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					                                Alternative Transport Fuels Strategy
                                         – Heavy Duty Vehicle Users
                                                            Summary of Fuel Forum 1




                                                                                 Prepared for
                                                                   AUSTRALIAN GOVERNMENT
                                               DEPARTMENT OF RESOURCES, ENERGY AND TOURISM




                                                                RARE CONSULTING PTY LIMITED
                                                                         ABN 50 115 960 837

                                                                                      Level 1
                                                                           56 Clarence Street
                                                                           Sydney NSW 2000

                                                                             T   02 8216 4700
                                                                             F   02 8216 4747



                                                                                   JUNE 2011




SYDNEY      BRISBANE      MELBOURNE      PERTH
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Contents


1      Introduction                                                           1

2      The consultative framework                                             3

       2.1   Core design considerations and process architecture              3
       2.2   Consultation objectives                                          4
       2.3   Details of the first forum                                       4

3      The benefits of alternative fuels for HDV users (dialogue 1)           5

       3.1   Enhanced HDV and rail sector energy security                     5
       3.2   Economic benefits                                                6
       3.3   Reduced environmental and social impacts                         7
             3.3.1    Environmental benefits of a diversified
                      HDV fuel and engine technology mix                      7
             3.3.2    Social benefits of a diversified
                      HDV fuel and engine technology mix                      7

4      Barriers to the increased use of alternative fuels
       for the HDV and rail sectors (dialogue 2)                              9

       4.1   Fuel quality and engine warranties                               9
       4.2   High conversion costs                                           10
       4.3   Limited engine and fuel availability                            10
       4.4   Payload penalty                                                 11
       4.5   Inconsistent government regulations and policy gaps             11
             4.5.1    Inconsistent mass, dimension and loading regulations   12
       4.6   Uncertainty and lack of consumer confidence                     12




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5       Summary and next steps                                                   14

        5.1    Nature of the discussion                                          14
        5.2    Key messages and actions arising from dialogue 1                  14
        5.3    Key messages and actions arising from dialogue 2                  15
        5.4    Stakeholder feedback and next steps                               16

Appendices


A       Strategic context and the Energy White Paper                             17
B       Stakeholder list                                                         20
C       Consultative process summary                                             24
D       Forum agenda                                                             25
E       Glossary                                                                 27
F       References                                                               28



List of tables

5.1     Key messages and issues from dialogue 1                                  14
5.2     Key messages and issues for forum 2 (dialogue 2)                         15
A.1     Australian transport sectors (and sub-sectors) covered by the Strategy   18
A.2     Fuels being considered under the Strategy umbrella                       19
B.1     Attendee list                                                            20
B.2     Invitee list                                                             22




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1        Introduction


In late 2010, the Australian Government Department of Resources, Energy and Tourism (RET)
commenced work on a national Alternative Transport Fuels Strategy (the Strategy). The Government
is developing the Strategy to identify key issues concerning expanded use of alternative transport fuels
in Australia.

Developing the Strategy involves identifying the role alternative fuels can play in contributing to
public policy objectives, and the barriers, including market failures, to greater market adoption of
environmentally and economically sustainable fuels. The key fuels and energy sources under
consideration are those likely to be commercially available or viable prior to 2030. The Strategy also
recognises the Government’s proposed work program to ensure Australia’s energy markets can
support potential large-scale adoption of electric vehicles. Appendix A provides further information on
these fuels, technologies and energy sources.

When completed, the Strategy will form a key input to the Australian Government’s Energy White
Paper (EWP). The primary objectives of the EWP are to maintain energy security and prosperity, and
ensure that Australia continues to have a secure, competitive, efficient and sustainable energy sector to
2030 and beyond. It is expected that the EWP will be finalised in 2012. Appendix A provides further
information on the EWP and its objectives, guiding principles and inputs.

Given the high degree of uncertainty and contestability regarding future projections for alternative
transport fuels in Australia, RET is actively seeking to incorporate the views and experiences of key
stakeholders involved in the national alternative fuels agenda (i.e. fuel providers, technology
providers, end-users and government agencies) into the Strategy. These views are being considered in
conjunction with an extensive review of contemporary alternative fuels literature.

The Strategy will not examine issues relating to fuel excise, except to include announced settings in
price and cost estimates. It will also not directly consider matters relating to mandatory carbon dioxide
(CO2) emission standards for new vehicles, or market mechanisms to price greenhouse gas (GHG)
emissions, which are being progressed by other government initiatives.

In December 2010, RET commissioned Rare Consulting (Rare) to design, manage and report on
consultative process to support the Strategy’s development. The consultation process comprised two
rounds of stakeholder forums, with participants being drawn from a broad cross-section of industry,
government, research community and non-governmental organisations with an interest in alternative
transport fuels development and use (Appendix B).




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The first round of forums (held in April 2011) sought to explore and better understand the potential
benefits of increased market uptake of alternative fuels as well as the degree to which this potential is
being constrained by market barriers or failures.

The second round of forums (held in May 2011) aimed to gather stakeholder views on the potential
actions that industry and governments could implement to address the market barriers identified
during the first round of forums. The information gathered through these processes will be used to
complete an authoritative assessment of the outlook for alternative transport fuels in Australia to 2030.

This paper is one of six reports produced by Rare that summarise the key messages from the April
stakeholder consultations, and incorporate stakeholder views from other forums and individual
communications where relevant. Please note that the paper’s content does not necessarily reflect the
views of RET, the Australian Government, or state, territory or local governments.




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2          The consultative framework


2.1        Core design considerations and process architecture
A number of strategic observations on the nature of the current alternative fuels discussions informed
the consultative framework developed for the Strategy. Specifically, the preliminary literature review
suggested there is a wide variance in views on the merits and near-term market potential for alternative
fuels in the global transport sector. It is likely that these differences are attributable to:

     LACK OF CONSISTENCY. The assessment frameworks and methodologies used vary widely,
      particularly on assumptions used in baseline projections, technology trajectories and
      commercialisation costs. As a result, findings on oil replacement potential, GHG mitigation
      potential, production costs, end-user costs and related environmental benefits findings are
      difficult to compare and analyse.
     CURRENCY OF DATA. The alternative fuels agenda and market appears to be developing and
      changing so fast that research or projections are out of date by the time of publication.
     VARIABILITY. The benefits, barriers, potential actions and economics of alternative fuels vary
      widely depending on factors such as input costs, production method, technology readiness, capital
      costs and competition with other non-transport sectors. This variability often results in market
      uncertainty.

Given the above observations, it is important to gather stakeholder input on the realistic opportunities
to increase the uptake of alternative fuels in Australia noting that there are likely to be similar
variations in stakeholder views as was found in the literature. To accommodate variance, the
consultation process developed involves three dialogues.

     DIALOGUE 1 (STRATEGIC BENEFITS). What is the nature of the national benefits to be derived from
      the increased market adoption of specific alternative fuels in Australia?
     DIALOGUE 2 (BARRIERS). What are the current barriers to the natural market adoption of alternative
      fuels in Australia?
     DIALOGUE 3 (POTENTIAL IMPROVEMENT ACTIONS). What are the specific actions that could be
      employed by government and industry to redress the current barriers to market adoption of
      alternative fuels in Australia (and what is the role of government and industry in advancing these
      actions)?

Appendix C provides a summary of the consultative process for further information.




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2.2       Consultation objectives
The strategic objectives of the consultation process were to canvass stakeholder views regarding the
degree to which the increased market adoption of alternative fuels could:

     improve Australia’s transport energy security
     reduce Australian transport GHG emissions
     provide related public good benefits or valuable co-products.

Underpinning the design of the consultation framework was that the process needed to be viewed by
the vast majority of stakeholder participants as being credible, balanced and transparent.

2.3       Details of the first forum
The first Automotive – Heavy Duty Vehicle (HDV) forum was held at the Victorian Department of
Transport offices, in Melbourne on 6 April 2011 from 1.30 pm to 5 pm.

The forum was attended by 48 participants. A full listing of participants and invitees is provided in
Appendix B. A copy of the forum agenda is provided in Appendix D.




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3         The benefits of alternative fuels
          for HDV users (dialogue 1)


Forum participants were asked to nominate the potential benefits associated with greater adoption of
alternative fuels and drivetrains by Australia’s HDV users. The discussion included consideration of
alternative fuels and engine technologies for the rail and bus sectors. The discussion was broad
ranging and primarily focused on the road transport sector. From the discussion, three themes on the
benefits to diversifying the HDV fuel and engine technology mix were discernable.

1.    ENHANCED HDV AND RAIL SECTOR ENERGY SECURITY. Diversifying the fuel and engine technology
      mix using indigenously sourced alternatives could reduce the HDV and rail sectors’ exposure to
      reduced oil availability and oil price shocks.
2.    ECONOMIC BENEFITS. There is likely to be a range of macro and microeconomic benefits
      associated with diversifying the HDV and rail fuel and engine technology mix, including growth
      in new skills and service industries.
3.    REDUCED ENVIRONMENTAL AND SOCIAL IMPACTS. Many alternative fuels and vehicle technologies
      are also likely to produce less GHG, air pollution and noise emissions compared with
      conventional fuels and engine technologies.

These benefits are discussed in more detail in the following subsections.

3.1       Enhanced HDV and rail sector energy security
The strongest benefit identified by the forum participants was that diversifying the fuel and engine
technology mix of Australia’s HDV and rail sectors would reduce their long-term vulnerability to
reduced oil availability.

Currently, Australia’s HDV and rail sectors are almost completely reliant on diesel. While
approximately one-third of automotive diesel consumed in 2009–10 was from Australian reserves,
capacity is declining. This increasing deficit will require additional imports to meet demand
(ABARES 2011). Therefore, diversifying the fuel mix from other indigenous sources is a prudent
approach to manage the risk posed by reduced oil availability and world oil price volatility in the
medium to longer term.

Forum participants strongly indicated that using Australia’s indigenous gas reserves to supply
transport fuels could potentially reduce reliance on oil imports. In the HDV sector, participants
suggested that liquefied and compressed natural gas (LNG and CNG respectively) are likely to be the
only long-term options as there was uncertainty whether there would be sufficient supplies of biofuels
or synthetic diesels to meet demand. The group considered other alternatives such as electricity,
hydrogen or dimethyl ether (DME) unlikely to be viable options for the HDV sector before 2030.


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In the rail sector, electrification of the rail network is the preferred long-term option to current
technology for both the freight and passenger transport task. Natural gas, synthetic fuels and biofuels
could be transitional options but further Australian trials and demonstration projects of the use of these
fuels and supporting locomotive engine technology is needed.

The potential for increased energy security from diversifying the fuel mix is qualified by adjustment
cost considerations in the absence of a complete ‘drop-in’1 alternative, and the risk of relying on
supply chains with potentially similar vulnerabilities.


       Strategy                  What are the most realistic timeframes for diversifying the fuel and engine
     development                 technology mix of the HDV sector in Australia?
    considerations
                                 What additional work is required to establish the benefits associated with each
                                 of the different fuel and engine technologies, and the best applications in which
                                 to use them?
                                 What are the likely switching costs associated with diversifying the HDV fuel
                                 and engine technology mix?



3.2        Economic benefits
Forum participants indicated that a range of micro and macroeconomic benefits could potentially flow
from diversifying the HDV and rail sector fuel and engine technology mix. These are:

     LOWER SUPPLY CHAIN INPUT COSTS. Operating costs are likely to be potentially lower compared
      with a business as usual (BAU) scenario where there continues to be increased reliance on oil
      imports (regardless of the cost of those imports).
     INDUSTRY DEVELOPMENT AND SKILLS GROWTH. Changes in the fuel and engine technology mix are
      also likely to generate the need for new skills, fuel production industry and service industries.
     REDUCED HOUSEHOLD COSTS. Reducing supply chain costs is likely to have a downstream impact
      on goods and services – for example, maintaining lower costs compared with a BAU scenario.
     MARKET ADVANTAGE. Some participants indicated that switching to low carbon fuels can also be
      an advantage when competing for international contracts with companies that are subject to
      carbon pricing in their home jurisdiction.
     PRICE STABILITY. Some participants indicated that indigenously sourced gas fuels are likely to offer
      a greater degree of price stability compared with diesel. It was proposed that this could be
      attributed to the potential for longer time periods for fuel supply contract arrangements.
     LOWER OPERATING AND MAINTENANCE COSTS. Some participants indicated that the use of B100
      and biodiesel blends improve the operability of HDV engines, including reducing maintenance
      costs. Other participants indicated that natural gas HDVs generally had a longer operational life
      compared to diesel vehicles and lower maintenance costs.


1
    Drop-in fuels are fuels that existing infrastructure and engines can use without the need for modification.

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However, other forum participants indicated that in their experience, B100, biodiesel blends and
natural gas engines increased maintenance and operational costs compared to conventional diesel
engine technology.

       Strategy              What is the quantum of the specific economic benefits associated with
     development             alternative fuel HDVs and rail locomotives?
    considerations
                             Evidence and information from HDV and rail operators who have used or are
                             using biodiesel (as B100 or a blend) and its real-world impacts on engine
                             operability, maintenance costs and performance is needed.



3.3        Reduced environmental and social impacts
Some forum participants indicated that significant environmental and social benefits could result from
diversifying the fuel and engine technology mix but others suggested that the quantum of these
benefits was still the subject of considerable debate.

3.3.1      Environmental benefits of a diversified
           HDV fuel and engine technology mix
A number of forum participants suggested that the increased use of alternative fuels in the LDV sector
could potentially deliver significant environmental benefits in terms of:

     LOWER GHG EMISSIONS. US trials of CNG and LNG heavy vehicles indicate a greenhouse benefit
      of up to 20% in some contexts compared with diesel (EERE 2011a). Additionally, the latest
      version of the Australian National Greenhouse Factors rates natural gas as approximately one-
      third more efficient than diesel in heavy vehicle applications (DCCEE 2010). Australian made
      biofuels are also likely to offer greenhouse benefits compared with diesel (ABARE 2009). The
      quantum of the GHG benefits associated with alternative fuels and engine technologies is highly
      contestable though, and can vary widely depending on the life cycle analysis boundaries applied,
      fuel type and source, or engine technologies used.
     IMPROVED TAILPIPE EMISSIONS. US trials of CNG, LNG, biofuels and synthetic fuels in HDVs
      have also found that emissions of regulated air pollutants are often lower than diesel tailpipe
      emissions (NREL 2006, EERE 2011b). However, the quantum varies on a fuel and engine
      technology basis.
     LESS TOXIC. In the event of a spill, forum participants indicated that alternative fuels like biodiesel
      and gas are less likely to have an impact on surrounding ecosystems. For example, biodiesel is
      more biodegradable than conventional diesels (Biofuels Taskforce 2005), and liguid natural gas
      will essentially vaporise
It is worth noting that the end-users represented in the forum expressed a degree of sceptism about the
magnitude of the above environmental benefits, stating that published studies of some fuels suggested
significant variation in real-world environmental benefits.




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3.3.2    Social benefits of a diversified HDV fuel and engine technology mix
Social benefits attributable to diversifying the HDV fuel and engine technology mix indicated by the
group were:

   Reduced tailpipe emissions of regulated air emissions could result in improved urban health
    outcomes and a subsequently reduced need for spending on respiratory health services
    (BTRE 2005, EERE 2011b).
   Some of the new engine technologies required to support alternative fuels could be lower in noise
    emissions, potentially improving urban amenity (CSIRO 2000, ERC Committee 2008).
   Biodiesel in particular is potentially safer to handle compared to diesel as it has a lower flashpoint
    and is less toxic than diesel, reducing risks to community health in the event of a spill (Biofuels
    Taskforce 2005).


      Strategy             How could consistent environmental reporting, verification and monitoring
    development            methodologies that take into account Australian conditions and duty cycles for
    consideration          alternative fuel HDVs be developed and implemented?




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4         Barriers to the increased use of alternative fuels
          for the HDV and rail sectors (dialogue 2)


In the second part of the forum, stakeholders were asked to nominate current market barriers to the
greater use of alternative fuels and engine technologies by the Australian HDV and rail sectors. Six
themes on the current market barriers emerged from the discussions. These were:


1.    FUEL QUALITY AND ENGINE WARRANTIES. Participants indicated that there is significant uncertainty
      regarding the impact that alternative fuels or engine modifications to accommodate alternative
      fuel use have on manufacturer warranties.
2.    HIGH CONVERSION COSTS. There are frequently high operator costs associated with converting to
      alternative fuel engine technologies.
3.    LIMITED FUEL AND ENGINE AVAILABILITY. This barrier is related to the issue of high conversion
      costs. The limited availability of heavy duty alternative fuel and engine technologies was
      attributed to the small size of the Australian vehicle market, which also results in limited
      availability of refuelling infrastructure that meets operator needs.
4.    PAYLOAD PENALTY. This barrier is most relevant for heavy duty vehicles converted to CNG or
      LNG operation. The payload penalty principally occurs as a result of the additional vehicle
      weight imposed by the addition of on board natural gas storage. Given that dimension and mass
      regulations typically apply on an aggregate basis (i.e. vehicle weight plus payload), the additional
      weight of the tanks effectively reduces the payload of the vehicle with consequent financial
      impacts for the operator.
5.    INCONSISTENT GOVERNMENT POLICIES AND REGULATIONS. Inconsistencies between jurisdiction
      HDV regulation and policy, as well as inconsistency between standards and excise legislation (for
      biofuels) create an uncertain environment for HDVs or alternative fuel investment.
6.    UNCERTAINTY AND LACK OF CONSUMER CONFIDENCE. Participants indicated that end-user
      uncertainty on the utility, operability and other benefits of alternative fuel HDVs could be the
      result of a lack of reliable, independent and trusted information to purchasing decisions.
      Additionally, some participants indicated they have had negative user experiences with
      alternative fuels and vehicles due to a lack of aftermarket service support.

A summary of the key themes arising from the market barriers discussion is provided in the following
subsections.

4.1       Fuel quality and engine warranties
Participants indicated that uncertainty on the impact alternative fuel use has on engine warranties is a
key market barrier to their use. This is especially the case for biodiesel (B100 or as a blend). Initially,

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biodiesel quality was highly variable and sometimes resulted in engine operational problems. Fuel
quality, particularly for biofuels, has been an issue for some end-users. The flow-on effect in
variability of fuel quality in Australia is that some OEMs do not warrant use of biofuel blends higher
than B5 in their engines (as B5 blends are required to meet the mineral diesel fuel quality standard).

Although biofuel suppliers and producers challenged this, given the size of investment related to
vehicle purchase in the HDV sector this uncertainty around warranties and risk to engines is a market
barrier to the greater use of biodiesel in particular.

HDV end-users also expressed concerns regarding the limited availability and nature of warranties for
aftermarket conversions. Similar to the discussion above, given the significant investment associated
with purchasing heavy duty engines, the risk of taking a limited warranty can be considered as not
economically viable.

Forum participants from the rail sector indicated warranty concerns were also relevant for their
operators.


      Strategy                 What approaches or actions could governments or industry pursue to overcome
    development                lack of consumer confidence due to uncertainty on fuel quality and vehicle
    consideration              warranty related issues?



4.2        High conversion costs
Forum participants indicated that converting to alternative fuels generally involves high costs, which
are often absorbed by the operator. The forum participants identified the following cost types:

     high purchase price of dedicated natural gas heavy duty engines2, and frequently high costs
      associated with adapting engines for Australian conditions;
     capital expense of building a completely new refuelling network and infrastructure;
     specific to biodiesel and LNG, some end-users indicated that there were increased maintenance
      and operability costs associated with lower performance and less fuel economy. Some forum
      participants indicated that there were increased maintenance costs to replace parts after biodiesel
      use as biodiesel’s solvent properties resulted in dislodging fuel deposits and affecting engine
      operability;
     aftermarket conversions.

4.3        Limited engine and fuel availability
Forum participants indicated that there is limited availability of alternative fuel heavy duty engines
and refuelling infrastructure in Australia. Participants indicated that this market constraint was
attributable to Australia’s comparatively small market size given its low population base. The

2
    Heavy duty engines includes engines for both HDVs and rail locomotives.

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comparatively small market size means OEMs do not perceive it as economical to supply a wide range
of alternative fuel engine products to the Australian market. This is despite a much wider range
available internationally (AFDC 2011, EERE 2011c) and the abundance of some alternative fuel
feedstocks.

The limited availability of alternative fuel heavy duty engine technology is compounded by a lack of
consistent access to refuelling infrastructure. Forum participants further indicated that deploying a
natural gas refuelling network was likely to be very expensive, requiring completely new
infrastructure to be built. There is a risk that early network developers will disproportionately absorb
future costs and risks of CNG and LNG refuelling infrastructure.


       Strategy            What opportunities exist for innovative industry, government and other
     development           stakeholder partnerships that could reduce costs associated with HDV
    considerations         alternative fuel vehicles and refuelling infrastructure?
                           What strategic and low-cost interventions could address synergistic constraints
                           of limited alternative fuel and vehicle technology availability?



4.4       Payload penalty
Forum participants indicated that another barrier to alternative fuel HDVs, especially gas, was the
payload penalty. To accommodate the larger size of gas fuel tanks needed to achieve a similar range,
natural gas vehicles are unable to carry as much freight compared with an equivalent conventional
diesel HDV. This barrier is related to the cost-competitiveness of gas vehicles.


      Strategy             What strategies could governments, industry and other stakeholders take to
    development            create an equal playing field for gas HDVs that are subject to the payload
    consideration          penalty?



4.5       Inconsistent government regulations and policy gaps
Many forum participants indicated that inconsistent government regulations and policy gaps were
barriers to alternative fuel and vehicle supply and adoption in Australia. For example:

     SINGLE-ISSUE POLICIES. Overemphasis in government programs on achieving CO2 reductions
      without considering other benefits such as greater transport energy security and long-term
      industry adjustment. The example cited by the group was the past Alternative Fuels Conversion
      Program’s requirement for technologies to demonstrate a 5% improvement in GHG emissions.
     SINGLE FUEL–FOCUSED POLICIES. For example, setting grant criteria that focus on a single fuel
      rather than a performance based approach which would encourage a diverse range of potential
      fuel technologies.
     INTER-JURISDICTIONAL INCONSISTENCIES. Inconsistencies between state and territory HDV mass,
      dimension and loading regulations and policies.

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4.5.1     Inconsistent mass, dimension and loading regulations
Currently, there are inconsistencies between state and territory HDV regulations, specifically in
relation to mass, dimension and loading provisions. Gas HDVs suffer a ‘payload penalty’ resulting in
reduced transport carrying capacity. Increasing HDV length and mass can offset this payload penalty.
However, states and territories vary in regulating oversized HDV access to the road network. The
effect of this variability means multiple access permits can be required for interstate transport routes,
increasing the costs and regulatory burden associated with using CNG and LNG HDVs.

The inconsistencies in HDV regulation is recognised by the Australian state, territory and federal
governments and, in response, uniform, national heavy vehicle legislation is currently being
progressed. This legislation, including a regulatory impact statement, is subject to a public
consultation process (NTC 2011a, 2011b). However, whether the proposed legislation will
accommodate or address the issues raised requires review by industry.


       Strategy             Feedback from stakeholders on whether the draft national heavy vehicle
     development            legislation removes the barriers regarding inconsistent HDV mass, dimension
    considerations          and loading provisions is needed.
                            If the draft legislation does not address these concerns, what future actions
                            could be undertaken?



4.6       Uncertainty and lack of consumer confidence
Forum participants indicated that there is a high degree of uncertainty on the quantum of benefits –
economic, environmental and social – to be gained from switching to alternative fuels and engine
technologies.

This issue was evident in both the benefits and barrier discussions, particularly amongst HDV industry
stakeholders who pointed to the fact that the road freight industry is characterised by a high level of
risk aversion.. Forum participants indicated that factors contributing to this uncertainty included:

     UNCERTAINTY REGARDING PAYBACK PERIODS. It is unclear for HDV operators whether they will
      achieve a return on their investment when switching to alternative fuels and engine technologies.
      Some participants indicated that while operators may turn over their vehicles every three to five
      years, based on current vehicle and fuel costs it was taking at least seven years to recoup any
      initial investment.
     LIMITED AFTERMARKET SUPPORT SERVICES. Some participants indicated there is a lack of
      aftermarket service support for end-users of alternative fuels and vehicles. For example, when
      vehicle operability issues arose following engine modification, purchasing an alternative fuel
      vehicle, or using a drop-in fuel, it was difficult to find advice, technical assistance or access to
      insurance (limited availability of product warranties).




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    LACK OF RELIABLE INFORMATION SOURCES. Some forum participants indicated that there was
     scepticism regarding some of the claims made by alternative fuel and engine technology
     suppliers. These participants indicated that this was because it was difficult to access independent,
     reliable and trusted information.
    LACK OF SECOND-HAND MARKET FOR NATURAL GAS HDVS. Participants indicated that another
     market barrier is the lack of demand for second-hand natural gas HDVs. The average age of
     Australian HDVs is between 13 and 15 years; buses have an average operational life of 11 years
     (ABS 2011) and rail locomotives an average operational life of between 40 and 50 years (based
     on stakeholder feedback).


       Strategy             How could industry, government or other stakeholders better support early
     development            adopters when vehicle operability issues arise?
    considerations
                            How could industry, government or other stakeholders assist in developing or
                            providing reliable, independent and easily accessible information on
                            alternative fuels and engine technologies?
                            How could industry, governments and peak bodies partner to develop
                            consistent messaging on alternative fuels to build consumer confidence in
                            alternative fuels and engine technologies?
                            What approaches are available to grow a market for second-hand alternative
                            fuel HDVs to maturity?
                            How have other countries addressed the issues flagged in the above
                            questions?




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5          Summary and next steps


5.1        Nature of the discussion
The discussion on the potential benefits of diversifying the fuel and engine technology mix focused
primarily on upstream supply issues associated with particular fuels and engine technologies, with a
distinct focus on transport energy security opportunities. The second half of the forum identified a
wide range of current market barriers including uncertainty regarding fuel quality and engine
warranties, high transition costs, access to alternative fuels and vehicle technologies, and consumer
uncertainty.

5.2        Key messages and actions arising from dialogue 1
A summary of the key messages arising from the first dialogue on the potential benefits of the
increased market adoption of alternative fuels and engine technologies in the HDV sector is provided
in Table 5.1.

Table 5.1          Key me s sa g e s an d i s su e s fr om d ia lo gu e 1

         Stakeholder theme                           Commentary                          Considerations for
                                                                                       strategy development

 Alternative fuels and engine             Australia’s HDV and rail sectors       Realistic timing of alternative fuel
 technologies could enhance the             are almost completely reliant          and engine technology availability
 energy security of Australia’s             on diesel fuels.                       in the HDV sector.
 HDV sector
                                          Access to alternatives to oil as       The ‘best fit’ for the different
                                            prices increase will be important      fuels and engine technologies.
                                            for maintaining economic viability
                                                                                  The likely transition costs
                                            in the HDV and rail sectors.
                                                                                   associated with switching to
                                                                                   alternative fuels and engine
                                                                                   technologies.

 Diversifying the HDV fuel and            Potential for lower supply chain       The quantum of specific
 engine technology mix will provide         input costs.                           economic benefits of
 a range of economic benefits                                                      alternative fuelled HDVs.
                                          Industry development and skills
 CNG and LNG are the only                   growth opportunities.                 User experiences of the costs
 alternative fuel options (other                                                   involved with switching to
                                          Potential to minimise the
 than biofuels or synthetic fuels)                                                 alternative fuels and engine
                                            impact on household budgets
 for the HDV sector                                                                technologies, especially in relation
                                            from increased goods and
                                                                                   to biodiesel and its blends.
                                            services costs.
                                          Marketing advantage when
                                            competing in markets that
                                            prioritise low-carbon operations.
                                          Lower operating and
                                            maintenance costs.
                                          Alternative fuel price is likely to
                                            be more stable than the oil price.


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ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




         Stakeholder theme                           Commentary                             Considerations for
                                                                                          strategy development

 Alternative fuels have                   Alternative fuels produce less            Consistent reporting, verification
 environmental and                          GHG and air pollution emissions.           and monitoring methodologies
 social benefits                                                                       that take into account Australian
                                          Alternative fuels are generally less
                                                                                       conditions and duty cycles are
                                            toxic (safer to handle).
                                                                                       needed for counting carbon in the
                                          Less pollution from tailpipe                HDV sector.
                                            emissions could reduce health
                                            costs associated with urban
                                            respiratory health.
                                          Lower noise emissions associated
                                            with alternative engine
                                            technologies.



 Other identified benefits                Skills and industry development           Review whether the need to
                                            to support engine modifications            modify gas engines for Australian
                                            for Australian conditions                  conditions could provide an
                                            (for gas vehicles).                        opportunity for skills and industry
                                                                                       development.



5.3        Key messages and actions arising from dialogue 2
A summary of the key messages arising from the dialogue on the current market barriers to the
increased use of alternative fuels and engine technologies in the Australian HDV sector – and the key
issues for stakeholder consideration in forum 2 – is provided in Table 5.2.

Tab le 5. 2        Key me s sa g e s an d i s su e s fo r f oru m 2 (d i alo gu e 2)

         Stakeholder theme                           Commentary                             Considerations for
                                                                                          strategy development

 Fuel quality and uncertainty on          Variability in fuel quality can           The actions industry and
 engine or vehicle warranties are           negatively impact on engine                governments could take to address
 creating consumer uncertainty and          operability and warranties.                consumer uncertainty on fuel
 constraining the adoption of                                                          quality and engine warranties.
 alternative fuels in the HDV sector

 High transition costs                    Alternative fuel vehicles and             Opportunities for innovative
                                            refuelling infrastructure is very          industry, government and other
                                            expensive compared with                    stakeholder partnerships that
                                            conventional counterparts.                 could reduce transition costs.

 Limited access to vehicles               Australia’s comparatively small           The strategic and low-cost
 and refuelling infrastructure              HDV market limits the availability         interventions could address the
                                            of alternative vehicle and engine          synergistic constraints of limited
                                            technologies.                              alternative fuel and vehicle
                                                                                       technology availability and
                                          Access to alternative fuels
                                                                                       refuelling access.
                                            refuelling infrastructure is limited,
                                            especially for CNG and LNG.




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ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




        Stakeholder theme                        Commentary                          Considerations for
                                                                                   strategy development

 Gas HDVs suffer a payload penalty    Gas-fuelled HDVs have a reduced        Strategies governments, industry
                                       carrying capacity compared with         or other stakeholders could take to
                                       conventional HDVs of similar            offset the impact of the payload
                                       length and dimensions.                  penalty.

 Inconsistent government              Single–issue focused policies have     Review the suitability of the draft
 policies and regulations              constrained investigation of            national heavy vehicle legislation
                                       alternative fuel HDVs for transport     mass, dimension and loading
                                       energy security (as an example).        provisions for accommodating
                                                                               alternative fuel vehicles subject
                                      Single fuel–focused policies
                                                                               to a payload penalty.
                                       constrain the opportunities for
                                       other fuels.
                                      Inconsistent inter-jurisdictional
                                       HDV regulations increase the
                                       regulatory burden for operators.

 Uncertainty and lack                 Uncertainty on payback periods.        Support for early adopters of
 of consumer confidence                                                        alternative fuels and engine
                                      There is a lack of aftermarket
                                                                               technologies.
                                       support for early adopters of
                                       alternative fuel and engine            Provision of reliable, independent
                                       technologies.                           and easily accessible information
                                                                               on alternative fuels and engine
                                      There is a lack of reliable and
                                                                               technologies.
                                       independent information on
                                       HDV alternative fuel and engine        Improving consumer confidence
                                       technologies.                           through more effective
                                                                               communication strategies.



5.4       Stakeholder feedback and next steps
The discussion presented in this report constitutes Rare’s summary of the key benefits and barriers
raised during the first and second forums.

The next report on the second round of forums will utilise the key messages from this paper to initiate
a discussion with stakeholders on the opportunities and potential actions government and industry
could take to redress the market barriers to the increased ‘natural’ market adoption of alternative fuels.




                                                       16
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Appendix A

Strategic context and the Energy White Paper


Having due regard for Australia’s energy future and GHG emission reductions, the Australian Government has
committed to the release of an Energy White Paper (EWP) in 2012. The EWP’s key objective (and the
supporting policy framework) is to maintain Australia’s energy security and continued prosperity. This is to be
achieved by ensuring that the Australian community (i.e. households, business and industry) has access to
reliable and affordable energy that is sufficient to meet the growing needs of the national economy – while
ensuring that the development of Australia’s energy resources is progressed in a manner that optimises return
to the Australian community.

A.1         The Energy White Paper principles
The EWP is being progressed within the context of four main principles which bound the scope of the EWP and
provide a framework for the core inputs to be used in its development. The four principles can be summarised
as follows.

     Economic development must be sustainable and efficient.
     Effective competitive energy market operation is promoted.
     The need and scope for government intervention must be based on an identified market failure.
     International obligations are met and national interests are preserved.

A.2         Core inputs to the Energy White Paper
A series of discrete pieces of work will be used as core input to the EWP and will provide much of the technical
and strategic input needed to develop the discussion contained in the EWP. These discrete pieces of work
include, but are not limited to:

     updating the National Energy Security Assessment.
     an independent review of investment activity in the Australian electricity generation sector.
     review of Australia’s gas resources development.
     Alternative Transport Fuels Strategy.
     Report of the Prime Minister’s Task Group on Energy Efficiency
     strategic directions for the Australian Centre for Renewable Energy.

A.3         The Alternative Transport Fuels Strategy
The principal objective of the Strategy is to contribute to the future management of Australia’s transport
energy security by providing a comprehensive plan and supporting policies for the diversification of Australia’s
transport energy mix. Specifically, the Strategy will explore scenarios for the future diversification of Australia’s
transport energy mix and examine the policy actions and industry actions that will need to be jointly
progressed to realise these goals.




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ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




It is important to note that the strategy is not premised on a belief that Australia is facing an imminent crisis in
respect of Australia’s transport energy security. Rather, the strategy is founded around the central premise that
it is prudent for Australia to take reasonable actions to reduce its almost wholesale dependence on
conventional oil-based fuels in the face of a degree of uncertainty (and continued debate) about the future
supply and price outlook for conventional transport fuels.

A.4          Scope of consideration
The Strategy will examine the potential increased use of alternative fuels across all Australian transport sectors.
A summary of the Australian transport sectors and subsectors considered to be within the scope of
consideration of the Strategy is provided in Table A.1.

Table A.1           Australian transport sectors (and sub -sectors) covered by the Strategy

         Transport sector                                                 Subsectors

Road transport                        Passenger vehicles*
                                      Light commercial vehicles
                                      Medium and HDVs
                                      Mining and agricultural vehicles and machines
                                      Buses

Rail transport                        Passenger rail (non-electric)
                                      Freight and bulk commodities (non-electric)

Aviation                              Civil and regional
                                      Freight

Marine                                Recreational
                                      Passenger (such as ferries and cruise liners)
                                      Freight and bulk transport coastal shipping
                                      Freight and bulk transport blue-water


*   Motorcycles are not specifically identified as a sub-sector given their comparatively low consumption of transport fuels.



The Strategy will incorporate an investigation of the issues surrounding the increased market adoption of a
range of fuels considered likely to be available by 2030. A summary of the fuels and energy sources being
considered under the Strategy is provided in Table A.2.




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ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Table A.2            Fuels being considered under the Strategy umbrella

          Fuel group                                                     Specific fuels

Conventional fuels                   Unleaded petrol and premium unleaded petrol.
                                     Low, ultra and extra low sulphur diesel.

Gaseous fuels                        LPG
                                     CNG
                                     LNG

Conventional biofuels                Conventional biofuels use well-established processing technologies that are already
                                      producing on a commercial scale.
                                     These biofuels, commonly referred to as ‘first generation’, include:
                                      –     sugar and starch-based ethanol
                                      –     animal fat and oil crop (edible and non-edible) based biodiesel
                                            (FAME and FAEE)
                                      –     straight plant-derived oil
                                      –     biogas derived through anaerobic digestion.

Advanced biofuels                    Advanced biofuel technologies are conversion technologies still in the research and
                                      development, pilot or demonstration phase, and commonly referred to as ‘second’
                                      or ‘third’ generation.
                                     This category includes:
                                      –     hydrotreated vegetable oil from animal fat or plant oil
                                      –     lignocellulosic biofuels
                                      –     biocrudes
                                      –     biomass-to-liquids diesel
                                      –     bio-synthetic gas
                                      –     novel technologies such as algae-based biofuels and sugar-based diesel-type
                                            biofuels using biological or chemical catalysts.

Synthetic fuels                      Coal to liquids
                                     Gas to liquids
                                     Shale to liquids
                                     Fischer-Tropsch (or other processing methods)

EVs and alternative drivetrains      Rechargeable batteries store electrical energy to power the vehicle’s engine.
                                     Hybridisation, which enhances conventional engine efficiency by partially
                                      electrifying the drivetrain.




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ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Appendix B

Stakeholder list


Developing the stakeholder list involved identifying the organisations and individuals who were likely to have a
stake in the end use of alternative fuels and engine technologies in the Australian HDV sector, namely:

     current and potential suppliers of all relevant alternative fuels and engine technologies (i.e. natural gas,
      biofuels, vehicle supplies, engine manufacturers, aftermarket conversion providers);

     fuel retailers and providers of refuelling equipment;
     end-users of alternative fuels (i.e. HDV motoring organisations, freight fleets, operators, etc.);

     government agencies involved in policy settings for alternative fuels and HDVs;

     research and development organisations operating in the alternative fuels space.


B.1         Attendee list

                             Stakeholder organisation                                       Representative

Government

Federal Department of Resources, Energy and Tourism                                 Richard Niven
                                                                                    Kristy Naggs
                                                                                    Jerry Williams
                                                                                    Michael Sheldrick
AusTrade                                                                            Phillip Bourke

Federal Department of Climate Change                                                Chris Baker
and Energy Efficiency
Federal Department of Defence                                                       Dr Chris Hulston
Federal Department of Infrastructure and Transport                                  David Stephens
Federal Department of Innovation, Industry, Science and Research                    Jeff Beeston
Queensland Department of Transport and Main Roads                                   Charlie Palupe
                                                                                    Sheila Dixon
Victorian Department of Regional Development                                        Ian Guss
Industry & Other Stakeholders
Advanced Fuels Technology                                                           Sean Blythe
Australasian Railway Association                                                    Ash Salardini
Australian Institution of Petroleum                                                 Paul Barrett
Australian Trucking Association                                                     Kay Martin
Bendigo Bank                                                                        Leigh Watkins
Biodiesel Australia P/L                                                             Andrew Hill
Biofuels Association of Australia                                                   Heather Brodie



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ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




                               Stakeholder organisation                  Representative

BOC                                                            Alex Dronoff
BP Australia                                                   Bradley Cameron
Bus Industry Confederation                                     Michael Apps
                                                               Stephen Hope
Caltex Australia - Petroleum                                   Michael Ridley-Smith
Clean Air Power                                                Michael Holtz
Clean Energy Fuels                                             Tim Car
CRT Group                                                      Dennis O’Brien
Downer EDI Mining                                              Ross Browning
Ecostation                                                     Bob Wright
Elgas                                                          Warring Neilsen
EVOL-LNG (WesFarmers)                                          Melitta Kerr
Exxon-Mobil                                                    Geoff Davis
Finemores                                                      Paul Pulver
Flinders University                                            Dr Stephen Clarke
Harris Refrigerated Transport                                  Greg Freund
iGas                                                           Paul Whiteman
                                                               Jim McDonald
Manildra Group                                                 Matthew Ingersoll
National Biodiesel Group                                       Edward Dutton
NRMA                                                           Jack Haley
Orbital Innovations                                            Dave Worth
Rare Consulting                                                Mark McKenzie
                                                               Megan Surawski
                                                               Hannah Meade
Renewable Oil Corporation                                      Colin Stucley
Toll Holdings                                                  Nick Prescott
Truck Industry Council                                         Simon Humphries
Truck Industry Council                                         Tony McMullan
WesFarmers                                                     Melitta Kerr
Westport Innovations                                           Bruce Hodgins
Woolworths                                                     Alan Booth




                                                          21
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




B.2         Invitee list

                               Stakeholder organisation                    Representative

Government
Federal Department of Resources, Energy and Tourism                Richard Niven
                                                                   Kristy Naggs
                                                                   Jerry Williams
                                                                   Michael Sheldrick
AusTrade                                                           Phillip Bourke

Dubbo City Council                                                 Stewart McLeod

Federal Department of Climate Change                               Chris Baker
and Energy Efficiency
Federal Department of Defence                                      Dr Chris Hulston
Federal Department of Infrastructure and Transport                 David Stephens
Federal Department of Innovation, Industry, Science and Research   Jeff Beeston
                                                                   Darren Atkinson
Queensland Department of Transport and Main Roads                  Charlie Palupe
                                                                   Sheila Dixon
Victorian Department of Regional Development                       Ian Guss
Western Australian Department of Environment and Conservation      Drew Farrar
Industry & Other Stakeholders
Advanced Fuels Technology                                          Sean Blythe
Asciano Ltd                                                        Mark Irwin
                                                                   Craig Wilson
Australian Public Transit Industry Association                     Ian McDonald
Australian Shipowners Association                                  Teresa Hatch
                                                                   Angela Gillham
Australasian Railway Association                                   Ash Salardini
Australian Institution of Petroleum                                Paul Barrett
Australian Trucking Association                                    Kay Martin
                                                                   Bill McKinley
Bendigo Bank                                                       Leigh Watkins
Biodiesel Australia P/L                                            Andrew Hill
Biofuels Association of Australia                                  Heather Brodie
BOC                                                                Alex Dronoff
BP Australia                                                       Bradley Cameron
Bus Industry Confederation                                         Michael Apps
                                                                   Stephen Hope
Caltex Australia – Petroleum                                       Frank Topham
Clean Air Power                                                    Michael Holtz
Clean Energy Fuels                                                 Tim Car
                                                                   Tony Smith
                                                                   Frank O’Hehir
Commercial Vehicle Industry Association of Queensland              Brett Wright
CRT Group                                                          Dennis O’Brien
Defense Marine Service                                             Tony Parkin
Detroit Diesel Allison Australia                                   Guy Macklan
Downer EDI Mining                                                  Ross Browning

                                                          22
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Ecostation                                               Bob Wright
Elgas                                                    Warring Neilsen
EVOL-LNG (WesFarmers)                                    Melitta Kerr
Exxon-Mobil                                              Geoff Davis
Finemores                                                Paul Pulver
Flinders University                                      Dr Stephen Clarke
Gas Company                                              Ollie Clark
GreenFreight                                             Tony Green
Gull Petroleum                                           Neil Rae
Harris Refrigerated Transport                            Greg Freund
iGas                                                     Paul Whiteman
                                                         Jim McDonald
Isuzu                                                    Phil Taylor
Iveco                                                    Lloyd Reeman
LinFox                                                   David McInnes
Manildra Group                                           Matthew Ingersoll
Motor Traders Association of Australia                   Colin Duckworth
National Biodiesel Group                                 Edward Dutton
NRMA                                                     Jack Haley
Orbital Innovations                                      Dave Worth
Ports Australia                                          David Anderson

Queensland Rail                                          Tony Fitzgerald

Rare Consulting                                          Mark McKenzie
                                                         Megan Surawski
                                                         Hannah Meade
Renewable Oil Corporation                                Colin Stucley
Shell Company of Australia                               Edwina Pribyl
Shipping Australia                                       Llew Russell
South Australian Road Transport Association              Steve Shearer
Spirit of Tasmania                                       Soniya Fernandex
Sustainable Business Australia                           Andrew Petersen
Toll Holdings                                            Nick Prescott
Truck Industry Council                                   Simon Humphries
Tourism and Transport Forum                              John Lee
Transport Forum WA                                       Ian King
Truck Industry Council                                   Tony McMullan
UITP                                                     Peter Moore
United Petroleum                                         David Szymczak
Victorian Transport Association                          Neil Chambers
Vopak                                                    Michiel Gilsing
WesFarmers                                               Melitta Kerr
Westport Innovations                                     Bruce Hodgins
Westside Corporation                                     Angus Karroll
Woolworths                                               Alan Booth




                                              23
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Appendix C

Consultative process summary


 Sequence             Consultation activity                             Description of activity

Step 1       Forum 1 – April 2011                Forums to discuss the benefits of alternative fuels and the
                                                 current barriers to market uptake. Six separate forums,
                                                 including:
                                                     gaseous fuels
                                                     biofuels
                                                     light duty vehicle users
                                                     HDV users
                                                     synthetic fuels
                                                     electric.

Step 2       Consultation Paper 1 – Draft        A draft discussion paper circulated to forum 1 participants to
                                                 validate the summary of key points arising (paper to include
                                                 commentary on potential conflicts with current literature).

Step 3       Forum 2 – May 2011                  Forums to discuss the benefits of alternative fuels and the
                                                 current barriers to market uptake. Six separate forums,
                                                 including:
                                                     gaseous fuels
                                                     biofuels
                                                     light duty vehicle users
                                                     HDV users
                                                     synthetic fuels
                                                     electric.

Step 4       Consultation Paper 1 – Final        Revised draft of Consultation Paper 1 in light of feedback
                                                 received both out of session and at forum 2.

Step 5       Consultation Paper 2 – Draft        A draft discussion paper circulated to forum 2 participants to
                                                 validate the summary of key points arising (paper to include
                                                 commentary on potential conflicts with current literature).

             Consultation Paper 2 – Final        Revised draft of Consultation Paper 2 in light of feedback
                                                 received both out of session and at forum 2.

             Consultation complete – June 2011   All papers finalised and delivered to RET for consideration by
                                                 the Strategy development team.




                                                     24
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Appendix D

Forum agenda


The first forum on alternative fuels and engine technologies for the Australian HDV sector was held in the
Melbourne CBD on Wednesday 6 April 2011 from 1:30pm to 5pm. It was attended by 48 participants. A full
listing of participants is provided in Appendix B.

The principal objectives of this first forum were to:

1.   provide forum participants with an understanding of the objectives of the Strategy and the purpose of the
     consultative forums in providing input to the development of the Strategy;

2.   canvass stakeholder views in respect of:

     a. the degree to which the increased use of alternative fuels and engine technologies by the HDV sector
        could deliver direct and indirect benefits to the Australian community;

     b. the nature of the current market barriers to the increased adoption of alternative fuels and engine
        technologies by the HDV sector in Australia.

The format of the forum is provided below.




                                                        25
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Future Fuels Forum – Automotive (HDVs)
Department of Resources, Energy and Tourism
Alternative Transport Fuels Strategy Development – Stakeholder Consultation

Invitation to Participate

When            6 April 2011
Where           SX 1 building (Victorian Govt Department of Transport building)
                121 Exhibition Street, Melbourne

RSVP            Thursday 31 March 2011
                If you are available to attend the forum, please respond to Elizabeth Hill at Rare Consulting on
                02 8216 4700 or at elizabeth@rareconsulting.com.au by Tuesday 29 March 2011. If you are
                unable to attend the forum, please consider nominating a senior representative to attend in
                your place.


Proposed Agenda


1315            Arrival – tea and coffee will be available

1330            Welcome and introductions
                Michael Sheldrick, General Manager, Fuels and Uranium Branch, Resources Division,
                Department of Resources, Energy and Tourism

1340            Overview: Strategy development
                Richard Niven, Department of Resources, Energy and Tourism

1350            Discussion 1: Benefits of greater use of alternative fuels and drivetrains
                Mark McKenzie, Rare Consulting

1430            Summary of discussion

1445            AFTERNOON TEA

1500            Discussion 2: Current barriers to natural market adoption of alternative fuels and drivetrains
                Mark McKenzie

1630            Summary of discussion
                Mark McKenzie

1650            Next steps
                Michael Sheldrick

1700            Close




                                                         26
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Appendix E

Glossary


B5                5% biodiesel blended with mineral diesel

B100              100% biodiesel fuel

BAU               business as usual

CNG               compressed natural gas

CO2               carbon dioxide

DME               dimethyl ether

EWP               Energy White Paper

FAEE              fatty acid ethyl ester

FAME              fatty acid methyl ester

GHG               greenhouse gas

HDV               heavy duty vehicle

LNG               liquefied natural gas

LPG               liquefied petroleum gas

OEM               original engine manufacturer

RET               Department of Resources, Energy and Tourism

US                United States




                                            27
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




Appendix F

References


ABARE (Australian Bureau of Agricultural and Resource Economics) 2009, Assessing the environmental
externalities from biofuels in Australia, Australian Agricultural and Resource Economics Society, Conference
paper, 11-13 February 2009, Cairns, Queensland,
http://www.abare.gov.au/publications_html/conference/conference_09/9_1_Biofuels.pdf

ABARES (Australian Bureau of Agricultural and Resource Economics and Sciences) 2011, Energy in Australia
2011, Department of Resources, Energy and Tourism, Canberra,
http://adl.brs.gov.au/data/warehouse/pe_abares99001789/Energy_in_Aust_2011_13e.pdf

ABS (Australian Bureau of Statistics) 2011, Motor Vehicle Census 2010 93090.31, Australian Government,
Canberra,
http://www.ausstats.abs.gov.au/Ausstats/subscriber.nsf/0/03CFF66BA0471A68CA257829001168D6/$File/930
90_31%20Mar%202010.pdf

AFDC (Alternative Fuel Data Center) 2011, MY 2011 alternative fuel vehicles and advanced technology vehicles,
US Department of Energy, Washington DC, http://www.afdc.energy.gov/afdc/pdfs/my2011_afv_atv.pdf

Biofuels Taskforce 2005, Report of the biofuels taskforce to the Prime Minister, Australian Government,
Canberra, http://www.soe-townsville.org/data/biofuel_pm_report.pdf

BTRE (Bureau of Transport and Regional Economics) 2005, Health impacts of transport emissions in Australia:
Economic costs, Working Paper 63, Department of Transport and Regional Services, Canberra,
http://www.bitre.gov.au/publications/94/Files/wp63.pdf

CSIRO 2000, Life-cycle emissions analysis of alternative fuels for heavy vehicles: Stage 1, Aspendale, Victoria,
http://www.fischer-tropsch.org/DOE/DOE_reports/C-0411-1.1-F2/CSIRO%20C-0411-1.1-F2.pdf

DCCEE (Department of Climate Change and Energy Efficiency) 2010, National greenhouse accounts factors, July
2010, Canberra, http://www.climatechange.gov.au/~/media/publications/greenhouse-acctg/national-
greenhouse-factors-july-2010-pdf.pdf.

EERE (Energy Efficiency and Renewable Energy) 2011a, Alternative and advanced vehicles: Natural gas
emissions, US Department of Energy, Washington DC,
http://www.afdc.energy.gov/afdc/vehicles/emissions_natural_gas.html

–––2011b, Pollutants and health, US Department of Energy, Washington DC,
http://www.afdc.energy.gov/afdc/vehicles/emissions_pollutants.html

–––2011c, Clean cities’ guide to alternative fuel and advanced medium and heavy-duty vehicles, US
Department of Energy, Washington DC, http://www.afdc.energy.gov/afdc/pdfs/47984.pdf


                                                        28
ALTERNATIVE TRANSPORT FUELS STRATEGY – HEAVY DUTY VEHICLE USERS (FORUM 1)




ERC Committee (Environment, Resources and Development Joint Standing Committee) 2008, Alternative fuels,
Parliament of Tasmania, Hobart,
http://www.parliament.tas.gov.au/ctee/Joint/Archived/Reports/ERD/ERD%20rep%20alt%20080508%20Final%
20Alternative%20Fuels%20Report%20ch%20004%20d%20_2_.pdf

NREL (National Renewable Energy Laboratory) 2006, New York City transit (NYCT) hybrid (125 Order) and CNG
transit buses: FINAL evaluation results, Washington DC,
http://www.nrel.gov/vehiclesandfuels/fleettest/pdfs/40125.pdf

NTC (National Transport Commission) 2011a, Heavy vehicle national law – Draft regulatory impact statement,
Melbourne, http://www.ntc.gov.au/RFCList.aspx?Mode=2004&AreaId=38

––– 2011b, Draft heavy vehicle (mass, dimension and loading) national regulations, Melbourne,
http://www.ntc.gov.au/filemedia/Reports/DraftNatRegMassDimLoadFeb2011.pdf




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