1. Growing Manitoba’s Green Fleet E85 Demonstration Update Manitoba Infrastructure and Transportation October 2006

2. Outline Context Thank You E85 Partners E85 Energy Balance, Content, GHG Considerations Project Implementation Looking Down the Road

3. Context: Provincial Interests Progress towards sustainable transportation Vehicle Procurement, management and operation Alternative renewable energy development Diversifying Agra-Energy value added products Reduce transportation GHG

4. E85 Demo Benefit Make E85 available to fleet users Reduce GHG from targeted vehicles 24% Document opportunities and challenges in the demo Long term results

5. Thank You E85 Project Partners Natural Resources Canada Energy Research and Development Husky Fleet Vehicles Agency Manitoba Justice Civil Legal Services Science, Technology, Energy and Mines Energy Climate Change & Green Strategy Initiatives Infrastructure & Transportation Executive Management Administrative Services Sustainable Development Coordinator Engineering & Operations Mechanical Equipment Services Operational Services Engineering – Planning & Design Policy & Service Development All Provincial Departments and Agencies using FFV & E85

6. E85 Flex Fuel Vehicle Technology single fuel tank, fuel system, and engine designed to run on unleaded gasoline and an alcohol fuel (usually ethanol) in any mixture engine and fuel system in a flex-fuel vehicle must be adapted slightly to run on alcohol fuels because they are corrosive – usually a combination of Teflon coated and/or stainless steel components – e.g. fuel tank, fuel pump, fuel hoses and injector tips. special sensor in the fuel line to analyze the fuel mixture controlling the fuel injection and timing to adjust for different fuel compositions - fuel density sensor (FDS) in the tank, an Engine Control Module ((ECM) programmed to make ignition timing changes, and an oxygen sensor (in the exhaust) to control fuel to the injectors flex-fuel technology was created by Ford Motor Company in the mid-1980s. Source: http://www.fueleconomy.gov/feg/flextech.shtml & Fleet Vehicles Agencyhttp://www.fueleconomy.gov/feg/flextech.shtml

7. E85 Life Cycle GHG Coefficients Kg CO 2 equivalent / litre Gasoline 3.472 E85 1.63 (from wheat) Source: www.ghgenius.ca

8. E85 Energy Balance The positive energy ratio displayed by ethanol and biodiesel is accounted for by the contribution of solar energy collected by the crop from which the fuel is made. This energy is considered "renewable" because a new crop is raised each year. Fossil fuels, on the other hand, originate from fossilized plants and animals stored beneath the earth's surface in a process that took millions of years. Another consideration discussed in the 2002 net energy report relates to the specific demand for liquid fuels and the relative abundance of energy sources used to make these renewable fuels. The report explains, "Only about 17 percent of the energy used to produce ethanol comes from liquid fuels such as gasoline and diesel fuel. For every 1 Btu of liquid fuel used to produce ethanol, there is a 6.34 Btu gain." Fuel * Energy yield Net Energy (loss) or gain Gasoline0.805(19.5 percent) Diesel0.843(15.7 percent) Ethanol1.3434 percent Biodiesel3.20220 percent Source: http://www.mda.state.mn.us/ethanol/balance.html * Life cycle yield in liquid fuel Btus for each Btu of fossil fuel energy consumed.

9. E85 Energy Content E85 contains 73% of the energy in gasoline by volume 1 U.S. Gallon of gasoline contains 114,132 btu 1 U.S. Gallon of no. 2 diesel fuel contains 138,000 btu 1 U.S. Gallon of ethanol contains 76,000 btu 1 U.S. Gallon of methanol contains 56,800 btu 1 U.S. Gallon of propane contains 84,500 btu 1 U.S. Gallon of compressed natural gas contains 19,800 btu Ethanol is denatured by adding 5 gallons of gasoline to 100 gallons of ethanol (4.76%), therefore: Ethanol @ 76,000 btu/gal x 95.24% =72,382 Gasoline @ 114,132 btu/gal x 4.76 = 5,433 Denatured ethanol=77,815 btu/gallon E85 is then a blend of denatured ethanol and gasoline, therefore: Denatured ethanol @ 77,815 btu/gal x 85%=66,143 Gasoline @114,132 btu/gal x 15%= 17,120 E85=83,263 btu/gal Source: http://www.e85fuel.com/forsuppliers/docs/e85_and_energy_content.dochttp://www.e85fuel.com/forsuppliers/docs/e85_and_energy_content.doc

10. E85 Station Location Options Centrally located within 3 km of city centre I&T Mechanical Equipment Yard - Dublin Existing Husky retail site Fleet Vehicles Agency compound MB Hydro – Notre Dame City of Winnipeg - Pacific Avenue – co- locate as part of WinSmart Eco-station

11. E85 Other Considerations Contribution Agreement Environmental Scan & Report Professional Project Management Tendering Process SD Procurement Guidelines Fleet vehicle procurement Day-to-day operation logistics KEYS - Fleet Vehicles Agency’s Management Software

13. E85 Update: Summary 2 year process Contribution Agreement requires legal resources Project Management requires a P.Eng. manager Station opened on March 8, 2006 22,000 litres of E85 dispensed Displaces 17,600 litres of gasoline Average price of E85 is 94 cents /l 29 of 60 vehicles in Winnipeg participating 2 vehicles experienced starting/running problems – (EMC & O 2 sensors) Experience gained in managing on-site renewable fuel storage and dispensing Lower fuel economy as expected - positive driver feedback Accomplished with limited marketing & communications campaign. 25,000 kg CO 2 emissions avoided

14. E85 GHG Profile LCA Est. 7 month period 22000 l E85 35800 kg CO 2 Substitutes 17600 l gasoline 61100 kg CO 2

15. E85 & Average Price of Gasoline E85

16. E85 Successes Demonstrates provincial leadership Showcases clean renewable fuel Creates a push for more E85 stations Supports rural economic development Underscores flexibility in absence of renewable or non-renewable fuel Real reduction in GHG Carbon credits for sale!

17. Is E85 in Your Future New Federal programs TBD Provincial support & encouragement Ethanol expansion More FFV in provincial fleet Increasing FFV on the road Commercial fleets Municipal fleets NGO fleets Commercial stations Greening the NASCO corridor Transportation Demand Side Management – a unit of transportation energy not needed is better than a unit of alternative energy used.