Slides presentate a Roma il 21 gennaio 2014 in occasione del Workshop "L'Impiego del gas naturale liquefatto (GNL) nei trasporti stradali. Normative, Standard e Tecnologie" promosso da @ConferenzaGNL, un progetto a cura di Symposia e WEC Italia - TWITTER #GNL

1. LNG application in medium-long
transportation
Federico Giovanetti
M&HT Product Management
CNG/LNG VEHICLES Product Manager
21-01-2014, Roma
Contains confidential proprietary and trade secrets information of CNH Industrial. Any use of this work without express written consent is strictly prohibited.

2. Contents
 Main drivers for CNG/LNG
 Potential market
 LNG technology in EMEA
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3. Main drivers for CNG/LNG
3 are the main reasons of the fast-growing global interest in adopting methane-based
gas in commercial transport as sustainable alternative to crude oil-based fuels:
 ENERGY SECURITY: independency from crude oil producers Countries
 ENVIRONMENTAL IMPACT: reduce pollutants emission and noise
 TOTAL COST OF OWNERSHIP : reduce cost per km
In the last years, the focus has moved from ENVIRONMENTAL IMPACT to TOTAL
COST OF OWNERSHIP
DISTRIBUTION and
FOOD AND
BEVERAGE
REFUSE
COLLECTION
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MEDIUM-LONG
HAUL
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4. Main drivers for CNG/LNG
ENVIRONMENTAL IMPACT
POLLUTANTS
LIMITS
NOX
0,4
0,2
Euro VI
Cursor 8 CNG/LNG Euro VI
WHTC - g/kWh
HCNM
Particolato
0,16
0,01
0,08
0,002
CO
4
2,44
CH4
0,5
0,18
According to experimental activities the CO2 reduction is from 2 to 8% according to
mission
NOISE
DIESEL
dB(A)
1
CNG
74
72
Avg
71 dB(A)
70
68
Avg
66 dB(A)
66
6
2
64
1
5
Mic distance: 7m
Mic height: 1,5m
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4
5
MODEL (DIESEL/CNG): IVECO 240E25 6x2
3
4
2
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5. Main drivers for CNG/LNG
TOTAL COST OF OWNERSHIP – MEDIUM-LONG HAUL
AT440S36T/P
DIESEL Euro VI
AT440S33T/P
LNG Euro VI
New vehicle cost
€ 67.000
€ 92.200
Cost of capital
-€ 7.000
-€ 11.000
Residual value
-€ 13.000
-€ 2.500
Net vehicle cost
€ 61.000
€ 100.700
€ 14.500
€ 28.200
Fuel consumption
€ 205.400
€ 127.500
Urea consumption
€ 4.000
€0
€ 800
TIRES
TOLLS
€ 61.000
TCO
DEPRECIATION
M&R IVECO
€ 14.500
€ 100.700
DEPRECIATION
€ 28.200
M&R
€ 210.200
FUEL
€ 128.300
TIRES
€ 6.000
€ 6.000
€ 800
€ 63.000
€ 63.000
TOLLS
€ 6.000
€ 6.000
€ 27.200
€ 27.200
€ 63.000
€ 63.000
TAXES AND
INSURANCE
Taxes
€ 2.200
€ 2.200
DRIVER SALARY
Insurance
€ 25.000
€ 25.000
DRIVER SALARY
€ 175.000
€ 175.000
TOTAL
€ 556.900
€ 528.400
DIFFERENCE
-€ 28.500
FUEL
Lubricant cons.
TAXES AND
INSURANCE
€ 175.000
€ 175.000
AT440S36T/P
AT440S33T/P - LNG
Simulation based on (the data shown has to be considered CONFIDENTIAL and not binding for IVECO):
Market: Italy
Mission: regional
Mileage: 100,000km / year
Period: 5 years
Interest rate: 5%
Diesel: 1,3€ / liter (w/o VAT)
LNG: 0,85 € / kg (w/o VAT)
Urea: 0,3€ /l
Oil: 5€ / liter
Diesel consumption: 31,6 liter
/ 100km
LNG consumption: 30kg /
100km
Tires life: 200,000km
Toll: 0,18 €/km
Mission: 70% motorway
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6. Main drivers for CNG/LNG
TOTAL COST OF OWNERSHIP
 The economic sustainability for natural gas in the medium-long haul business relays
dramatically in the difference of cost between diesel (€ / liter) and CNG (€/kg)
 In a medium-long haul mission (100.000km / year, 5 years) a difference in cost of
0,26€ between diesel diesel (€ / liter) and CNG (€/kg) make the 2 technology
equivalent for the fleet owner
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7. Contents
 Main drivers for CNG/LNG
 Potential market
 LNG technology in EMEA
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8. Potential Market
Frost & Sullivan
Source: Strategic Analysis of the Medium- to Heavy-duty Natural Gas Commercial Vehicle Market in Europe – 02/2013
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9. Potential Market
BIPE
Source: Heavy Vehicle Powertrain Prospective 2030– 112013
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10. Potential Market
IVECO in Europe
 The more conservative figure below reflects the IVECO truck sales forecast n the 5 major
Markets + Benelux. With a Heavy Truck Market of 250.000 units in 2016-2017, the CNG+LNG
Market is expected between 2 and 5%, with a market share of IVECO around 25-33%.
1400
RCV
1200
1000
800
Distribution
600
400
200
Regional
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
 While the natural gas application in distribution and refuse collection missions is expected
steady, the adoption of LNG in medium-long haul missions is expected to boom thanks to
- homologation and registration for LNG trucks by middle 2014 (amended UNECE R110)
- increasing confidence of fleet managers in CNG/LNG technology
- development of the infrastructure
- cost reductions through economies of scale
- OEM development of natural gas engines dedicated to medium-long haul applications
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11. Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti – IVECO CSST
dAD
Destinazione dello
spostamento
Area 1 di rifornimento LNG
dOA
dOA + dAD < Dautonomia (km)
Area 2 di rifornimento LNG
Origine dello spostamento
Area di rifornimento LNG
dAD
Destinazione dello
spostamento
dDO
dOA
dOA + dAD + dDO < Dautonomia (km)
Origine dello spostamento
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12. Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti – IVECO CSST
Ipotesi:
Brescia
Prato
Ancona
Jesi
Livorno
Livorno
Piombino
 I punti di rifornimento LNG siano
localizzati presso i principali Porti e
Interporti della Rete TEN-T
Orte
Pescara
 Raggio medio area di adduzione d OA =
20 km / 50 km
Civitavecchia
Fiumicino
Pomezia
Nola
Gaeta
Bari
Marcianise
Napoli
Salerno
Bari
Brindisi
Trapani
Milazzo
Messina
Taranto
Palermo
Termini I.
Vado
Savona
Genova
Novara
Mortara
Torino
Rivalta Scrivia
Cervignano
Portogruaro
Monfalcone
Verona Padova
Trieste
Mantova
Venezia
Chioggia
Piacenza
Rovigo
Parma
Bologna
Ravenna
La Spezia
Carrara
Busto Arsizio
Trento
Gela
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 Autonomia del veicolo LNG D
autonomia = 600 km
 Coppie Origini/Destinazioni “DIRETTE” /
Coppie Origini/Destinazioni “A/R”
Gioia Tauro
Reggio Calabria
Catania
Augusta
Siracusa
Fonte: List of nodes of the Core and Comprehensive Network
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13. Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti – IVECO CSST
O/D
O/D
O/D
TOTALI
ATTRATTE
DIRETTE
O/D
A/R
311.346
-
-
-
Spostamenti
Scenario dOA < 20 km
-
66.524
17.280
49.244
Spostamenti
Scenario dOA < 50 km
-
190.519
144.333
46.186
Veicoli * km
Scenario dOA < 20 km
-
10.019.130
(+ 12,98%)
-
-
Veicoli * km
Scenario dOA < 50 km
-
30.880.547
(+38,90%)
-
-
Spostamenti
Scenario Attuale
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14. Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti – IVECO CSST
Principali spostamenti O/D potenzialmente interessati all’alimentazione LNG
(segmento in «area di adduzione» <20 Km)
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15. Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti – IVECO CSST
Principali spostamenti O/D potenzialmente interessati all’alimentazione LNG
(segmento in «area di adduzione» <50 Km)
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16. Contents
 Main drivers for CNG/LNG
 Potential market
 LNG technology in Europe
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17. LNG technology in Europe
How it works
CNG SYSTEM
(200 bar)
ENGINE
CURSOR 8
CRYOGENIC LNG TANK
(-120º C, 9 bar) AND
EVAPORATOR
3-WAY
CATALYST
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18. LNG technology in Europe
Why LNG for medium-long haul
TOTAL CNG CAPACITY (liters)
CRUISE RANGE (km) (*)
500
219
600
262
700
306
800
350
900
393
1000
437
1100
481
1200
525
1300
568
1400
612
1500
656
500 liters LNG tank + 280 liters CNG
762
500 liters LNG tank + 320 liters CNG
780
While on rigids CNG tank combinations up to 1.200 liters are
technically possible (tanks on the chassis side, above the frame
upper edge, behind the cab), on standard 4x2 tractors LNG is
necessary to achieve the requested mileage
(*) calculated with T=25°C, fuel consumption 30kg/100km, 1 liter CNG = 0,13kg CNG
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19. LNG technology in Europe
Main technologies
SPARK IGNITED
MONO-FUEL METHANE
BENEFITS
DRAWBACKS
DUAL FUEL
DIESEL-METHANE
(PORT INJECTED)
HPDI - DUAL FUEL
DIESEL-METHANE
(DIRECT INJECTED)
 Cost-effective method to use
natural gas
 Compatible with CNG and LNG
 Low complexity cost (on top very
simple passive exhaust aftertreatment, 3-way catalyst)
 Reduced noise (- 5dB)
 Engine can operate under Diesel
or Diesel-gas mode (flexibility)
 Compatible with CNG and LNG
 Retrofit Opportunities for existing
Diesel engine (no certification for
duration with CNG use)
 Full Diesel torque, cycle efficiency
and compression braking
 High Diesel substitution rate (up
to 90-95%)
 Same heat rejection as Diesel
 Reduced compression braking
 Increased exhaust temperature
 Mono-fuel system, without limphome recovery mode
 Engine not optimized for natural
gas operation (compromise at low
and high operating loads)
 High sensitivity to fuel quality due
to knock limitations (low
methane number)
 Lower advantages in TCO due to
higher complexity costs and
higher fuel costs due to
substitution rate (CNG/LNG max
60-70%)
 Requires full Diesel emissions
after-treatment (DOC+DPF+SCR)
with urea injection for NOx
controls
 Methane emissions control is a
challenge for Euro VI emissions
compliance
 Very high system cost (requires
specific injectors and high
pressure cryogenic pump for LNG
fuel)
 Engine can operate only with LNG
 Requires full Diesel emissions
after-treatment (DOC+DPF+SCR)
with urea injection for NOx
controls
 Limited field experiences for
engine reliability
 Engine can’t operate under
Diesel mode for limp-home
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20. LNG technology in Europe
SAFETY

IF YOU ARE POURING WATER IN THE LNG: LNG does not dissolve in water and in contact with it, it
evaporates without mixing and without leaving any residue.

LNG IS NOT THE TOXIC: If you spill of LNG in a glass of water, once the water has evaporated gas can be
safely drunk . It can not pollute the sea or groundwater.

IN THE EVENT OF A SPILL OF LNG: the LNG is stored at atmospheric pressure in the system: even in the
unlikely event of spills disperse in the air evaporates without leaving a trace. If LNG is spilled on the ground
evaporates and leaves no residue to clean.

LNG CAN CATCH FIRE? The LNG is not flammable if not in very special conditions that can not occur
inside the regasification or LNG carriers (should be in a closed environment and saturated, mix with an oxygen
percentage of between 10% and 15% and simultaneously be in contact with a source of ignition of the flame)

LNG MAY EXPLODE ? Also coming in contact with fire, LNG does not explode and does not create flareups, but it creates a lazy flame that evaporates without creating a shock wave. To confirm this, it is known that in
1984, during the war between Iran and Iraq, a ship carrying gas at low temperatures, the Gaz Fountain, was hit by
three missiles and caught fire. The crew managed to extinguish the fire and then to recover 93% of the gas load
without further incident.
Thanks to this characteristic of LNG a study by the U.S. Coast Guard is satisfied that: “LNG is one of the less
dangerous substances among the many normally carried by sea and discharged in coastal deposits such as chemical /
petrochemical / fuels. During over 33,000 trips in the world of gas tankers in the last 20 years there have been no major
accidents”
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21. LNG technology in Europe
SAFETY
LNG tank is tested also for
Drop Test
http://www.youtube.com/watch?v=ibgAHfkKF4E
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Bonfire Test Chart LNG tank
http://www.youtube.com/watch?v=NK3z0GSXZBA