CNG Infrastructure and Programs. Ian Skelton Director, Natural Gas Vehicles

Transcription

1 CNG Infrastructure and Programs Ian Skelton Director, Natural Gas Vehicles

2 AGL Resources Footprint 2

3 Developing a NGV Program 1. Understand the Market 2. Leverage Industry Resources 3. Develop Service Offerings 4. Target Anchor Fleets 5. Determine Fueling Requirements 6. AGL CNG Infrastructure Program

4 Understanding the Market What is a Natural Gas Vehicle (NGV)? NGVs use the same internal combustion engines as gasoline/diesel Inherently cleaner because it is 97% Methane, or CH 4, compared to other fuels with higher carbon content: (Diesel C 14 H 30 ; Gasoline C 8 H 18 ) Methane Molecule CH 4 Two types of NGVs: 1. Compressed Natural Gas (CNG) still in gas state, dispensed at 3,600 psig 2. Liquefied Natural Gas (LNG) Refrigerated to 260 degrees F to convert to liquid, 1/600 of volume Ethane Propane Butane Pentane Hexane Other

5 Understanding the Market Market Drivers for NGVs Abundant Domestic Energy Supply 98% produced in North America Development of shale has increased supply to > 100 years Reduced Emissions Reduces emissions up to 90% over diesel and gasoline Meets EPA 2010 NOx levels without urea injection, etc. Reduced Greenhouse Gases NGVs emit 20 29% less CO 2 than diesel and gasoline Cost Savings Sept 2012 NYMEX settlement = $0.26/therm $0.26 x 1.25 therms/gasoline Gallon Equivalent = $0.33/GGE Underlying commodity is $0.33/Gallon!

6 Energy Independence Understanding the Market Market Driver: Abundant Domestic Supply ~98% of natural gas consumed in the U.S. is produced in North America U.S. natural gas reserves exceed 100 years at current consumption levels Recent discovery and development of natural gas shales have increased supply North America Natural Gas Reserves

7 Understanding the Market Market Driver: Oil and Natural Gas Prices $/mmbtu Pre-2005 Historical Spread <$1/mmBtu Avg. Spread ~$5.7/mmBtu Forwards Spread ~$10/mmBtu WTI and Henry Hub Gas Price Spread 7

8 PM (g/bhp-hr) Understanding the Market Market Driver: Lower Emissions Air Quality Goals, NAAQS and EPA Emissions Requirements Clean Air Act and Amendments drive local/regional governments to reduce criteria emissions (NOx, PM, etc.) EPA/CARB vehicle emissions requirements and impact on OEMs product offerings, vehicle performance and fuel economy 2002/2004 Stds 2007 Compromise Std 1.2 g/hp-hr NOX +NMHC 1998 Stds Std (.20 g/hp-hr NOx) NOx (g/bhp-hr) Fuel economy and performance trade-offs for diesel to achieve 2004 and 2007 emissions Exhaust after-treatment technologies are expensive and maintenance intensive 2010 NOx target will require SCR with urea for most diesels

9 Understanding the Market CNG Units and Conversions Therms per gal. Efficiency loss Multiplier Gasoline ~ therms/gge Diesel ~ % 1.5 therms/dge Note: Actual measurement and billing based on slightly different factors which vary from state to state. These multipliers facilitate back of the envelope calculations: A fleet paying $0.80 per therm would pay $1.00 per GGE A fleet using 100,000 gallons of diesel annually would purchase about 150,000 therms to drive the same miles CNG Station Rules of Thumb: Compressor capacity Electricity for compression 2 cfm per GGE/hr. ~ 1 kwh per GGE Available storage Scf x 35%

10 Understanding the Market OEM Vehicles Honda Civic Natural Gas is currently the only light duty NGV for consumer/fleet market (Dedicated CNG, 8 GGE, ~ 220 miles range) Recent Announcements from other OEMs: Chrysler now selling Dodge Ram 2500 Bi-fuel Pickup Truck General Motors will sell CNG Bi-fuel Commercial Pickup Truck in Q42012 Ford and Westport LD Announces New CNG System for Ford F-250/350 Super Duty Pickups in Second Quarter 2012

11 Understanding the Market EPA/CARB Approved CNG Vehicles OEM Vehicles (Light duty) American Honda Civic (dedicated) Dodge Ram 2500 pickup truck (bi-fuel) Chevy Express/GMC Savana van (dedicated) Chevy Silverado/GMC Sierra pickup (bi-fuel) VPG MV-1 handicap access taxi (dedicated ) Conversions (Dedicated or bi-fuel) Chrysler Grand Caravan, Town & Country Dakota, Ram 1500 Ford Crown Vic, Grand Marquis, Town Car Focus, Fusion, Milan Escape, Mariner, Tribute F-150/250/350 pickup truck E-150/250/350/450 van Transit Connect General Motors Cadillac Escalade Impala, Lucerne, Malibu Avalanche, Tahoe, Suburban, Yukon L Vans, pickups, cutaways For a complete list go to:

12 Understanding the Market Heavy-Duty Natural Gas Engines Manufacturer Engine HP & Torque Fuel Source Availability Cummins Westport ISL-G 8.9L 320 HP 1000 #/ft Natural Gas Available Cummins Westport ISX-G 11.9L 400 HP 1400 #/ft Natural Gas 1Q 2013 Cummins ISX 15L TBD Natural Gas 2014 Westport HD GX 15L 475 HP 1750 #/ft NG/Diesel Available Navistar Phoenix 7.6L 300 HP 860 #/ft Natural Gas Available Navistar Maxxforce 13L 430 HP 1550 #/ft NG/Diesel 4Q 2013 Volvo-Westport HD 13L TBD NG/Diesel 2014

13 Understanding the Market Heavy Duty Trucking Cummins Westport ISL-G 8.9L Volvo VNM Kenworth T440 Kenworth T800SH Kenworth W900S Freightliner M2 Peterbilt 384 International Transtar, Workstar Cummins Westport ISX-G 11.9L Volvo VN Series Mack Pinnacle Kenworth T660 Freightliner Cascadia Peterbilt International Prostar+, Workstar Westport HD GX 15L Kenworth T800 Peterbilt 386 Peterbilt 388

14 Understanding the Market Dual-Fuel Natural Gas/Diesel Companies like American Power Group, Clean Air Power, and Eco-Dual have achieved compliance under EPA s Out of Useful Life ( OUL ) rule Caterpillar, Detroit Diesel, and Cummins Liter engines CNG or LNG added to existing diesel truck without alteration of the engine Runs on diesel and natural gas simultaneously with average diesel-togas substitution of up to 70% Engine can still run on 100% diesel so no range anxiety Diesel performance and efficiency

15 Leverage Industry Resources NGVA/Clean Vehicle Education Foundation Lobbies for NGV industry on Federal legislation/regulations Compelling Case workshops, marketing materials, etc. Coordinates NGV presence at conferences and trade shows NGV Forum NGV News/dialogue CVEF: Codes and standards, incident investigation, etc.

16 Leverage Industry Resources Drive Natural Gas Initiative Four task forces: 1) Fleet Conversion and OEM Outreach 2) Infrastructure Development 3) Marketing and Education 4) Legislative Advocacy

17 Leverage Industry Resources DOE Clean Cities Organizations

18 Leverage Industry Resources DOE - Alternative Fuel Data Center

19 Leverage Industry Resources Alternative Fuel and NGV Conferences Renaissance Houston Greenway Plaza Hotel, Houston, Texas October 23-24, 2012 Renaissance Convention Center Hotel in Schaumburg, Illinois October 3rd-5 th, 2012 ActExpo 2013 will be in Washington, DC June 24 27, 2013

20 Leverage Industry Resources Technical Publications Available

21 Leverage Industry Resources Grant Opportunities DOE Clean Cities Alternative fuels, petroleum reduction EPA DERA Clean Diesel Campaign - CNG is eligible DOT Congestion Mitigation & Air Quality (CMAQ) FAA VALE grants for airports FTA grants for transit State Funds Work with your Clean Cities Coalition, MPO and Regional EPA Collaborative!

22 Develop Service Offerings AGF Report: Business Models for LDCs NATURAL GAS AS A TRANSPORTATION FUEL: BUSINESS MODELS FOR LOCAL DISTRIBUTION COMPANIES Prepared for: American Gas Foundation 400 North Capitol St., NW Washington, DC Prepared by: Science Applications International Corporation (SAIC) 8301 Greensboro Drive McLean, Virginia, 22102

23 Develop Service Offerings AGL V-52 Rate AGL installs, owns, and maintains the CNG equipment (fast fill, time fill, or combination) Customer provides land, does any site development Public access recommended but not required Same delivery charges as regular commercial (G-11) rate Facilities charge Recovers cost of CNG equipment and maintenance 1.5% per month

24 Develop Service Offerings Develop Internal Capabilities Department of full time CNG technicians, 24-hr. emergency dispatch, etc. AGL personnel trained on the following CNG Equipment and Accessories Large Compressors Caterpillar Engines FuelMaker Home Fueling Appliances CNG Dispensers Xebec Dryers Emergency Back-up CNG Refueling CNG Station Design and Construction

25 Develop Service Offerings AGL Partnership with MARTA AGL and MARTA developed a CNG transit bus program in 1996 AGL maintains 2 CNG stations for MARTA s 370 CNG buses Program Benefits: Saves millions of dollars on diesel fuel costs Displaces about 150,000 barrels of oil each year Reduces emissions by millions of pounds of pollutants

26 Develop Service Offerings AGL is FuelMaker Dealer in GA, TN and VA Home Refueling Appliance (HRA or Phill ) Fuels at rate of ~ ½ gallon/hr. Electrical: 240 VAC, 0.8 kwh Dimensions HxWXD: 30 x14 x13 Vehicle Refueling Appliance (VRA) FMQ-2-36 Fuels at rate of ~ 1 gallon/hr. Electrical: 240/208 VAC, 7 amps Dimensions LxWxH: 21"x20"x39" FMQ-8-36 Fuels at rate of ~ 4 gallons/hr. Electrical: 240 VAC, 28 amps Dimensions LxWxH: 33"x48"x32"

27 Develop Service Offerings AGL is a Bauer Distributor Compressors up to 700 cfm Over 1,400 BAUER CNG systems in operation worldwide New units being produced are rated for 30,000 hours of continuous operation with lifecycle support of up to 40 yrs. Built in Norfolk, VA

28 Develop Service Offerings Bio-Methane Gas Transportation AGL TS-1 and TS-2 rates to accept bio-methane into system Enables renewable source of natural gas RINS credits available if dispensed directly/indirectly into CNG vehicles Recently trading at about $0.80/GGE or $6.40/mmBtu

29 Target Anchor Fleets High Volume, Return to Base Fleets Taxi, Airport, and Shuttle Terminal Buses, Hotel/Parking Shuttles, Taxis, Door-to-Door Solid Waste Refuse and recycling collection, commercial container and roll offs, transfer vehicles Transit Fixed-Route Buses, Para-Transit, School Buses National Fleets (Trucking) Interstate/Intrastate Trucking, Short-Haul Delivery, Food & Beverage, Floral Utilities Service vehicles, meter reading

30 Target Anchor Fleets Survey Vehicles and Fuel Usage Vehicle Survey Form Company: Contact: Yearly Average Fueling Category Use Make/Model Year Quantity Mileage Fuel Type Fuel Gals. Hours Examples: Example: Ford F G am General use Light and Medium Duty Vehicles Mechanics Security Etc. Delivery trucks Heavy Duty Vehicles Additional Information: Buses Etc.

31 Target Anchor Fleets Determine Vehicle Costs Get quotes from vehicle providers: Honda Civic Natural Gas dedicated CNG $7,500 Chrysler Dodge Ram 2500 bi-fuel pickup truck - $11,000 Chevy Express dedicated CNG van - $14,000 Step van - $24,000 School bus - $30,000 Garbage truck - $35,000 Class 8 tractor - $50,000 70,000 (depending on engine and tank configuration) Note: EPA certified conversions of light duty vehicles will be in the $10,000 15,000 range

32 Determine Fueling Requirements CNG Station Options Station Size and Design Considerations What s needed? Time-Fill or Fast-Fill Number of vehicles per day, fueling patterns, maximum daily flow, maximum hourly flow Available back-up fueling or need for redundancy? Dispensing/Metering/Data/Payment needs? Modular approach adds capacity as fleet grows Station Location Options: Offsite use existing public access station if available, convenient and of sufficient capacity. Onsite - private access only Onsite - with public access outside the fence

33 Determine Fueling Requirements Implementation Strategies Coordinate multiple fleets to anchor a publicly accessible station who wouldn t be able to justify one on their own. Co-locate on existing fueling stations, truck stops, etc. If your project will depend on grant dollars, have it shovel ready for the next funding opportunity. Typically, DOE and EPA grants only provide about 45 days to submit the application so don t wait until the RFP is issued. Pilot projects Mobile/temporary fueling equipment can enable fleets to try CNG before committing.

34 Determine Fueling Requirements Temporary Fueling for Pilot Projects CNG Express Portable Fueling System

35 Atlanta Public Access CNG Stations Existing (5) (2)(2) Clean Energy, College Park PS Energy - Whitehall St. PS Energy Lithonia PS Energy Stone Mtn. Under Construction (2) DeKalb Co. Ellenwood American Fuel Systems Buford Hwy. PS Energy East Point

36 AGL CNG Infrastructure Program 5 year program to invest $11.57 million from USF AGL will not be the CNG Retailer AGL will install, own and maintain the CNG compressors, storage, controls, etc. ( CNG Equipment ) CNG Retailer/Applicant to lease land for CNG Equipment CNG Retailer to install, own, and maintain the dispensers, card readers, etc. and make any site improvements Requires fleet commitment to use 20% of station capacity Includes Home Refueling Appliance (HRA) lease option

37 Eligibility Criteria 1) Fleet Operator Contract to utilize at least 20% of station capacity Minimum 30,000 Gasoline Gallon Equivalents (GGE)/yr. for 5 years 2) CNG Retailer Perform CNG retail function for a minimum term of 5 years Accept all major fleet cards, MasterCard, and Visa Purchase gas from certificated marketer at AGL meter 3) Property Owner Commit to lease space for a minimum term of 5 years Accessible to other fleets and public 24/7

38 CNG Equipment Sizing/Cost CNG EQUIPMENT ESTIMATED INSTALLED COSTS STATION SIZE DESIGN W/ 50% REDUNDANCY PEAK HOUR COST 75 gals/hr. (75 cfm x 2) + 36,000 scf storage 175 gals/hr $642, gals/hr. (150 cfm x 2) + 36,000 scf storage 250 gals/hr. $836, gals/hr (400 cfm x 2) + 36,000 scf storage 500 gals/hr. $1,105, gals/hr. (500 cfm x 3) + 72,000 scf storage 950 gals/hr. $1,685, gals/hr (1000 cfm x 3)+ 72,000 scf storage 1700 gals/hr $2,300,000 Note: Costs are just for CNG Equipment only and do not include land, site development, buildings, etc.

39 CNG Program Timeline AGL issued RFP for project applications on March 1, 2012 Applications were due April 16 AGL issued notices of awarded project May 25 Applicants now have until Sept 24 to finalize and execute contracts with AGL Construction will begin after the first of the year with the first stations coming on line in Summer 2013 Any funds awarded to applicants who fail to sign contracts with AGL will be made available to other applicants on a first-come-first-served basis

40 AGL CNG Program - Awarded Stations Metro Atlanta FireSide CNG, Roswell Horizon Fuels, an affiliate of Jacoby Energy Development, Midtown Premier Transportation, Forest Park City of Atlanta, North Avenue City of Atlanta, Claire Drive Macon Mansfield Oil, Pio Nono Avenue Savannah Colonial Group through its Enmark Subsidiary, O Leary Road Nopetro, Dean Forest Road Valdosta The Langdale Company, James P. Rogers Drive

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42 AGL CNG Program HRA Lease Option AGL is distributor of FuelMaker Phill Home Refueling Appliance (HRA) Fuels at rate of approx. ½ gallon per hr. 240 VAC power supply ~ $0.20 per GGE electric compression cost Lease Payment Standard - $120/month (includes $2,000 installation) USF plan - Reduced to $60 for first 500 units

43 For More Information See Atlanta Gas Light s CNG Infrastructure Plan homepage: or contact: Ian Skelton Director, Natural Gas Vehicles AGL Resources iskelton@aglresources.com