Today we
announced
the unveiling of China’s first engine with Westport HPDI technology during the
China National People’s Congress. The introduction of this engine fills an
important gap in China’s natural gas engine market for heavy-duty trucks, as demand
for natural gas increases along with the support of alternative fuels for a
variety of uses – including transportation - by the Chinese government. It’s
encouraging to see China take an interest in natural gas as a cleaner
alternative to coal, which has traditionally been the country’s main fuel
source.
China Is In The Market For A New Energy Resource
With coal supplying roughly two thirds of the country’s
energy needs, China’s emissions of greenhouse gases are some of the world’s
highest.
As
a result, the Chinese Central Government has created an international campaign
to develop and explore shale gas as part of China’s energy strategy, with a
particular focus on natural gas.
As China’s energy consumption increases (it’s now second
only to the United States), the shift to cleaner fuel sources is notable. Preliminary
findings (conducted by the United States)
show that shale gas resources in China might be 100 trillion cubic meters, the
same level as the United States.
Although
China doesn’t yet produce shale gas commercially, the Ministry of Land and
Resources announced its shale gas production goal as equal to 8-12 percent of
the total annual domestic natural gas output. By incorporating shale gas into
the
National Energy Strategies Toward
2030 the country aims to triple its use of natural gas by 2020 to 10
percent of energy consumption in an effort to curb pollution.
The 2011 International Energy Agency special report,
Are We Entering a Golden Age of Gas?
predicted
that Chinese gas demand would increase by as much as 50 percent by 2035 to
match that of the 27-nation European Union. Natural gas will allow China to use
its large
China’s Need for Natural Gas Transportation Solutions
Given China’s clear goal of reducing its
greenhouse gas emissions, improving air quality, and shifting to alternative
fuels that are abundant domestically, the Chinese transportation sector is
experiencing a significant shift. Currently there is an estimated 600,000
natural gas vehicles in China and over 2,100 refuelling stations to support
those vehicles. Weichai
Westport has seen significant growth in the China markets and Weichai Power’s
most recent Annual Report showed that Weichai holds approximately 40 percent of
the heavy duty truck engine market for trucks over 14 tonnes. According to
Weichai's August 2011 Interim Report, they sold
over 200,000 heavy-duty engines for the six months ended June
30, 2011. In 2010, heavy duty truck sales in China
exceeded one million units, according to the Weichai Power August 2011 Interim Report.
Note the marked increase of engine sales of Weichai Westport engines
HPDI Engine Technology
Enters the Chinese Market
This marks the first use in China of natural gas engine
technology that isn’t spark-ignited, and a significant advance in heavy-duty
and long-haul trucking. What makes HPDI technology stand out is that it allows
a diesel engine to run, primarily on natural gas without having to change the
main parts of the engine. HDPI works by
using a small amount of diesel to ignite the natural gas, a process that would
normally require a spark, thus allowing the engine to stay largely unaltered.
Since the pistons and engine body remain unchanged, the engine is able to
deliver torque at low speeds and deliver increased efficiency at the higher end.