Alternative Fuels: Understanding the Market, Seizing the Opportunity. August 2011

Transcription

1 Alternative Fuels: Understanding the Market, Seizing the Opportunity August 2011

2 Natural Gas Vehicles Confidential 2

3 Benefits of NGVs NGVs provide a compelling return on investment to fleet operators. Natural gas is currently $1.50-$2.00 lower-cost per gallon than diesel The incremental cost of an NGV over a base diesel vehicle is $25-50k, depending on the size of the vehicle Attractive payback period for heavy fuel users (transit buses, refuse trucks, school buses) Less than four years without subsidies Less than one year with subsidies Return-to base fleets of 20+ vehicles can justify investment in on-site fueling infrastructure Confidential 3

4 Benefits of NGVs NGVs have other benefits to fleet operators. Natural gas prices can be locked in for multiple year contracts giving fleet operators greater predictability in one of their primary costs With no moving parts in the fueling system, maintenance is simpler and maintenance costs are =/< than for gas or diesel 2010 emissions-compliant diesel engines are expensive, and require retraining of drivers / maintenance personnel NGVs are clean and quiet. Natural gas is mostly methane: CH4 (versus Diesel C14H30; Gasoline C8H18; Propane C3H8) Natural gas offers a reduction in GHG, particulates, SO2 and NOx relative to diesel HD NGVs are 80-90% lower db level than comparable diesel Confidential 4

5 Benefits of NGVs NGVs are proven and reliable. ~11 million NGVs in use worldwide; ~110K operating on US roads Fleets are best (high fuel use, central fueling, local routes/op. areas) ~11,000 transit buses (1 in 5 buses on order are NGVs) Nearly 4,000 refuse trucks new fleets transitioning, existing fleets expanding 3,000+ school buses 15-17,000 MDVs in shuttle and wide variety of work truck applications 25,000+ LDVs in federal, state local government fleets; private fleets Natural gas is very safe. Lighter than air dissipates when released High ignition temperature: 1,000-1,100oF Limited range of air/fuel combustion ratio (5-15%) Colorless, odorless, non-toxic substance Does not leak into groundwater Comprehensive fuel tank, vehicle and station design/mfg codes & standards Confidential 5

6 Favorable Supply & Demand Natural gas is an abundant and inexpensive domestic fuel, and even a significant increase in NGV use will not materially increase demand. ~87% from US; ~12% from Canada, only ~1-2% imported (LNG) Well-developed distribution infrastructure Consistent buffer of supply in proven reserves; technology improvements keep expanding recoverable base Improved technologies have made shale gas economically viable. Supply now estimated at 115+years Only 1% of natural gas is used as a transportation fuel Confidential 6

7 Options Confidential 7

8 Options (LNG or CNG) LNG is attractive by many heavy-duty fleets due to its increased range and reduced space requirements. Cryogenically cooled to liquid at ~(260)F, stored in liquid form on board vehicle and vaporized before it enters engine cylinder Most vehicular LNG used today is produced at a limited number of plants and trucked to fleets onsite storage vessels Transport costs are a major determinant of economic feasibility Growing interest in small- and medium-scale liquefaction plants located nearer to point of end-use; likely higher production cost/gallon but lower transportation cost Gas supply from pipeline, landfills, sewage/agri-waste digesters Confidential 8

9 Liquid Natural Gas Confidential 9

10 LNG Pros & Cons In choosing LNG over CNG, a fleet operator should consider LNG s relative advantages and disadvantages as a fuel. Advantages Disadvantages Fewer tanks / space requirements Greater fuel density Complexity of tanks Pressure and temperature management of fuel to engine Lower weight storage Maintenance cost of Cryogenic parts Use it or lose it Reliability is challenging Life cycle fuel cost over CNG may be more Confidential 10

11 Compressed Natural Gas Confidential 11

12 Compressed Natural Gas CNG is widely used in heavy-duty fleets due to its reliability and ease of use. Gas delivered to site by local gas utility and compressed and stored onsite and/or distributed directly to vehicles, or Onboard 3600psi vehicle cylinders; 4 types of onboard cylinders; Type I (all metal) Type II (metal liner, partial wrap) Type III (metal liner, full wrap) Type IV (plastic liner, full wrap) Confidential 12

13 CNG Pros & Cons In choosing CNG over LNG, a fleet operator should consider CNG s relative advantages and disadvantages as a fuel. Advantages Disadvantages Unlimited hold times no fuel loss More mature technology Gas/Vapor instead of Cryogenic Cost of compression Energy and maintenance with a compression station Size of storage tanks Possible weight disadvantage Simple fuel tanks and pressure management System design can be customized for application Confidential 13

14 CNG System Mounting Styles Confidential 14

15 Rail/Side Mounted System Clear rail space required Ground clearance Replace diesel tank space Confidential 15

16 Side Mounted System cont d Ground clearance concern is lessened with use of the larger diameter tanks (25, 40, or 45 DGE possible) Side Mount as shipped Choice Side Mount ground clearance if 25 tank is used Confidential 16

17 Behind Of Cab System No overall height impact Minimal impact on wheelbase Confidential 17

18 Roof Mounting Systems Considerations for roof top mounted systems include Overall height typical limit of 13 6 (162 ) is affected by chassis height, body height, CNG tank diameter Roof mounted cylinders hopper door actuating cylinders force longitudinal oriented CNG cylinders in most cases Hydraulic lines must be aware of CNG system space claim Design leading surface of system is tapered and supported System mounting styles Without cylinder With cylinder for hopper in Body Confidential 18

19 Shelf Mount System / Custom No overall height impact Minimal impact on wheelbase Confidential 19

20 Prototype to Production Typical Fuel System Timeline: Step #1: Analyze O.E.M. chassis/structure layout Step #2: Provide Conceptual models (Pro Engineer) Step #3: FEA/FMEA/APQP Step #4: Customer to approve conceptual design Step #5: Build & Install Prototype Step #6: Design Validation & Testing Step #7: PPAP Step #8: Program/Product Launch within 4-6 months Confidential 20

21 Agility Fuel Systems Confidential 21

22 About Us Two Industry leaders have joined forces to form FAB Industries and Enviromech Industries have joined to create the North American leader in engineering and manufacturing alternative fuel systems for: Heavy and Medium Duty Truck Buses/Transit Stationary and Mobile Fueling Fuel Management Confidential 22

23 Industry Leader Agility Fuel Systems is the North American leader in engineering and manufacturing on-board CNG and LNG fuel systems for heavy-duty vehicles. Agility s origins date to 1996 Our systems are currently used in 90% of all heavy-duty CNG/LNG vehicles in the U.S. Locations in California, Alabama, British Columbia, and Tennessee We employ a large staff of highly-qualified alternative fuel professionals in multiple strategic locations across North America We have been recognized as a leading supplier by many truck and bus OEM s and as a key alternative fuels partner by major fleet operators Confidential 23

24 Unparalleled Experience For 15 years our teams have been engineering a wide range of complete alternative fuel system solutions. Agility offers: Proven engineering, design and fabrication experience A long track record of safety and reliability Over 10,000 systems in service Extensive design library - CNG, LNG, Hydrogen and Electric Hybrids A large team of trained technicians for installing and servicing systems Confidential 24

25 Unparalleled experience For 15 years our teams have been engineering a wide range of complete alternative fuel system solutions. Agility offers: Deep engineering, design and fabrication experience A long track record of safety and reliability Deep experience in the refuse, transit, port truck, and local-haul trucking markets, with 10,000 vehicles in operation today Extensive design library - CNG, LNG, hydrogen and electric hybrids A large team of trained technicians for installing and servicing systems Confidential 25

26 Service & Customer Support A Team You Can Trust Customer Support Warranties Detailed Manuals Training Agility s team of mechanical and electrical engineers develop custom solutions to meet the unique and changing needs of our customers. Our full spectrum of services includes design, prototyping, manufacturing, installation, and continuous service and support. Confidential 26

27 The Future Agility is a value-added partner to Peterbilt and it s dealers in exploring the further use of natural gas in your product offering. Agility believes Peterbilt' s customers will realize significant economic and environmental benefits from increased use of alternative fuels Agility offers our longstanding industry expertise, relationships, and engineering track record to help ensure Peterbilt' s success Confidential 27

28 Agility Fuel Systems Thank You Jeff Scott Vice President Agility Fuel Systems Confidential 28