Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013
Terminology NGV – a vehicle that uses CNG or LNG fuel CNG – natural 3600 psi, 70 o F LNG - natural 3.6 psi, -260 o F Bi-Fuel – uses natural gas or gasoline/diesel Dual Fuel – uses both natural gas and gasoline/diesel
GGE: Gasoline Gallon Equivalent The amount of natural gas containing the same amount of energy as a gallon of gasoline. (125 ft 3 or 1.25 Therms) 4 GGE = 5 Therms DGE: Diesel Gallon Equivalent The amount of natural gas containing the same amount of energy as a gallon of Diesel (140 ft 3 or 1.4 Therms) 5 DGE = 7 Therms Terminology (continued)
Safety Benefits Lighter than Air Ignition Temperature = 1080° F Flammability Range 5%-15% (gas to air mixture) Non toxic CNG is approved for all tunnels and bridges Major Standard – NFPA 52 “Vehicular Gaseous Fuel Systems Code” Natural Gas Properties Safety Benefits
Storage containers are designed, manufactured and tested to rigid specifications Bonfire test Pressure test for 18,000 cycles of pressurization and depressurization Gunfire test Crash test – cylinders dropped several feet Cylinders include a pressure relief device CNG Cylinders Safety Benefits
CNG Station Components
Fast-Fill DispenserTime-Fill Posts Fueling Options
Target Markets Key Characteristics: High Mileage Low fuel efficiency Central - refueling Refuse Transit Airports / Taxis MunicipalsService Distribution
Dedicated NGVs ClassVehicle TypePremium or Conversion Diff Costs Heavy DutyRefuse, transit, distribution and school buses $35,000 - $50,000 per vehicle Medium DutyShuttle, cargo van, pick-up, utility $9,500 - $25,000 per vehicle PassengerSedan$3,000 - $10,000 per vehicle
NGV Pricing Benefits Source:
Source: US EIA – Energy Information Administration, Energy Outlook 2012 NGV Pricing Benefits Projected Price of CNG and LNG Through in DGE
Source: EIA US Energy Information Administration NGV Pricing Benefits
Source: NGVAmerica NGV Pricing Benefits
Florida Fuel Costs 1 – (November 1, 2013) 2 – AAA Fuel Gauge Report – FL Average (November 1, 2013) RateCost/ ScheduleGGE CNG FL Avg. 1 $2.25 Unleaded 2 $3.26 Mid 2 $3.51 Premium 2 $3.47 Diesel 2 $3.87
Compelling case for vehicle conversions
Economic Price stability and cost less Incentives & funding No pilferage American Jobs Creation Improved Balance of Trade Environment - Cleaner Air Reduction in Greenhouse Gases -23% Reduction is Diesel Particulate Matter- 27% Improved Work Environment for Employees Energy Security Improved - North American fuel reduces America’s dependence on Foreign Oil Benefits
Reduction in Noise – engines are quieter then diesel engines Increased Vehicle/Equipment Product Availability Increased station equipment, station installers/suppliers Increases in Supply – Various US Shale Plays Increased Industry Support Benefits
Peoples Gas has seen tremendous growth NGV Therm Sales have increased by 544% and 182% in 2011 and 2012, respectively Number of customers has more than doubled in 2 years /207, /300, /412, /601 Have the potential to double the number of customers within the next year Have signed a new customer who at full build-out could potentially use more gas than the total of 2012 Florida Growth
peoplesgas.com/ngv