Extracts from NATTA's journal
Renew, issue 145Sept-Oct 2003

8.DTI says LPG is OK

The government sees Liquified Petroleum Gas (LPG) as an alternative to petrol and has been pushing it ahead with tax concessions- the duty on LPG was reduced by 29% in the 1999 Budget and 40% in the 2001 Budget, and the Government has pledged to freeze the duty level in real terms until at least 2004. Around 25,000 new LPG vehicles or conversions are produced a year and nearly 100,000 vehicles are currently using LPG, and with the Government fiscal incentives continuing, it is forecast that numbers will increase to around 250,000 by the end of 2005. The Energy White paper clearly identifies LPG as one of the fuels to contribute to lower carbon transport and that reflects the cross-government view.

However, LPG has its detractors from both the radical and conservative viewpoints- some see it as an unrealistic option for the moment since there are not enough garages offering it, especially in rural areas. Others see it as a distraction from the march forward to the use of zero carbon hydrogen from renewable sources, or the use of carbon neutral biofuels. LPG does reduce emissions of particulates and oxides of nitrogen significantly compared with diesel but it only reduces carbon emissions by at best 12% compared with petrol- it’s still a hydrocarbon.

Responding to criticisms like this, Brian Wilson, then still Energy Minister, underlined the Governments continued commitment to LPG and outlined its benefits: LPG is half the price of petrol and reduces carbon dioxide emissions and other air pollutants. Speaking at the 2003 conference of the Liquified Petroleum Gas Association (LPGA), Mr Wilson said: "My strong support for LPG is founded on its environmental benefits, and the necessity to increase low carbon transport. A fuel that reduces air pollution and costs half the price of petrol or diesel is something motorists can’t afford to ignore. But LPG has its critics, and their arguments need to be challenged. There is no doubt that LPG is a more environmentally friendly fuel than its competitors. The benefits of lower CO2 emissions and the reduced oxides of nitrogen and particulate matter from LPG are two of its overriding benefits above any current alternatives. Other future fuels such as Hydrogen are a long way from translating into a serious alternative. Even the Americans who have thrown their weight behind the hydrogen economy do not see mainstream vehicles being fuelled in that way until 2020 at the earliest." He concluded "LPG is the bird in the hand and that is why I personally would like the current fuel duty rebate retained, to help seal the maturity of LPG. I am keen to ensure that we provide the correct forms of support, in the right way, where there is a clear case to do so."

The government launched the Boost LPG initiative in April to increase the availability of the fuel in rural areas like the Scottish Highlands and Islands; East Anglia and Cornwall, by giving grants to garages to help them become accredited LPGA converters. For its part, the energy industry has invested over £50 m to increase public access to LPG filling stations and a pilot programme under the Boost LPG initiative is underway, in partnership with AEA technology, to deliver grants to garages in rural areas to help them become LPGA accredited converters.

Director General of the Liquified Petroleum Gas Association Tom Fidell said: ‘Auto gas is here now with over 1200 retail outlets in the UK. The boost LPG programme will ensure that high quality conversion companies are available to get more vehicles on the road. With refueling outlets and the vehicles there will be benefits for both the environment and the motorist.’ However, Wilson stressed the need for the industry to make the case for LPG in the current Treasury consultation on fuel gases ‘A sound rationale must be given for what we in Government do and this consultation is your opportunity to provide that justification and make your views count.’

*More LPG info: Boost LPG hotline: 01235 433334, www.boostlpg.aeat.com. The LPG Association also has its own website (www.lpga.co.uk) with county-by-county information on LPG converters and filling stations.

For a critique of LPG, which backs hydrogen and biofuels, see the new IPPR report ‘Tomorrows Low Carbon cars’ by Julie Foley: www.ippr.org

What about Biofuels ? Hermann Scheer, from the World Council for Renewable Energy, recently claimed that it had been estimated that‘25% of the arable acreage of the UK could grow enough biomass for fueling British cars. Johnathan Scurlock will be looking at this perhaps rather optimistic view, derived it seems from an EST paper, in Renew 146.