Development of an alternative fuel infrastructure: What H2 can learn from LPG. The case of LPG/CNG in the Netherlands and other countries

The introduction of an alternative transport fuel a lways bears a challenge that is often referred to as a ‘chicken and egg’ problem: while people will o n y become interested in and start switching to a new fuel if sufficient refuelling stations are available, industry will only start investing in the development of a refuelling infrastructure if t he market is sufficiently developed and existing stations are economically viable. Governments h ave a variety of, for example, fiscal or regulatory measures at hand to facilitate and support t he introduction of an alternative transport fuel. This report describes and analyses the introduction of liquefied petroleum gas (LPG) or compressed natural gas (CNG) in the Netherlands, Germa ny, Poland, Canada and Argentina. In particular, the report pays attention to the developme nt of station coverage and vehicle numbers for these alternative fuels. Drivers and barriers to th e introduction of LPG or CNG, such as fuel price developments, supporting policy instruments o r a lack thereof were identified. Main focus are the Netherlands where LPG was introduced in the mid-1950s. A comparison of developments in the Netherlands with the other four countr ies eveals that well concerted efforts by policy makers and industry supporting a parallel devel opment of vehicle uptake and refuelling station availability may lead to the firm establishmen t of an alternative fuel market. The report concludes with lessons learned for the introduction of hydrogen as an alternative transport fuel.