Natural Gas for Fleet Vehicles

Size: px

Start display at page:

Download "Natural Gas for Fleet Vehicles"

Chester Felix Ramsey
8 years ago
Views:

1 Natural Gas for Fleet Vehicles The Answer to Rising Energy Prices and Lower Emissions Targets Union Gas Limited June 18 th 2014

2 What is Compressed Natural Gas (CNG)? Pipeline gas compressed and stored in cylinders at 3000 or 3600 psi It can then be used in multiple ways: Bulk Fuel CNG can be transported over the road to a location not connected to gas Used for process, power generation and/or heat instead of other fuels such as oil or diesel Transportation Fuel CNG can be used to fuel any type of vehicle Delivery trucks, transit buses, refuse trucks, shunt trucks, etc. It is ideal for any vehicle that is return to base

3 What are the benefits of CNG? ECONOMIC IMPACT SUSTAINABILITY GOALS FUEL PRICE STABILITY ~40% fuel savings, 25% less CO 2, commodity hedging

4 Economics Commodity Price Advantage Natural Gas commodity prices are inexpensive relative to all other energy sources in Ontario (regardless of the purpose) Natural Gas commodity prices are $5.00 $5.75 per GJ ($0.18 $0.21 per DLE) Oil is 3-5x the price Propane is 2x the price $24 - $22 - $20 - $18 - $16 - $14 - $12 - $10 - $8 - Price Comparison CDN $/GJ Oil #2 (Sarnia) WTI Oil #6 (1% NYH) Propane (Mt. Belvieu) $6 - $4 - Gas at Dawn Spot Henry Hub $2 - $0 - DLE = Diesel Litre Equivalent GJ = Gigajoule

5 Economics - Pump Price Advantage On average CNG Fuel Prices are 40% less then all other vehicle fuels Price gap after compression (40% less then closest competitor) Chart Source: The US Department of Energy

6 Economics Sample Payback Chart Source: Go With Natural Gas (

7 Price Stability supply abundance Natural Gas fuel prices have become de-linked from world Oil prices North America currently has over 100 years of supply Chart Source: The US Department of Energy (

8 Price Stability - commodity hedging CNG Pump Prices CNG pump prices are ~40% cheaper then diesel and more stable ~ 30% of pump price is tied to the natural gas commodity price Natural Gas prices can be easily hedged for future years Diesel Pump Prices Oil price fluctuates significantly ~ 60% of pump price is tied to the crude oil commodity price A doubling of Natural Gas prices would only increase CNG pump prices by ~30% Conversion Factors:

9 Environmental reduced emissions Natural Gas vehicles can reduce CO 2 emissions by 25% Natural Gas Emission Reductions versus Gasoline (EIA, 2010)

10 Environmental reduced noise & spill risk Natural Gas engines are up to 90% quieter than diesel Refueling is a sealed system between vehicle & fuel dispenser No soil or groundwater risk as natural gas is lighter than air Chart Source: Go With Natural Gas

11 CNG technology robust and reliable Newest generation engines are changing the industry Cummins Westport ISX 12G, ISL G; spark ignited Comparable power and torque to diesel equivalent Meets all current emissions requirements ded OEM and retrofit options are now available Over 20 North American manufacturers offer factory built busses & trucks Sold through dealers with full warranties, parts and service support Compressor Stations Equipment designed specifically for CNG fueling station applications Packaged solutions are now available to meet all needs Private stations offer supply flexibility and option for card-lock access

12 CNG technology fuel tank ranges Fuel tank technology has improved allowing for increased range Daily range of km s for refuse haulers and transit buses Chart Source: Go With Natural Gas

13 Getting Started - considerations Annual and per kilometer fuel cost savings Fuel consumption differences based on the engine technology in the vehicle Energy equivalency in natural gas units such as m3, ft3, GJs, and kilograms Greenhouse gas emissions benefits including access to complementary RNG Available factory-built natural gas vehicles & where to purchase Vehicle refueling options including private vs public stations and fast vs time fill Operational changes including personnel training Making vehicle repair and storage facilities safe for natural gas use Chart Source: Go With Natural Gas

14 Do You Have Questions? Does a CNG solution work for your fleet? What is your Return on Investment? What do you need to know before proceeding? What are the next steps? Looking for some of these answers? Speak to someone from Union Gas today!

considering natural gas vehicles for your fleet? get the facts

considering natural gas vehicles for your fleet? get the facts taking responsibility At your business, the efficient use of energy brings benefits such as lower bills, improved comfort levels for your