Learn about the basics of compressed natural gas (CNG) and liquefied natural gas (LNG) as transportation fuels. A presentation will be made from station installers and users of LNG. Lastly, hear about current incentives for fleets when purchasing CNG or LNG vehicles.

1. 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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2. 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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3. CNG or LNG? It All Depends
Natural Gas Heavy Duty Market
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4. Natural Gas:
It’s Abundant, Domestic & Clean
Natural Gas
Supplied From
US and Canada
Imported
98%

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
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5. Energy Security:
Who Provides Our Energy?
Crude Oil & Refined Product Sources
for US Consumption
Natural Gas Sources
for US Consumption
Mexico
0.2%
Others
19%
US
28%
OPEC
32%
Canada
13%
Others
3.3%
Canada
16.4%
US
80.0%
Mexico
8%
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.
Source: EIA data for 2007 http://tonto.eia.doe.gov
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6. NG Trucks Emit Less Emissions
0.4
0.35
0.3
0.25
2010 US EPA NOx
Emission
Standard
g/bhp-hr
0.2
0.15
0.1
NOx (Smog Forming Chemical)
0.05
0
Biodiesel 100 (No
OEM Warranty)


Biodiesel 20 (Some
OEM Warranty)
Biodiesel 5 (OEM
Warranty)
Diesel
CNG/LNG
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.
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7. Cost of Natural Gas versus Crude Oil
$3.51 x 5.8 = $20.36
Natural Gas Equals $23.08 per Barrel of Oil
(energy equivalent )
Commodities Market October 04, 2013
$109.46
Price as of 10.04.13
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8. What Makes Up a Gallon of Fuel?
DIESEL
LNG
12%
TAXES
19%
DISTRIBUTION &
MARKETING
11%
REFINEMENT
28%
CNG
16%
7%
6%
46%
58%
COMMODITY
55%
20%
22%
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9. 7 Factors for an Informed Fuel Decision
1.
Vehicle Type and Application
– LNG / CNG differences and
advantages
5.
Fuel Cost
– Savings vs. diesel and
gasoline
2.
Duty Cycle
– Range, speed, idle time
6.
Fleet Fueling Needs
– Refueling cycles
3.
Combined Weight
– Payload, storage tank
weight
7.
4.
Hours of Service
– Drive, idle, down time
Fueling Infrastructure
– Availability
on your
routes
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10. 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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11. LNG / CNG – Energy Density

Relative to one gallon of
diesel:
– LNG = 1.7 DGE
– CNG = 3.8 DGE

7
6
Energy density is an
important factor you
need to consider when
choosing a natural gas
vehicle
5
CNG
4
3
2
1
LNG
DIESEL
0
One DGE
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12. CNG and LNG
FUELING CONSIDERATIONS
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13. 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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14. 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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15. 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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16. CNG Station Reality

The majority are not “truck friendly”!
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17. 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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18. 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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19. CNG / LNG
APPLICATIONS
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20. Consider Your Application

Choosing between LNG and CNG is really about the
spectrum - at either end the choice is relatively fixed
light-duty
automotive & industrial
bus &
vocational trucks
heavy-haul
transport
CNG
LNG
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21. Fueling Options Widen in the Middle
bus &vocational trucks
CNG
 CNG is a good
option for:
 Refuse and
transit using
fast or time fill
 Medium duty
applications
< 300 miles per
fill
LNG
 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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22. 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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23. 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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24. Payload and Storage Tank Weight Count

The weight difference between CNG and LNG is dependent on the
amount of fuel being stored
Diesel
15 Gal.
LNG
CNG
26 Gal.
58 Gal.
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25. 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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26. CNG
Advantages

Greater infrastructure than
LNG
– Light and medium duty

Considerations


Simple fuel systems
– Easy to fuel like gasoline



No diesel, DPF, or SCR to
manage (SI engines)
Gas/Vapor instead of
cryogenic

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
No fuel loss if parked for an
extended period of time
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27. 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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28. NATURAL GAS FUELING
INFRASTRUCTURE
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29. Clean Energy
Vertically Integrated Fuel Partner
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30. 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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31. Clean Energy
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32. Oak Creek-Pilot
LNG Station
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33. Oakdale Road Ranger (102 E Woody St)
LNG Station
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34. More LNG Stations Open Every Month On ANGH
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35. Sample Customers
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36. LNG Fuel Economics
$85,000
$10,000
$11,400
$106,400
NG Truck Cost
FET @ 12%
Total NG Truck Cost
$125,000
$15,000
$140,000
Net Incremental Cost
Diesel Truck Operating Costs
Fuel Economy (MPG)
Fuel Cost ($/Gal)
Fuel Cost per Mile
NG Truck Operating Cost
Fuel Economy (MPG)
Fuel Cost ($/Gal)
Fuel Cost per Mile
$33,600
6.5
$3.75
$0.58
Simple Payback
30
25
Payback (Months)
Diesel Truck Cost
Diesel 2010 Emissions System
FET @ 12%
Total Diesel Truck Cost
20
15
10
5
5.8
$2.50
$0.43
0
200,000
150,000
100,000
Annual Miles
NG Truck Savings per Mile
% Savings over Diesel
Annual Mileage
Annual Fuel (DGE)
Annual Savings
Simple Payback (Months)
$0.15
25%
200,000
34,483
$29,178
14
150,000
25,862
$21,883
18
100,000
17,241
$14,589
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37. Natural Gas for Transportation
Cheaper
Cleaner
Domestic &
Abundant
Steve White
Business Development Manager
312-771-6718
steve.white@cleanenergyfuels.com
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