Africa, Has the Time Come for Autogas? By Jean-Sebastien Gerard, LPG Business Development Manager, Vivo Energy Ltd
Judging by the number of times I have recently been asked to speak at conferences about Autogas, and by the numerous interactions I’ve had with officials, regulators, OEMs and downstream players, there has been a clear pick-up in interest around Autogas (LPG used as a vehicle fuel) in the last couple of years, especially in Africa.
The Promise of Autogas
The reasons are clear: as the continent grapples with fast-paced urbanisation, growing energy demand as well as environmental challenges, Autogas presents itself as a realistic path towards a more sustainable mobility (LPG is just a cleaner fuel for ICE: its combustion emits on average 21% less CO2 than a corresponding petrol car, and 74% less NOx vs gasoil. Other air pollutants like PN and PM2.5 are also very significantly reduced*).
Where available, renewable-LPG brings these CO2 numbers further down.
How To Do It?
Any Autogas market requires three conditions to grow. WLGA calls it the “three-leg stool”:
- A stable Government policy insuring a favourable tax arbitrage between gasoline/diesel and Autogas at the pump, as well as the key requirement for Autogas to remain cheaper than cooking gas at all times.
The environmental benefits associated with Autogas are a key driver for policy makers to implement the right tax framework. Beyond that, the particular situation of any given Country can provide further motives: domestically produced LPG (as associated gas and/or from a refinery), available capacity in LPG import infrastructures (or upcoming terminal projects), a desire to reduce its dependency on imported clean petroleum products (CPP) or a hedge against supply and distribution shortfalls in legacy fuels, just to name a few.
It is generally accepted that Autogas should be 40% to 50% cheaper per litre at the pump, compare to gasoline or diesel, in order to compensate for a marginally higher consumption per km (due to its lower energy density vs liquid fuels), and the cost of the conversion itself whilst ensuring the vehicle owner gets an attractive ROI. Autogas price must remain cheaper than cooking gas to avoid illegal conversion and subsidy leakage.
- A decent refuelling network, growing on par with the incremental demand from drivers.
With a stable regulatory framework in place, downstream companies and marketers will step up and invest in safe, compliant and well-managed Autogas stations. Internationally recognised brands providing Autogas on their forecourts does help market penetration because they operate under strict HSE standards. It is key that any Autogas service station follows updated domestic legislation (incl. licensing), and international best practise and design codes. Simply Safety!
- A choice of reputable OEMs, delivering quality conversion kits and tanks to approved workshops.
The good news is that, in terms of conversion kits, there is no need to compromise on quality. Established manufacturers, producing millions of units per year between them, offer a range of kits at different price points, thanks to healthy competition. Autogas tanks produced by reputable manufacturers exist in various shape and size (toroidal in place of the spare wheel, or cylindrical up to 90 litres), and are extremely sturdy. Modern control units will optimise combustion with any LPG mix from pure butane to pure propane. When it comes to installation, specially trained engineers will be able to convert both spark engine vehicles (bi-fuel ie. can run 100% on gasoline or 100% on LPG) or compression engine vehicles (dual-fuel ie. running on a mix of both) for taxis, e-Hailing companies, delivery firms, transport professionals (coaches, buses, trucks, vans… even diesel power generators!), public institutions, fleet managers as well as private owners; this will ensure transfer of expertise to local companies, job creation and eventually generate tax revenues for the Government.
Moving Forward
Autogas has been around for decades, and the technology is mature. Today, it is estimated that between 28mn and 29mn vehicles run on LPG worldwide. In fact, Autogas consumption has risen by 40% in the past 10 years, reaching about 25mn tpy globally**. Leading markets like Türkiye or Ukraine display conversion rates close to 40% of their total respective fleets!
Better, the technical characteristics of cars typically found across Africa (often multipoint injection petrol vehicles) make it a prime candidate for Autogas with affordable conversion kits.
In fact, Africa itself provides a great illustration of both the challenges and opportunities of Autogas. Some early adopters like Tunisia or Mauritius have seen their initial success undermined by strongly subsidised cooking gas, attracting non-compliant conversion and illegal refuelling. On the other hand, Algeria recently got over the 1-million-vehicle mark, backed by vigorous public policies. Autogas is well-known in Ghana. Kenya, where Autogas is priced at a lower level than cooking gas, is displaying solid progress. I am aware of other Countries strategising their own moves in 2024-2025.
A Bright Future
LPG is used and well-understood across Africa, with unique growth prospects over the next decades.
Thanks to Autogas, thanks to distributed power, new product flows are emerging beyond cooking gas; with the right policies and the right infrastructures in place, LPG will surely consolidate its position as one of THE off-grid energies of choice for Africa.
For more on Autogas Autogas - World Liquid Gas (WLGA)
*Source: https://auto-gas.net/why-autogas/airquality/
**Source : https://www.worldliquidgas.org/key-focus-areas/autogas/
The views expressed in this article represent the views and position of the author.