Ted Barnes, Gas Technology Institute, presented information on Developments in the Surrounding States for our Natural Gas for Transportation Roundtable in Janesville, WI.

1. Wisconsin Natural Gas Roundtable: Developments in Surrounding States
Ted Barnes
Gas Technology Institute
October 2014

2. 2
Objectives
1.GTI Background
2.What’s Already Here - Locating Current Stations
3.What’s Coming and When?
4.Grants/Upcoming Developments
5.Contact your local Clean Cities Coordinator

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ESTABLISHED 1941 GTI: Company Overview
>Staff of 250
>350 active projects
>1,200 patents; 500 products
Energy & Environmental Technology Center
Office & Labs
Pilot-Scale Gasification Campus
Training
Natural Gas Research and Development Focus

4. 4
GTI – Barrier Reduction Grant
Webinar Series
I. Inspection Guidelines for CNG/LPG Vehicle Conversions
II. Considerations for Garage & Maintenance Shops When Using CNG/LPG
III. Station Installation Guidelines for CNG
IV. Station Installation Guidelines for LPG
V. Best Practices for End Users for CNG, LPG & Electric Vehicles The webinars and slides are available online at www.wicleancities.org/webinars.php
Barriers Survey
Survey to gather barriers for adoption of alternative fuels
Please complete the survey at:
www.wicleancities.org

5. 5
What’s Available Now?
Locating Current CNG Fueling Stations
•Use AFDC Station Locator (http://www.afdc.energy.gov/locator/stations/)
•Access through all local Clean Cities websites
•Shows stations that are planned to be available soon
•Shows public and private stations
•Gives details on each facility
•Other websites include: CNGnow.com; station provider websites; fuel management card websites; utility websites
•Often incomplete because of regional or proprietary nature

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AFDC Station Locator Details

7. 7
Local Public CNG Station Count
Public Stations
Existing
Planned
Total
Wisconsin
47
3
50
Minnesota
9
4
13
Iowa
5
2
7
Illinois
16
2
18
Indiana
19
3
22
Michigan
12
0
12
Totals
108
14
122

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What’s Coming and When?
•List from AFDC – incomplete but still promising
Provider
City
State
Date
Barnes Inc - US Oil
Madison
WI
4/15/2015
GAIN Clean Fuel
Middleton
WI
10/24/2014
Kwik Trip
Windsor
WI
12/1/2014
Clean Energy
Chicago
IL
12/1/2014
WM
Rockdale
IL
12/1/2014
CNG Source
Indianapolis
IN
7/15/2014
GAIN Clean Fuel
Indianapolis
IN
11/15/2014
CNG Fuel Inc
Fort Wayne
IN
4/1/2015
South Bend
South Bend
IN
Mid 2015
Great River Energy
West Burlington
IA
4/15/2014
GAIN Clean Fuel
Des Moines
IA
1/1/2015
CHS Inc
Fairmont
MN
9/15/2014
Kwik Trip
Austin
MN
11/20/2014
Kwik Trip
Albert Lea
MN
10/30/2014
Saint Cloud Metro Bus
Saint Cloud
MN
12/31/2014
DTE Energy
Grand Rapids
MI
TBD

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Grants / Upcoming Developments
•Drive Clean Chicago – CNG Stations (6 county area)
•CMAQ IL – Two vehicle programs (Taxi and HD)
•IL DCEO – ~$1 million per year for CNG stations
•DieselWise Indiana – awards in early November
•CMAQ IN – Lake, Porter, LaPorte Counties
•SSCC Webinar – Oct. 27th at 1 PM (CST)
•US EPA DERA Grants for IN Ports
•RNG – Biogas from anaerobic digesters or landfills
•Dane County and Fair Oaks

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Private Developments
•Many companies will support development of new stations for fleets/municipalities
•Guaranteed load (>100,000 GGEs per year), guaranteed pricing, volumetric discounts
•Grant funding
•Capital investment
•More than ten major providers across the country
•Companies can build and operate stations themselves
•Flexibility on components/size but most upfront capital

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Resources

15. 15
Acknowledgement of Support

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Backup Slides

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Estimated Component Costs

18. 18
Estimated Station Costs

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Estimated Station Costs

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$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$4.00 Diesel
($86 WTI)
$2.00
Natural Gas
$3.50
Natural Gas
$7.00
Natural Gas
Retail Markup
Refining/Compression,
Distribution, Taxes
Raw Commodity
$4.00
2%
40%
58%
$1.50
22%
60%
18%
$1.74
20%
52%
28%
$2.30
19%
39%
42%
Ratio of raw commodity contributions to pump prices
Components of CNG Fuel Price
$/GGE

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Components of CNG Fuel Price
>Gas Commodity (.55/GGE @ “weighted average” cost of $4.40/MCF)
>Pipeline transportation/services to utility “city gate” and then delivered under regulated tariff by your local utility to your meter uncompressed ($.10 - .25)
>Compression - Rule of thumb: One fully-loaded kWh/GGE ($.10-15/GGE)
>Station Maintenance - Normal PM, repair/replace parts, rebuild ($.15- .30/GGE)
>Equipment amortization ($.35 - .65/GGE)
─Cost of equipment or cost of capital factored into each
GGE over life of station equipment (typically10 years)
>Station operator profit (if a retail provider)
>Add federal motor fuels excise tax & State/Local tax
─FEET = $.183/gallon; State of IL $0.19/gallon = $0.373/GGE
>Bottom line: approximately $1.52 to $2.02 (without profit margin or any incentives)

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Natural Gas Station Development and Ownership-Operations Options: #1
>Fleet owns & operates station
─Fleet takes responsibility for building and then operating its own station. Fleet works with vendors or design consultant, manages build-out and takes responsibility for PM (parts, etc).
─Applies to small-to-mid sized fleets that do not have offsite options nearby, b/c their fuel use does not meet the threshold required by most LDCs or independent developers to invest in developing, owning and operating station for them.
─Some large fleets also opt for this but many do not have experience nor want responsibility for station operations and maintenance

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Natural Gas Station Development and Ownership-Operations Options: #2
>Outsource station development, ownership, O&M to independent fuel provider
─Fleet serves as anchor for independent operator’s station, contracts long term fuel agreement with set price(s) and expected throughput for duration.
─One stop shop. All capital investment and O&M risks are borne by independent fuel provider while fleet focuses on core competencies.
─Fleet usually provides low-cost lease for property – important to making deal work - land is costly!
─Often allows fuel provider option to create public access as well – sometimes a “royalty” paid back to fleet for retail sales from premises

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Natural Gas Station Development and Ownership-Operations Options: #3
>Fleet owns/leases station but contracts out operations for a fee (e.g., monthly fee or GGE basis)
─Option used by many large fleets that need/desire ownership of their own station equipment but want to reduce risk, assure best O&M practices, etc
─Contract is often (but not always) awarded to the firm that builds station; usually a 5-7yr contract.
─Some fleets that initially Own & Operate their own stations decide that they want to delegate to others – put out RFP for O&M contract
─Decision weighs pros/cons of “leaving $ on table” versus potential downtime risks, maintaining parts inventories, updated training of techs, etc

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References
>References for previous slides