Giovanetti Federico - Medium & Heavy Trucks Product Management - Iveco

LNG application in medium-long

transportation

Federico GiovanettiM&HT Product Management

CNG/LNG VEHICLES Product Manager

Contains confidential proprietary and trade secrets information of CNH Industrial. Any use of this work without express written consent is strictly prohibited.

21-01-2014, Roma

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Contents

Main drivers for CNG/LNG

Potential market

LNG technology in EMEA

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3 are the main reasons of the fast-growing global interest in adopting methane-based

gas in commercial transport as sustainable alternative to crude oil-based fuels:

ENERGY SECURITY: independency from crude oil producers Countries

ENVIRONMENTAL IMPACT: reduce pollutants emission and noise

TOTAL COST OF OWNERSHIP : reduce cost per km

In the last years, the focus has moved from ENVIRONMENTAL IMPACT to TOTAL

COST OF OWNERSHIP

REFUSE

COLLECTION

DISTRIBUTION and

FOOD AND

BEVERAGE

MEDIUM-LONG

HAUL

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ENVIRONMENTAL IMPACT

LIMITSWHTC - g/kWh

NOX CO HCNM Particolato CH4

Euro VI 0,4 4 0,16 0,01 0,5

Cursor 8 CNG/LNG Euro VI 0,2 2,44 0,08 0,002 0,18

According to experimental activities the CO2 reduction is from 2 to 8% according to

mission

26

Mic distance: 7m

Mic height: 1,5m

3

4

5

1

POLLUTANTS

NOISE dB(A)

Avg

71 dB(A)

Avg

66 dB(A)

64

66

68

70

72

74

DIESEL CNG

1 2 3 4 5 6

MODEL (DIESEL/CNG): IVECO 240E25 6x2

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TOTAL COST OF OWNERSHIP – MEDIUM-LONG HAUL

TCOAT440S36T/P

DIESEL Euro VI

AT440S33T/P

LNG Euro VI

DEPRECIATION

New vehicle cost € 67.000 € 92.200

Cost of capital -€ 7.000 -€ 11.000

Residual value -€ 13.000 -€ 2.500

Net vehicle cost € 61.000 € 100.700

M&R IVECO € 14.500 € 28.200

FUEL

Fuel consumption € 205.400 € 127.500

Urea consumption € 4.000 € 0

Lubricant cons. € 800 € 800

TIRES € 6.000 € 6.000

TOLLS € 63.000 € 63.000

TAXES AND

INSURANCE

Taxes € 2.200 € 2.200

Insurance € 25.000 € 25.000

DRIVER SALARY € 175.000 € 175.000

TOTAL € 556.900 € 528.400

DIFFERENCE -€ 28.500

Simulation based on (the data shown has to be considered CONFIDENTIAL and not binding for IVECO):

Market: Italy Mission: regional Mileage: 100,000km / year Period: 5 years

Interest rate: 5% Diesel: 1,3€ / liter (w/o VAT) LNG: 0,85 € / kg (w/o VAT) Urea: 0,3€ /l Oil: 5€ / liter

Diesel consumption: 31,6 liter

/ 100km

LNG consumption: 30kg /

100km

Tires life: 200,000km Toll: 0,18 €/km Mission: 70% motorway

€ 175.000 € 175.000

€ 27.200 € 27.200

€ 63.000 € 63.000

€ 6.000 € 6.000

€ 210.200

€ 128.300

€ 14.500

€ 28.200

€ 61.000

€ 100.700

AT440S36T/P AT440S33T/P - LNG

DEPRECIATION

M&R

FUEL

TIRES

TOLLS

TAXES AND INSURANCE

DRIVER SALARY

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6

TOTAL COST OF OWNERSHIP

The economic sustainability for natural gas in the medium-long haul business relays

dramatically in the difference of cost between diesel (€ / liter) and CNG (€/kg)

In a medium-long haul mission (100.000km / year, 5 years) a difference in cost of

0,26€ between diesel diesel (€ / liter) and CNG (€/kg) make the 2 technology

equivalent for the fleet owner

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Contents


Potential market

LNG technology in EMEA

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Potential Market

8

Frost & Sullivan

Source: Strategic Analysis of the Medium- to Heavy-duty Natural Gas Commercial Vehicle Market in Europe – 02/2013

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Potential Market

9

BIPE

Source: Heavy Vehicle Powertrain Prospective 2030– 112013

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Potential Market

10

IVECO in Europe

The more conservative figure below reflects the IVECO truck sales forecast n the 5 major

Markets + Benelux. With a Heavy Truck Market of 250.000 units in 2016-2017, the CNG+LNG

Market is expected between 2 and 5%, with a market share of IVECO around 25-33%.

While the natural gas application in distribution and refuse collection missions is expected

steady, the adoption of LNG in medium-long haul missions is expected to boom thanks to

- homologation and registration for LNG trucks by middle 2014 (amended UNECE R110)

- increasing confidence of fleet managers in CNG/LNG technology

- development of the infrastructure

- cost reductions through economies of scale

- OEM development of natural gas engines dedicated to medium-long haul applications

0

200

400

600

800

1000

1200

1400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

RCV

Distribution

Regional

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Potential Market

11

Modello di valutazione del mercato potenziale e dei relativi impatti – IVECO CSST

dOA

dAD

Origine dello spostamento

Destinazione dello

spostamento

dOA + dAD < Dautonomia (km)

dOA

dAD

Origine dello spostamento

dOA + dAD + dDO < Dautonomia (km)

Destinazione dello

spostamento

dDO

Area 1 di rifornimento LNG

Area 2 di rifornimento LNG

Area di rifornimento LNG

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Potential Market

12


Trento

PortogruaroCervignano

Busto Arsizio

Novara

Mortara

TorinoRivalta Scrivia

Bre

scia

Verona Padova

Mantova

RovigoPiacenza

Parma

Bologna

Vado

Livorno

Prato

Jesi

Orte

Pescara

Bari

Pomezia

Marcianise

Nola

Catania

Sav

on

a

Gen

ov

a

La S

pezia

Carr

ara

Livorno

Piombino

Civitavecchia

Fiumicino

Gaeta

Napoli

Salerno

Gioia Tauro

Reggio CalabriaTrapani

Messin

aM

ilazzo

Term

ini I.

Pale

rmo

Gela

Augusta

Siracusa

Taranto

Brindisi

Bari

Ancona

Ravenna

ChioggiaVenezia

Trieste

Monfalcone

Ipotesi:

I punti di rifornimento LNG siano

localizzati presso i principali Porti e

Interporti della Rete TEN-T

Raggio medio area di adduzione d OA =

20 km / 50 km

Autonomia del veicolo LNG D

autonomia = 600 km

Coppie Origini/Destinazioni “DIRETTE” /

Coppie Origini/Destinazioni “A/R”

Fonte: List of nodes of the Core and Comprehensive Network

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Potential Market

13


O/DTOTALI

O/DATTRATTE

O/DDIRETTE

O/D

A/R

Spostamenti

Scenario Attuale

311.346 - - -

Spostamenti

Scenario dOA < 20 km

- 66.524 17.280 49.244

Spostamenti


- 190.519 144.333 46.186

Veicoli * km


- 10.019.130

(+ 12,98%)

- -

Veicoli * km


- 30.880.547

(+38,90%)

- -

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Potential Market

14


Principali spostamenti O/D potenzialmente interessati all’alimentazione LNG

(segmento in «area di adduzione» <20 Km)

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Potential Market

15


Principali spostamenti O/D potenzialmente interessati all’alimentazione LNG

(segmento in «area di adduzione» <50 Km)

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Contents


Potential market

LNG technology in Europe

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17

How it works

CNG SYSTEM

(200 bar)

CRYOGENIC LNG TANK

(-120º C, 9 bar) AND

EVAPORATOR

3-WAY

CATALYST

ENGINE

CURSOR 8

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18

Why LNG for medium-long haul

TOTAL CNG CAPACITY (liters) CRUISE RANGE (km) (*)

500 219600 262

700 306800 350

900 3931000 437

1100 4811200 525

1300 5681400 6121500 656

500 liters LNG tank + 280 liters CNG 762500 liters LNG tank + 320 liters CNG 780

(*) calculated with T=25°C, fuel consumption 30kg/100km, 1 liter CNG = 0,13kg CNG

While on rigids CNG tank combinations up to 1.200 liters are

technically possible (tanks on the chassis side, above the frame

upper edge, behind the cab), on standard 4x2 tractors LNG is

necessary to achieve the requested mileage

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19

Main technologies

19

SPARK IGNITED

MONO-FUEL METHANE

DUAL FUEL

DIESEL-METHANE

(PORT INJECTED)

HPDI - DUAL FUEL

DIESEL-METHANE

(DIRECT INJECTED)

BENEFITS

Cost-effective method to use natural gas

Compatible with CNG and LNG Low complexity cost (on top very

simple passive exhaust after-treatment, 3-way catalyst)

Reduced noise (- 5dB)

Engine can operate under Diesel or Diesel-gas mode (flexibility)

Compatible with CNG and LNG Retrofit Opportunities for existing

Diesel engine (no certification for duration with CNG use)

Full Diesel torque, cycle efficiency and compression braking

High Diesel substitution rate (up to 90-95%)

Same heat rejection as Diesel

DRAWBACKS

Reduced compression braking Increased exhaust temperature Mono-fuel system, without limp-

home recovery mode

Engine not optimized for natural gas operation (compromise at low and high operating loads)

High sensitivity to fuel quality due to knock limitations (low methane number)

Lower advantages in TCO due to higher complexity costs and higher fuel costs due to substitution rate (CNG/LNG max 60-70%)

Requires full Diesel emissions after-treatment (DOC+DPF+SCR) with urea injection for NOxcontrols

Methane emissions control is a challenge for Euro VI emissions compliance

Very high system cost (requires specific injectors and high pressure cryogenic pump for LNG fuel)

Engine can operate only with LNG Requires full Diesel emissions

after-treatment (DOC+DPF+SCR) with urea injection for NOxcontrols

Limited field experiences for engine reliability

Engine can’t operate under Diesel mode for limp-home

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SAFETY

IF YOU ARE POURING WATER IN THE LNG: LNG does not dissolve in water and in contact with it, it

evaporates without mixing and without leaving any residue.

LNG IS NOT THE TOXIC: If you spill of LNG in a glass of water, once the water has evaporated gas can be

safely drunk . It can not pollute the sea or groundwater.

IN THE EVENT OF A SPILL OF LNG: the LNG is stored at atmospheric pressure in the system: even in the

unlikely event of spills disperse in the air evaporates without leaving a trace. If LNG is spilled on the ground

evaporates and leaves no residue to clean.

LNG CAN CATCH FIRE? The LNG is not flammable if not in very special conditions that can not occur

inside the regasification or LNG carriers (should be in a closed environment and saturated, mix with an oxygen

percentage of between 10% and 15% and simultaneously be in contact with a source of ignition of the flame)

LNG MAY EXPLODE ? Also coming in contact with fire, LNG does not explode and does not create flare-

ups, but it creates a lazy flame that evaporates without creating a shock wave. To confirm this, it is known that in

1984, during the war between Iran and Iraq, a ship carrying gas at low temperatures, the Gaz Fountain, was hit by

three missiles and caught fire. The crew managed to extinguish the fire and then to recover 93% of the gas load

without further incident.

Thanks to this characteristic of LNG a study by the U.S. Coast Guard is satisfied that: “LNG is one of the less

dangerous substances among the many normally carried by sea and discharged in coastal deposits such as chemical /

petrochemical / fuels. During over 33,000 trips in the world of gas tankers in the last 20 years there have been no major

accidents”

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SAFETY

LNG tank is tested also for

Drop Test

http://www.youtube.com/watch?v=ibgAHfkKF4E

Bonfire Test Chart LNG tank

http://www.youtube.com/watch?v=NK3z0GSXZBA





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Giovanetti Federico - Medium & Heavy Trucks Product Management - Iveco