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Natural Gas for Transportation in Wisconsin Maria Redmond Wisconsin State Energy Office MG&E Breakfast Seminar Madison, WI April 25, 2013.

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Presentation on theme: "Natural Gas for Transportation in Wisconsin Maria Redmond Wisconsin State Energy Office MG&E Breakfast Seminar Madison, WI April 25, 2013."— Presentation transcript:

1 Natural Gas for Transportation in Wisconsin Maria Redmond Wisconsin State Energy Office MG&E Breakfast Seminar Madison, WI April 25, 2013

2 Wisconsin State Energy Office (SEO) The SEO’s Mission is to invest in Wisconsin by: Increasing energy efficiency; Developing renewable and alternative energy sources; Promoting energy-related economic development & jobs; and Reducing reliance on imported oil. The SEO manages over $85 million in federal energy-related grants and loans Dane County Landfill Bio-CNG Station The SEO works with policy makers, businesses interested in energy opportunities, innovators, public/private initiatives and federal agencies to implement cost ‐ effective, reliable, balanced and environmentally ‐ friendly clean energy projects.

3 Wisconsin has no fossil fuel deposits Wisconsin has one small oil refinery Petroleum is Wisconsin’s largest energy expenditure Economics: WI Petroleum Use Source: Wisconsin Energy Statistics 2010 Energy Expenditure Figure on Page 131 (right)

4 Fossil Fuel use in Transportation 2011 On-road diesel consumption: million gallons 2011 On-road gasoline consumption: 2.5 billion gallons Cost WI consumers $11.8 billion for gasoline and diesel ~$1.3 million (~11%) stays in WI Source: WI State Energy Office Annual Energy Statistics Report

5 Wisconsin Registered Vehicles Source: *As of March 2012, State Energy Office/DMV Registration Database Fuel TypeRegistered Vehicles as of December 31, 2011 Registered Vehicles as of December 31, 2012 Unleaded5,052,7585,013,419 Diesel172,191181,568 Ethanol (E85) Flexible Fuel271,732337,394 Hybrid Electric29,87436,249 Propane (LPG)6047 Compressed Natural Gas Electric51157

6 Natural Gas

7 Benefits and Considerations Energy Security Plentiful in U.S. Existing infrastructure (distribution) US largest producer Driving Range Shorter than gasoline Comparable power and speed Public Health and Environment Lower greenhouse gas (GHG) emissions Lower particulate pollution Lower carcinogens Deployment Proven and established 120,000+ natural gas vehicles in U.S.

8 Energy Security New technology has unlocked natural gas from shale; production has increased dramatically – 100 years

9 Compressed Natural Gas (CNG) Stored in onboard tanks under high pressure Fuel economy similar to gasoline 1 GGE = 5.7 lb CNG Liquefied Natural Gas (LNG) Kept at cold temperatures Stored in double-wall, vacuum-insulated pressure vessels Heavy-duty vehicles 1 GGE = 1.5 gal LNG Basics: CNG and LNG

10 Dedicated Natural Gas Vehicles (NGV) Run only on natural gas Better performance Lower emissions Bi-fuel NGVs Two fueling systems o Natural gas o Gasoline Fueling flexibility Dual-fuel NGVs Run on diesel and natural gas Heavy-duty vehicles only Basics: Natural Gas Vehicles

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12 Light-Duty NGVs Suitable for light-duty needs in private and government fleets Honda Civic GX Medium-Duty NGVs Vans and shuttles Airports and taxi fleets Heavy-Duty NGVs Refuse haulers Transit buses School buses Long-haul trucks Street sweepers Snowplows Short-haul delivery trucks Fleet Applications Natural Gas Vehicles for America

13 High fuel use vehicles with return to base operations Repetitive route Pre-set geographic operating areas Fleet implementation will drive consumer market as infrastructure becomes available Best CNG Applications

14 Time-Fill Fueling Good for centrally-based fleets with consistent schedules CNG is dispensed slowly, often overnight Lower cost investment Fast-Fill Fueling Fueling takes place in minutes Necessary for public-access stations Good for vehicles with little downtime Combo-Fill Fueling Time-fill and fast-fill More flexibility in fueling CNG Fueling

15 Wisconsin CNG Stations 26 public CNG stations throughout the state. 6 private CNG stations - 2 private biogas stations 1 public LNG stations Anticipate new station within the next 5 yrs Wisconsin CNG Station Map Source: USDOE EERE Alternative Fuels Data Center

16 Economics: WI Transportation Gasoline/Diesel Prices create uncertainty for fleets due to price volatility Current natural gas prices are dramatically lower than petroleum fuels Recently extended 0.55 per gallon tax credit has also driven down prices CNG Prices 9/12/12 Source: CNGPrices.com

17 Wisconsin’s Role Natural Gas is an attractive energy source from an economic, energy security and environmental perspective So why didn’t everyone get here on natural gas? Domestic natural gas supplies have only increased recently Limited OEM and conversion options for vehicles It will take some time to overcome the problem of supply (retail infrastructure) and demand (vehicle availability) to meet the needs in the marketplace

18 State Programs to Support Advances in Transportation Fuels and Vehicles

19 NEW! Forwarding Wisconsin's Fuel Choice  $500,000 award from USDOE Clean Cities Grant Program  Program Team – SEO, Wisconsin Clean Cities and WI Technical College System  Goals to expand alternative fuels use by: - Expand accessibility to alternative fuels off highways; - offer training for first responders, public safety officers, and permitting officials; and - assist public fleets in developing and implementing petroleum reduction strategies and policies.  Launch in Q

20 Wisconsin Clean Transportation Program  $300 million USDOE Clean Cities Grant Program  25 awards across the US, WI received largest award  $15 million awarded to WI  36 partners, 315 vehicles, 18 alternative fuel locations  Additional $17 million leveraged by public and private fleets  Goals: Reduction of Petroleum Use in Transportation Cleaner Air Through Reduced Emissions Acceptance of Alternative Fuels Acceptance of Advanced Vehicle Technology

21 More Information Wisconsin State Energy Office Wisconsin Clean Cities website Alternative Fuels & Advanced Vehicles Data Center Natural Gas Vehicles for America

22 Thank you! Maria Redmond


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