Northeast and Mid-Atlantic States
Regional Low Carbon Fuel Standard
Newark Stakeholder Meeting
October 27, 2009
Transportation Fuels Panel
Liquid Fuels
Past Experiences versus New Low Carbon Fuel Standard Possibilities
• Creating a Low Carbon Fuel Standard is new uncharted waters.
Over the last three decades, we have successfully transitioned to
cleaner lower sulfur fuels. Here in the U.S. and throughout the world,
countries continue to reduce sulfur limits in distillate and gasoline.
This has become common practice as a result of what we will call
“simply” refinery modifications and upgrades. As we research and
plan for cleaner carbon-less fuels to reduce greenhouse emissions
and transition to a more efficient sustainable society, we find a more
complex set of parameters and challenges. Undoubtedly we can
accomplish the implementation of a sustainable society
incorporating low carbon if not carbon-free fuels, but it will take time
and monies as technologies constantly evolve while becoming more
efficient and less costly. Rather then spend time on the science, this
brief presentation will afford you other requirements with which fuels
and equipment must comply.
Diesel Max Sulfur Limits
Challenges – Approvals, Timing, Feasibility, Costs
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Equipment Manufacturers
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Product demonstration projects
Equipment operability in all climates and seasons
Equipment warranty acceptance
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ASTM, EMA, ASME, UL Acceptance
Infrastructure Development
Production Capacity
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Special handling
National and Local Approvals
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Local/regional supply vs. foreign or domestic
Mode of transportation
Local Bulk Storage, Blending and Distribution
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On-site storage and distribution accessibility
Continuous ratable quantities
Segregated or Fungible Supply and Distribution System
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Blend ratio
Feedstock
Weights and Measures, Fire Department, etc.
UL approved dispensers
User Handling, Storage and Dispensing
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Special handling and product use
What If’s
• Technology unavailable or not commercialized
• Product quantities entirely unavailable or intermittently available
• Assumptions inaccuracy
– Supply
– Infrastructure
– Available quantities
• Science to reduce greenhouse emissions and carbon life cycle
evolves, changes, modifies or incorrect
Solutions
• Sprague applauds the initiative to move forward to reduce emissions
and the carbon footprint in northeastern U.S. through a Low Carbon
Fuel Standard
• Begin introduction in early years of LCFS with proven biofuels as a
known product with available supply and proven infrastructure
development
• Evolve into sophisticated technologies when they are proven options
For Example:
• Biodiesel and bioheat from various feedstock sources are currently
available in suitable quantities to begin a program for on-road, offroad and heating equipment
• Expand the options to incorporate newer technologies once proven
and commercially available
Solutions
• Require extended period of time to meet challenges for each
accepted technology/product
• There are hurdles and challenges to overcome. A LCFS can be
achieved if all parties work together
Contact Information
Steven J. Levy
Sprague Energy
4 New King Street
White Plains, NY 10604
914.328.6770
914.328.6701 fax
[email protected]
www.spragueenergy.com
Sprague Energy
• Sprague has been focused on the needs of energy consumers and
wholesalers for over 130 years. Our vast network of facilities and
global expertise have made us a leader in the procurement,
handling and delivery of fuel, unique products and management
programs and services.
• Corporate headquarters in Portsmouth, New Hampshire
• Employs 400 people
• Annually distributes/handles more than:
– 2.5 billion gallons of petroleum products
– 170 billion cubic feet of natural gas
– 3 million tons of bulk materials
• Owns and operates 20 major oil terminals
• Throughputs and exchanges at over 50 additional facilities
Sprague’s Commitment to Our Customers
• Focused on “Doing More” to make our customers successful
• Premium product designed to help maintain and boost heating systems
• Premium product designed to help maintain and preserve diesel engine
systems year round
BioDiesel/BioHeat
• Fuel source derived from vegetable oils and/or animal fats (Sprague’s
source is soybean oil). Domestic, environmentally sound and sustainable.
• Specialty price protection program designed to allow customers to match
real demand to financial instruments.
• The BTU Options program is designed to leverage the cost gaps between
natural gas and oil to lower total cost of energy.
• Daily natural gas and oil commentaries help customers make informed
energy decisions with the two MarketWatch reports.
• Sprague Real-Time is a web-based tool to allow certified customers
access to their information on a real time basis.