With the automotive industry under immense pressure to reduce emissions and meet stringent regulatory targets amid stiff global competition, alternative fuel technologies may not be able to keep pace with the rise of electric vehicles, according to some industry sources.

However, Ashley Nuell, vice president of investor relations at Canada’s Westport Fuel Systems, presents a different perspective. Despite current challenges, Nuell says there is a compelling case for the continued relevance and potential growth of alternative fuels such as liquefied petroleum gas (LPG) in the rapidly evolving automotive market.

Nuell met with OPIS editor Fahima Mathé to discuss how advancements in low-carbon fuel systems—capable of reducing particle emissions by up to 95% — are poised to play a crucial role in the industry’s future.

OPIS: The European Union is planning to ban the sale of new cars and vans with combustion engines as of 2035 to make the road transport sector climate neutral. How realistic is this goal, and do you have alternative suggestions?

Nuell: The ban on the combustion engine is indeed planned, but increasingly you see in the market that the goal might not be reached due to a lack of Electric Vehicle (EV) infrastructure, grid congestion issues, the supply of affordable cars and ‘green’ electricity. European lawmakers will review the goal in 2026. Only then will we be sure what the final decision will be. Many car manufacturers keep supplying gasoline cars, hybrid (Plug-in Hybrid Electric Vehicle) cars, and LPG cars alongside their EV offerings. Nearly any gasoline car, regardless of whether it is fuel-only or hybrid, can still be converted to LPG (Autogas) to benefit from the cheaper and cleaner fuel.

OPIS: Can you tell us more about technologies helping to shift to clean and affordable transportation, and where does LPG fit in exactly? What is a realistic goal to create eco-friendly cars in terms of numbers?

Nuell: Basically, almost any gasoline car can be converted to LPG, even the latest with a Direct Injection engine. The technology is an ‘add-on’ to the original fuel system, with some components like an Engine Control Unit (ECU), regulator, filter, injectors, LPG fuel tank, and a switch added to the car. The intelligence is in the quality and the design of the components and the software that ensures the correct functioning of the fuel system. Then the benefits of the fuel (less carbon dioxide, nitrogen oxide particles) will reach their full potential without losing any power. The goal is to achieve (near) zero emissions by using biofuel or renewable fuel. Depending on the availability and affordability of such fuels, the goal can be achieved sooner or later, especially when converting hybrid vehicles to use renewable fuels.

OPIS: Can you discuss the cost implications for operators when transitioning to vehicles equipped with your low-carbon fuel systems compared to electric cars? For example, you mentioned that it costs around €2,000 ($2,160) to transform a gasoline vehicle to one running on LPG. What else is there to consider?

Nuell: Cars on LPG can be offered by an OEM (Original Equipment Manufacturer) like Renault/Dacia. If you buy a car that already runs on LPG, then no extra costs apply. If you plan to buy a gasoline car or hybrid, you may consider converting the car as a ‘retrofit’. Conversions are done on gasoline cars, not on diesel cars, due to the business case. The cost of converting a gasoline car to LPG depends on the type of car, the engine, and country-specific regulations and incentives.

As mentioned, on average, in Europe, a conversion will cost about €2,000. The conversion cost in southern or eastern Europe, for a car with an MPI (Multi-Point Injection) engine, is lower, starting at €800 – €1,000, going up to €3,500 in some cases for converting a Direct Injection engine throughout Europe. In the U.S., the cost is a bit more due to the bigger engine types. Countries can have regulations like road tax, which can increase the cost. In some countries, there are incentives for driving on Autogas, like now in Italy. So, it is hard to tell the exact extra cost, if any.

OPIS: Can you provide a detailed comparison of the lifecycle emissions of vehicles using your systems versus traditional fossil fuels or electric cars?

Nuell: Vehicles using LPG systems typically exhibit significantly lower lifecycle emissions compared to traditional fossil fuels like gasoline and diesel. Specifically, LPG vehicles can achieve up to 21% reduction in CO2 emissions and up to 95% reduction in particulate matter emissions due to cleaner combustion properties. For EVs, lifecycle emissions depend on the electricity source. With renewable energy, EVs can achieve near-zero emissions during operation.

However, if powered by fossil fuels, the lifecycle emissions can be higher. Additionally, the production and disposal of EV batteries, which involve energy-intensive processes and the extraction of raw materials, contribute to their overall environmental impact. LPG vehicles have a lower environmental impact during production compared to EVs, as they use existing internal combustion engines with modifications. Converting gasoline vehicles to LPG involves adding components like an Engine Control Unit (ECU), regulator, filter, injectors, and an LPG fuel tank, which are less resource-intensive to produce than EV batteries.

OPIS: What measures are in place to ensure the safety and reliability of your fuel systems in various transportation applications?

Nuell: There various rules and regulations set by each country. At Westport Fuel Systems, we offer warranties on our components and systems to assure our customers of their reliability and durability. We adhere to stringent safety and reliability regulations to ensure our products meet high standards. In the European Union, we follow regulations such as R115, which covers the installation of LPG and CNG systems in vehicles; R67, which pertains to specific requirements for the approval of LPG equipment; R10, which relates to electromagnetic compatibility; and R110, which sets the standards for Compressed Natural Gas (CNG) components. In the United States, we comply with regulations set by the Environmental Protection Agency (EPA), which oversees the environmental impact and safety of automotive components. Adhering to these regulations is crucial for companies like ours to be allowed to enter and compete in these markets.

OPIS: What is Canada’s Westport Fuel Systems doing to enhance the efficiency and performance of its fuel delivery systems to meet the evolving demands of the transportation industry?

Nuell: We are enhancing the efficiency and performance of our fuel delivery systems through several key initiatives. The company is investing significantly in research and development to advance technologies tailored to low-carbon fuels such as natural gas, renewable natural gas, LPG (propane), and hydrogen. This includes advancing Direct Injection technology specifically designed for LPG passenger cars, as well as developing solutions like LNG and Hydrogen – High Pressure Direct Injection for heavy-duty transportation. Moreover, we collaborate closely with OEMs in the heavy-duty transportation sector to integrate these advanced fuel delivery components seamlessly into their vehicle designs. Our R&D efforts are focused on optimizing fuel efficiency, reducing emissions, and enhancing overall system reliability. By continuously refining our products and processes, we aim to meet the evolving demands of the transportation industry while promoting sustainable solutions across global markets.

OPIS: What are the main obstacles you face in scaling up the production and adoption of your fuel systems, and how are you addressing them?

Nuell: One of the obstacles is the vision and the strong drive of policymakers saying, ‘EV only,’ or so-called zero emissions from the tailpipe. Policymakers are choosing the technology here rather than giving the market the freedom to reach a goal. Lower tailpipe emissions do not automatically mean the solution is more environmentally friendly from a Life Cycle Analysis point of view. We are addressing this by sharing our views with policymakers and associations.

Official acknowledgement of the contribution of LPG and biofuels as low or zero CO2 emission fuels would allow more companies and consumers would invest in those fuel systems that immediately contribute to a more sustainable future. Another obstacle is the consistency in (long-term) policy and incentives. Due to the changes in the policy landscape, regulations and incentives tend to shift, so it is hard to make company policies for the various countries. As we are active worldwide, we have a balanced spread of our activities.

OPIS: With China’s significant investment in electric vehicles and its growing dominance in the automotive sector, how does Westport Fuel Systems compete with their advancements and massive market scale?

Nuell: Westport does not compete with China directly, but we recognize the challenges and opportunities that their advancements in EVs present. While electric vehicles have significant benefits, there are concerns regarding the origin of components and materials, reliance on green electricity, infrastructure and affordability. These issues are particularly pronounced in rural areas where EV infrastructure is lacking, and public transportation is limited.

Westport focuses on providing alternative fuel solutions that can immediately reduce emissions and are viable across diverse regions, including those without reliable access to electricity. Our investments in LPG, natural gas, renewable natural gas and hydrogen technologies provide flexible, low-emission options that are particularly relevant in regions like Asia and Africa, where electricity is not yet a commodity. By developing fuel systems that can be retrofitted into existing vehicles, we offer a practical and scalable solution to reduce carbon emissions globally, complementing the push for electrification and ensuring a more comprehensive approach to sustainable transportation.

OPIS: With the 2035 ICE ban in mind, where do you see the large investments needed in the production of bio-LPG coming from, given that in its current state, it could possibly mean the end of the LPG vehicle market?

Nuell: Currently, there are many projects ongoing in making the fuel attractive. Bio-LPG is offered in the marketplace from various sources. Success depends on the available volume, the distribution channel, the market price, and the investments of various companies and governments wanting success. There are several companies inside and outside of Europe that still invest in and use LPG as it is, so we do not expect an end to the LPG vehicle market in the years to come. Gasoline cars (and hybrids) on the market can still be retrofitted after 2035. So, in Europe, the market in the future may change (depending on the final decision by the EU), but at the same time markets worldwide are perceived as attractive.

OPIS: Given this definition, does this mean the registration of renewable LPG vehicles would be prohibited unless they’re fueled with e-fuel showing 100% greenhouse gas (GHG) reduction?

Nuell: Under the Commission’s proposal, the definition of CO2-neutral fuels is restricted to e-fuels, effectively excluding other potentially beneficial low-carbon renewable fuels such as biofuels. Biofuels, defined and endorsed under RED III regulations, offer substantial GHG emissions reductions that are often comparable to or even greater than those of e-fuels.

However, the proposal stipulates that CO2-neutral fuels must achieve 100% GHG emission savings, a standard that presents significant challenges without the use of carbon capture technologies to offset unavoidable emissions during production and transportation. Despite these complexities, the Commission’s stringent criteria may pose regulatory hurdles for renewable LPG vehicles unless specific allowances or exemptions are made.