amerigas autogas lpg fleet overview
DESCRIPTION
An overview of converting a fleet to LPG / propane / autogas with information on cost savings, greenhouse gas emission reduction, and vehicle technology.TRANSCRIPT
Clean Fuel/Autogas Overview
An introduction to LPG/propane for vehicle fueling
INTRODUCTION
Industry Overview, Government Funding & Incentives, “Ideal” Fleets for LPG
Why Use Propane as a Vehicle Fuel?• Reduced fleet operating costs
– Between $10-$15,000 / vehicle (lifetime)– Savings result from:
• Lower fuel prices• Reduced maintenance (propane burns cleaner with less carbon)• Tax incentives and government grants
• Environmentally friendly– Emissions are lower when compared to gasoline:
• 18% less greenhouse gases (CO2 and others)• 20% less NOX• 60% less carbon monoxide
– Support corporate sustainability initiatives
• Responsible choice– Over 90% of propane is produced in the U.S.– Reduced dependence on foreign oil
• In 2008, 12.9 million barrels per day were imported into the U.S.
• Proven technology– Modern liquid-injection engine systems are highly reliable– Over 14.6 million vehicles use it worldwide (#3 fuel type after
gasoline and diesel)– LPG is the most accessible alternative fuel in the U.S. There are
more than 3,300 stations nation wide.
U.S. Government Funding and Incentives
• General Funding Resources– $8.4 billion for investment in public transportation to purchase buses
and to build new infrastructure– $3.2 billion for Energy Efficiency & Conservation Block Grants– $2.5 billion to DOE’s EERE program for Demonstration, Development &
Deployment activities– $300 million for an Alternative Fuel Pilot Grant Program administered
through the Clean Cities Program
• Propane Incentives– Alternative Fuel Tax Credit
• $0.50 per gallon alternative fuel tax credit (through December 2010)– Refueling Infrastructure Tax Credit
• 50% tax credit, up to $50,000, for alternative fuel refueling property (through December 2010)
– Incremental Vehicle Costs• Funding for 50% of the incremental cost of vehicle conversion (costs and credit
are capped based on vehicle weight)
© 2010 AmeriGas - Company Confidential
Government Funding by Vehicle TypeVehicl
e Weight
(lbs)
Truck Class
Max Allow Incr Cost
Max Base Credit
Max Add’l Credit
Max Allow Credit
< 8,500 2(c) $5,000 $2,500 $1,500 $4,000
8,500 -
14,0002(c), 3 $10,000 $5,000 $3,000 $8,000
14,001 -
26,0004, 5, 6 $25,000 $12,500 $7,500 $20,000
> 26,000 7, 8 $40,000 $20,000 $12,000 $32,000
The “Ideal” Fleet• There is no single “ideal” fleet for propane conversion
– The economic justification and environmental benefits are accessible for large and small fleets
• A sample of the businesses and industries that have converted fleets:– Service industries (plumbers, electricians, auto parts, HVAC, etc.)– Taxis and shuttles– Public/government organizations (police fleets, school buses, etc)
• Types of vehicles that convert well:– Both gasoline and diesel powered vehicles can benefit– Truck classes 2-5– School buses and other transport
About AmeriGas
• Nationwide infrastructure– Local support and service– 24/7 and emergency response– Largest propane company in the U.S.
• Abundant fueling locations & options– Public stations and dispensers – On-site fueling (for domiciled fleets)
• 1,000 - 30,000 gallons• All permitting requirements provided by AmeriGas• Equipment can be purchased or loaned
• Training assistance and safety expertise
BY THE NUMBERS
A look at the economics of LPG fuel vs. gasoline or diesel, quantifying emission reductions, and investment payback.
Fuel Comparison• Background
– When LPG is used to displace gasoline or diesel in a fleet, the replacement in gallons is not a simple one to one due to difference in energy of the fuel.
– The following calculation determines the amount of petroleum reduction using LPG.
• Information– Current Fleet Data or Estimates
• Determine the number of vehicles that will use LPG• Estimate the number of miles that each vehicle will travel annually• Estimate the average fuel economy of each vehicle• Note whether vehicle are gasoline or diesel fueled
– LPG Fleet Data• If LPG will be used as part of a dual-fuel system, estimate how much of the time the vehicles
will use LPG
• Calculations– Fuel Reduced = (Vehicle Count)*(Avg Vehicle Use)*(Fraction of LPG)/(Avg Fuel
Economy) – Total LPG Required = (Gallons Reduced)*(Gas [1] or Diesel [1.147] Factor)*(Gasoline
Gallon Equivalent Factor [1.35]) https://www.afdc.energy.gov/afdc/prep/methodology.html
Fuel Comparison ExampleBackground Information Parameter Value UnitCurrent FleetVehicle Count 4NumberFuel Type Gasoline Drop Down Menu (Gasoline or Diesel)Average Fuel Economy 7.6Miles/GallonAverage Vehicle Use 14,094Miles
LPG FleetLPG Type Dual-Fuel Drop Down Menu (Single-Fuel or Dual-Fuel)Fraction of LPG 100%% (100% for single-fuel)
Calculations Gallons of Gasoline Reduced 7418GallonsTotal LPG Required 10014Gallons
https://www.afdc.energy.gov/afdc/prep/methodology.html
Investment & Payback
http://www.switchtopropane.com/savings_calculator.cgi
Investment Information Parameter Value UnitPer Vehicle Conversion Cost $10,000 $ [USD]Federal Tax Credit Eligible Yes Yes or NoVehicle Longevity 7Years
Fuel Cost Information Cost of Gasoline $2.75$ / GallonCost of LPG $2.00$ / Gallon
Calculations Conversion Cost $40,000$ [USD] (Number of Vehicles)*(Conversion Cost Per Vehicle)Tax Credit $20,000$ [USD] 50% of conversion cost, up to $5,000Total Investment $20,000$ [USD]
Annual LPG Fuel Cost $20,028$ [USD] (Gallons of LPG)*(LPG Cost)Alternative Fuel Credit $5,007$ [USD] $0.50 per GallonTotal LPG Cost Annually $15,021$ [USD]
Total Gasoline Cost Annually $20,399$ [USD] (Gallons of Fuel Replaced)*(Fuel Cost)
Fuel Cost Savings Annually $5,378$ [USD]
Breakeven Point 3.7Years Investment/Annual Fuel Cost
Savings after Breakeven Point $17,645.82$ [USD] (Vehicle Longevity-Breakeven)*Annual Fuel Cost Savings
Emissions Reduction
• The GREET (Greenhouse gases, Regulated Emissions, and Energy use in Transportation) Fleet Footprint Calculator developed by Argonne National Lab provides an estimate of petroleum displacement and greenhouse gas (GHG) emissions of medium- and heavy-duty vehicles.
• The results provided are the complete well-to-wheels (WTW) basis of the lifecycle of the fuel. A WTW analysis includes both the well-to-pump (WTP) and pump-to-wheels (PTW) stages.
– Note: a short ton is equivalent to 2000 pounds.
Calculations Parameter Value UnitGreenhouse Gas Emissions - Gasoline 90.5short tons CO2-equivalentGreenhouse Gas Emissions - LPG 82.7short tons CO2-equivalentDifference 7.8short tons CO2-equivalent% Reduction 9%
Well-to-Wheel Petroleum Use - Gasoline 166.1barrelsWell-to-Wheel Petroleum Use - LPG 169.6barrelsDifference -3.5barrels% Reduction -2%
UNDERSTANDING THE TECHNOLOGY
Vehicles & Conversions, Dispensers, Fleet Testing & Evaluation
Choosing a Vehicle
New/OEM• Good fit when replacing old
fleet vehicles
• Vehicles arrive ready for use
• Realize fuel efficiency gains of new engine technology
Retrofit/Conversion• Good fit to meet urgent
requirements/needs• Vehicles must be taken out
of service• Dual-Fuel (propane and
gasoline) or Single-Fuel options
EPA Certification for Conversion• Background Information
– OEM vehicles altered to run on propane must meet current applicable EPA standards. All vehicle conversions must be certified to ensure compliance with Section 203(a)(3) of the Clean Air Act.
• Certificates of Conformity– The EPA issues Certificates of Conformity that cover a "test group"—specific vehicle
or engine models for certain model years that are modified to operate on an alternative fuel.
– Once the Certificate of Conformity is issued, vehicles in the test group may be converted by the conversion company to use that alternative fuel system.
– Certificates indicate:• The original test group of vehicles as determined and provided by the OEM.• The evaporative emissions family.• The state(s) in which the test group is certified (e.g. California vs. 50 state sales areas).• The "car line" (e.g., F-150, two-wheel drive, extended cab, 5.4-liter engine).• The model year of the vehicles included in the test group.• The emissions standards that are met.
http://www.afdc.energy.gov/afdc/vehicles/conversions.html
ROUSH
• Exclusive focus on Ford vehicles
• New, OEM-quality trucks and vans
• Recognized name and industry expertise
• Their goal is to put 45,000 vehicles in the market
• www.switchtopropane.com
Model Engine Year Image
Trucks: F-250, F-350
5.4L V8 2009-2010
Vans: E-150, E-250, E-350
5.4L V8 2009-2010
Cutaway: E-350
5.4L V8 2009-2011
Cutaway: E-450
6.8L V10 2009-2011
Clean Fuel USAModel Engine Example
Blue Bird 8.1 L
G4500 Chassis 6.0 L
Workhorse W42 6.0 L
GM C2500/3500 Series Cab Chassis
6.0 L
G3500 Cut-Van 6.0 L
• GM and Freightliner vehicles
• Fully-integrated OEM-quality system for new trucks and vans
• cleanfuelusa.com
TransTech Energy• Retrofit and vehicle conversion• Bi-Fuel and Mono-Fuel
systems– Bi-fuel System uses factory
OEM components with liquid propane injection technology, allowing vehicles to function on propane or gasoline
– Installation process utilizes the original ECU of the vehicle
• Selected partner of ICOM– Patented ICOM JTG Liquid
Propane Injection Bi-Fuel System allows vehicles to allows to maintain OEM horsepower and torque specifications
• www.transtechenergy.com
Comparing Dispensing Equipment
Modern Dispensers
• Ideal for medium and high volume – Features include
• Card readers
• Fuel management system interface
– Cost• $20-$30,000 (estimate for
80,000 gallon annual system usage)
Traditional Dispensers
• Ideal for basic systems, test, and low volume– Cost
• $12-$15,000 (estimate for (40,000 gallon annual system usage system)
Clean Fuel USA
PRO 6100 Series PRO 7200 Series Gilbarco Self Serve Style
Examples of Modern Dispensers
Fleet Testing & EvaluationDeciding if propane is right for your fleet
SUCCESS STORIESSuccessful Deployments, Fleets in Operation Today
PublicSuccess Stories: http://www.afdc.energy.gov/afdc/progs/fleet_exp_fuel.php/LPG
Schwan’s Foods Home Service• Solution
– Schwan's Home Service runs the largest propane fleet in the U.S.
– Over 90% percent of their 6,000 trucks run on propane
• Fuel tanks on these trucks are painted green in honor of their propane use
• Recent Technology Changes– The company recently rolled out new trucks
that are roughly 6,000 lbs lighter, resulting in increased fuel economy
• Along with being more fuel efficient, the trucks are also quieter and safer to operate
• Reliability– Schwan’s has been using propane in their
trucks since the early 1970s
BusinessFleet.com, July 29, 2010, http://www.businessfleet.com/News/Story/2010/07/Schwan-s-Propane-Fleet-Gets-Makeover.aspx
Wood County, OH - Board of Developmental Disabilities
• Solution– Replaced five model year 1998/2001/2002 diesel-powered school buses with new
liquid propane- injected (LPI) engines
• Incentives Utilized– Diesel Emissions Reduction Grant Program – The customer took advantage of this
grant offered through the Ohio Energy Resources Division of the Ohio Department of Development
• Key People– Customer: Scott McKeown, Transportation Coordinator, Wood County Board of DD– AmeriGas: Alfonso (Al) Sanchez
• Interesting Component– Featured in television news story by local NBC affiliate (WNWO NBC 24) airing
9/15/10
Recap: Using Propane as a Vehicle Fuel• Reduced fleet operating costs
– Between $10-$15,000 / vehicle (lifetime)– Savings result from:
• Lower fuel prices• Reduced maintenance (propane burns cleaner with less carbon)• Tax incentives and government grants
• Environmentally friendly– Emissions are lower when compared to gasoline:
• 18% less greenhouse gases (CO2 and others)• 20% less NOX• 60% less carbon monoxide
– Support corporate sustainability initiatives
• Responsible choice– Over 90% of propane is produced in the U.S.– Reduced dependence on foreign oil
• In 2008, 12.9 million barrels per day were imported into the U.S.
• Proven technology– Modern liquid-injection engine systems are highly reliable– Over 14.6 million vehicles use it worldwide (#3 fuel type after
gasoline and diesel)– LPG is the most accessible alternative fuel in the U.S. There are
more than 3,300 stations nation wide.