy model. Combining an established market presence with C02 emission advantages over more carbon intensive alternatives such as coal, oil and conventionally generated electricity, LPG can and should be part of the solution.

LPG’s climate credentials are significantly enhanced by the emerging evidence regarding the role of black carbon in global warming. Due to the clean combustion typically associated with gaseous fuels, LPG generates extremely low levels of black carbon, making it an ideal component of any global warming reduction strategy. Moreover, its portability makes it an ideal auxiliary fuel for systems based on renewable energy such as solar thermal, particularly in areas beyond the reach of the natural gas network.

Finally,  LPG is helping to tackle the particularly persistent challenge of reducing C02 and black carbon emissions in the Nigerian road transport sector.

Speed Gas Key Messages for Policy-Makers on Climate Change:

  • Gaseous fuels such as LPG and natural gas can and should make a significant contribution to the country’s climate change. This potential, which is evident in the heating, transport and power generation sectors, should be evaluated and exploited to optimal effect.

  • There is more to the climate change challenge than just C02. Other key emissions including methane and black carbon, whose significance appears to have been greatly underestimated thus far, must be integrated into a coherent policy framework.

A recent study shows that the carbon footprint of renewable LPG can be up to 94% lower than conventional LPG. The gradual increase of renewable LPG distribution, which depends on the product output from producers, will have no impact on the end-user as it can be used with the same appliances and engines as conventional LPG.

 In the longer term, the biggest potential of renewable LPG production lies in advanced chemical processing of cellulosics and waste, i.e. converting residues from agriculture and forestry or organic municipal waste into BioLPG.

While the available renewable LPG production for the next few years is estimated to be around 250 ktonnes, experts believe that due to the abundance of cellulosics, total availability of renewable LPG in Nigeria could reach 20-25 million tonnes per year in 2050, i.e. covering entirely the demand of LPG for energy use.

With the right policy environment in place for the producers to secure the necessary feedstock and sustain a stable business model, the entire LPG distribution chain could therefore be fully decarbonised by  2050. Our industry will be thriving to deliver on this ambitious objective.

Speed Gas Key Messages for Policy-Makers on Renewable Energy

  • Factor in the cost efficiency of renewable fuels (“drop-in” benefit) vs. standalone technologies requiring dedicated infrastructure when assessing the different pathways for long-term decarbonisation

  • Take into account that retrofitting technologies, for instance converting a gasoline car to run on LPG or BioLPG, can help decarbonising in a cost-efficient manner the existing fleet of vehicles

  • Create stable and predictable sustainability criteria for bioenergy, to give the right signal for the market to invest in necessary renewable fuel production infrastructure

Whether considered in the context of emissions reduction, supply security, or economic competitiveness, the case for pursuing ever-increasing levels of energy efficiency in Nigeria is overwhelming. From buildings, to buses, there are countless opportunities to “do more with less”. The LPG industry’s direct contact with end-users can help promote energy efficiency across Nigeria

As a naturally occurring gaseous fuel, LPG offers inherent efficiency advantages which can be exploited in a diverse range of applications including heating, cooking, transport and industry.

Furthermore, thanks to its direct contact with end-users at the point of delivery, the LPG sector is particularly well-placed to promote more efficient use of fuel and the cultivation of better informed and more empowered energy consumers. This is achieved through the provision of services such as energy counselling and recommendations as well as the promotion of high-efficiency technology such as LPG-fuelled systems which allow for the simultaneous production of both heat and power and allow end-users to sell unused electricity back to the grid.

Speed-Gas Key Messages for Policy-Makers on Energy Efficiency:

  • Improving energy efficiency is the most effective means of simultaneously addressing the key challenges of sustainability, supply security and competitiveness. Efficiency, as opposed to the promotion of any one type of energy, should there be the cornerstone of Nigeria’s energy strategy.

  • Gaseous fuels such as LPG are natural tools for policy-makers seeking to promote enhanced energy efficiency, particularly in light of the ever-improving performance of key gas-powered equipment such as water heaters and stoves.

The LPG supply chain is flexible, de-centralized and has a plurality of origins.

Reliable access to energy in both the short and long term is fundamental to the well-being of the Nigerian economy and Nigerian citizens. Speed-Gas has therefore identified the need to maintain and enhance its energy security as a key policy priority. Ensuring that Energy supplies remain consistent with demand can be achieved via three basic means:

  • Improving energy efficiency, thereby reducing demand

  • Increasing the production and uptake of domestically produced energy resources, including sustainably-produced renewable.

  • Enhancing the diversity, flexibility and reliability of energy imports..

LPG contributes to all of these objectives, combining inherent efficiency with widespread availability, a flexible transit and distribution model, and robust long-term supply prospects:

A flexible and decentralized distribution network: Rather than relying on a fixed infrastructure which could be vulnerable to supply disruption, LPG can be transported from anywhere to anywhere on earth, using an optimal combination of sea, rail and road. LPG distribution is therefore achieved without relying on pipelines, not only during transit of the product to Nigeria but all the way along the distribution chain to the end-user. Its presence is of particular importance in rural areas, many of which are not serviced by the natural gas grid.

A plurality of sources: With its dual origins – gas drawn directly from the earth, and refined crude oil – LPG’s supply is not contingent on the availability of any one source. Moreover, thanks to the existence of a highly fluid international trading market, Indeed, LPG scores nearly twice as high than competing fuels such as petrol and diesel.

A substitute for natural gas in the event of a supply disruption: Due to its physical similarity to natural gas, LPG is the most appropriate and easily applicable substitute for natural gas. With only a minor technical adjustment, LPG can step into the breach, providing a clean and sustainable source of heat and power, such a back-up solution is particularly appropriate for industrial installations, for which the modest associated expenses would constitute a sound and responsible investment.

Speed- Gas Key Messages for Policy-Makers on Energy Supply Security

  • A key principle in maintaining energy security is the rational allocation of energy resources so that fuels are used in the application for which they are most appropriate. Given the relatively scarcity of alternatives in the transport sector and Nigeria’s considerable dependence on fuel and diesel, the use of oil in non-transport sectors should be avoided where possible. LPG could help meet this demand, thereby enhancing overall supply security in Nigeria.

  • Given the inevitability of Nigeria’s increasing reliance on imported fuels, reflection should focus not on whether or not to import energy but rather on which imported resources offer the most secure supply prospects. Seen from this perspective, LPG represents an excellent alternative.

  • Fossil fuels are not yet fading vestiges of an irresponsible past, but rather important features of the modern economy. LPG will continue to play an important role in meeting Nigeria’s energy needs over the coming decades.

The recent rise of climate change to the top of the policy agenda has at times diminished the attention given to the broader issue of environmental protection. Preserving Nigeria’s air, water, and soil quality remains a key task for policy-makers and should remain a priority for the NIgerian govt, particularly given its potential impact on the health of humans and other living things.

Pollution resulting from the combustion of liquid and solid fuels is a source of particular concern both in Europe and around the world. This is particularly apparent in urban areas, where air pollution continues to take an unacceptable toll on human health. As the World Health Organization puts it:

“Air pollution is a major environmental health problem affecting developed, emerging, and developing countries around the world. Increasing amounts of potentially harmful gases and particles are being emitted into the atmosphere on a global scale, resulting in damage to human health and the environment. It is damaging the resources needed for the long-term sustainable development on the planet.”

Similarly, the production, distribution and transport of many industrial products can lead to damage to the natural environment, specifically the soil and water.

The LPG industry is particularly proud of LPG’s status as a genuinely environmentally friendly energy source. Compared to their liquid and solid fuel counterparts, gaseous fuels such as LPG generate extremely low levels of pollutant emissions, making them an ideal means of meeting citizens’ energy needs without compromising local air quality. Moreover, LPG does not suffer from significant fugitive emissions during storage or distribution and is, in any case, not harmful to the environment or human health. An extensive search of available literature did not identify any references to ecotoxycological effects for LPG or its primary constituents. For this reason, unlike the vast majority of petroleum products, LPG was exempted from the registration, evaluation and downstream user provisions of REACH.

Speed Gas key Messages for Policy-Makers on Air Quality

  • The need to address the issue of climate change must not detract from the importance of environmental protection in a broader sense.

  • Nigeria can and should do more in this area, particularly as regards air quality, which remains unacceptably poor in many of NIgerian cities.

  • As an inherently clean and environmentally friendly gaseous fuel with a wide range of applications, LPG can contribute to NIgerian environmental policy objectives.

Autogas, also known as automotive LPG, offers key benefits to consumers, the environment and the economy alike. It is a low-hanging fruit for tackling Nigeria’s climate change and air pollution challenges.

Autogas is suitable for cars, vans, trucks and buses. In addition, most petrol vehicles in the market can be converted to LPG, which is a customer-friendly option for used vehicles.

According to latest real driving emission tests, Autogas cars produce 90% fewer particulates, and up to 20% less CO2 than equivalent petrol models. LPG also brings a 98% NOx emission reduction when compared to similar diesel vehicles on the road. In addition, the hybridisation of Autogas vehicles allows to combine the benefits of electricity together with a longer range provided by a cleaner fuel.

Autogas is cleaner, affordable for drivers and for society, and available both in terms of technology and refueling infrastructure.

Speed Gas Key Messages for Policy-Makers on Road Transport:

  • Speed up the implementation of the Directive on Alternative Fuels Infrastructure Deployment to ensure the diversification of current Nigerian transport fuel mix

  • Ensure recognition of the benefits of alternative fuels in all Nigeria transport policy proposals

  • Ensure predictability for investment, through consistent policy initiatives, also guaranteeing technology neutrality

  • Transition from a tailpipe measurement of vehicle emissions to a life cycle analysis, to consider all sources of emissions from the well to the wheel, and recognise the contribution of renewable LPG

  • Develop a strategy addressing CO2 emissions from the existing fleet, also promoting retrofittin

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