7. Resilient, Low Carbon Transport
Summary
- To reduce our greenhouse gas emissions overall, New Zealand must substantially cut emissions from transport.27
- Pricing greenhouse gas emissions is unlikely to be sufficient on its own to reduce the growth of greenhouse gas emissions from the transport sector. This chapter sets out the government's preferred measures to complement carbon pricing and achieve emissions reductions.
- The key areas of focus are using more efficient and lower-impact transport modes, using alternative renewable fuels, increasing the efficiency of the vehicle fleet and reducing vehicle kilometres travelled through smarter planning.
- The government has made in-principle decisions to set a target of halving domestic transport emissions per capita by 2040,28 and for New Zealand to be one of the first countries to widely deploy electric vehicles.
- Increasing the diversity of transport fuels by introducing biofuels and, in time, electric cars will also make New Zealand more resilient to international oil price uncertainty and risks of supply disruptions.
- Provision for travel alternatives such as public transport, walking and cycling should be continually upgraded and improved to ease traffic congestion, provide an alternative to private vehicle travel and reduce greenhouse gas emissions.
- Making these changes will improve the transport choices available to New Zealanders, as well as improving the environmental sustainability of our communities and our economy.
- The energy and climate change objectives for transport in the NZES will inform transport policies, including the update to the NZTS.
| From vision to action |
Lead agency |
Timing |
| The government has made an in-principle decision to introduce a target of halving domestic transport emissions per capita by 2040 relative to 2007 emissions. |
MOT |
Ongoing |
| The government has made an in-principle decision that New Zealand be one of the first countries in the world to widely deploy electric vehicles. |
MOT |
Ongoing |
| The government will consider the NZES priorities for resilient, low carbon transport in developing the update to the NZTS. |
MOT |
2008 |
| The government will continue to support local government on quality urban design, including investigating the role for greater national guidance. |
MfE |
Nov 2007 |
| The government will continue to develop policies, including policies on funding, to encourage greater provision of public transport, walking and cycling. |
MOT |
2008 |
| The government will encourage the deployment of low carbon bus fleets, including hybrid and electric buses, into the suburban passenger fleet. |
MOT |
Ongoing |
| The government is working with those involved in the shipping industry, including associated rail and road operators, to develop a New Zealand Domestic Sea Freight Strategy. |
MOT |
Now |
| The government will continue to work with the New Zealand-based aviation industry, and within international forums, to encourage the use of more fuel efficient practices and aircraft. |
MOT |
Ongoing |
| Through the NZEECS, the government will work with industry to develop average fuel economy standards for light vehicles entering the fleet. |
MOT |
End 2007 |
| The government will establish an expert advisory group to look at future vehicle technologies, such as biofuel and electric vehicles, including barriers to early adoption. |
MOT |
End 2007 |
| The government will introduce a Biofuels Sales Obligation. |
MED |
1 Apr 2008 |
| The government will review the Biofuels Sales Obligation in 2010 to establish all aspects of the obligation after 2012, including obligation levels. |
MED |
Dec 2010 |
| The government will continue to participate in international dialogue on the role and potential for alternative fuels. |
MED |
Ongoing |
| The government will work towards positioning New Zealand to be a world leader in the deployment of new vehicle technologies, including plug-in hybrids and electric vehicles. |
MOT |
Ongoing |
| The government will continue to support opportunities to develop and commercialise niche applications for hydrogen. It will also strengthen opportunities for international collaboration to ensure New Zealand can be a fast adopter if the use of hydrogen as an energy carrier becomes commercially viable. |
MED/FRST |
Ongoing |
| New Zealand will have access to at least 90 days' of oil stocks, in line with international obligations. |
MED |
Ongoing |
| The government will produce an updated Oil Emergency Response Strategy. |
MED |
Jun 2008 |
7.1 Our Direction
New Zealanders have a strong desire for mobility. We travel frequently, own more vehicles on average than people in many other countries and have historically had relatively low fuel costs. Our geographic isolation has made us reliant on ships and planes to connect us to the rest of the world, and our use of energy for freight transport has increased as the economy has grown.
If we make no changes to the way we travel and transport freight, transport energy use is expected to grow from today by approximately 40 per cent by 2030 – with three-quarters of that growth coming from road transport. Greenhouse gas emissions from transport would increase at a similar level. The risks of climate change make this path unsustainable.
Our key challenge is to reduce the greenhouse gas emissions from transport fuels while our transport systems continue to support a strong, competitive economy and our quality of life.
Greenhouse gas emissions from transport are an issue for all developed countries, both in terms of gross emissions and continued growth. There is some variation in the relative volumes of emissions (or equivalent fuel use) due to different circumstances. Figure 7.1 shows that New Zealand, on a per capita basis, has a more emissions-intensive transport system than some European countries. Australia and the United States have significantly higher levels, probably reflecting an even higher dependency on personal car use than New Zealand.
Figure 7.1: International comparison of domestic transport emissions
Source: Ministry of Transport
The government is committed to building momentum in the adoption and uptake of sustainable transport measures. It has taken in-principle decisions to set a target of halving domestic transport emissions per capita by 2040,29 and for New Zealand to be one of the first countries to widely deploy electric vehicles. These decisions will be the subject of further engagement in 2007.
Focusing on reducing greenhouse gas emissions from the transport sector will also help to reduce New Zealand's dependency on oil. This will increase the resilience of our transport system and economy to sudden disruptions in oil supply, as well as longer-term concerns about global oil supplies and price uncertainty (see Box 7.1). Energy security for transport can also be improved through measures that address short-term disruptions (see section 7.8), increase diversity in the fuel mix (see section 7.7), encourage greater use of domestic fuel supplies and reduce demand for transport energy (see sections 7.4 and 7.5).
Box 7.1: Peak Oil
"Peak oil" is the term used to describe the point when worldwide production of conventional (cheap) crude oil peaks in volume. After it peaks, more expensive and non-conventional sources of oil will be needed to meet demand.
The peak oil debate is generally divided into two camps. The "mainstream" view is that oil supplies should be sufficient to meet demand to 2030, provided that there is significant investment in the supply chain and increased efficiency in the use of oil. The "Peak oil" perspective is that current oil production levels are near or at their ultimate peak, and that there will be a considerable impact on oil prices and on the global economy. The key questions involved in this debate are:
- How much oil is out there?
- How much will the demand for oil grow?
- Are the published statistics accurate?
- What level of oil recovery is economically feasible?
- How feasible is unconventional oil?
Estimates as to when peak oil may occur vary significantly depending on the answers to these questions. It is uncertain whether conventional oil production will peak in the next decade or a decade or two later, but demand for oil is certain to continue to grow.
The IEA's World Energy Outlook 2006 Reference Scenario projects that world oil demand will steadily grow over the next 25 years, from 84 million barrels per day in 2005 to 99 million barrels in 2015 and 116 million barrels in 2030. More than 70 per cent of this increase is expected to come from developing countries. Most of this increase will be absorbed by the transport sector.
However, while the demand for oil grows, the IEA notes that the world's proven reserves (including non-conventional oil) could sustain current production levels for 42 years. Rising prices will spur exploration and make previously uneconomic reservoirs of oil viable. Higher prices and other technologies will also prompt the extraction of liquid fossil fuels from sources such as gas, oil-rich shales and lignite. There are immense quantities of these non-conventional sources of oil, although extracting and using them will produce significant greenhouse gas emissions unless CCS is available. So, while there will, at some point, be peak 'cheap' oil from conventional sources, the world has plentiful sources of fossil-based oil.
As oil prices rise, non-fossil-based sources of fuel become more viable. There are, however, concerns that biofuels will compete with food supplies and promote unsustainable land use, especially in developing countries. A possible solution lies in the so-called second generation biofuels produced from woody biomass and waste, which help reduce the world's dependence on oil-based fuels.
7.2 Linking with Other Strategies
The 2002 New Zealand Transport Strategy (NZTS) is the main transport strategy with links to the
NZES (see Figure 7.2). Its five objectives are:
- assisting economic development
- assisting safety and personal security
- improving access and mobility
- protecting and promoting public health
- ensuring environmental sustainability.
Figure 7.2: The New Zealand Transport Strategy and Links to Other Major Government Strategies
Source: Ministry of Transport
The NZES's objectives for transport focus on reducing transport greenhouse gas emissions and ensuring our transport systems support a strong, competitive economy and our quality of life. These are consistent with the NZTS's aim of assisting economic development and ensuring environmental sustainability. Further actions in the NZES support other transport strategy objectives, such as improving access and promoting health.
The update of the NZTS will be informed by the transport energy and climate change objectives set out in the NZES.
7.3 The Progress We've Made
The government has already set New Zealand on a course to meeting these transport objectives. Initiatives underway include:
- multi-modal transport planning and good urban design to encourage people to use public transport, cycle and walk
- enabling regions and local authorities to establish a regional fuel tax to help fund passenger transport activities and roads, subject to legislative processes
- increasing central government funding for public transport services from $141 million in 2006/07 to
$165 million in 2007/08 – a rise of 17 per cent
- committing $301 million in 2006/07 to fund public transport, including more than $66 million to the Northern Busway in Auckland
- investing more than $1.4 billion over the next six years to upgrade the rail network (including expenditure already being used to improve Auckland's infrastructure)
- using the Fuel$aver website (www.fuelsaver.govt.nz) to encourage drivers to consider fuel economy when they buy their vehicles
- taking steps to ensure security of oil supply.
7.4 Our Actions
An ETS alone is unlikely to be enough to reduce the growth of greenhouse gas emissions from the transport sector. This chapter sets out five action areas to complement emissions pricing and improve security:
- managing demand for travel
- shifting to more efficient and/or lower impact means of transport
- improving the fuel efficiency of the vehicle fleet
- developing and adopting future fuels
- ensuring the security of short-term oil supplies and a diverse supply of transport fuels.
Actions to reduce land transport greenhouse gas emissions are interrelated (see Figure 7.3 below). These are complementary to broad-based measures such as an ETS.
Figure 7.3: Measures to Reduce Land Transport Greenhouse Gas Emissions
Source: Ministry of Transport
7.4.1 Managing the Demand for Travel
There are two ways to manage the demand for travel. The first is to try to reduce travel that can be avoided, and the second is to use the mode of transport that is the most fuel efficient and has the least impact on the environment.
Actions to reduce travel focus on reducing the number and length of motorised trips. Short-term measures to reduce travel include teleconferencing instead of flying between cities, and encouraging drivers to combine trips.
The government's digital strategy and its support for broadband will reduce pressure on transport services by promoting teleconferencing and other forms of distance-based communication.
Longer-term actions include urban planning and design that minimise the transport impact from the siting of industry, services and transport systems. Local authorities have a critical role to play as they provide public transport services, oversee land use and developments, and develop regional multimodal land transport strategies.
The government will engage, work with and support transport Crown entities and local authorities on developing travel demand management strategies through the NZEECS.
The links between good urban form and transport are recognised in the New Zealand Urban Design Protocol (2005). Features that bring energy and transport benefits are planning for higher density urban form, mixed land use and greater connection between key urban sites, including more accessible public transport, and support for pedestrians and cyclists.
A number of major urban areas are already considering design approaches to link land-use planning decisions and transport infrastructure to reduce sprawl, improve access and reduce congestion. These measures also provide more cost-effective alternative means of transport and improve energy efficiency. At a local level, regional land transport strategies and regional and district plans are required to consider energy efficiency.
ACTION: The government will continue to support local government on quality urban design, including investigating the role for greater national guidance.
Auckland's Northern Busway
An interim express bus service has reduced the number of cars making the congested journey from Auckland's North Shore to its central business district each day. On average, the 1,620 customers who use Auckland Regional Transport Authority's Northern Express service drive five kilometres less each weekday than they did before the busway opened. Over 2006/07, the service is estimated to have reduced petrol and diesel use by 408,000 litres and cut greenhouse gas emissions by 1,000 tonnes of CO2, as well as giving motorists a cheaper and faster way to get to work. The Northern Busway is scheduled to be fully completed in February 2008, further improving passenger transport connections to central Auckland.
Northern Express bus and station.
Photo courtesy of Auckland Regional Transport Authority.
7.5 More Efficient Transport Modes
7.5.1 Land Passenger Travel
Between 1999 and 2006, estimated passenger use of public transport increased by 68 per cent in Christchurch, 43 per cent in Auckland and 23 per cent in Wellington, replacing an estimated 49 million car trips. The increase is partly because of rising fuel prices, but better public transport services have been another factor.
Recent IEA and OECD reports highlight under-investment in New Zealand's urban public transport over the past few decades. The recent increase in government funding will help address this under-investment. In 2004, the government repurchased the rail network and committed to spend $200 million upgrading the track, while Toll Rail is spending $100 million on new rolling stock. In 2005, the government agreed to contribute an additional $600 million between 2006/07 and 2009/10 to renew and upgrade the Auckland rail network. A further announcement about funding for urban rail improvements was made in the 2007 Budget. This resulted in a further $600 million of funding for Auckland and Wellington rail upgrades, including the electrification of the Auckland rail network.
The government is committed to encouraging convenient, environmentally friendly passenger transport systems. Much of New Zealand's urban and rural bus fleet is old and has a larger environmental footprint than modern buses. The government will encourage the use of low carbon bus fleets, including hybrid and electric buses.
ACTION: The government will continue to develop policies, including policies on funding, to encourage greater provision of public transport, walking and cycling.
ACTION: The government will encourage the deployment of low carbon bus fleets, including hybrid and electric buses, into the suburban passenger fleet.
Walking School Buses
Walking school buses have proved a fun and safe way for children to walk to and from school. Each bus walks along a set route, with at least one adult "driver" picking children up at designated stops and walking with them. Walking school buses have been introduced in schools around New Zealand and are a popular way to reduce traffic, encourage fitness and help children learn road safety.
Pupils at Gladstone Primary School, Mt Albert, walk from school.
Image courtesy of Associated Press.
As New Zealand's largest population centre, Auckland requires special attention. In 2005, Auckland developed a new Regional Land Transport Strategy that recognised its level of public transport was only half that of comparable cities. The lack of public transport increases roading costs, transport delays, fuel costs and greenhouse gas emissions. The new strategy aims to double public transport patronage over the next decade. The main aim is to reduce traffic congestion, but the proposal would also reduce private car fuel consumption by an estimated 52 million litres of fuel (approximately two petajoules (PJ) of petrol and diesel) per year by 2016. The strategy's affordability is the subject of the Auckland Transport Strategic Alignment Project.
Walking and cycling are actively supported through the government strategy Getting There – On Foot, By Cycle. Policies that encourage use of lower impact modes of transport are also expected to increase the number of vulnerable road users, such as motorcycles, smaller cars, pedestrians and cyclists. Their safety needs to be considered. The government will continue to support lower emissions alternatives to road transport by working with local government to implement strategies through the NZEECS.
7.5.2 Land and Marine Freight Movement
In 2005, the government released the National Rail Strategy to 2015, which focuses on increasing the amount of freight and numbers of commuters carried by rail. The rail strategy aims to make commercially viable freight services an attractive alternative to road transport.
The amount of freight that can be switched from road to rail is limited by time, route and other specific requirements. In the long term, land-use decisions such as where to site industry and services can increase the use of rail transport.
The government is also looking at ways of making road freight more efficient, such as by allowing concessions in the weight restrictions on heavy vehicles.
Coastal shipping services could be used more often if heavy freight activities took place near ports and if there were good links to rail networks. The government is looking at ways to promote maritime transport and is developing a New Zealand Domestic Sea Freight Strategy.
ACTION: The government will work with those involved in the shipping industry, including associated rail and road operators, to develop a New Zealand Domestic Sea Freight Strategy.
7.5.3 Aviation
International travel is covered by agreements between governments, and New Zealand supports the International Civil Aviation Authority's initiatives to reduce international aviation greenhouse gas emissions. The Airways Corporation is looking at minimising flight times, while other ways to improve fuel efficiency in domestic air travel include using modern, environmentally friendly aircraft technology and improving air traffic management.
ACTION: The government will continue to work with the New Zealand-based aviation industry, and within international forums, to encourage the use of more fuel-efficient practices and aircraft.
Air New Zealand's Long-Haul Fleet
Air New Zealand believes it is on the way to having one of the most environmentally friendly long-haul fleets in the world. By 2012, the airline expects to have taken delivery of eight 787 Dreamliners and four 777-300ER (Extended Range) aircraft, all manufactured by Boeing. The Dreamliner is 20 per cent more fuel efficient than other long-haul aircraft, while the 777 is 16 per cent more fuel efficient than Air New Zealand's existing 747-400s. Since the early 1990s, the airline has been steadily reducing its CO2 emissions by upgrading the fleet, using new technology, and improving its operating practices.
The 787-9 Dreamliner.
Image courtesy of Air New Zealand.
7.6 Increasing the Efficiency of the Vehicle Fleet
Making New Zealand's vehicle fleet more fuel efficient can substantially reduce greenhouse gas emissions. Vehicle technology and the composition of the vehicle fleet (see Figure 7.4 below) can improve fuel efficiency, as can the choices made by drivers – for example, how many people are in the vehicle, and how it is maintained and driven.
Figure 7.4: Light motor vehicles entering the fleet in 2006 (new and used)
Source: Ministry of Transport
Vehicles that entered the fleet in 2006 had an average CO2 emissions rating of 215–220 grams/km. The following changes would be required to improve the overall rating by 20–25 per cent, an average of 170 grams/km:
- the percentage of diesel-powered vehicles entering the fleet would need to increase from 17 per cent to 50 per cent
- The percentage of vehicles in the most efficient categories (diesel under 4.5 litres/km and petrol under six litres/100km) would have to increase from four per cent to 24 per cent
- the percentage of vehicles in the least efficient categories (diesel and petrol over 11 litres/100km) would have to decrease from 13 per cent to six per cent
- diesel and petrol vehicles with ratings of between six and eight litres/100km would have to become the most common vehicle.
New Zealand has traditionally had a slow vehicle replacement rate and a large stock of cheap, older used vehicles. Recent higher fuel prices have led to some consumer demand for smaller, more fuel-efficient vehicles.
To reduce transport emissions, the average carbon footprint of vehicles entering the fleet needs to decline. Given the length of time drivers keep their vehicles, there are significant climate change benefits to targeting vehicles entering the fleet for the first time.
As a result, the government is making it a priority to develop policies to improve the fuel economy of the New Zealand light vehicle fleet. It will do this by working with industry representatives to encourage drivers to buy fuel-efficient vehicles, ensure in-service vehicles meet environmental standards and promote the scrapping of inefficient vehicles.
Cars that provide substantial reductions in greenhouse gas emissions are already on the market. The Toyota Prius and Citroën C3, for example, have fuel economies of just over four litres/100 km (less than 120 grams CO2/km). The current average fuel economy for light petrol vehicles entering the fleet is around 8.8 litres/100km. New Zealanders are also expected to follow the European trend towards using diesel vehicles, many of which are highly energy efficient.
ACTION: Through the NZEECS, the government will work with industry to develop average fuel economy standards for light vehicles entering the fleet by the end of 2007.30
The government has also reviewed the vehicle fleets of 21 government organisations and will use procurement policies to encourage changes to more efficient and low carbon vehicles.
The launch of the Fuel$aver website in 2006 made it easier for New Zealanders to find information on fuel efficiency, while the biennial Energywise Rally has successfully promoted the benefits of fuel efficiency, alternative fuels and fuel-saving driving techniques.
The government is also developing measures in the NZEECS to improve the fuel efficiency of vehicles, including developing fuel efficiency labelling for vehicles and providing leadership on fleet procurement and driver training programmes.
The government gathers significant revenue from the fuel excise duty, which is spent on New Zealand's land transport system. As a result of emerging vehicle technologies, increased fuel economy and alternative fuels, the government will need to explore other ways to raise revenue for the land transport system in order to ensure all users share the burden equitably. It is considering developing a distance-based charging regime for all vehicles to meet land transport costs.
7.7 Developing and Adopting a Diverse Range of Fuels
About 86 per cent of New Zealand's oil consumption is used in the transport sector. International oil supplies will dominate New Zealand's transport energy for some time to come, but our reliance can be reduced by increasing the proportion of alternatives in our fuel mix. In the short term, biofuels and electricity have the most potential for New Zealand.
Substituting carbon neutral biofuels and electricity for fossil fuels will reduce transport emissions and improve our energy security, particularly if local fuels replace imported oil.
The domestic supply of biofuels will be determined by the feedstock available, the economics of conversion technology and the relative price of oil. There is also likely to be some international trade in biofuels.
Switching to electricity as a fuel for our vehicles would make the most of New Zealand's abundant renewable electricity supplies, particularly if transport was not competing for supply at times of peak demand.
The government is establishing an expert group to consider the issues involved in renewable fuels and vehicles powered by electricity. These issues could include the infrastructure needed for biofuels distribution and for electric vehicles, vehicle capability with biofuels and vehicle fuel efficiency improvements.
ACTION: The government will establish an expert advisory group to look at future vehicle and energy technologies such as biofuels and electric vehicles, including barriers to adoption.
7.7.1 Biofuels
Biofuels can make use of existing distribution infrastructure, be used in existing vehicles and complement other efficient technologies, such as hybrids. In February 2007, the government announced a Biofuels Sales Obligation to ensure biofuels were introduced into the New Zealand fuels market.
The obligation will begin at a level of 0.53 per cent from 1 April 2008, increasing to 3.4 per cent of annual petrol and diesel sales by 2012. These are levels that fuel distribution systems and vehicles are capable of supporting. The obligation is measured in terms of energy content to accurately represent the amount of petrol and diesel actually replaced. It is likely that the early years of the obligation will be met predominantly by biodiesel, with uptake of ethanol later in the obligation period.
The potential for markedly increasing the uptake of biofuels, particularly bioethanol, is partly dependent on the composition and turnover of our vehicle fleet. On average, new technologies released in Japan are not widely available in New Zealand for seven years. Based on these trends, it would take approximately a decade before we begin importing used Japanese vehicles compatible with significantly higher biofuel blends.
The government will ensure transport and vehicle policies allow for an increasing proportion of biofuels. As part of the New Zealand Vehicle Fleet Strategy, policies will be developed to promote and encourage the purchase of vehicles that are capable of accepting a ten per cent blend of biofuels. Consequently, in time, the fleet composition is likely to allow the use of higher biofuel blends.
To significantly increase domestic biofuel production, second generation conversion technologies are likely to be needed. These technologies promise greater reductions in greenhouse gases and the use of non-food-related biofeedstocks, such as forestry and agricultural waste.
A gradual increase in the use of biofuels, as proposed in the Biofuels Sales Obligation, will give the government time to consider how to use scientific and commercial developments in the biofuels industry.
ACTION: The government will introduce a Biofuels Sales Obligation from 1 April 2008.
ACTION: The government will review the Biofuels Sales Obligation in 2010 to establish all aspects of the obligation after 2012, including obligation levels.
ACTION: The government will continue to participate in international dialogue on the role and potential for alternative fuels.
7.7.2 Electric Powered Vehicles
Substituting fossil fuels with renewable electricity will also be part of the solution to New Zealand's future transport challenges. The uptake of electric vehicles will gradually lessen our dependence on imported oil and significantly reduce daily running costs.
New Zealand's natural endowment of renewable electricity could enable us to become world leaders in producing sustainable transport energy. Technological developments are expected to significantly increase the performance and safety of electric vehicles in the near future.
The government has taken an in-principle decision that New Zealand be one of the first countries to deploy electric vehicles widely into the fleet.
To date, electricity use for transport has been confined to buses and trains. In the future, the advantages of transferring a proportion of the light vehicle fleet to electricity would depend on the relative economics, potential for uptake and the level of petrol and diesel that was displaced. Hybrid plug-ins and battery electric cars also have other benefits, such as reduced or no harmful exhaust emissions in urban areas. However, advances in battery capability will be needed before these vehicles can be mass produced to provide the same mobility benefits as an internal combustion engine.
The additional electricity required to charge electric vehicles is expected to fall within the capacity of the grid, if economic grid improvements go ahead. Uptake would have to be supplemented with a charging policy to manage peak demand.
New Zealand could begin introducing electric vehicles to the fleet without a large investment in infrastructure. Public charging facilities may be required as uptake levels increase and vehicles gain capacity to travel further. Battery disposal is seen as a consideration rather than an obstacle.31
The most exciting development for the New Zealand transport fleet for the next decade or so is likely to be plug-in electric hybrids, if they are affordable. Plug-in hybrids may significantly reduce emissions from the transport sector if they become widely used.
To adopt these technologies as early as possible, we need to remove potential barriers, such as how vehicles are classified, whether they conform to present safety regulations, how land transport charges for roading costs from the new technologies are collected, and how to develop appropriate time-of-use metering for electricity charging to prevent all motorists recharging their batteries at peak times.
ACTION: The government will work towards positioning New Zealand to be a world leader in the deployment of new vehicle technologies, including plug-in hybrids and electric vehicles.
EcoSaver IV Hybrid Bus
Bus building company DesignLine International Holdings has developed what it believes to be one of the most advanced hybrid buses in the world. Rather than having both an electric motor and a combustion engine to drive the wheels directly, the ECOSaver IV hybrid bus uses an LPG-fuelled turbine as an auxiliary power unit. The lightweight, clean-running, fuel-efficient unit is used solely to keep the vehicle's batteries charged, while the bus runs on power from the batteries. DesignLine, which has its main manufacturing facility in Ashburton, says the ECOSaver IV produces substantially fewer emissions than standard diesel buses or other hybrid models.
DesignLine hybrid bus.
Image courtesy of DesignLine International Holdings.
7.7.3 LPG
Liquefied petroleum gas (LPG) is a reasonably efficient and clean-burning fuel, and most of the LPG we use comes from New Zealand. Using more LPG increases fuel diversity and security, with some modest reductions in greenhouse gas emissions. Existing infrastructure can be used to distribute and sell LPG.
7.7.4 Hydrogen
Using hydrogen technology could improve New Zealand's energy security by further diversifying our fuel sources. It would also reduce greenhouse gas emissions from the transport sector if it were produced from renewable resources or from fossil fuels, providing the carbon dioxide released during the production process could be captured and stored.
However, storage, transportation and other technical issues are likely to prevent hydrogen having anything other than niche uses for the next 25 to 30 years. A further complication is that it would take significant time to address the safety, distribution and infrastructure issues around the development of hydrogen fuel-cell vehicles supplied by distributed hydrogen.
New Zealand is a member of the International Partnership for the Hydrogen Economy (IPHE), which coordinates research and development into hydrogen technology. New Zealand has also joined the IEA's Hydrogen Implementation Agreement, which encourages international cooperation.
ACTION: The government will continue to support opportunities to develop and commercialise niche applications of hydrogen. It will also strengthen opportunities for international collaboration to ensure New Zealand can be a fast adopter if use of hydrogen as an energy carrier becomes commercially viable.
7.8 Short-term Oil Security
New Zealand manages the risk of short-term supply disruptions through its membership of the IEA. We are required to hold 90 days of oil reserves (measured as net oil imports) as a buffer and to have the capability to reduce oil demand to enable the IEA to ease supply and demand pressures in the event of a major market disruption.
To manage the variability of commercial oil stocks and fluctuations in domestic production, New Zealand currently holds offshore oil ticketing contracts. These contracts ensure that New Zealand remains compliant with its IEA obligation to hold emergency oil reserves, and has access to those stocks in an emergency. We expect that reserve stock levels will average 94 days' of net oil imports in 2007. Expected increases in domestic oil production will mean that our requirement to hold offshore stocks will change over time.
The government recently released a revised draft Oil Emergency Response Strategy for consultation in September 2006.32The emergency response strategy will be used as necessary to respond to international and national supply disruptions. It will set out both the policy and operational approaches to managing an emergency disruption of oil supplies and will complement civil defence and emergency management planning.
ACTION: New Zealand will have access to at least 90 days' of oil stocks, in line with international obligations.
ACTION: The government will produce an updated Oil Emergency Response Strategy by June 2008.
7.9 Into the Future
Emerging technologies will be important for reducing greenhouse gas emissions from the transport sector. New Zealand is largely dependent on international research and development, but technological improvements alone are unlikely to be sufficient. An integrated range of policies covering travel demand management, greater use of alternative modes, and better urban form and design will be needed.
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