Armenia Is A Trend-Setter In Use Of Clean Fuels & NGVs.

Cut off from world energy markets, the mountainous state of Armenia is making a virtue of adversity and may be leading the world in using cleaner car fuel, officials say. While the EU is looking at 2020 before 10% of vehicles there will use alternative fuel, in Armenia up to 30% of cars already run on clean compressed gas, officials Yerevan say.

This statistic includes about 45,000 private cars and 90% of public transport. Pavel Siradegian, a Transport Ministry official, says such high levels of clean fuel use are due "to the fact that Armenia, which has no energy resources of its own, is trying to use the most affordable alternative fuel".

In this the ex-Soviet republic appears be leading a trend. Around the world some five million vehicles are run on compressed natural gas (CNG) and liquefied petroleum gas (LPG). Natural gas vehicles (NGVs) are just as safe as conventional gasoline- and diesel-fuelled ones and produce lower harmful emissions.

In Armenia, the switch has its origins in the 1991 collapse of the Soviet Union. Before then, Armenia used to get gasoline from its oil-rich neighbour Azerbaijan. But after the two countries plunged into a war over the Armenian-populated enclave of Nagorny Karabakh, Armenia cut ties with both Azerbaijan and Turkey.

Armenia buys its natural gas from Russia for $110 (77) per 1,000 cubic metres, with 84% of the population having access to gas at home. The gas used for cars is three or four times cheaper than gasoline and half the price of diesel fuel. Siradegian says, "so people convert to gas of their own accord".

The gas containers are usually imported from Russia or Italy and are installed in the car's trunk at licenced centres. The operation costs the equivalent of US$700 to $1,000 (530-760).

Aram Hachian, the head of Yerevan's Ultra taxi service, says: "Even with such high installation prices it is cheaper to use gas than gasoline. A 20-litre-canister of gasoline would cost some $17, while topping up with CNG costs only $4".

Hachian has converted all his cars into NGVs using CNG. He says: "If we used gasoline, many people here would not be able to afford a taxi".

Armenia currently has 140 filling stations equipped with gas compressing equipment. "Drivers have no fear of being left without fuel", Siradegian said. But some admit the choice has been forced on them.

"If I were rich, I'd fill my car with gasoline because gas is bad for your engine and it is not very nice carrying an 80-kilogramme container in your trunk", said one Yerevan resident, a 37-year-old Artem.

At the country's Environment Ministry, officials hail the benefits of increased gas use after the damage done to the environment in the 1990s. Environment official Martin Tsarukian says: "Switching to gas has been a real salvation for...Armenia, whose forests suffered very much during the energy crisis. Gas-using cars emit half the amount of nitric oxide than gasoline-driven cars. Conversion to gas was an economic necessity, but there have been ecological benefits as a result".

The ministry is aware that the popularity of CNG could be time-limited if the country pulls itself out of economic hardship - the average salary is currently $100 a month. But it is now looking at ways of ensuring drivers stick to compressed gas - for example through tax benefits.

The Russian gas monopoly Gazprom is to raise the price of natural gas being supplied to Armenia as from the beginning of 2007. Negotiations on the new price have been going on for weeks. But early indications are that the price will be considerably below the being Gazprom intends to charge other former Soviet republics like Georgia and Azerbaijan.