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Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

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Page 1: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Compressed Natural GasSymposium and Showcase

CNG 101

Keith GruetzmacherNovember 5, 2013

Page 2: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Terminology

• NGV – a vehicle that uses CNG or LNG fuel• CNG – natural gas @ 3600 psi, 70oF• LNG - natural gas @ 3.6 psi, -260oF• Bi-Fuel – uses natural gas or gasoline/diesel• Dual Fuel – uses both natural gas and

gasoline/diesel

Page 3: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

• GGE: Gasoline Gallon Equivalent• The amount of natural gas containing the same

amount of energy as a gallon of gasoline. (125 ft3 or 1.25 Therms)

• 4 GGE = 5 Therms• DGE: Diesel Gallon Equivalent• The amount of natural gas containing the same

amount of energy as a gallon of Diesel (140 ft3 or 1.4 Therms)

• 5 DGE = 7 Therms

Terminology (continued)

Page 4: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Safety Benefits• Lighter than Air• Ignition Temperature = 1080° F• Flammability Range 5%-15% (gas to air mixture)• Non toxic• CNG is approved for all tunnels and bridges• Major Standard – NFPA 52 “Vehicular Gaseous

Fuel Systems Code”

Natural Gas Properties Safety Benefits

Page 5: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

• Storage containers are designed, manufactured and tested to rigid specifications

• Bonfire test• Pressure test for 18,000 cycles of pressurization

and depressurization• Gunfire test• Crash test – cylinders dropped several feet• Cylinders include a pressure relief device

CNG CylindersSafety Benefits

Page 6: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

CNG Station Components

Page 7: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Fast-Fill Dispenser Time-Fill Posts

Fueling Options

Page 8: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Target Markets

Key Characteristics:High Mileage

Low fuel efficiencyCentral -refueling

Refuse

Transit

Airports / Taxis

Municipals

Service

Distribution

Page 9: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Dedicated NGVs

Class Vehicle Type Premium or Conversion Diff Costs

Heavy Duty Refuse, transit, distribution and school buses

$35,000 - $50,000 per vehicle

Medium Duty Shuttle, cargo van, pick-up, utility

$9,500 - $25,000 per vehicle

Passenger Sedan $3,000 - $10,000 per vehicle

Page 10: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

NGV Pricing Benefits

Source: www.afdc.energy.gov/data/tab/fuels-infrastructure/data_set/10326

Page 11: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Source: US EIA – Energy Information Administration, Energy Outlook 2012

NGV Pricing BenefitsProjected Price of CNG and LNG Through 2035 - in DGE

Page 12: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Source: EIA US Energy Information Administration 12-2-12 - http://www.eia.gov/petroleum/gasdiesel

NGV Pricing Benefits

Page 13: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Source: NGVAmerica

NGV Pricing Benefits

Page 14: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Florida Fuel Costs

1 – www.cngprices.com (November 1, 2013)2 – AAA Fuel Gauge Report – FL Average (November 1, 2013)

Rate Cost/

Schedule GGE

CNG FL Avg.1 $2.25

Unleaded2 $3.26

Mid2 $3.51

Premium2 $3.47

Diesel2 $3.87

Page 15: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Compelling case forvehicle conversions

Page 16: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

• Economic• Price stability and cost less• Incentives & funding• No pilferage• American Jobs Creation• Improved Balance of Trade

• Environment - Cleaner Air• Reduction in Greenhouse Gases -23%• Reduction is Diesel Particulate Matter- 27% • Improved Work Environment for Employees

• Energy Security Improved - North American fuel reducesAmerica’s dependence on Foreign Oil

Benefits

Page 17: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

• Reduction in Noise – engines are quieter then diesel engines

• Increased Vehicle/Equipment Product Availability• Increased station equipment, station

installers/suppliers• Increases in Supply – Various US Shale Plays• Increased Industry Support

Benefits

Page 18: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

Peoples Gas has seen tremendous growth

• NGV Therm Sales have increased by 544% and 182% in 2011 and 2012, respectively

• Number of customers has more than doubled in 2 years• 2010-5/207, 2011-8/300, 2012-12/412, 2013-21/601

• Have the potential to double the number of customers within the next year

• Have signed a new customer who at full build-out could potentially use more gas than the total of 2012

Florida Growth

Page 19: Compressed Natural Gas Symposium and Showcase CNG 101 Keith Gruetzmacher November 5, 2013

peoplesgas.com/ngv

[email protected]