Fundamentals of an LNG Strategy for the Federal State Lower Saxony

Study of a future LNG industry based on planned LNG import terminals in Germany, thereof two in the state of Lower Saxony. LNG import terminal infrastructures should assist in increased gas supply quantities to Germany and the diversification of supplies, since German pipeline imports are increasingly limited to a very few producing areas. Indigenous production and imports from Denmark, UK and Netherlands have ceased or are phasing out. The physical properties of LNG enable its use as maritime, road fuel and fuel in special industry applications. This regional LNG industry should be identified. The challenge is to meet the increasing European and German carbon reduction targets and measures. LNG is identified as an important alternative truck fuel not only for maritime traffic but also for long-distance heavy-duty transport in order to replace polluting diesel and the growing LNG infrastructure needs are identified. Due to the future increasing CO2 taxation of fuels according to the German CO2 trading system implemented in 2020 diesel will be priced out of the market. But even LNG with lower CO2 emissions and corresponding lower CO2 taxation will be priced out of the market in the long-term perspective. Thus, the solution is an increased share of advanced bio-LNG truck fuels after year 2030 gradually replacing fossil LNG. The bio-LNG production potential of Germany is assessed and the likelihood to make significant fuel quantities available. Since no bio-LNG production exists in Germany in 2020 the regulatory, economic and technical basis for a significant development of such fuel market is investigated. In order to test the willingness and readiness of the market participants to do investments in bio-LNG production a series of webinars was initiated and executed confirming the market readiness. Different cost-effective supply chain alternatives for maritime and terrestrial industries according the future growth scenarios were developed. Regulatory and financial analysis were executed in order to indicate hurdles to be removed and identify financial instruments to foster the LNG industry.