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SOUTH SHORE CLEAN CIITES

TRANSPORTATION Opportunities with Compressed Natural Gas (CNG) in Northern Indiana!

NIPSCO Energy Symposium

October 9, 2013

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Introduction

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Carl Lisek

Executive Director of South Shore Clean Cities and

Vice President of Legacy Environmental Services

• ✔ Legacy Environmental Services is a small business focused on helping municipalities, schools, businesses and other sectors implement green/ sustainable initiatives and save $ in doing so!

✔ Legacy is also contracted with the US Department energy to manage and grow two “Clean Cities” non-profits

South Shore Clean Cities & Wisconsin Clean Cities ✔ Our Clean Cities organizations focus on education, outreach and developing partnerships to promote the use of alternative fuels and cleaner transportation strategies.

Our goal is to improve air quality, reduce greenhouse gas emissions and lessen our dependence on foreign oil

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South Shore Clean Cities

• Sponsored by the DOE’s Office of Energy Efficiency and Renewable Energy's Vehicle

Technologies program

• Provides a framework for businesses and governments to work together as a coalition to

enhance markets

• Coordinate activities, identify mutual interests, develop regional economic opportunities, and

improve air quality

• Deployment of alternative fuels and advanced vehicle technologies & infrastructure

Mission

To preserve and revitalize Northern Indiana by promoting the use of clean fuels and clean vehicle

technologies.

South Shore Clean Cities provides

Education and outreach, training, assistance in acquiring necessary funding to implement projects,

and development of stakeholder partnerships.

The coalition's fuel portfolio includes biodiesel, electricity, ethanol, natural gas, and propane.

Additionally, the coalition advocates idle reduction and fuel economy technologies.

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Clean Cities Network

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About Clean Cities

Mission To advance the energy, economic, and environmental security of the United

States by supporting local decisions to reduce petroleum use in transportation.

Goal

Reduce petroleum use by 2.5 billion gallons per year

• Replacement

• Reduction

• Elimination

Accomplishments • Saved nearly 3 billion gallons of petroleum since

1993 Put more than 775,000 alternative fuel vehicles

(AFVs) on the road

• Installed more than 6,600 alternative fueling stations

Eliminate

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Building Technology Bridges to a Clean Energy Future 3

> Hydrocarbons, predominantly methane (CH4)

> High octane rating

> Nontoxic, noncorrosive, and

noncarcinogenic

> Lighter than air - Not a threat to soil, surface

water, or groundwater

> Lower ozone-forming emissions than

gasoline

> Extracted from gas and oil wells

> Existing pipeline distribution system

> Narrower combustion range & higher ignition

temperature than gasoline

Natural Gas basics

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Building Technology Bridges to a Clean Energy Future 4

Compressed Natural Gas (CNG)

> Stored in onboard tanks under high pressure

> Fuel economy similar to gasoline

> 1 GGE = 5.66 lb CNG = ~1.25 therms

> 1 cubic foot volume @ 3,600 psig -> (33% of gasoline)

Liquefied Natural Gas (LNG)

> Kept at cold temperatures

> Stored in double-wall, vacuum-insulated pressure vessels

> Heavy-duty vehicles needing extended rang

> 1 GGE = 1.5 gal LNG

> 1 cubic foot volume LNG -> 4.9GGE (65%)

2.3GGE

e

Basics: CNG and LNG

Building Technology Bridges to a Clean Energy Future 7

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• Prevailing viewpoint based on differences in fuel properties and

technologies: – CNG is best suited for shorter daily range (<300 miles) return to base applications (e.g.

refuse trucks and transit)

– LNG is best suited long haul applications (e.g., class 8 trailers)

CNG vs. LNG applications

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CNG LNG Implications

STATE

high pressure gas

(2,500 – 3,600 psig)

cryogenic liquid (-259 °F)

fueling infrastructure, fill

time, tank type/weight, and

protective measures for

LNG

ENERGY DENSITY 23,000-

35000 BTU/gal

74,000 BTU/gal

fuel tank

volume/weight/range,

payload (LNG for longer

distance))

SOURCE

pipeline

Transport from LNG plant

TEMPERATURE ISSUES

associated with filling tank to

full capacity

associated with fuel

loss/venting as the tank

warms

LNG – frequent use

minimizes losses

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• Changed in technology and typical long haul distances could change

the prevailing viewpoint in the future

CNG vs. LNG applications

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Building Technology Bridges to a Clean Energy Future 6

Why the growing interest in NGVs?

>Fuel Cost Savings

>Surplus Supplies -7 Price Stability

>Recognition that the cost of fuel includes social costs (Petroleum Independence)

>Environmental Benefits

>Auto, Truck, Engine and Energy Companies are making significant investments

>Government Policy Drivers/Incentives

Building Technology Bridges to a Clean Energy Future 1

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Dedicated Natural Gas Vehicles (NGV)

• Run only on natural gas

• Better performance

• Lower emissions

• Increased cargo capacity

Bi-fuel NGVs

• Two fueling systems

o Natural gas

o Gasoline

• Fueling flexibility

Dual-fuel NGVs

• Run on diesel and natural gas

• Heavy-duty vehicles only

Basics: Natural Gas Vehicles

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Basics: Natural Gas Vehicles

A: Gas fill valve

B: Cylinders

C: Master manual shut-off valve

D: High-pressure fuel line

E: Regulator

F: Natural gas solenoid valve

G: Fuel-injection system

Adapted from Compressed Natural Gas: A Suite of Tutorials.

Courtesy of Thomason & Associates, Inc.

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Natural Gas Vehicle (NGV) adoption projections

Class 8 Trucks

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NGV adoption projections

Light duty vehicles

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NGV adoption projections

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Benefits and Considerations

Public Health and Environment

• Lower greenhouse gas (GHG) emissions

• Lower particulate pollution

• Lower carcinogens

Energy Security

• Plentiful in U.S.

• Existing infrastructure

Driving Range

• Shorter than gasoline

• Comparable power and speed

Deployment

• Proven and established

• 114,000 natural gas vehicles in U.S. in 2008

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Light-Duty NGVs

• Suitable for light-duty needs in private and

government fleets

• Honda Civic GX

Medium-Duty NGVs

• Vans and shuttles

• Airports and taxi fleets

Heavy-Duty NGVs

• Refuse haulers

• Transit buses

• School buses

• Long-haul trucks

• Street sweepers

• Snowplows

• Short-haul delivery trucks

Use: Fleet Applications

Natural Gas Vehicles for America www.ngvamerica.org

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Offsite, Public Access

• Utilize an existing public station

• Operated by retailer, utility, or fleet

• Anchor fleet or pool of multiple fleets

Onsite, Private Access

• Exclusive use by fleets • Fast-fill or Convenience of time-fill station array

Onsite, Public Access

• Often located outside of restricted areas

• Benefit from economy of scale

• Promotes public use of NGVs

• Must have fast-fill capabilities for public

Use: Fueling Stations

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Fleet-Owned and -Operated

• Fleet works with vendors on station development

• Fleet owns and operates station

Outsourced to Independent Provider

• Outside development, ownership, and operation

• Fleet provides demand threshold

• Long-term price agreement

• Public access possible

Fleet-Owned, Contractor-Operated

• Reduces fleet risk

• Fleet relies on experienced operator

• Usually a 5-7 year contract

Use: Station Ownership and Operation

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Time-Fill Fueling

• Good for centrally-based fleets with consistent schedules

• CNG is dispensed slowly, often overnight

• Lower cost investment

Fast-Fill Fueling

• Fueling takes place in minutes

• Necessary for public-access stations

• Good for vehicles with little downtime

Combo-Fill Fueling

• Time-fill and fast-fill

• More flexibility in fueling

Use: CNG Fueling

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Mobile Fueling

• Tanker truck with metering and dispensing equipment

• Provides temporary fueling option

Starter/Containerized System

• Complete fueling station, including storage tank, dispensing,

metering, and required containment

• Turn-key solution

Custom Station

• Larger storage tanks

• Multiple dispensers

• LNG and/or CNG dispensing

Use: LNG Fueling

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Questions to Ask

• How many vehicles will be fueled each day?

• How much fuel will each vehicle need?

– Cost per gallon?

• When and how often will vehicles need to be fueled?

• What are the site development requirements?

– Cost for infrastructure?

– Other infrastructure options?

Use: Getting Started

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Prepare Fleet Inventory and Replacement Schedule

• Identify vehicle replacement potential

• Determine station sizing plan

Explore Your Options

• Contact vehicle vendors

• Contact equipment vendors

• Meet with station developers

Visit Existing Sites

• Fast-fill and time-fill

• Private and public

Ask Questions

• South Shore Clean Cities

• Station developers

• Vendors

Use: Getting Started

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For More Information

Clean Cities

www.cleancities.energy.gov

Alt. Fuels Data Center

www.afdc.energy.gov

FuelEconomy.gov

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U.S. natural gas (NG) reserves have grown

dramatically in the past decade…

Wet Gas

…Nearly doubling estimated

technically recoverable resources

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Background: U.S. Natural Gas Supplies

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Projected to account for

~50% of U.S. production in

2040

Large resources in many

countries

Created interest in

expanding NG use in

several sectors

But what are the

environmental impacts?

Shale Gas Described as a

“Game Changer”

Source: EIA - Annual Energy Outlook 2013

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Fuel Infrastructure Is a Major Challenge

but a Step Change May Be Underway

Grace, P. America’s Natural Gas Fueling The Future of Transportation, Sept. 22, 2011

As of May 2013, 1226 CNG & 73 LNG

stations in the US (grew 38% & 66% in 2

years!)

Less than half (587 CNG and 32 LNG) were

open to the public

Clean Energy building “America’s Natural

Gas Highway”, with 150 LNG stations at Pilot

Flying J Travel Centers by end 2013

Shell adding 100 LNG lanes to TCA truck

stops

In July 2013, Trillium announced plans to

build 101 public access CNG stations by

2016

Encana, Chesapeake & other shale

developers converting their own fleets &

building stations

Melendez, M. and M. Mintz, Natural Gas Alley, Clean Cities Stakeholder Summit, Indianapolis, June 28, 2011.

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South Shore Clean Cities

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Example of Natural Gas Station

Fair Oaks Farms 1170 Indiana 55, Fair Oaks, IN 47943

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CNG has $1.502.00/dge

advantage over diesel

Source: Clean Cities: Alternative Fuel Price Report, Sept, 2013

… and it’s growing!

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Buses Dominate Current Natural

Gas Use in U.S. Transport

Shares of Natural Gas Fuel Use by Vehicle Type, 2011

Source: EIA Alternatives to Traditional Transportation Fuels, 2011

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U.S. Incentives and Mandates

for Alternative Fuel Vehicles

Income Tax Credit

for Infrastructure

Income Tax

Credit for AFVs

(expired)

Excise Tax Credit

of 50-cent per gge

of fuel sold

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Mandates for Federal, State, and Fuel Provider Fleets

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The GREET Model (Greenhouse gases, Regulated Emissions, and Energy use in Transportation)

Includes emissions of greenhouse gases

– CO2, CH4, and N2O

Estimates emissions of six criteria

pollutants

– Total and urban separately

– VOC, CO, NOx, SOx, PM10, and PM2.5

Separates energy use into:

– All energy sources (fossil and non-fossil)

– Fossil fuels (petroleum, natural gas, and coal combined)

– Petroleum

– Natural gas

– Coal

Model and its documents are available at

http://greet.es.anl.gov/

– There are more than 20,000 registered GREET users

worldwide

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Using latest EPA estimates of methane leakage Argonne estimates that

CNG cars provide ~10% reduction in GHGs

CNG transit buses provide ~5% reduction in GHGs

Conventional and shale gas have very similar emissions

CNGVs Using Fossil NG May Provide Small GHG

Benefit, Improving Vehicle Efficiency is a Key Factor

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End-use Efficiency is a Key Factor for LCA Results

Compared to gasoline cars, natural gas cars have slightly lower fuel

economy

Base case = 5% reduction

Weight penalty of CNG storage tanks

Power loss due to oxygen displacement

Use of direct injection and turbocharging can improve fuel economy

and power

Compared to diesel transit buses, natural gas buses have

moderately lower fuel economy

Base case = 15% reduction

Spark-ignited engines have low efficiency at low speeds

However NG spark-ignited engines have closed the gap on

compression-ignition engines

Primarily due to emission control strategies implemented for

diesels to meet 2010 regulations

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Major Increase in Alternative

Fuel Transit Buses

Most established niche market for natural gas

Compressed Natural Gas (CNG) bus purchases

often 20 to 25 percent of annual U.S. transit bus

sales in past 10 to 15 years.*

CNG in transit fleets has reduced consumption of

petroleum by over 200,000,000 gal/yr.*

Coalitions responsible for > half

Clean Cities sponsors the Transit and School Bus

Users Forum

Other Accomplishments

Clean fuel corridors

Greening of National Parks

Fuel Economy Promotion

Web sites and Tools

Clean Cities’ Accomplishments

* Source: Rob Adams, Marathon Technical Services, October, 2010

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Clean Cities

Publications

Natural Gas Basics

Guide to Alternative Fuel and Advanced

Medium- and Heavy-Duty Vehicles

Clean Cities 2013 Vehicle Buyer’s Guide

Business Case for CNG in Municipal Fleets

Clean Cities Vehicle and Infrastructure Cash-Flow

Evaluation (VICE) Model to evaluate the return on

investment and payback period for natural gas vehicles and

fueling infrastructure

• Alternative Fuel Price Report

• Compressed Natural Gas (CNG) Transit Bus Experience

Survey April 2009 — April 2010, R. Adams, Marathon

Technical Services and D.B. Horne, Clean Vehicle

Education Foundation

www.afdc.energy.gov/publications

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Clean Cities’ Publications

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Become involved with South Shore Clean Cities to learn more about;

1. Electric Vehicle & EV Charging Stations

2. Diesel Emission Reduction: Equipment, Newer Vehicles

3. Alternative Fuel Vehicles

4. Alternative Fueling Infrastructure

5. Green Fleet Program

NET RESULT – CLEANER AIR FOR NORTHERN INDIANA,

PETROLEUM REDUCTION, AND ECONOMIC DEVELOPMENT!

Current Opportunities

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• The Green Commuter

October 16, 2013

12:00 PM-12:30 PM Ct

The Lakeshore 89.1 FM

• WEBINAR: Creating Livable Centers in Northwest Indiana

October 23, 2013

1:30 PM - 2:15 PM CDT

• The Green Commuter

October 30, 2013

12:00 PM-12:30 PM Ct

The Lakeshore 89.1 FM

• Annual Meeting

February 18th, 2014

South Shore Clean Cities Events

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• Green Commuter radio show - 89.1FM The Lakeshore

• Oct. 16, 2013

• Oct. 30, 2013

• Nov. 13, 2013

• Nov. 27, 2013

• Green Fleet Program

• IN-Charge Electric Vehicle Program (Available to NIPSCO electric customers)

• Winter Webinar Series;

o Inspection Guidelines for CNG & LPG Vehicle Conversions – January 7, 2014

o Considerations for Garage & Maintenance Shops when using CNG & LPG – January 21, 2014

o Station Installation Guidelines for LPG – February 4, 2014

o Station Installation Guidelines for CNG – February 18, 2014

o Best Practices for End Users for CNG, LPG and Electricity – March 4, 2014

o South Shore Clean Cities 2013 Annual Meeting- February 18, 2014

Visit www.southshorecleancities.org for more information or to register.

Current Activities & Events

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Contact Information

Carl Lisek Executive Director

South Shore Clean Cities

9800 Connecticut Drive

Crown Point, IN 46307

(219) 644-3690 office

(630) 207-1760 mobile

clisek@southshorecleancities.org