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Natural Gas Vehicles:                    A Feasibility StudyWali Memon   1   Wali Memon
Introduction: Natural Gas Vehicles    Dedicated natural gas vehicles are designed to run on natural gas    only, while dua...
Advantages and Disadvantages of Natural Gas Vehicles              Advantages                                Disadvantage•N...
Worldwide Natural Gas VehicleStatistics Table 1: Number of Natural Gas Vehicles by Country  Rank              Country     ...
Typical CNG Components in a Natural Gas Vehicle    The Technology5    Wali Memon
The Technology (cont.)                 4th Generation CNG System6   Wali Memon
Conversion Costs (Gasoline to Natural Gas)A specially designed Conversion Kit is required consisting of cylinders to befix...
Fuel Price Comparison                                      Table 3: Fuel Price Comparison                                A...
Emission StandardsLight-Duty Vehicle Emissions: CNG vs. Gasoline     Reduces carbon monoxide emissions 90%-97%     Reduces...
Savings from CNG VehiclesAs a vehicle fuel it is about 30-50% cheaper than gasoline. This is due toa combination of:     T...
Savings (cont.)Chart between CNG and Gasoline (Europe)           Table 5: Saving                    Natural Gas           ...
Predicted Savings in USA                                          Table 6: Savings in USA                                 ...
Savings from Maintenance and     Performance       Some fleet operators have reduced maintenance costs by       as much as...
Tax Rate Comparison                    Country                            Tax on Gasoline                        Tax on CN...
Incentives for Natural Gas Vehicles For Consumers: Oklahoma  The state of Oklahoma offers the following incentives     a o...
For Fuel Retailers : Oklahoma    Incentives for Natural Gas Vehicles  Oklahoma provides a tax credit for up to 75% of the ...
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Natural Gas

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Transcript of "Natural Gas"

  1. 1. Natural Gas Vehicles: A Feasibility StudyWali Memon 1 Wali Memon
  2. 2. Introduction: Natural Gas Vehicles Dedicated natural gas vehicles are designed to run on natural gas only, while dual-fuel or bi-fuel vehicles can also run on gasoline or diesel. Dual-fuel vehicles allow users to take advantage of the wide- spread availability of gasoline or diesel but also uses a cleaner, more economical alternative when natural gas is available. Natural gas used as a transportation fuel is called compressed natural gas because the gas is compressed to a pressure of about 3,600 pounds per square inch (psi) and stored in a fuel cylinder aboard the vehicle. CNG flows into the engines combustion chamber and is ignited to create power to drive the vehicle. It is estimated that there are 9.6 million natural gas operated vehicles in the world (December 2009)2 Wali Memon
  3. 3. Advantages and Disadvantages of Natural Gas Vehicles Advantages Disadvantage•Nearly 87% of U.S. natural gas used is •Limited vehicle availabilitydomestically produced, while in 2008 •Filling stations are less readily available53% of the petroleum/crude oil than gasoline and dieselconsumed in US was imported •Fewer miles on a tank of fuel•60-90% less smog-producingpollutants* •Less trunk space for dual-fuel autos.•30-40% less greenhouse gas emissions•Less expensive than gasoline• Using CNG is also considered to bebetter for engines, as cylinder wear andoil contamination is reduced. Also,spark plugs stay cleaner for longer.* Depending on the type of vehicle 3 Wali Memon
  4. 4. Worldwide Natural Gas VehicleStatistics Table 1: Number of Natural Gas Vehicles by Country Rank Country Natural Gas Vehicles Refueling Stations 1 Pakistan 2,000,000 2,941 2 Argentina 1,745,677 1,801 3 Brazil 1,588,331 1,688 4 Iran 1,000,000 500 5 India 650,000 463 6 Italy 580,000 700 7 China 400,000 1,000 8 Colombia 280,340 401 9 Bangladesh 190,381 502 10 Thailand 127,735 303 11 Ukraine 120,000 224 4 12 Wali Memon USA 110,000 224 Source: International Association of Natural Gas Vehicles, 2009
  5. 5. Typical CNG Components in a Natural Gas Vehicle The Technology5 Wali Memon
  6. 6. The Technology (cont.) 4th Generation CNG System6 Wali Memon
  7. 7. Conversion Costs (Gasoline to Natural Gas)A specially designed Conversion Kit is required consisting of cylinders to befixed in the trunk of the car with associated equipment to allow the naturalgas to flow into the engine and all cars can be converted irrespective of makeor model. Table 2: Conversion Cost Comparison by Country Country Conversion Cost (50 liter tank) Conversion Cost (90 liter tank) Bangladesh $750 - $800 $850 - $ 900 Pakistan $ 200 - $230 $ 245 - $285 Argentina $ 200 - $400* $420 - $515* Brazil $100- $175 $ 200 - $400 Iran $50* $80* India $700 - $800 $950 - $1,000 Thailand $1170 - $1400 - Malaysia $875 - $1100 - 7 USA Wali Memon $1450-$3000 *Government subsidized
  8. 8. Fuel Price Comparison Table 3: Fuel Price Comparison Average Price in Average Price in Average price in Gasoline Gallon Diesel Gallon Dollars per Million Btu Equivalents ($) Equivalents ($) ($) Gasoline 2.65 2.96 22.99 Diesel 2.57 2.87 22.26 CNG 1.85 2.07 16.07 Ethanol (E85) 3.36 3.75 29.13 Propane 4.13 4.61 35.81 Biodiesel (B20) 2.70 3.02 23.44Biodiesel (B99-B100) 3.54 3.95 30.67Source: US Department of Energy (January 2010)• CNG is about 80 cents less than gasoline on an energy-equivalent basis, 8 while E85 is about 28 cents less per gallon than gasoline. Wali Memon
  9. 9. Emission StandardsLight-Duty Vehicle Emissions: CNG vs. Gasoline Reduces carbon monoxide emissions 90%-97% Reduces carbon dioxide emissions 25% Reduces nitrogen oxide emissions 35%-60% Potentially reduces non-methane hydrocarbon emissions 50%- 75% Emits fewer toxic and carcinogenic pollutants Emits little or no particulate matter Eliminates evaporative emissions Source: U.S. Environmental Protection Agency 9 Wali Memon
  10. 10. Savings from CNG VehiclesAs a vehicle fuel it is about 30-50% cheaper than gasoline. This is due toa combination of: The cost of natural gas on an energy equivalent basis relative to petroleum fuels and fuel taxes, the current pre-tax price of Russian H-gas (the assumed marginal source for NG used in Europe) delivered in the form of CNG is, per lower heating value energy unit, only 63 % of the current price of petrol. Table 4: Saving Chart between CNG and Gasoline (Asia) CNG Gasoline Rate 1.91/kg $2.67/liter Average 16.80 km/kg 12 km/liter Running cost/km $ 0.114 $0.225 Save/100km $ 7.82 ($12.59/100 miles) Nil10 Wali MemonSource: International Association of Natural Gas Vehicles, 2009
  11. 11. Savings (cont.)Chart between CNG and Gasoline (Europe) Table 5: Saving Natural Gas Rate Price per kg 0.79 € ($1.02 USD) Consumption/100 km 7 kg (15.4 pounds) Cost per 100 km 5.53 € ($7.17 USD) Regular Gasoline Rate Price per liter 1.23 € ($1.59 USD) Consumption/100 km 10 liters (2.6 gallons) Cost per 100 km 12.30 € ($15.95 USD) Savings 6.77 € /100 km ($14.13/100 miles) or 55 percentSource: International Association of Natural Gas Vehicles, 200911 Wali Memon
  12. 12. Predicted Savings in USA Table 6: Savings in USA Gasoline CNG MPG (City) 32 30 MPG (Highway) 38 34 Requirement for 100 miles (City) 3.12 gallons 3.33 gallons Requirement for 100 miles (Highway) 2.63 gallons 2.94 gallons Cost per 100 miles (City) $8.12 $4.41 Cost per 100 miles (Highway) $6.84 $4.70 Savings from using CNG (City) $3.71 Savings from using CNG (Highway) $2.14Source: US Department of Energy (April 2010)• Based on the mileage information from a 2005 Honda Civic and gasoline and CNG prices data from the Midwest region (CNG-$1.41* & Gasoline $2.73), it is projected that for a 100 miles trip a CNG run vehicle will save; • $3.71 in the city area and • $2.14 in the highway• Estimates do not include additional savings from lower maintenance costs from reduced wear and tear of the engine, less frequent oil changes and tune-ups. 12 Wali Memon* Average price as of 3rd May 2010 in OKC
  13. 13. Savings from Maintenance and Performance Some fleet operators have reduced maintenance costs by as much as 40 percent by converting their vehicles to CNG. Intervals between tune-ups for natural gas vehicles are extended 30,000 to 50,000 miles. Intervals between oil changes for natural gas vehicles are dramatically extended--anywhere from 10,000 to 25,000 additional miles depending on how the vehicle is used. CNG has an octane rating of 130 and has a slight efficiency advantage over gasoline. Because CNG is already in a gaseous state, NGVs have superior starting and drivability, even under severe hot and cold weather conditions13 Wali Memon
  14. 14. Tax Rate Comparison Country Tax on Gasoline Tax on CNG Germany 68.7 % + 19.0 % VAT 0.0% India 52.0% 8.0%* Pakistan 38.57% 0.0% Italy 63.1% 0 – 5%** Oklahoma 12.93% † 11.48%‡ * Currently only in the states of Maharashtra and Uttar Pradesh ** Depending on the size of the vehicle † Federal tax of 18.4 cents/gallon plus state tax of 17 cents/gallon as a percentage of average gasoline price in OKC of $2.737 (04/29/2010) ‡ Federal tax of 18.3 cents/gallon plus state tax of 16 cents as a percentage of average CNG prices in OKC of $1.41 (05/03/2010). However, a state tax waiver permit for CNG can be purchased from Oklahoma Tax Commission at a cost of $ 100 per year. • In order to recover the $100, a person would have to purchase ($100/0.16) 625 gallons of CNG. • At an average tank size of 23 gallons, a person would have to fill up their car14 approximately Wali Memon 27 times a year or drive approximately 17,500 miles a year. • Otherwise it is better off to pay taxes during CNG purchase.
  15. 15. Incentives for Natural Gas Vehicles For Consumers: Oklahoma The state of Oklahoma offers the following incentives a one-time income tax credit for 50% of the cost of converting a vehicle to operate on an alternative fuel or for 50% of the incremental cost of purchasing a new Original Equipment Manufacturer AFV The state also provides a tax credit for 10% of the total vehicle cost, up to $1,500Federal Qualifying vehicles are also eligible for a federal income tax creditMemon up to $4,000. 15 Wali of
  16. 16. For Fuel Retailers : Oklahoma Incentives for Natural Gas Vehicles Oklahoma provides a tax credit for up to 75% of the cost of installing alternative fueling infrastructure. Beginning January 1, 2010, a tax credit is also available for up to 50% of the cost of installing a residential CNG fueling system (not to exceed $2,500).Federal A 30% tax credit (not to exceed $30,000) is available for equipment placed into service before January 1, 2009. For equipment placed into service after January 1, 2009, the credit16 amount is up to 50% (not to exceed $50,000). Wali Memon

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