Natural Gas fueling a better tomorrow Spring Environmental Forum Telluride, CO 6/1/16

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Crystal Young
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1 Natural Gas fueling a better tomorrow Spring Environmental Forum Telluride, CO 6/1/16 An introduction to Natural Gas Vehicles and Compressed Natural Gas

2 Purpose Presentation is designed for fleet operators, public policymakers and, especially, people looking for an introduction to Natural Gas Vehicles (NGV) and Compressed Natural Gas (CNG). The content of this presentation can be adapted for an audience with a more extensive background with NGV and CNG adoption. Contents Natural Gas Vehicles Overview CNG Fueling Station Overview Natural Gas Vehicles Financial Overview Other Considerations NGV and CNG Existing CNG Stations (pics) 2

3 Abbreviations & Conversion Factors Used Frequently NGV / Natural Gas Vehicle CNG / Compressed Natural Gas LDV / Light Duty Vehicles MDV / Medium Duty Vehicles HDV / Heavy Duty Vehicles GGE / Gasoline Gallon Equivalent DGE / Diesel Gallon Equivalent CLFP / Cheyenne Light, Fuel & Power BHE / Black Hills Energy BHC / Black Hills Corporation Fuel Conversion Factors 1 Gal. Gasoline = 119,000 Btus 1 Gal. Diesel Fuel = 139,000 Btus 1 dth/mcf Natural Gas = 1,000,000 Btus 8 Gal. Gasoline = 1 dth/mcf nat. gas 7.2 Gal. Diesel Fuel = 1 dth/mcf nat. gas 3

4 Why natural gas? Natural gas is economical. Natural gas prices are low and stable and are projected to stay that way for the foreseeable future. Natural gas is clean. Natural gas vehicles produce lower tailpipe emissions. Switching a garbage truck from diesel fuel to natural gas can reduce emissions that equals up to 325 gasoline-powered cars. Natural gas is abundant. United States has a 100-plus year supply of natural gas. New technology could extend its availability even longer. Natural gas is reliable. Consumers have enjoyed the benefits of safe, efficient natural gas energy for more than 100 years. 4

5 Natural Gas Vehicles overview Fueling vehicles with natural gas goes back to the 1920s Natural gas gets compressed, stored and then dispensed to the vehicle (3600#) Dispensing is temperature and pressure compensated) Existing fill-stations both private and public Quick fill or time fill 5

6 Natural Gas Vehicles overview Vehicles burn natural gas instead of gasoline or diesel fuel or in some cases with diesel fuel. Vehicle and engine basics: On-board CNG storage tank Fuel lines and fittings Electronics to monitor air-fuel mixture Injection in to engine cylinders Vehicle configurations Dedicated only burns CNG Dual Fuel burns blend of CNG and diesel Directly into cylinder or turbo charger Bi-Fuel switches between fuels, automatically 6

7 Natural Gas Vehicles overview What about current vehicles with a gas or diesel engine? Conversion kit enables CNG fuel Growing after market conversion kit industry Kit prices coming down Conversions available for many vehicle types Light Duty & Medium Duty Cars, pickups, vans & box trucks Taxis/Contractor Vehicles. New vehicles too! All Vehicle Types School or transit buses Waste / garbage trucks Cement mixers Beverage & food distribution trucks 7

8 Natural Gas Vehicles overview Conversion kit elements. 8

9 CNG fueling station overview Fueling Station Elements: natural gas supply, dryer, priority panel, compression, storage and dispensing Key variables: Fill Rate: time fill or quick-fill Storage: capacity varies (quick fill only) Gas Supply Compression Storage Dispensers 9

10 CNG fueling station overview Time Fill Longer fill-times: used when return-to-base fleet vehicles spend significant time, often overnight, parked at a garage or otherwise off the road. Time fill applications can cost less (no storage, no dispenser) Typically private and not publicly accessible Quick Fill Faster fill-times: more like traditional gasoline or diesel fueling at a gas station or convenience store Typically open to the public Typically accept major debit and credit cards 10

11 Natural Gas Vehicles financial overview Three main financial considerations Annual fuel savings versus current fuel costs Upcharge (premium) or conversion cost and payback Fleet Conversion Timing (how many vehicles & when?) Annual fuel savings variables Average annual miles a vehicle is driven Average miles per gallon Current fuel (gas or diesel fuel) Current fuel price per gallon CNG price per GGE (allow for difference for DGE) Vehicle Premium or Up-charge 11

12 Natural Gas Vehicles financial overview Annual Fuel Savings Higher annual miles driven, more savings Lower miles per gallon, more savings Vehicles switching from diesel save a bit more over gasoline Upcharge or Conversion Payback Lower conversion cost or upcharge reduces payback time Payback determined vs. conversion kit cost for an existing vehicle Payback determined versus the upcharge for NGV beyond the price of a gasoline or diesel equipped new vehicle 12

13 Other factors NGV and CNG Natural gas is an American fuel providing energy security Environmental benefits: Natural gas is an inherently clean fuel NGVs reduce exhaust emissions Carbon monoxide (CO) by 70 percent 90 percent Carbon dioxide (CO2) by percent Methane Molecule 13

14 Other factors NGV and CNG NGV safety CNG storage tanks on vehicle: Rigorous and regulated safety standards for pressure and capacity Natural gas lighter than air so it dissipates when released Natural Gas is Colorless, odorless and non toxic Your local gas utility adds the odor (mercaptin) Flash point or ignition temperature: 1,000 to 1,100 Fahrenheit Lower than gasoline and lower than diesel 14

15 Things To Consider! CNG Station Footprint - Requirements for land begin at approximately Station Costs See Next Slide. Economic Considerations Contracting CNG Fuel Service w/ Anchor Fleet Natural Gas Bill (May 16. delivered from BHE).... $0.69/GGE Electric Compression Costs. $0.10-$0.12/GGE Station Maintenance/Repair/Service Costs... $0.25-$0.40/GGE Colorado Fuel Tax.... $0.09/GGE Federal Excise (road) Tax.... $0.183/GGE Total.. $1.313-$1.483/GGE Est. Capital Amortization of Stn. Equipment.... $0.30/GGE Grand Total Dispenser Price.... $1.613/$1.783/GGE Est. Minimal Annual Dispenser Usage for Public Stn. = 200,000 GGE Note: We are seeing annual usage in 350,000 GGE 500,000GGE range. Economics for above does not include grants or other financial incentives. 15

16 NGVA Documented Station Costs Fast Fill Station I Fast Fill Station II Time Fill Station Natural gas dryer, one 300 scfm compressor, 3 ASME vessel high-pressure storage systems Natural gas dryer, two 300 scfm compressors, 3 ASME vessel highpressure storage systems, 1 two-hose fast-fill dispenser Natural gas dryer, one 300 scfm compressor, 20 two-hose, time-fill dispensers (no redundancy) Component $500,000 $650,000 $375,000 Installation $300,00 $350,00 $300,0 Total Cost $800,000 $1,000,000 $675,000 Vehicle Fueling Scenarios 15 light-duty/15 GGE consecutively fueling in a 1-hour peak period or randomly arriving light-duty/10 GGE or 10 heavyduty/20 DGE consecutively fueling in a 1-hour peak period or randomly arriving heavy-duty 15 light-duty/15 GGE consecutively fueling in a 1-hour peak period or Randomly arriving light-duty/10 GGE or 10 heavy-duty/20 DGE consecutively fueling in a 1-hour peak period or Randomly arriving heavy-duty/10 DGE 40 vehicles/38 GGE in a 10-hour period or 40 vehicles/33 DGE in each vehicle in a 10-hour period 16

17 For consideration CNG Station Maintenance/Service Requires Experienced Technicians. NGV Maintenance/Service Facilities Be aware of building codes & regulations for vehicle service bays. Clean Energy Authority Having Jurisdiction Always consult w/ area Fire Marshals or other code officials from planning to construction of a CNG station. 17

18 Benefits of Using CNG Positive messaging Reduced vehicle emissions; contributing to improve air quality Fuel Cost Savings potential Fuel Price Stability Meeting sustainability goals Consider using low fuel prices for diesel fuel or gasoline to diversify your fleet by adding NGV buses. 18

19 Questions? 19

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