natural gas vehicle update studies section v 59 gna case study: sysco foods of la sysco los angeles...

Natural Gas Vehicle Update

CenterPoint Energy Webinar Series

Erik Neandross, CEO

Gladstein, Neandross & Associates

April 28, 2011

www.gladstein.org l www.lngvehiclefuel.com

www.gladstein.org

Terms of Use

The information contained in this presentation, including all narrative,

photos, graphics, examples, and other data is proprietary and property

of Gladstein, Neandross & Associates LLC. This presentation has been

specifically the below purpose and should be deleted from any kind of

electronic storage by the date below. Replication, transfer,

dissemination, and/or use of any of the information contained herein,

without authorization and the express written consent of Gladstein,

Neandross & Associates is prohibited. For authorization or more

information please contact Erik Neandross at (310) 573-5553 or in

writing at [email protected].

PURPOSE: CenterPoint Energy Webinar; April 28, 2011

PLEASE DELETE FILE BY: May 1, 2011

www.gladstein.org

• Background on GNA

• Update on NGV product availability

• Fueling options (CNG and LNG)

• Costs saving comparisons and payback

• Case studies

Presentation Overview

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Background on GNA

Section I

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GNA Overview

•Environmental Consulting Firm

•Santa Monica & New York City

•17 Years of Experience

•Tremendous NGV Industry

Experience and Expertise

•Diverse Staff of 25> Technical Project Development

> Vehicles, Stations & Fuel

> Grant Funding & Incentives

> Policy & Analysis

> Project PR & Marketing

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Update on NGV Technology for LD,

MD and HD Markets

Section II

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NGVs Today…

Ph

oto

s c

ou

rte

sy

of

NG

V A

me

ric

a

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Update on NGV Technology

• NGV market has grown at a brisk pace over the

last five years

• Originally driven primarily by environmental policy;

Now primarily driven by improving economics and

energy policy

• Expanding base of product offering in light, medium

and heavy duty vehicle applications

• Not yet at capital cost parity with conventional

fuels, but economies of scale are emerging

• Limited yet growing NGV fueling infrastructure

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Light- and Medium-Duty NGVs

OEM Products

Honda Civic GX (current production)

General Motors (announced)

• Chevrolet Express & GMC Safari Vans

Ford (announced)

• F450/F550, Transit Connect, F-53 motor home chassis will be

available with CNG/LPG engine prep packages

Chrysler announced NGV pickup trucks and vans in U.S. w/in 5 yrs

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Conversion Product Manufacturers

Altech-Eco

BAF Technologies

Baytech Corporation (Landi Renzo)

FuelTek Conversion Corp

IMPCO Technologies

Natural Drive

NGV Conversions/NGV Motori


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• Chevrolet Malibu

• Chevrolet Impala

• Buick Lacerne

• Chevrolet Malibu

• Chevrolet Impala

• Buick Lucerne

• Ford Crown Victoria

• Ford Focus

• Ford Fusion

• Ford Mustang

• Lincoln Town Car

• Mercury Grand Marquis

• Mercury Milan

• Cadillac Escalade

• Chevrolet Tahoe

• Chevrolet Suburban

• Hummer H3

• Ford Expedition

• GMC Yukon

• GMC Yukon Denali

• Lincoln Navigator

• Chevrolet Avalanche

• Chevrolet Silverado 1500



• Dodge RAM 1500

• Ford F-150

• Ford F-250

• Ford F-350

• Ford F-450

• Ford F-550

• GMC Sierra 1500

• GMC Sierra 2500

• GMC Sierra 3500

• Chevrolet 1500 Express

• Chevrolet G2500 Express



• Ford Transit Connect

• Ford E-150

• Ford E-250

• Ford E-350

• Ford E-450

• GMC 1500 Savana

• GMC G2500 Savana



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Chevrolet Malibu

Chevrolet Impala

Buick Lacerne

Chevrolet Malibu

Chevrolet Impala

Buick Lucerne

Ford Crown Victoria

Ford Focus

Ford Fusion

Ford Mustang

Lincoln Town Car

Mercury Grand Marquis

Mercury Milan

Cadillac Escalade

Chevrolet Tahoe

Chevrolet Suburban

Hummer H3

Ford Expedition

GMC Yukon

GMC Yukon Denali

Lincoln Navigator

Chevrolet Avalanche

Chevrolet Silverado 1500



Dodge RAM 1500

Ford F-150

Ford F-250

Ford F-350

Ford F-450

Ford F-550

GMC Sierra 1500

GMC Sierra 2500

GMC Sierra 3500

Chevrolet 1500 Express

Chevrolet G2500 Express



Ford Transit Connect

Ford E-150

Ford E-250

Ford E-350

Ford E-450

GMC 1500 Savana

GMC G2500 Savana

GMC G3500 Savana

GMC G4500 Savana

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Heavy-Duty Engine OEMs

Cummins-Westport (CWI)

Westport Innovations

Emission Solutions Inc (ESI)

Heavy-Duty Truck OEMs

Freightliner

Kenworth (2)

Peterbilt (3)

International

Heavy-Duty NGVs

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Cummins Westport has led the way in the

heavy-duty NGV market since the late 1980s

Produces the ISL-G, which is the cleanest heavy-

duty engine on earth and has been certified to the

2010 EPA/CARB emission standard since 2007

The ISL-G is the workhorse of today‟s heavy-duty

NGV industry with over 6,000 units on the road

8.9 liter, inline six-cylinder engine

Stoichiometric, cooled EGR

Maintenance free three-way catalyst (TWC)

Ratings up to 320hp, 1000 lb-ft – CNG/LNG

Certified at 0.1 g/hp-hr NOx – half the 2010

NOx standard!

Cummins Westport (CWI)

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REFUSESPECIALTY BUSTRUCK

ISL G Applications

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Freightliner

Kenworth

Peterbilt

American LaFrance

Autocar

Crane Carrier

Mack

NABI

New Flyer

Orion

Foton

El Dorado National

Blue Bird

Thomas Built

Capacity

ISL G OEM Availability

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ISL G Truck OEM Availability

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Westport GX

• 15 liter, inline six-cylinder engine

• High pressure direct injection (HPDI) engine

with DPF and SCR

• LNG-only integrated fuel system

• Certified to 2010 EPA/CARB emission std

• Ratings up to 475 hp, 1750 lb-ft

• For the heaviest Class-8 truck applications

OEM Chassis Availability

• Kenworth T800

• Peterbilt 386 and 367

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ESI / Navistar

Emission Solutions, Inc (ESI)

Produces CARB/EPA 2010 compliant heavy-duty CNG & LNG

engines for Navistar-International Class 6, 7 Trucks and School

Buses with DT466e or MaxxForce® DT engines

Food & Beverage Distribution, Municipalities & School Bus, Refuse

7.6 liter “Phoenix” engine, inline six-cylinder engine

Stoichiometric, non-EGR, TWC

Ratings up to 300 hp, 900 lb-ft

“2010 emissions today without complex exhaust treatment”

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Future Production

Cummins Westport has been awarded funding from several

government agencies to develop the 11.9 liter ISX engine:

Same stoichiometric, EGR, TWC technology from ISL-G

Meet/beat 2010 emission standards

Peak rating of 400 hp, 1350 lb-ft – CNG or LNG

Field demonstrations with Freightliner, Kenworth and Peterbilt in

coming year

Anticipated launch by 2013

Cummins Westport (CWI)

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International ProStar w. MaxxForce 13 DF

Future Production

International ProStar / Navistar MaxxForce 13 Dual-Fuel

• In-house Navistar development project

• Development through 2012

• 430 hp, 1550 lb-ft

• CNG or LNG

• No SCR required

• Dual-Fuel by Clean Air Power

• 2,000 vehicles in service

• 500 million miles of experience

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HD OEM Product Offerings

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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HD NGV Operating Range

Standard tank

packages

provide 400 to

600 mile range,

can be extended

as needed

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Fueling Options

Section III

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Refueling Station Options

• Compressed Natural Gas

• Liquefied Natural Gas

• Liquefied / Compressed Natural Gas

• Renewable Natural Gas

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Compressed Natural Gas Stations

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Home Refueling for CNG

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1. Natural gas delivered by

pipelines in the street

2. Gas is compressed using

compressors

3. High pressure

compressed natural gas

(CNG) is stored on site

4. CNG is fueled through

dispensers to vehicles


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CNG Dispensers

CNG Storage

CNG Compressor

& Controls

CNG Dryer

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Fast Fill CNG Station

CNG Dispensers

CNG Compressors

& Controls

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Time Fill CNG Station

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LNG Fuel Stations

One Vertical Storage Tank

At Grade Containment Area

One Dispenser

Graphic courtesy of Chart

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2. LNG Tanker Truck Loading

4. LNG Offloading to Station3. Delivery to Site

LNG Vehicle Fuel Distribution1. LNG Production

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LNG Fuel Stations

LNG

LCNG

Graphics courtesy of Chart

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LNG Stations

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Photo and graphic courtesy of Chart

Mini LNG Plant

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Cost Saving Comparisons and Payback

Section IV

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Operational NGV Cost Data

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Crude Oil

Natural Gas

Recent Decoupling of Natural Gas & Crude

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Increased Spread on Natural Gas to Crude Ratio

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Energy Security

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Increased Demand for Energy

Total: 52% growth

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Peak OilPeak Oil: 2010 or 2030? Does it matter?

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GNA Case Study: United Parcel Service

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• 10-15 Years of Good In-Use Data to Now Analyze

• Consistent Reports of Fuel Cost Savings 30% to 50%

for NG Fleet Compared to Diesel Fleet

• Maintenance Costs Generally Similar for NGVs

• Historically Slightly Higher, but Changing in 2010 & 2014

• Diesel Trucks More Expensive in 2010 & 2014

• Fuel Cost Savings with Natural Gas Appears Likely Into

the Future; Now $1.50 to $2.00 per DGE


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Operating Cost Data for Natural Gas

vs. Diesel and Gasoline

Refuse Transit

Local

Delivery

Long

Haul

Municipal/

Utility

Airport/

Regional

Taxis

Airport/

Regional

Shuttles

School

Buses

Annual Fuel Cost

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

(years)3.75 2.4 3.75 3.6 8.9 2.7 3.3 13.3

Annual Fuel

Usage (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 April 2011 is approximately $2.00 per gallon. No incentives.

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Inputs

40 Trucks

7 Truck Life

400 Miles per day

6 MPG

260 Days/year

$4.25 Diesel fuel cost

$2.25 Natural Gas fuel cost

$45,000 Incremental Truck Cost

$1,500,000 Fuel Infrastructure Cost

Outputs

$1,800,000 Total Truck Incremental Cost

$3,300,000 Total Investment

$1,386,667 Annual Fuel Cost Savings

2.38 Payback (years)

$6,406,667 Return

(104,000 miles/year)

Inputs

10 Trucks

7 Truck Life

200 Miles per day

6 MPG

260 Days/year

$4.25 Diesel fuel cost

$2.25 Natural Gas fuel cost

$45,000 Incremental Truck Cost

$1,500,000 Fuel Infrastructure Cost

Outputs

$450,000 Total Truck Incremental Cost

$1,950,000 Total Investment

$173,333 Annual Fuel Cost Savings

11.25 Payback (years)

($736,667) Return

(52,000 miles/year)


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Real World Fleet Data

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Paper Transport

• 400 mile roundtrip

• 2 trips/day

• 5 days/week

• 180,000 miles/year

• Savings $2.00/DGE

• Saving $50,000 per truck per year (42%)

• Freightliner M2 with Cummins Westport ISL G

• CNG fuel system: 75 DGE tank package

• CNG refueling stations at both ends

• Anticipates having to replace engines after 3 years

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Photos courtesy of Waste Management


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Case Studies

Section V

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GNA Case Study: Sysco Foods of LA

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Sysco Los Angeles – 215 Truck Conversion from Diesel to LNG

• Secured Millions in Federal, State and Local Grant Funding for

119 LNG Trucks & LNG Fuel Station

• Led LNG Fuel Station RFP Process

• Facilitated Permitting of LNG and Diesel Fueling on Same

Fueling Island

Sysco – Nationwide Diesel Hybrid Electric Truck Demo

• Secured More Than $3 Million in Grants for the Purchase of

79 Diesel Hybrid Electric Trucks and Tractors.

• Each Sysco Facility in the U.S. Will Deploy a Few Hybrid

Trucks for Testing, Evaluation and Validation

GNA Case Study: Sysco Foods

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GNA Case Study: Waste Management

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• GNA: Primary Consultant For All LNG,

CNG, Hybrid Truck, Bio-Methane, and

Alternative Fuel Programs

• Provide Regulatory Affairs Assistance

• Led World‟s First MSERC Trading Program in San Diego (Traded

Emissions from 120 Diesel to LNG Fleet Conversion for 500 MW

Power Plant Permits)

• GNA Handles All Grant Funding Applications and Administration;

Have Secured Millions of $$ for:

• Over a dozen LNG & CNG Stations

• 900+ NG Trucks

• Landfill Gas to LNG Production Facility


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Photos courtesy of Waste Management

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GNA Case Study: Ryder Trucks

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• $20 Million in Federal and State Grant Funding:

• 250 LNG and CNG Trucks

• 2 LNG/LCNG stations

• Maintenance Garage Modifications

• Training

• Project Management, Administration and Grant Reporting

• PR and Advertising

• First Ever Natural Gas Truck Project in Rental & Leasing Fleet

• 1,200 Customers and 6,000 Trucks in Southern California

• Launch of a More Aggressive Nationwide AFV Program


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Interstate Clean Transportation Corridor (ICTC)

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?

But Where to Start?

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Return to Base Builds Infrastructure

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ICTC RMC

TTI-75 – Interstate 75 Corridor

TCTT – Texas Triangle

RMC – Rocky Mountain Corridor

ICTC – Interstate Clean Transportation Corridor

PCTC – Pennsylvania Clean Transportation Corridor

I-75

Link up regional corridors as

part of expansion phase

PCTC

Regional Fuel Corridor Development

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National Infrastructure Development

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Attend ACT Expo!! May 4-6 in Long Beach

• Technical Tours – City of LA, Ryder, Republic Services, Port LNG Station

• Packed Agenda – hear from UPS, Ryder, WM, City of LA, and more

• Keynote Address – Martin Daum, President & CEO, Daimler Trucks N.A.

• Nearly 70 Vehicles in Expo Hall and Ride & Drive including the International

ProStar, Freightliner Cascadia, a CNG fire truck, and much much more!

www.actexpo.com to register

Thank You!

Erik Neandross, CEO

Gladstein, Neandross & Associates(310) 573-8553 [email protected]

www.gladstein.org

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ADDITIONAL MATERIAL

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GNA Case Study: City of Los Angeles

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GNA has been the City‟s Alternative Fuel Vehicle and

Infrastructure Technical Consultant since 2001, Providing:

• Strategic Planning for All City of LA Alternative Refueling Infrastructure and

Fleet Vehicle Deployment Projects;

• Development and Oversight of All City LNG/LCNG, LNG, and CNG Fuel

Station Projects (5 complete, 6 In progress);

• Assessment for City‟s Own LNG Production Facility; and,

• Multiple Related AFV, Air Quality, Regulatory, and Incentive Consulting

Services.


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• „Alternative Fuel Infrastructure

Consolidation Plan‟ for All City

Yards and Fleet Vehicles

• Submitted to City - July 2006

• 80+ Fleet Yards; 6,000+ vehicles

• Multiple City Departments

• Strategic Fuel Infrastructure

Development Based Upon AFV

Deployment

• LNG Fuel Supply Analysis 80


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Photo Credit: Westport Innovations


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natural gas vehicle update studies section v 59 gna case study: sysco foods of la sysco los angeles...

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