Successfully switching to CNG buses in Verona

(after 11 years)

Antonio PiovesanTechnical Manager

ATV - Verona

Athens, 01/03/2016

SUMMARY1. CNG for heavy transport2. Pricing gas vs diesel3. Applications4. Bus comparison5. Verona project6. How does it work now 7. Our buses8. Money in your pocket9. Noise and vibrations

10. Our green future11. CNG future

2

CNG for heavy transport

Natural gas is an excellent fuel for heating, industry, electric power generation

Natural gas is an excellent fuel for cars and vans

IS NATURAL GAS REALLY SUITABLE FOR HEAVY DUTY VEHICLES?

Are we at the beginning or at the end of this application?

3

Why CNG in vehicles?Technology mature and safeLarge amounts in nature, in different areas+ Biomethane from waste and biomass+ Clean technology + detax

4

Why CNG in buses?

● Very low emission (air+noise)● Stable and reliable technology● Application on medium and large buses,

allows a massive fleet conversion● Suitable for high capacity - high mileage● Fuel economy compensates plant

investments and bus extra-costs – long term sustainability

5

CNG PRICE (in Italy)My latest natural gas invoice (VAT excl.):

Gas price: 245 €/1000 Smc (going down)Point of Delivery fee: 4.533 €/month Tax/fees on nat. gas: 25,9 €/1000 SmcTank management: 37,3 €/1000 SmcFinal price: appr. 320 €/1000 SmcFinal price: 446 €/1000 kg

6

DIESEL PRICE (in Italy)

My latest diesel invoice (VAT excluded):Product price: 315,75 €/1000 litersTax on diesel: 617,40 €/1000 litersTOTAL: 933,15 €/1000 litersFinal price: 933,15 €/1000 liters

Temporary tax reduction: -214 €/1000 liters

7

Price breakdown

Fuels price through 18 years

A very old Italian tradition

10

Italian CNG bus (1935)

11

Garbage pick up

12

Refrigerated transport

13

GNC concrete mixer (USA)

14

CNG snowcat (Salzburg)

15

CNG buses history

16

CNG vs Diesel

17

Bus comparison MAN A21 diesel EURO 6 A21 CNG EURO 6 Delta

Net weight 12.120 kg 12.400 kg + 2,3 %

Pax capacity 92 92 ---

Power 235 kw 228 kw - 3%

Torque 1.600 Nm 1.250 Nm + 21,8%

Consumption (SORT 1)

44,2 lt/100km 44,0 lt/100 km - 0,45 %

Noise (internal, AC off)

66.3 dB 65.3 - 1 dB

CO (mg/kWh) 196 304 + 55%

THC (mg/kWh) 30 ---- ----

NMHC (mg/kWh) ---- 17 ----

CH4 (mg/kWh) ---- 149 ----

NOx (mg/kWh) 353 311 - 11,8%

PM Mass (mg/kWh) 3,39 1,4 - 58,7%18

Cylinder TechnologyLight tanks ECE R110 type 3-4Type 3 - Aluminium cylinder + carbon wrapType 4 - Plastic liner + structural composite

Verona, a beautiful ancient city

20

Verona city■ 265.000 inhabitants with 162.000 cars

(0.61 each), 206 km2

■ 7° turistic city in Italy■ Bus routes crossing the city from edge to

edge■ 7.000.000 km with 180 urban buses,

commercial speed 14,5 km/h■ No high capacity public transport,

trolleybus system on the way■ 3 train stations and international airport

21

22

ATV today

■ ATV = AMT (urban PT) + APTV (regional PT and turistic buses) in late 2006

■ 20 MLN km with 600 buses (urban + regional)

■ School services■ Coach services■ > 800 workers

23

When our project started (2003)■ very old fleet, many EURO 0■ 44 new buses to buy (25% of the fleet)■ Very narrow depot■ A brand new regulation (2002) allowed CNG

refuelling stations in smaller areas■ Authorities asking for alternative fuels with low

emissions■ National funds to build refuelling stations■ Special regional regulation for private CNG refuelling

stations (1 station – many public fleets)

24

What we did

■ A project of the system (helped by ENI)■ Security pre-approval■ Tender for 44 + 13 CNG buses■ Found a new parking area close to a public

CNG station■ Moved the project near the new area■ Asked for gas….

25

And then…

■ Bus arrived and started service (Jan 2005)■ Asked for financial contribution to national

funds (we were #1…)■ Built the station■ Training

26

New colours for new buses

27

New colours for new buses

Astonishing trireflex (something new)

Green (ecological)

Blue (reliable)

28

Refuelling station opening day

29

The operations…

30

The operations…

31

…and the operators

32

The refuelling stationCan refill 2 buses at the same time (up to 3)Full refill in about 8 minutes (NGV2 piping)3 compressors x 1860 Nmc/h 3 engines x 250 kwGas pipe 12 bar, compressed to 220 barAutomatic data collecting with wireless tags on

each bus

Cost: about 1.4 MLN, about 80% with public funds Station lifetime: about 25 years

33

Growing familyStarted with 44 buses + 13 Bredamenarinibus

M240 (2004/2005)6 more buses M240 (2007)REFUELLING STATION (mid 2007)+11 BMB 12 m buses+18 articulated buses +14 Scania 12 m busesTotal: 106 CNG buses, about 6 MLN km in 2016

34

How does it work now?106 CNG buses will run about 5.9 MLN km in 2016

in urban service, on a total of 7.5 MLN They make the hard work, other buses used only

in peak hours for short servicesDaily refuellingDramatic reduction of emissions and noiseFuel cost reductionSUSTAINABLE SYSTEM: all new urban buses since

2003 are CNG busesEverybody asking for them...

35

Our “secret”

CNG buses are used much more intensively than diesel buses

36

Our recent CNG busesScania Citywide 12 m

37

Mercedes Citaro 18 m

38

Man Lion’s City 18.75 m

39

Capacity: 169 passengers!

Fuel consumptionOn field data (2016, urban service):

CNG urban bus 12.00 m Euro 6: 2,01 km/kg

CNG urban bus 18.75 m Euro 6: 1,80 km/kg

On field evidence: 1 kg CNG = 1 liter dieselConfirmed even by certified tests SORT 1

40

Gross saving

(933 - 446)/1.95 = 250 €/1000 km

ATV 2016: 5.9 MLN km with 106 buses

Total gross saving: 1.475.000 €/year

41

Investments

Refuelling station + depot update costed 1.4 MLN €, contribution by central state and region (>80%).

With contribution 50%, amortization 35.000 €/year (lifetime 20Y)

Bus average extracost is about 30.000 €/bus, with 20.000 € contribution by region

If contribution 50%, amortization 1.000 €/year x bus (lifetime 15Y)

35.000 + (1000 x 106) = 141.000 €/year

42

Running costs

■ EE: 120.000 €/year (to compress CNG)■ Station maintenance: 25.000 €/year■ We sell CNG to garbage collection, they

even provide bus CNG filling■ Revenues from CNG selling roughly cover

station maintenance

Overall: 120.000 €/year

43

Money in your pocket

■ Gross saving: 1.475.000 €/year■ Investment: 141.000 €/year■ Running costs: 120.000 €/year■ Minor/forgotten/hidden costs: 50.000

€/year

Total net saving: 1.164.000 €/year

44

Statement (waiting for disputement)

Environmental impact of a CNG urban bus is still much lower than a green diesel one:

Less particulateLess noiseLess vibrationsLess money (save to buy new EURO 6

buses!)

45

Our green future

■ All new class I buses will be CNG■ Our parking area is full… need a new

depot■ An hybrid trolleybus (trolley+battery)

under construction: perfect marriage ■ Saving a lot of money… we need it for our

improvement projects■ Biomethan plant?

46

Developement of CNG technology

47

Vectors vs sourcesReminder: these are energy VECTORSHydrogenElectric power

48

Vectors vs sourcesThese are energy SOURCESFossil: Oil, Natural gas, CarbonRenewable:

● Biomass (Biogas, Biomethan)● Biofuel (Biodiesel, Bioethanol)● Hydropower, Solar, Wind (+ others…)

We must always rely on one of these

49

Vectors vs sourcesWhen considering fuel options:

1 - Always consider local emissions + global emissions (Well To Wheel analisys)

2 - Try to design a technology transitionCNG LNGNatural gas Biomethan

50

Biomethan WTW improvement

51

Biomethan production + bus depot in Lille

Underground pipe to the bus depot

Same opportunity in Verona52

LNG application… coming

53

Strategy

54

Biomethan

LNG

CNG

More effective

Renewable + zero greenhouse effectNatural gas grid

injection

BioLNG

From big plants worldwide?

Thanks for your attentionantonio.piovesan@atv.verona.it