natural gas basics webinar

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cleanenergyfuels.com

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

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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

[email protected]

natural gas basics webinar

Education