natural gas basics webinar
DESCRIPTION
Learn about the basics of compressed natural gas (CNG) and liquefied natural gas (LNG) as transportation fuels. A presentation will be made from station installers and users of LNG. Lastly, hear about current incentives for fleets when purchasing CNG or LNG vehicles.TRANSCRIPT
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CNG AND LNG: WHAT’S BEST FOR YOUR FLEET?
Wisconsin Clean Cities and Clean Energy Webinar October 8, 2013
www.cleanenergyfuels.com
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Today’s Discussion Topics
The case for natural gas as a vehicle fuel
7 factors to consider in choosing the right fuel
CNG / LNG comparison
Application considerations
Infrastructure
Payback analysis
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Natural Gas Heavy Duty Market
CNG or LNG? It All Depends
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Natural Gas: It’s Abundant, Domestic & Clean
Natural Gas
200+ year supply
Renewable sources available
NGVs offer best solution to reducing foreign oil dependency
< 1% of NG used for transportation in U.S.
– 150,000 NGV's on road in U.S. today
– 400,000 NG Trucks consuming 20,000 gallons/year each will use < 5% of our Nation’s Demand
Supplied From US and Canada
Imported 98%
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Energy Security: Who Provides Our Energy?
US28%
Canada13%
Mexico8%
OPEC32%
Others19%
Crude Oil & Refined Product Sources for US Consumption
US80.0%
Canada16.4%
Mexico0.2%
Others3.3%
Natural Gas Sources for US Consumption
Source: EIA data for 2007 http://tonto.eia.doe.gov
Powering the US Heavy-duty Truck and Bus fleet with natural gas could displace 3 billion gallons of diesel per day which is roughly more than half of the imports from OPEC and could shave $100 billion off the annual trade deficit at current oil prices.
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NG Trucks Emit Less Emissions
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
Biodiesel 100 (No
OEM Warranty)
Biodiesel 20 (Some
OEM Warranty)
Biodiesel 5 (OEM
Warranty)
Diesel CNG/LNG
NOx (Smog Forming Chemical)
2010 US EPA NOx Emission Standard
CNG/LNG continues to provide superior NOx benefits over the competition, 65+% better emissions over “clean diesel”
CNG/LNG particulate matter, unlike diesel, is not identified by Cal EPA as a Toxic Air Contaminant which can cancer or reproductive harm
Sources: (1) California Air Resources Board , Certifications of 2010 Cummins Diesel and CNG/LNG 8.9L Engines, EO A-021-0526 and EO A-021-0520, respectively; (2) California Air Resources Board, “Biodiesel and Renewable Diesel Rulemaking 2nd Public Workshop, Lex Mitchell, Bon Okamoto, May 19, 2010.
g/b
hp-h
r
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Cost of Natural Gas versus Crude Oil
$109.46 Price as of 10.04.13
$3.51 x 5.8 = $20.36
Natural Gas Equals $23.08 per Barrel of Oil (energy equivalent )
Commodities Market October 04, 2013
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58%
11%
12%
19%
22%
55%
16%
7%
TAXES
20%
46%
28%
6% DISTRIBUTION &
MARKETING
REFINEMENT
COMMODITY
CNG LNG DIESEL
What Makes Up a Gallon of Fuel?
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7 Factors for an Informed Fuel Decision
1. Vehicle Type and Application
– LNG / CNG differences and advantages
2. Duty Cycle
– Range, speed, idle time
3. Combined Weight
– Payload, storage tank weight
4. Hours of Service
– Drive, idle, down time
5. Fuel Cost
– Savings vs. diesel and gasoline
6. Fleet Fueling Needs
– Refueling cycles
7. Fueling Infrastructure
– Availability on your routes
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CNG / LNG – the Distinction
CNG and LNG are simply two different ways natural gas is
stored
There is no such thing as an “LNG engine” or a “CNG engine”
– It’s not engine type that differentiates LNG
and CNG, it’s how the fuel is stored and
supplied to the engine
– Both are delivered to the engine as a gas
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LNG / CNG – Energy Density
Relative to one gallon of
diesel:
– LNG = 1.7 DGE
– CNG = 3.8 DGE
Energy density is an
important factor you
need to consider when
choosing a natural gas
vehicle
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1
2
3
4
5
6
7
One DGE
DIESEL
CNG
LNG
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CNG and LNG
FUELING CONSIDERATIONS
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Compressed Natural Gas (CNG) Basics
Light, medium, and some heavy duty applications
– <50 DGE/Truck/Day
NG delivered by gas co pipeline to fueling station
Dried, compressed & stored at 4,500 psi and dispensed to vehicle at 3,600 psi
Dispensed at similar speed (gpm) to gasoline
Stored in cylinders onboard the vehicle
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CNG Time Fill
Complete fill because we can dissipate heat
– Three to six hour fill period
– Increase Range
Lowest cost installation
– Best value
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CNG Fast Fill
Large capital investment
– >2X compared to LNG
– $5+ million for four lanes dispensing at 12 gpm at the same time
– 0.5 acre for CNG compound & electrical equipment
High heat gain during fueling
– >30% loss of storage
Industrial Utility Services
– NG, both pressure & flow
– >2 MW electrical demand
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CNG Station Reality
The majority are not “truck friendly”!
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Liquefied Natural Gas (LNG) Basics
Pipeline gas cooled to -260F
Produced at LNG plants
Delivered in trailers to fuel stations
Rapid fueling at 12+ DGE per minute
Ideal for heavy duty vehicles
– Storage volume is half of CNG
– System weight is less than CNG
– Consistent fuel range vs. CNG
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LNG Fast Fill Fueling
Transparent to diesel fueling
– Typically, not site constrained
LNG storage reduces truck weight & increases range compared to heavier/multiple CNG HP vessels
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CNG / LNG
APPLICATIONS
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Consider Your Application
Choosing between LNG and CNG is really about the spectrum - at either end the choice is relatively fixed
CNG LNG
light-duty
automotive & industrial
bus &
vocational trucks
heavy-haul
transport
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Fueling Options Widen in the Middle
CNG LNG
bus &vocational trucks
CNG is a good option for: Refuse and
transit using fast or time fill
Medium duty applications < 300 miles per fill
LNG is a good option for: Long driving range
requirements
8.9L to 12L engines hauling up to 80,000 lbs
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Your Fleet’s Duty Cycle is Important
Helps you evaluate:
– How much energy your vehicles require
– How often vehicles will need to be refueled
Consider:
– Number of hours a vehicle is in use per day
– Number of hours a vehicle is driven per day
7 DAYS
LNG NEEDS TO BE USED WITHIN 7 DAYS TO AVOID TANK VENTING
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Consider Your Fleet’s Fueling Needs
Return to base fleets are good candidates for CNG
– You can install infrastructure to fuel at base using fast fill or time fill
Time fill is an attractive fueling method that is less costly and complex
– Does not require a storage system
– Compressor is smaller and less expensive
– Attractive option for fleets that are idle overnight, like refuse and school buses
Fleets that operate around the clock need a fast fill option
– Public or private
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Payload and Storage Tank Weight Count
The weight difference between CNG and LNG is dependent on the amount of fuel being stored
LNG CNG
26 Gal. 58 Gal.
Diesel
15 Gal.
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Ask Yourself…
How much tank weight can you afford?
– A Westport LNG tank providing 60 DGE’s of storage capacity weighs 1,100 lbs when full
– CNG tank packages providing 60 DGE of fast fill storage capacity typically weighs 1,600 lbs
How much space will the tank require?
– LNG tanks are typically mounted with standard diesel tank brackets
– CNG pressure vessels are typically packaged in steel racks
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CNG
Advantages
Greater infrastructure than LNG
– Light and medium duty
Simple fuel systems
– Easy to fuel like gasoline
No diesel, DPF, or SCR to manage (SI engines)
Gas/Vapor instead of cryogenic
No fuel loss if parked for an extended period of time
Considerations
Less CNG infrastructure for trucks than LNG
Fuel storage tanks
– Heat of compression
– Weight of storage tanks
– Range limitations
Limited to 9L and 12L spark ignited engines
– Cummins 15L in 2016
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LNG
Advantages
Greater fuel density/volume
– Greater range then CNG
– Lower weight of storage
Faster fueling
– Fuels like diesel
– No impact to HOS
Growing “Truck Friendly” infrastructure
No diesel, DPF, or SCR to manage (SI engines)
Considerations
Cryogenic tanks
Special handling when fueling
Pressure and temperature management of fuel to engine
Potential boil off (use it or lose it) if vehicles are parked for extended period
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NATURAL GAS FUELING
INFRASTRUCTURE
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Clean Energy Vertically Integrated Fuel Partner
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North American Infrastructure
CNG is more publicly available than LNG
CNG stations must be near a pipeline network
– Concentrated in California, New York, Utah, Oklahoma, Arizona, Texas, Colorado
LNG can be hauled long distances from the liquefier while remaining economical
About 150 LNG stations would provide fueling coverage along all of the major interstate trucking routes
– At 250 mile intervals
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Clean Energy
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Oak Creek-Pilot LNG Station
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Oakdale Road Ranger (102 E Woody St) LNG Station
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More LNG Stations Open Every Month On ANGH
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Sample Customers
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LNG Fuel Economics
Diesel Truck Cost $85,000
Diesel 2010 Emissions System $10,000
FET @ 12% $11,400
Total Diesel Truck Cost $106,400
NG Truck Cost $125,000
FET @ 12% $15,000
Total NG Truck Cost $140,000
Net Incremental Cost $33,600
Diesel Truck Operating Costs
Fuel Economy (MPG) 6.5
Fuel Cost ($/Gal) $3.75
Fuel Cost per Mile $0.58
NG Truck Operating Cost
Fuel Economy (MPG) 5.8
Fuel Cost ($/Gal) $2.50
Fuel Cost per Mile $0.43
NG Truck Savings per Mile $0.15
% Savings over Diesel 25%
Annual Mileage 200,000 150,000 100,000
Annual Fuel (DGE) 34,483 25,862 17,241
Annual Savings $29,178 $21,883 $14,589
Simple Payback (Months) 14 18 28
0
5
10
15
20
25
30
200,000 150,000 100,000
Pay
bac
k (M
on
ths)
Annual Miles
Simple Payback
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Natural Gas for Transportation
Domestic & Abundant
Cleaner Cheaper
Steve White
Business Development Manager 312-771-6718