Natural Gas Vehicles (NGV) and Fueling Options
Justin Stiff and Jim Tilley
CenterPoint Energy
1
Which Comes First?
Vehicles or Infrastructure
2
Overview
• Natural Gas as a Transportation Fuel
• CNG Compressed Natural Gas
• LNG Liquefied Natural Gas
• Environmental Advantages
• Economic advantages over other fuels
• Economic/Technologies that have changed supply and prices
• Tax Credits
• CNG & LNG Availability
• Station Examples
• Contacts
• Questions
3
Facts About Natural Gas
Compressed Natural Gas (CNG)
• Gas delivered to site by the local gas utility and compressed and
stored onsite and/or distributed directly to vehicles
• Onboard 3,600 psi vehicle cylinders
• CNG is measured in Gasoline Gallon Equivalents
• NGVs are proven and reliable (11,000+ transit buses and 4,000 +
refuse trucks. Cummins Westport has 10,000 + natural gas
engines in the field.)
• NGVs are quiet (80-90% lower decibel level than diesel)
4
Typical Natural Gas Compressor Station
How it works
• The natural gas enters the compressor station going through the dryer to the
compressor.
• If a slow fill system, no storage is required.
• If Fast Fill, storage required.
• To the dispensing equipment into a NGV.
• Stations can range from $5,000 for an individual homeowner unit to several million
dollars. The price is dependent upon number of vehicles to fuel, number of gallons
per hour and if storage is required.
Information
Needed:
• # Vehicles
• Miles per Gallon
• Gallons per Day
• Timeliness of
Refueling and time
of day
• Delivery Pressure
• Volume per Hour
Flow
5
Liquefied Natural Gas (LNG) Facts
•
Natural Gas cryogenically cooled to liquid @ (-260 Degree)F, stored in liquid
form onboard vehicle and vaporized back to a gas before it enters engine
cylinder. Natural gas replaces the energy (Btu’s) in gasoline or diesel with
the energy (Btu’s) in natural gas.
•
Preferred by many heavy-duty fleets due to its higher energy density and
space requirements
•
Most vehicular LNG used today is produced at a limited number of
and trucked to fleets’ onsite storage vessels.
•
Transportation of LNG to the fueling location is a consideration.
plants
6
Typical LNG Station
How it works
•LNG is stored in the Storage
vessel.
•Upon Demand, LNG is pumped
to the dispenser using a cryogenic
pump into a NGV.
•LNG Stations vary in price based
on the amount of fuel dispensed per
hour and the amount of storage on site.
The prices range from several hundred
thousand to several million dollars.
Flow
7
Environmental Advantages
Natural gas is cleaner than other fuels
•
•
•
•
•
•
•
Reduces carbon monoxide emissions 70-90%
Reduces carbon dioxide emissions 20-30%
Reduces nitrogen oxide emissions 75-95% (less smog and soot)
Potentially reduces non-methane hydrocarbon emissions 50-75%
Emits fewer toxic and carcinogenic pollutants
Emits little or no particulate matter
Eliminates evaporative emissions
Natural gas produces less greenhouse gases than diesel
• Heavy Duty Vehicles (HDV’s) about 20-23%
• Light Duty Vehicles (LDV’s) about 26-29%
8
Economic Advantages - Price Stability
Compared to Diesel
Price of Natural
Gas per Dth
Gas Commodity
Cost
DGE Note 1
Delivery
Cost DGE
Note 2
Electricity Cost
DGE
Note 3
Compressor
Maintenance
Cost DGE
Note 4
Capital
Amortization
Cost DGE
Note 5
Federal & State
Fuel Tax
Cost DGE
Note 6
Total DGE
Note 7
$3.00
$0.375
$0.2714
$0.12
$0.27
$0.45
$0.464
$1.9504
$4.00
$0.50
$0.2714
$0.12
$0. 27
$0.45
$0.464
$2.0754
$5.00
$0.625
$0.2714
$0.12
$0. 27
$0.45
$0.464
$2.2004
$6.00
$0.75
$0.2714
$0.12
$0. 27
$0.45
$0.464
$2.3254
$7.50
$0.9375
$0.2714
$0.12
$0.27
$0.45
$0.464
$2.5129
$10.00
$1.25
$0.2714
$0.12
$0.27
$0.45
$0.464
$2.8254
$12.50
$1.5625
$0.2714
$0.12
$0.27
$0.45
$0.464
$3.1379
$15.00
$1.875
$0.2714
$0.12
$0.27
$0.45
$0.464
$3.4504
1.Cost of Natural Gas Commodity/Dth/7.194
2.Delivery Charge Based on Rate Class Dth/7.194, including demand charge
($1.95/Dth)
3.Per NGV America. Includes Kwh + demand
4.Per NGV America
5.Per NGV America
6.Federal and State Excise Tax Diesel ($0.244 Federal + $0.22 State)
7.Total is before potential $0.50/DGE tax rebate/credit.
9
Economic Advantages - Continued
Conversions from commodity to GGE or DGE:
• 6.22 pounds of LNG = 1 DGE per NWCM (National Conference of Weights and
Measures)
•5.66 pounds of natural gas (CNG) and 126.67 cubic feet = 1 GGE per NWCM
•One cubic foot = ~1,000 BTUs (Note: cf = volume, BTU = energy)
• One Dth = 1,000 cubic feet
• One Dth = 1,000x1,000 = ~1,000,000 Btus (MMBtu or dekatherm)
• One Gasoline Gallon Equivalent (GGE) is 125,000 Btu/GGE…therefore…
• One Dth = roughly 8 GGE of (uncompressed) natural gas.
• One Diesel Gallon Equivalent (DGE) is 139,000Btu/DGE...therefore...
• One Dth = roughly 7.194 DGE of (uncompressed) natural gas
Fuel
Unit of Measure
BTU Content
Natural Gas Dth
Conversion
Natural Gas
Dth
1,000,000
CNG
GGE
125,000
8.00
LNG
Gallon
81,700
12.24
Propane
Gallon
91,600
10.917
Gasoline
Gallon
125,000
8.00
Diesel
Gallon
139,000
7.194
10
Annual Fuel Savings Estimator
Annual Fuel Consumption (values in DGE per year per truck)
Miles per DGE
25,000
5.0
50,000
5,000
10,000
75,000
15,000
100,000
125,000
150,000
175,000
200,000
20,000
25,000
30,000
35,000
40,000
Annual Fuel Savings (values in dollars per year per truck)
Fuel Price Diff $DGE
5,000 10,000 15,000
20,000
25,000
30,000 35,000 40,000
45,000
$
1 .00 or
$.20/Mile
$ 5,000
$
10,000 $
15,000 $
20,000
$
25,000 $
30,000 $
35,000 $
40,000 $
45,000
$
1.25 or
$.25/Mile
$ 6,250
$
12,500 $
18,750 $
25,000
$
31,250 $
37,500 $
43,750 $
50,000 $
56,250
$
1.50 or
$.30/Mile
$
7,500 $
15,000 $
22,500 $
30,000
$
37,500 $
45,000 $
52,500 $
60,000 $
67,500
$
1.75 or
$.35/Mile
$
8,750 $
17,500 $
26,250 $
35,000
$
43,750 $
52,500 $
61,250 $
70,000 $
78,750
$
2.00 or
$.40/Mile
$ 10,000 $
20,000 $
30,000 $
40,000
$
50,000 $
60,000 $
70,000 $
80,000 $
90,000
$
2.50 or
$.50/Mile
$ 12,500
25,000 $
37,500 $
50,000
$
62,500 $
75,000 $
87,500 $
100,000 $
112,500
$
11
Operating Cost Data
Natural Gas vs. Diesel and Gasoline
Long
Haul
Municipal
/Utility
Airport/
Regional
Taxis
Airport
Regional
Shuttles
School
Buses
Refuse
Transit
Local
Haul
Annual Fuel
Savings
$12,0
00
$16,500
$12,000
$18,000
$4,500
$3,750
$6,000
$3,000
Incremental
Cost
$45,0
00
$40,000
$45,000
$65,000
$40,000
$10,000
$20,000
$40,000
Payback
Period
3.75
2.4
3.75
3.6
8.9
2.7
3.3
13.3
Annual Fuel
Use
(Gallons)
8,000
11,000
8,000
12,000
3,000
2,500
4,000
2,000
Comparison
Fuel
Diesel
Diesel
Diesel
Diesel
Diesel
Gasoline
Gasoline
Diesel
Fuel Cost Calculations based upon $1.50 per gallon (DGE or GGE) price
difference, actual price difference in February 2013 is approximately $1.80
per gallon. No incentives.
12
Recent Trends
• Recent decoupling of natural gas and crude oil
• Increased demand for energy worldwide(India, China, Latin America, Other Asia
Pacific countries, Middle East and Africa)
• Shale Gas Development in US
13
Price Creates Incentive to Switch
$/MMBtu
$30
$25
$20
Crude Oil
$15
$10
$5
Natural Gas
shale
$0
1992
Source: Clearport NYMEX
1998
2004
2010
Supply By Source
Source: EIA Annual Early Release Energy Outlook 2013
15
Supply- Short & Long Term
• Storage inventories are still at record levels and are well above
historical five-year average levels.
• Average wellhead prices are predicted to remain low for the
foreseeable future due to the extensive shale gas resources.
• Natural gas produced from shale currently accounts for 23% of
domestic production and is forecasted to continue to rapidly
grow.
• Despite low natural gas prices, drilling continues at a strong
pace, particularly in Pennsylvania and West Virginia as
producers target combination oil-and-gas wells.
Source: EIA Short-Term Energy Outlook, January 2013
16
Domestically Produced…
Shale Basins in the U.S.
17
Where is the Shale Gas?
Groundwater aquifers
Private well, about 500 ft deep
Public well, about 1,000 ft deep
Several layers of steel tubes
encased in cement protect
groundwater supplies
Protective steel casing
encased in cement extends to
shale depth
Fracking depth from the
surface is typically more
than 1.5 miles (7,700 ft. avg.)
and 1+ miles below the
depth of public wells.
For a video detailing the shale hydraulic fracking process, visit:
http://www.hydraulicfracturing.com/Pages/information.aspx
18
Bakken Formation Oil & Gas Fields At Night
Illustration by NPR/NASA
19
Global Natural Gas Vehicle Growth by Region
Millions of Vehicles
10
Asia-Pacific
38.7%
8
6
Latin America
14.8%
4
Europe
16.2%
2
Africa
16.1%
-
2002
2004
2006
2008
2010
-1.2%
North America
Source: www.iangv.org
20
Tax Incentives-Current Fuel Tax Credit
• Tax credits of $.50 per GGE (Gasoline Gallon Equivalent) of
CNG (per 121 cubic feet) and $.50/gallon of LNG when used
as a transportation fuel. (Tax Credit Goes to Fleet owner or
party dispensing CNG/LNG, party that adds value)
• For business property, a tax credit = 30% of the cost of
fueling infrastructure up to a maximum credit of $30,000 per
station.
• For residential home fueling units, the credit is worth 30
percent or a maximum of $1,000.
• All of the above tax credits are available through
12/31/13 and are retroactive to 2012!
• Bonus depreciation allows 50 percent depreciation for 2012
expenditures.
21
CNG and Diesel Blending
• Techno Carb
http://www.ecodieselinjection.com/products.htm
• Eco Dual http://www.ecodual.com/products-2/
22
Engines Available for Conversion
• NGV America
http://www.ngvamerica.org/pdfs/Available_
Vehicles_and_Engines.pdf
23
Automotive and Truck Kit Manufacturers
• IMPCO Technologies
http://www.impcoautomotive.com/AdvHTM
L_Upload/pdfs/IMPCO-CK-ProductOfferings.pdf
• Altech Eco
http://altecheco.com/pages/CNG_Conversi
ons.htm
24
Light Duty Truck Availability
2013 Bi-Fuel Silverado/Sierra 2500HD (3/4 Ton) Extended Cab Pick-up
• ¾ Ton, 6.0L Vortec V8 engine
• Available for long or short-bed models in both 2WD and 4WD
• Combined 17 GGE CNG tank and 36 gallon gasoline tank provide a range of more
than 650 miles
• Bed space used by tank / weight= 24” / 450 lbs.
• Two fuel gauges installed directly on the dash provide reliable readings for CNG and
gasoline levels
• GM Bi-Fuel Silverado/Sierra comprehensive 5-year/100,000-mile transferable
Powertrain Limited Warranty
• Incremental cost = Approximately $9,000-$12,000
• Available 2013
25
Light Duty Truck Availability- Cont.
Ford F-250, ¾ Ton/350, 1 Ton, Bi-fuel Super Duty Truck
• 6.2L V8 engine
• 4X2 or 4X4
• Standard 18.4 GGE (24.5 GGE optional) composite CNG fuel tank
(behind cab)
• With 35 gallon gasoline tank provides combined range over 650 miles
• Bed space used by tank/weight = 26” / 308 lbs.
• 6.75 or 8 ft. cargo box lengths
• Incremental cost = $9,500 - $10,700
• Available beginning in 2012
26
Light Duty Truck Availability- Cont.
2013 Dodge Ram HD 2500 (3/4 Ton) CNG, Crew Cab 4X4
•
•
•
•
•
•
•
Standard 5.7-liter V-8 Hemi engine
18.2 gallon CNG tank in the bed = 255 mile capacity at 14 MPG
Bed space used by tank/weight = 39” / 600 lbs.+
Eight-gallon gas tank provides 100+ miles of range. (35 Gallon option for
$350)
Total combined range for both tanks is around 370 miles
Incremental cost = $10,000 +
Available 2013
27
Heavy Duty Vehicle Options
OEM
Freightliner
Peterbilt
Kenworth
Volvo
Model
M2-112
320
384
365
T800SH
W900S
T440
T470
VHM
Engine
ISL G 320
ISL G 300
ISL G 320
ISL G 320
ISL G 320
Application
6X4 Tractor
4X2 Tractor
4X2 Truck
6X2 Truck
Vocational
Tractor
Vocational
Mixer
Tractor
Tractor
28
Heavy Duty Vehicle Options
Cummins Westport, Inc.
Primary Supplier to OEM’s in:
• Refuse = ISL G &/or ISX12 G
(American LaFrance, Autocar, Crane Carrier,
Kenworth, Mack, Peterbuilt)
• Buses: (School, shuttles, Transit,
Coach) = ISL G
(Blue Bird, Thomas, El Dorado, Foton America,
Gillig, NABI, New Flyer, Orion, Motor Coach)
• Sweepers = ISL G
(Elgin, Schwarze)
• Tractors (short haul) =ISL G &/or
ISX12 G
(Freightliner, Kenworth, Mack, Navistar,
Peterbuilt, Volvo)
• Yard Spotters = ISL G
(Autocar, Capacity, Kalmar)
29
CNG Fueling Infrastructure Costs
CNG Refueling Infrastructure Cost*
Type
Rate/Size
Cost Range
Application
Time Fill-CNG
.25 GGE/HR
$4,500-$5,500
Home
Time Fill-CNG
1.0 GGE/HR
$9,000-$12,000
Home/Fleet
Time Fill-CNG
10.0 GGE/HR
$14,000-$50,000
Home/Fleet
Time Fill-CNG
50-200 GGE/HR
$250,000-$500,000
Fleet
Fast Fill-CNG
50-200 GGE/HR
$500,000-$850,000
Public/Fleet
Fast Fill-CNG
100-200 GGE/HR
$800,000$1,5000,000
Public/Fleet
Fast Fill-CNG
200-300 GGE/HR
$1,250,000$3,200,000
Public/Fleet
*Illustration Purposes Only- Exact costs are dependent on gas quality, Inlet pressure, land costs,
location, civil engineering, onsite storage, back/redundancy – How much fuel in what period of time.
30
CNG Station Locations
Link to Station locations in US or in your State
http://www.afdc.energy.gov/fuels/natural_gas_locations.html
App for Smartphone
http://www.cngnow.com/app/pages/information.aspx
31
Example of CNG Station
City of Bossier
2580 E. Texas Street, Bossier, LA
• 220 GGE/Hour Fast Fill (@ 28 PSIG Inlet)
• $1.5mm
• 240 GGE Storage
• Room to add storage and additional compression
• One acre site (compressor is 30 ft. x 90 ft.)
32
Example of CNG Station
City of Bossier
2580 Barksdale Blvd., Bossier, LA
• 220 GGE/Hour Fast Fill (@28 PSIG Inlet)
• $1.5mm
• 240 GGE Storage
• Room to add storage and additional compression
• One acre site (compressor is 30 ft. x 90 ft.)
33
Example of CNG Station
Ace Solid Waste
6601 McKinley Street NW., Blaine, MN
• 150 GGE/Hour Slow Fill (20PSIG Inlet)
• $1.5mm
• Propane Air Plant near this location
34
Example of CNG Station
City of Shreveport
1731 Kings Highway, Shreveport, LA
• 175 GGE/hour Slow Fill (limited Fast Fill)
• $1.3 mm
• 1 additional compressor for redundancy. Compressor sized for 50 refuse
trucks
• Small Footprint only 20 slow fill nozzles were installed originally (60 ft x 20 ft)35
Example of CNG Station
Sportran Transit Authority
1115 Jack Wells Blvd., Shreveport, LA
• 285 GGE/hour Fast Fill (125 PSIG Inlet)
• $1.3MM
• 240 GGE Storage (Fills 60 DGE in 7 Minutes)
• Large Footprint
• Saved on Compressor stage, with 125 PSIG Inlet
36
Example of CNG Station
Public CNG Station
Time It Lube
6828 Pines Rd., Shreveport, LA
• 120 GGE/hour Fast Fill
• $650,000
• 240 GGE Storage
• Small Footprint (60 ft x 20 ft)
• LA State Tax Credit $250,000
37
Why Natural Gas Vehicles?
Abundant
Affordable
American
Clean
Proven
Estimated
natural gas
reserves
provide over
100 more
years of
supply
The more you
drive the
more you
save with
average
savings of
$1.50 per
gallon,
payback in 24 years
US Imports
about 50% of
oil
consumption,
while 98% of
natural gas
consumption
is produced
domestically
Converting
one refuse
truck from
diesel to
natural gas =
removing 300
vehicles off
the road
Millions of
vehicles
worldwide
use this
technology
It just makes “cents”!
38
CenterPoint Energy CNG Contacts
Minnesota Region
Jon Williams
[email protected]
612-321-4390 or
612-321-4330
(LNG Sales)
AR/OK Region
Jose Laboy
[email protected]
501-377-5278 or
501-658-5278
Texas Region
Justin Stiff
[email protected]
713-207-9077 or
713-859-6429
LA/MS Region
Jim Tilley
[email protected]
318-429-4257 or
318-505-7981
39
Working Together
40
Questions?
41