Available CNG Platforms and ROI Overview · 2013. 6. 27. · • CNG Premium: $30,000 ( assuming no offset from grants and/or tax credits) • Simple Payback: 1.0 – 1.2 years •

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Available CNG Platforms and ROI Overview

Barry Carr, Landi Renzo, USA

June, 2010

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Presented by Barry Carr, Landi Renzo USA

Barry Carr

Experience, Background and Qualifications – 25+ Years

Experience with Alternative Fuels/Vehicles:

• Provided support for major OEM alternative fuel vehicle

programs

• Clean Cities Coordinator for Clean Communities of CNY, a

US DOE Clean Cities Coalition

• Currently serving as Director of Business Development for

Landi Renzo USA, a natural gas system supplier for FORD,

General Motors, and Isuzu.

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What is Natural Gas?

• Colorless, Odorless, tasteless, nontoxic, gaseous mixture of

hydrocarbons called Methane. It is the simplest hydrocarbon:

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CH4

• Gas utilities or Local Distribution Cos. (LDC’s) add mercaptan

odorants to be able to detect it for safety

• Society of Automotive Engineers (SAE) J1616 – Recommended

Practice for Compressed Natural Gas Vehicle Fuel

The simplest hydrocarbon – one atom of carbon

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How Does Natural Gas Compare to Other

Fuels? Composition & Energy Content

• Diesel – C14H30 137,000 BTUs/gallon

• Gasoline – C8H18 124,600 BTUs/gallon

• Propane – C3H8 91,000 BTUs/gallon

• Methanol – CH3OH 60,000 BTUs/gallon

• Methane – CH4 124,600 BTUs/GGE

• Methane/Diesel 114,050 BTUs/DGE

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How Does Natural Gas Compare to Other

Fuels? Octane, Ignition Temp, Vapor Density

Octane Ignition Temp Vapor Density*

• Diesel – C14H30 8 – 15 494o F > 1.0

• Gasoline – C8H18 86 – 94 810o F 3.50

• Propane – C3H8 104 950o F 1.53

• Methanol – CH3OH 100 878o F > 1.0

• Methane – CH4 130 1200o F 0.68

* NOTE: Vapor Density of Air = 1.0;

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Natural Gas Properties – Safety Benefits

• Lighter than Air – Relative Density (vapor density) =.68

• Ignition Temperature = 1200o F

• Flammability Range 5%-15% (gas to air mixture)

• Non toxic

• Natural Gas is compressed (CNG) to 3000 – 3600

pounds per square inch (psi) and stored in specially

designed and constructed cylinders

• CNG is approved for all tunnels and bridges – Ebasco

Study

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CNG Vehicle Components - Safety

• The American National Standards Institute (ANSI) -

NGV 1 (ANSI, 2006) establishes requirements for CNG

fueling connection devices

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P36 CT5000 Type 1

180o Ball Valve

Multiple Receptacles

And Defueling P36 CT1000

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CNG Economics

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• Components of CNG Cost

• Simple Payback- Cargo Van

• Simple Payback – Delivery Van

• Simple Payback – Delivery Step Van

• Simple Payback – Refuse Truck

• Simple Payback – Long Haul Truck

• Incentives and Funding

• Other Considerations

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CNG Economics – Components of CNG Cost

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Sample Cost Components

• Gas Bill: $.66/DGE (based on avg MMBtu cost of $3.20)

• Electric compression costs: $.11/DGE

• Maintenance/Repair/Service: $.44/DGE

• Capital amortization of equipment: $.38-$.71/DGE

SUB-TOTAL:

• $1.59 - $1.92 (sales to tax exempt entities)

• $ 1.773 - $2.103 (sales to taxable entities includes FET)

Source: NGVAmerica & Clean Vehicle Education Foundation

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CNG Economics – Cargo Van / Pickup

• Light Delivery, Parts Delivery, Service Vehicle

• MPG: 11.0 – 13.0, 26-28K miles/yr

• Fuel Use: 2150 - 2360 GGEGE/yr

• CNG Premium: $10,000 ( assuming no offset from grants

and/or tax credits)

• Simple Payback: 2.8 - 3.1 years

• Life-cycle cost savings: $22.6 - $24.7K!

(based on 7-yr life & $1.50/GGE savings at public station)

NOTES: Calculations do not factor in any grants or incentives.

Savings are exclusive of any avoided costs of diesel emission

equipment and service.

CNG Source: NGVAmerica & Clean Vehicle Education Foundation

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CNG Economics – Delivery Step Van

• Courier, laundry/uniform, food service

• MPG: 5.0 – 6.5, 26-28K miles/yr

• Fuel Use: 4200 - 5000 DGE/yr


and/or tax credits)


• Life-cycle cost savings: $52.7 - $67.5K!

(based on 10-yr life & $1.85/DGE savings at Own & Operate station)





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CNG Economics – Local / Short Haul Truck

• Food, Furniture, Appliance, Beverage Delivery

• MPG: 8.0 – 10 mpg, 30-40K miles/yr

• Fuel Use: 3750 - 5000 GGE/yr


and/or tax credits)


• Life-cycle cost savings: $45 K - $60 K!

(based on 8-yr life & $1.50/GGE savings at Public station)





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CNG Economics – Refuse

• GVWR: >26,000 lbs.

• Crane Carrier LET, Autocar Xpeditor, Peterbilt LCF 320 , ALF –

Condor & Mack TerraPro (all with CWI ISL-G engine);

• MPG: 2.5 – 3.0 (lots of idle and PTO time)

• Fuel Use: 35-40 DGE/day; 8500-10,500 DGE/yr


• Simple Payback:1.75 – 2.0 years (based on $1.50/DGE savings)

• Life-cycle cost savings: $93.8 - $123.4+!! (based on 8-yr life)

NOTES: Calculations do not factor in any incentives.

Savings are exclusive of any avoided costs of diesel

emission equipment and service.


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CNG Economics – Long Distance Truck

• Long Haul / Delivery

• MPG: 4 – 6 mpg, 80-100K miles/yr

• Fuel Use: 16,700 – 25,000 DGE/yr


and/or tax credits)

• Simple Payback: 1.3 – 2.0 years


(based on 10-yr life & $1.50/DGE savings at Public station)





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CNG Economics – Dual Fuel Application

• Long Haul / Delivery

• MPG: 3 – 4 mpg, 80-100K miles/yr

• Fuel Use: 26670 - 33330 DGE/yr ; 60% offset


and/or tax credits)

• Simple Payback: 1.0 – 1.2 years


(based on 5-yr life & $1.50/DGE savings at Public station)



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Implementation – Key Elements to a Successful

CNG Program & Next Steps

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• Gather information from your current fleet

• Identify vehicles suitable for CNG

• Collaborate, engage, seek advice from experts and other

fleets that implemented CNG vehicle programs

• Obtain and evaluate fuel use data

• Complete financial analysis

• Communicate benefits to your staff and obtain “buy in”; provide

information to upper management and obtain approval/support

• Emphasize Economic Benefits

• Emphasize Environmental Benefits

• Seek funding assistance through State, Federal, and/or

local Clean Cities Coalition (if available)

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Discussion, Q&A, Next Steps, Thanks!

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Tony Bandiero, Greater Philadelphia Clean Cities

[email protected]

(215) 990 - 8200

Barry Carr, Landi Renzo USA

[email protected]

(315) 278-2061

mailto:[email protected]

Documents

Available CNG Platforms and ROI Overview · 2013. 6. 27. · • CNG Premium: $30,000 ( assuming no offset from grants and/or tax credits) • Simple Payback: 1.0 – 1.2 years •