Switching Municipal Vehicles to Natural Gas Fueling Does It Make Sense. Tom Risley Director Energy Programs Life Cycle Engineering, Pittsburgh, PA

Transcription

1 Switching Municipal Vehicles to Natural Gas Fueling Does It Make Sense Tom Risley Director Energy Programs Life Cycle Engineering, Pittsburgh, PA

2 Study Background Funded by the Heinz Endowments Funded by the Heinz Endowments AVehicle for Change Summer Youth Philanthropy Project

3 Background High petroleum fuel (gas and diesel) prices have resulted from many factors including a finite supply, market pressures, and global conflict. As a result interest in alternative fuels has been renewed. Some alternatives include: biofuels, liquefied petroleum gas (propane), electric vehicles (EVs), and natural gas. The focus of this study is compressed natural gas. 3 Background Info

4 The E85 Effect Flex Fuel Benefits/Promises i Lower fuel costs Reduces Reliance on foreign oil Agri/Ethanol Boost Btt Better emissions i Caveat Emptor $ per gallon basis 25 30% mileage reduction Environmental trade off 4 Background Info

5 About Natural Gas Natural gas is a naturally occurring hydrocarbon formed from organic material similar to those that form petroleum. A very appealing alternative fuel Projected abundance and recent discoveries of shale formations in Southwestern PA Improved exhaust emissions Relative low cost Natural gas must be compressed (CNG) or liquefied (LNG) in order to have sufficient energy density to be used as a transport fuel. 5 Background Info

6 About the fuel perspective Natural Gas 1,000 Btu per Ft 3 ; Therm 100,000 Btu or 100 Ft 3 CNG Commonly stored at 3,000 or 3,600 psi; 32,400 Btu/gal by volume LNG Commonly stored at atmospheric pressure and 260 F; 615 times energy of 1 Ft 3 of natural gas. 6 Background Info

7 Lexicon CNG compressed natural gas LNG liquifiednatural gas GGE gasoline gallon equivalent g NGV natural gas vehicle Retrofit (Convert) backfit natural gas systems into existing vehicles Dedicated run solely on natural gas Flex Fuel run on variety of liquid fuels gas or E85 Bi Fuel run on two fuels gasoline and cng Dual Fuel run with combination of diesel pilot and natural gas simultaneously OEM original equipment manufacturer SVM small volume manufacturers QSR qualified system retrofitters CARB California Air Resources Board Energy Density amount of energy stored per unit volume. LHV/HHV Lower and Higher Heating Value energy content of fuel 7 Background Info

8 Natural Gas Vehicles (NGVs) NGVs have either CNG or LNG fuel storage systems onboard. CNG Natural gas is compressed to ~ 3600 psi and stored in certified fuel cylinders. LNG Natural gas is condensed into a liquid by cooling it to 260 o F. LNG is stored in certified insulated fuel cylinders. CNG Chosen to Complete Analysis due to current availability 8 Natural Gas Vehicles

9 Converting to CNG Gasoline to CNG Gasoline engines/vehicles are converted to CNG through conversion kits. Conversion kits are either ih bi fuel or dedicated. Bi fuel Operates on gasoline or Diesel to CNG Diesel engine/vehicles are converted to CNG through engine replacements or repowers. Engine replacements are dedicated di td and repowers are dedicated or dual fuel. Dual Fuel Operates on diesel and CNG CNG. simultaneously. Dedicated Operates CNG only. Dedicated Operates on CNG only [Source: Honda Civic GX Owner s Manual] [Source: Cummins Westport] 9 Vehicle Conversion Details

10 EPA Certification 10

11 CNG Fuel Storage CNG fuel tanks occupy ~ 3 times more space than gasoline or diesel tanks. In many cases vehicle range or onboard storage space must be reduced. [Courtesy of Dept. of Energy] [Courtesy of Fyda Energy Solutions Inc.] 11 CNG Fueling Storage

12 Fueling Fleet inventory drives fuel requirements Fill speed requirements Right sizing Fill Stations Opportunity timing Incentives Power/facility requirements P.C. McKenzie are recognized experts in U.S., located in Upper St. Clair and on our team the are the worldwide Ingersoll Rand fuel station distributor 12

13 About A Vehicle for Change Study The results of this study are representative of a snapshot at the time the study was conducted. Fuels price (gas, diesel, and CNG), conversion kit cost & availability, fueling station infrastructure, and technology are constantly evolving. Moving forward: Fuel prices will tend increase at their respective rates. CNG conversion kit costs will tend to lower as their availability improves. CNG fueling infrastructure will improve as more vehicles are converted to NGVs. Technology in the natural gas conversion field will advance. Each of these factors will make conversion to natural gas fuel more attractive. 13 Study Background

14 About Study (cont.) Other municipalities considering converting to CNG should explore their own specific fleet and circumstances before converting. Note that this study explores the conversion of municipal vehicles. Private or commercial fleets which typically pay an additional onroad fuel tax on their fuel will have a shorter ROI time period given the same vehicle and consumption. 14 Study Background

15 Study Participants North Strabane Township Peters Township Peters Township Sanitary Authority Peters Township Ambulance Service Township of Upper St. Clair Tri Community South Ambulance Service South Hills Sustainable Fleet Study Is Natural Gas a Fit? 15 Study Participants

16 Study Approach The following was performed for each municipality in the study: Fleet Inventory and Assessment Uili Utilized the Vehicle hil Assessment Worksheet to gather vehicle information and assess each fleet. Municipal Profile Created to better understand each unique municipal ii structure and how its organizations operate within the municipality. Maintenance Approach Identify each municipality's' maintenance philosophy. hl h Determined facility and training requirements. 16 Study Approach

17 Study Approach (cont.) CNG Conversion Evaluation (Conducted on a per vehicle basis) Determined conversion options for each vehicle. Inputs: Conversion Cost, Fuel Consumption, Fuel Price ROI Time Period vs. Vehicle hil Service Life Funding and Fuel Price Differential Requirements Report Card (Recommendations) Business Case for Recommended Vehicle Conversions Provided an implementation plan for recommended vehicles as well as savings over a given time period. Fueling Station Requirements Used fuel consumption data to specify a fast fueling station and estimate cost. LPG vs. CNG Comparison Case Compared ROI time period and savings between a CNG and Propane vehicle conversion. 17 Study Approach

18 Business Case Tangible Fuel Cost differential Carbon Offset Maintenance Cost Conversion Costs Intangible Energy security Green operation 18

19 Upper St. Clair Fleet Summary

20 Organizations include: Administration, i ti Ambulance, Police Dept., and Public Works. Ct Categorized within each organization by service, fuel, and vehicle type. A detailed dtildsummary of Upper St. Clair Twp. vehicles is provided in the report. Fleet Summary for Upper St. Clair Township 20 Upper St. Clair Township Fleet Summary

21 CNG Fill Station Cost Estimate for Upper St. Clair Township Fuel Consumption Summary Upper Saint Clair Fuel Fuel Consumption (Gal.) Weekly Monthly Annually Gasoline 1,057 4,581 54,973 Diesel 576 2,496 29,951 Total 1,633 7,077 84,924 CNG Fast Fill Station Cost Estimate Equipment Qnty Total Cost Ingersol Rand Compressor Model# 20H40NGDX 1 $116,385 Inlet Dryer 1 $68,750 CPI ASME Storage Vessels 3 $100,000 Tulsa Gas Technology Dual Position Dispenser 1 $54,060 Priority Sequential Panel 1 $20,142 Verbatim Auto Dialer 1 $2,957 Total Cost $362,294 Note: CNG Fast Fill Station Cost Estimate provided by P.C. McKenzie Corp. 21 Fueling Station

22 CNG Conversions Available for Fleet Minimal new OEM CNG vehicle availability GM Savana/Express Cargo Dealer/OEM send from lot to conversion Conversions all EPA Certified Costs obtained from SVMs and up fitters. Cost advantage if bulk lkbuy or pool buying 22 Upper St. Clair Township Fleet Summary

23 Build Cost Case by Vehicle 23 Upper St. Clair Township Fleet Summary

24 Conversion Recommendations for Upper St. Clair Township Organization Category Model & ID Year Years to Reach ROI CNG Convert Options CNG Engine Prep Emissions Service Life (Yrs.) Maint. & Facilities Conversion Grade Police Dept. Patrol Crown Victoria Car (306) SUV Explorer (305) Expedition (301) New Not only Avail. Reduction New Not only Avail. Reduction New Not only Avail. Reduction Cert. & Service Life>Year to Reach ROI Training See notes (1). Cert. & Service Life > Year to Reach ROI Training See notes (1)(2). Cert. & Servie Life > Years to Reach ROI Training See note (1) Conversion recommendations were based on several factors: Available Conversion Options, Years to Reach ROI vs. Service Life, CNG Engine Prep, Emissions, & Maintenance. Vehicles not shown were not recommended for conversion. See report for detailed report card. 24 Upper St. Clair Township Fleet Summary

25 Business Case for Recommended Vehicles POLICE DEPT. Fiscal Year SUV Budget Cost (301 & 305)($35K ea.) $70K $0K $0K $0K $0K $70K $0K $0K $0K $0K Pt Patrol lcar Budget Cost (306) ($30K ea.) $30K $0K $0K $30K $0K $0K $30K $0K $0K $30K New SUV w/cng ($46K ea.) (301 & 305) $92K $0K $0K $0K $0K $88K $0K $0K $0K $0K New Patrol car w/ CNG (306)($40K ea.) $40K $0K $0K $38K $0K $0K $38K $0K $0K $38K AnnualFuelSavings (301) $5.55K 55K $5.55K 55K $5.55K 55K $5.55K 55K $5.55K 55K $5.55K 55K $5.55K 55K $5.55K 55K $5.55K 55K $5.55K55K Annual Fuel Savings (305) $2.02K $2.02K $2.02K $2.02K $2.02K $2.02K $2.02K $2.02K $2.02K $2.02K Differential, ( )Loss, (+) Savings (301 & 305) $14.4K $6.9K $.7K $8.3K $15.9K $5.8K $13.4K $21.K $28.6K $36.1K Annual Fuel Savings (306) $4.96K $4.96K $4.96K $4.96K $4.96K $4.96K $4.96K $4.96K $4.96K $4.96K Differential,( )Loss, (+) Savings (301, 305, &306) $19.5K $6.9K $5.6K $10.1K $22.7K $17.6K $22.1K $34.6K $47.2K $51.7K Used annual municipal budgets and vehicle replacement schedules to provide an implementation plan for recommended vehicle conversions. An initial investment in the conversion is required that would be recovered over time in fuel cost savings. Business case accounts for next generation vehicle conversions 25 Business Case

26 Price Differential/Augmentation 26 Business Case

27 Conclusions Given the low usage most of the municipal vehicles were not recommended for conversion to CNG. 175 vehicles were evaluated between each municipality only 8 vehicles recommended 5 Police Vehicles, 1 Ambulance Van, 1 Fire Department SUV, and Sanitary Authority SUV made the cut Results combination of fleet turnover, high cost of conversion, low mileage, and smaller municipal fuel cost differential Cost of Fast Fill Station not included in ROI as fleet size was so small need to bundle station between municipalities/school bus fleets and also make use of growing commercial CNG facilities Conversion recommendations are based on a snapshot of when this study was conducted. Recommendations are subject to change based on the dynamics of factors such as fuel price, conversion kit cost & availability, and supplemental funding. 27 Study Conclusions

28 Questions?????? Further Information: Tom Risley ext (office) (cell)