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Natural Gas Vehicles (NGV) and Fueling Options

Justin Stiff and Jim Tilley

CenterPoint Energy

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Which Comes First?

Vehicles or Infrastructure

3

Overview

• Natural Gas as a Transportation Fuel

• CNG Compressed Natural Gas

• LNG Liquefied Natural Gas

• Environmental Advantages

• Economic advantages over other fuels

• Economic/Technologies that have changed supply and prices

• Tax Credits

• CNG & LNG Availability

• Station Examples

• Contacts

• Questions

4

Compressed Natural Gas (CNG)

• Gas delivered to site by the local gas utility and compressed and

stored onsite and/or distributed directly to vehicles

• Onboard 3,600 psi vehicle cylinders

• CNG is measured in Gasoline Gallon Equivalents

• NGVs are proven and reliable (11,000+ transit buses and 4,000 +

refuse trucks. Cummins Westport has 10,000 + natural gas

engines in the field.)

• NGVs are quiet (80-90% lower decibel level than diesel)

Facts About Natural Gas

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Typical Natural Gas Compressor Station How it works

•The natural gas enters the compressor station going through the dryer to the

compressor.

• If a slow fill system, no storage is required.

• If Fast Fill, storage required.

•To the dispensing equipment into a NGV.

•Stations can range from $5,000 for an individual homeowner unit to several million

dollars. The price is dependent upon number of vehicles to fuel, number of gallons

per hour and if storage is required.

Flow

Information

Needed:

• # Vehicles

• Miles per Gallon

• Gallons per Day

• Timeliness of

Refueling and time

of day

• Delivery Pressure

• Volume per Hour

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Liquefied Natural Gas (LNG) Facts

• Natural Gas cryogenically cooled to liquid @ (-260 Degree)F, stored in liquid

form onboard vehicle and vaporized back to a gas before it enters engine

cylinder. Natural gas replaces the energy (Btu’s) in gasoline or diesel with

the energy (Btu’s) in natural gas.

• Preferred by many heavy-duty fleets due to its higher energy density and

space requirements

• Most vehicular LNG used today is produced at a limited number of plants

and trucked to fleets’ onsite storage vessels.

• Transportation of LNG to the fueling location is a consideration.

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Typical LNG Station How it works

•LNG is stored in the Storage

vessel.

•Upon Demand, LNG is pumped

to the dispenser using a cryogenic

pump into a NGV.

•LNG Stations vary in price based

on the amount of fuel dispensed per

hour and the amount of storage on site.

The prices range from several hundred

thousand to several million dollars.

Flow

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Environmental Advantages

Natural gas is cleaner than other fuels

• Reduces carbon monoxide emissions 70-90%

• Reduces carbon dioxide emissions 20-30%

• Reduces nitrogen oxide emissions 75-95% (less smog and soot)

• Potentially reduces non-methane hydrocarbon emissions 50-75%

• Emits fewer toxic and carcinogenic pollutants

• Emits little or no particulate matter

• Eliminates evaporative emissions

Natural gas produces less greenhouse gases than diesel • Heavy Duty Vehicles (HDV’s) about 20-23%

• Light Duty Vehicles (LDV’s) about 26-29%

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Economic Advantages - Price Stability Compared to Diesel

Price of Natural Gas per Dth

Gas Commodity Cost DGE Note 1

Delivery Cost DGE Note 2

Electricity Cost DGE Note 3

Compressor Maintenance Cost DGE Note 4

Capital Amortization Cost DGE Note 5

Federal & State Fuel Tax Cost DGE Note 6

Total DGE Note 7

$3.00 $0.375 $0.2714 $0.12 $0.27 $0.45 $0.464 $1.9504

$4.00 $0.50 $0.2714 $0.12 $0. 27 $0.45 $0.464 $2.0754

$5.00 $0.625 $0.2714 $0.12 $0. 27 $0.45 $0.464 $2.2004

$6.00 $0.75 $0.2714 $0.12 $0. 27 $0.45 $0.464 $2.3254

$7.50 $0.9375 $0.2714 $0.12 $0.27 $0.45 $0.464 $2.5129

$10.00 $1.25 $0.2714 $0.12 $0.27 $0.45 $0.464 $2.8254

$12.50 $1.5625 $0.2714 $0.12 $0.27 $0.45 $0.464 $3.1379

$15.00 $1.875 $0.2714 $0.12 $0.27 $0.45 $0.464 $3.4504

1.Cost of Natural Gas Commodity/Dth/7.194

2.Delivery Charge Based on Rate Class Dth/7.194, including demand charge

($1.95/Dth)

3.Per NGV America. Includes Kwh + demand

4.Per NGV America

5.Per NGV America

6.Federal and State Excise Tax Diesel ($0.244 Federal + $0.22 State)

7.Total is before potential $0.50/DGE tax rebate/credit.

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Economic Advantages - Continued

Conversions from commodity to GGE or DGE:

• 6.22 pounds of LNG = 1 DGE per NWCM (National Conference of Weights and

Measures)

•5.66 pounds of natural gas (CNG) and 126.67 cubic feet = 1 GGE per NWCM

•One cubic foot = ~1,000 BTUs (Note: cf = volume, BTU = energy)

• One Dth = 1,000 cubic feet

• One Dth = 1,000x1,000 = ~1,000,000 Btus (MMBtu or dekatherm)

• One Gasoline Gallon Equivalent (GGE) is 125,000 Btu/GGE…therefore…

• One Dth = roughly 8 GGE of (uncompressed) natural gas.

• One Diesel Gallon Equivalent (DGE) is 139,000Btu/DGE...therefore...

• One Dth = roughly 7.194 DGE of (uncompressed) natural gas

Fuel Unit of Measure BTU Content Natural Gas Dth Conversion

Natural Gas Dth 1,000,000

CNG GGE 125,000 8.00

LNG Gallon 81,700 12.24

Propane Gallon 91,600 10.917

Gasoline Gallon 125,000 8.00

Diesel Gallon 139,000 7.194

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Annual Fuel Savings Estimator

Miles per DGE 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000

5.0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Fuel Price Diff $DGE 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

$ 1 .00 or $.20/Mile

$ 5,000 $ 10,000 $ 15,000 $ 20,000 $ 25,000 $ 30,000 $ 35,000 $ 40,000 $ 45,000

$ 1.25 or $.25/Mile

$ 6,250 $ 12,500 $ 18,750 $ 25,000 $ 31,250 $ 37,500 $ 43,750 $ 50,000 $ 56,250

$ 1.50 or $.30/Mile

$ 7,500 $ 15,000 $ 22,500 $ 30,000 $ 37,500 $ 45,000 $ 52,500 $ 60,000 $ 67,500

$ 1.75 or $.35/Mile

$ 8,750 $ 17,500 $ 26,250 $ 35,000 $ 43,750 $ 52,500 $ 61,250 $ 70,000 $ 78,750

$ 2.00 or $.40/Mile

$ 10,000 $ 20,000 $ 30,000 $ 40,000 $ 50,000 $ 60,000 $ 70,000 $ 80,000 $ 90,000

$ 2.50 or $.50/Mile

$ 12,500 $ 25,000 $ 37,500 $ 50,000 $ 62,500 $ 75,000 $ 87,500 $ 100,000 $ 112,500

Annual Fuel Consumption (values in DGE per year per truck)

Annual Fuel Savings (values in dollars per year per truck)

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Operating Cost Data Natural Gas vs. Diesel and Gasoline

Refuse Transit Local Haul

Long Haul

Municipal/Utility

Airport/ Regional

Taxis

Airport Regional Shuttles

School Buses

Annual Fuel Savings

$12,000

$16,500 $12,000 $18,000 $4,500 $3,750 $6,000 $3,000

Incremental Cost

$45,000

$40,000 $45,000 $65,000 $40,000 $10,000 $20,000 $40,000

Payback Period

3.75 2.4 3.75 3.6 8.9 2.7 3.3 13.3

Annual Fuel Use (Gallons)

8,000 11,000 8,000 12,000 3,000 2,500 4,000 2,000

Comparison Fuel

Diesel Diesel Diesel Diesel Diesel Gasoline Gasoline Diesel

Fuel Cost Calculations based upon $1.50 per gallon (DGE or GGE) price

difference, actual price difference in February 2013 is approximately $1.80

per gallon. No incentives.

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Recent Trends

• Recent decoupling of natural gas and crude oil

• Increased demand for energy world-

wide(India, China, Latin America, Other Asia

Pacific countries, Middle East and Africa)

• Shale Gas Development in US

$0

$5

$10

$15

$20

$25

$30

1992 1998 2004 2010

$/MMBtu

Price Creates Incentive to Switch

Crude Oil

Natural Gas

shale

Source: Clearport NYMEX

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Supply By Source

Source: EIA Annual Early Release Energy Outlook 2013

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Supply- Short & Long Term

• Storage inventories are still at record levels and are well above

historical five-year average levels.

• Average wellhead prices are predicted to remain low for the

foreseeable future due to the extensive shale gas resources.

• Natural gas produced from shale currently accounts for 23% of

domestic production and is forecasted to continue to rapidly

grow.

• Despite low natural gas prices, drilling continues at a strong

pace, particularly in Pennsylvania and West Virginia as

producers target combination oil-and-gas wells.

Source: EIA Short-Term Energy Outlook, January 2013

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Domestically Produced…

Shale Basins in the U.S.

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Where is the Shale Gas?

Private well, about 500 ft deep

Public well, about 1,000 ft deep

Several layers of steel tubes

encased in cement protect

groundwater supplies

Protective steel casing

encased in cement extends to

shale depth

Fracking depth from the

surface is typically more

than 1.5 miles (7,700 ft. avg.)

and 1+ miles below the

depth of public wells.

Groundwater aquifers

For a video detailing the shale hydraulic fracking process, visit:

http://www.hydraulicfracturing.com/Pages/information.aspx

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Bakken Formation Oil & Gas Fields At Night

Illustration by NPR/NASA

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Global Natural Gas Vehicle Growth by Region

38.7% Asia-Pacific

14.8%

Latin America

16.2%

Europe

16.1% Africa

-1.2% North America

-

2

4

6

8

10

20102008200620042002

Millions of Vehicles

Source: www.iangv.org

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Tax Incentives-Current Fuel Tax Credit

• Tax credits of $.50 per GGE (Gasoline Gallon Equivalent) of

CNG (per 121 cubic feet) and $.50/gallon of LNG when used

as a transportation fuel. (Tax Credit Goes to Fleet owner or

party dispensing CNG/LNG, party that adds value)

• For business property, a tax credit = 30% of the cost of

fueling infrastructure up to a maximum credit of $30,000 per

station.

• For residential home fueling units, the credit is worth 30

percent or a maximum of $1,000.

• All of the above tax credits are available through

12/31/13 and are retroactive to 2012!

• Bonus depreciation allows 50 percent depreciation for 2012

expenditures.

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CNG and Diesel Blending

• Techno Carb http://www.ecodieselinjection.com/products.htm

• Eco Dual http://www.ecodual.com/products-2/

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Engines Available for Conversion

• NGV America

http://www.ngvamerica.org/pdfs/Available_

Vehicles_and_Engines.pdf

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Automotive and Truck Kit Manufacturers

• IMPCO Technologies

http://www.impcoautomotive.com/AdvHTM

L_Upload/pdfs/IMPCO-CK-Product-

Offerings.pdf

• Altech Eco

http://altecheco.com/pages/CNG_Conversi

ons.htm

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Light Duty Truck Availability

2013 Bi-Fuel Silverado/Sierra 2500HD (3/4 Ton) Extended Cab Pick-up

• ¾ Ton, 6.0L Vortec V8 engine

• Available for long or short-bed models in both 2WD and 4WD

• Combined 17 GGE CNG tank and 36 gallon gasoline tank provide a range of more

than 650 miles

• Bed space used by tank / weight= 24” / 450 lbs.

• Two fuel gauges installed directly on the dash provide reliable readings for CNG and

gasoline levels

• GM Bi-Fuel Silverado/Sierra comprehensive 5-year/100,000-mile transferable

Powertrain Limited Warranty

• Incremental cost = Approximately $9,000-$12,000

• Available 2013

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Light Duty Truck Availability- Cont.

Ford F-250, ¾ Ton/350, 1 Ton, Bi-fuel Super Duty Truck

• 6.2L V8 engine

• 4X2 or 4X4

• Standard 18.4 GGE (24.5 GGE optional) composite CNG fuel tank

(behind cab)

• With 35 gallon gasoline tank provides combined range over 650 miles

• Bed space used by tank/weight = 26” / 308 lbs.

• 6.75 or 8 ft. cargo box lengths

• Incremental cost = $9,500 - $10,700

• Available beginning in 2012

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Light Duty Truck Availability- Cont.

2013 Dodge Ram HD 2500 (3/4 Ton) CNG, Crew Cab 4X4

• Standard 5.7-liter V-8 Hemi engine

• 18.2 gallon CNG tank in the bed = 255 mile capacity at 14 MPG

• Bed space used by tank/weight = 39” / 600 lbs.+

• Eight-gallon gas tank provides 100+ miles of range. (35 Gallon option for

$350)

• Total combined range for both tanks is around 370 miles

• Incremental cost = $10,000 +

• Available 2013

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Heavy Duty Vehicle Options

OEM Freightliner Peterbilt

Kenworth Volvo

Model M2-112 320 384 365

T800SH W900S T440 T470

VHM

Engine ISL G 320 ISL G 300

ISL G 320 ISL G 320

ISL G 320

Application 6X4 Tractor 4X2 Tractor 4X2 Truck 6X2 Truck Vocational

Tractor Vocational Mixer

Tractor

Tractor

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Heavy Duty Vehicle Options

Cummins Westport, Inc. Primary Supplier to OEM’s in:

• Refuse = ISL G &/or ISX12 G

(American LaFrance, Autocar, Crane Carrier,

Kenworth, Mack, Peterbuilt)

• Buses: (School, shuttles, Transit,

Coach) = ISL G

(Blue Bird, Thomas, El Dorado, Foton America,

Gillig, NABI, New Flyer, Orion, Motor Coach)

• Sweepers = ISL G

(Elgin, Schwarze)

• Tractors (short haul) =ISL G &/or

ISX12 G

(Freightliner, Kenworth, Mack, Navistar,

Peterbuilt, Volvo)

• Yard Spotters = ISL G

(Autocar, Capacity, Kalmar)

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CNG Fueling Infrastructure Costs

Type Rate/Size Cost Range Application

Time Fill-CNG .25 GGE/HR $4,500-$5,500 Home

Time Fill-CNG 1.0 GGE/HR $9,000-$12,000 Home/Fleet

Time Fill-CNG 10.0 GGE/HR $14,000-$50,000 Home/Fleet

Time Fill-CNG 50-200 GGE/HR $250,000-$500,000 Fleet

Fast Fill-CNG 50-200 GGE/HR $500,000-$850,000 Public/Fleet

Fast Fill-CNG

100-200 GGE/HR $800,000-$1,5000,000

Public/Fleet

Fast Fill-CNG

200-300 GGE/HR $1,250,000-$3,200,000

Public/Fleet

CNG Refueling Infrastructure Cost*

*Illustration Purposes Only- Exact costs are dependent on gas quality, Inlet pressure, land costs,

location, civil engineering, onsite storage, back/redundancy – How much fuel in what period of time.

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CNG Station Locations

Link to Station locations in US or in your State

http://www.afdc.energy.gov/fuels/natural_gas_locations.html

App for Smartphone

http://www.cngnow.com/app/pages/information.aspx

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Example of CNG Station

City of Bossier

2580 E. Texas Street, Bossier, LA

• 220 GGE/Hour Fast Fill (@ 28 PSIG Inlet)

• $1.5mm

• 240 GGE Storage

• Room to add storage and additional compression

• One acre site (compressor is 30 ft. x 90 ft.)

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Example of CNG Station

City of Bossier

2580 Barksdale Blvd., Bossier, LA

• 220 GGE/Hour Fast Fill (@28 PSIG Inlet)

• $1.5mm

• 240 GGE Storage

• Room to add storage and additional compression

• One acre site (compressor is 30 ft. x 90 ft.)

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Example of CNG Station

Ace Solid Waste

6601 McKinley Street NW., Blaine, MN

• 150 GGE/Hour Slow Fill (20PSIG Inlet)

• $1.5mm

• Propane Air Plant near this location

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Example of CNG Station

City of Shreveport

1731 Kings Highway, Shreveport, LA

• 175 GGE/hour Slow Fill (limited Fast Fill)

• $1.3 mm

• 1 additional compressor for redundancy. Compressor sized for 50 refuse

trucks

• Small Footprint only 20 slow fill nozzles were installed originally (60 ft x 20 ft)

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Example of CNG Station

Sportran Transit Authority

1115 Jack Wells Blvd., Shreveport, LA

• 285 GGE/hour Fast Fill (125 PSIG Inlet)

• $1.3MM

• 240 GGE Storage (Fills 60 DGE in 7 Minutes)

• Large Footprint

• Saved on Compressor stage, with 125 PSIG Inlet

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Example of CNG Station

Public CNG Station

Time It Lube

6828 Pines Rd., Shreveport, LA

• 120 GGE/hour Fast Fill

• $650,000

• 240 GGE Storage

• Small Footprint (60 ft x 20 ft)

• LA State Tax Credit $250,000

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Why Natural Gas Vehicles?

Abundant Affordable American Clean Proven

Estimated

natural gas

reserves

provide over

100 more

years of

supply

The more you

drive the

more you

save with

average

savings of

$1.50 per

gallon,

payback in 2-

4 years

US Imports

about 50% of

oil

consumption,

while 98% of

natural gas

consumption

is produced

domestically

Converting

one refuse

truck from

diesel to

natural gas =

removing 300

vehicles off

the road

Millions of

vehicles

worldwide

use this

technology

It just makes “cents”!

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CenterPoint Energy CNG Contacts

Minnesota Region

Jon Williams

Jon.Williams@centerpointenergy.com

612-321-4390 or

612-321-4330

(LNG Sales)

AR/OK Region

Jose Laboy

Jose.Laboy@centerpointenergy.com

501-377-5278 or

501-658-5278

Texas Region

Justin Stiff

Justin.Stiff@centerpointenergy.com

713-207-9077 or

713-859-6429

LA/MS Region

Jim Tilley

Jimmy.Tilley@centerpointenergy.com

318-429-4257 or

318-505-7981

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Working Together

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Questions?