Israel Sets a Target to Reduce Usage of Oil for Transportation by 60 Percent by 2025
Israel has planned to reduce the usage of oil for transportation by 60 percent by the year 2025 which is considered to be a strong target as per world standards and the country will depend on its newly discovered natural gas reservoirs to achieve the target.
Israel is also investing high amounts to help startups to develop biofuel and battery technologies and has offered an annual prize of 1 million dollars to innovators in the field, which is almost equal to winning a Nobel Prize.
The purpose behind this plan is to get Israel a strong place having knowledge in the natural gas industry and from there to work as a promoter for the remaining world in making the change.
The program is named the Fuel Choices Initiative and has a 10-year budget of 1.5 billion shekels.
Shifting from oil will generate consumer savings as well as tax income that, along with the environmental benefits, will bring higher than a percentage point to gross domestic product.
No single fuel will substitute oil. The government will set regulation and help with infrastructure and tax benefits but has left up to the market to decide which one succeeds.
Compressed natural gas (CNG), as well as natural-gas-based methanol, will dominate the next five years with biofuel and battery technology entering the market with improvements in technologies.
According to a transport and energy analyst, Israel has a very ambitious goal to be achieved in a little more than ten years.
Israeli executives are confident for natural gas extraction about the two of the largest offshore gas fields in the world, Leviathan and Tamar, discovered recently in Israeli waters.
With total estimates of 810 billion cubic meters (bcm), the fields changed import-dependent Israel into a potential fuel exporter.
In an ideal situation, 70 to 90 bcm of natural gas will be utilized for transportation in the forthcoming decades. Natural gas is a fossil fuel just like oil but it burns cleaner.
Israel’s first natural gas service station will be completed in 10 months. A 7-year deal was signed to purchase natural gas worth 105 million dollars from the Tamar field.
It’s expected that in the next five years, at least 40 CNG stations will be built in the Israeli market. The cost of each of them may reach 1 million dollars. As per the Israeli officials, CNG is the most sensible for heavy automobiles and will be priced at around half of the price of gasoline or diesel.
Category: Fossil Fuel/Nuclear