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Home BUSINESSDistribution network for alternative fuels to be developed
Tue, 12 May, 2015 12:48:36 AM
FTimes Report, May 12
A shift towards the use of alternative fuels has started in the transport sector with the aim to replace fossil fuels, said a press release of the Ministry of Transport and Communications.
The most important alternative fuels and their distribution network must be developed with a focus on the special needs of each transport mode, says an expert group in its preliminary study report on alternative propulsion systems for transport.
Development of alternative fuel markets reduces dependence on oil-based fuels and thus decreases greenhouse gas emissions and energy consumption in transport, according to the release issued on Monday.
The development of the markets also improves security of supply, supports economic growth and enhances competitiveness of the Finnish industry.
Promotion of alternative propulsion systems calls for an entirely new distribution infrastructure or for changes to the existing system with regard to, for example, electricity and gas.
The expert group proposes that the fuel distribution network and the network of recharging points for electric vehicles be mainly built on market terms in Finland.
When possible, EU and national aid could be used in the construction process.
According to the expert group, the state should ensure that new technologies using alternative propulsion systems be increasingly used in vehicles and make the distribution infrastructure of these technologies profitable in the long term.
The expert group has examined the present state as well as the aims, scope and construction schedule of the fuel distribution network. The areas included in the study were electronic transport, fluid bio-fuels requiring a separate distribution, natural gas and bio-gas, alternative propulsion systems in water transport and hydrogen.
Possible means to promote the alternative fuels market could include new economic instruments, such as tax reliefs, said the release.
The expert group had representatives from central government administration, Association of Finnish Local and Regional Authorities and energy companies.
The distribution network development will continue under the supervision of the Ministry of Transport and Communications.
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