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Infrastructure
Rob Wood CEO Gasrec
NATURAL GAS INFRASTRUCTURE LOCITY GAS-POWERED VEHICLE ROADSHOW
Why you should consider natural gas …... because its cleaner and cheaper than diesel
19/09/17 4 BCC
Lower fuel cost – 50% less than diesel Improves air quality – 70% less NOx and 90% less PM 15% less CO2 (upto 70% with bio-methene)
Electric and hydrogen HGVs impractical for foreseeable future Reduces noise – 3db engine noise reduction OEM vehicles available with an ever increasing vehicle range
Transport is a major cause of air pollution HGV and buses account for 6% of road vehicles and 48% NOx
NORTHERN COMMERCIALS 16 Aug 17 5
Roadside NOx Outside London on roads exceeding limits (2013)
HGV 27%
Buses 21%
LGV/Van 14%
Cars and Taxi14%
Percentage of All UK Traffic (2015)
HGV 5%
Buses 1%
LGV/Van 15%
Cars and Taxi 78%
Source: Department of Transport Source: Department for Environment, Food and Rural Affairs
Natural gas is the best available technology to reduce emissions from heavy vehicles
NORTHERN COMMERCIALS 16 Aug 17 6
Euro V 08 Euro VI 13 Euro VI GasPM 0.02 0.01 0.001
Euro V 08 Euro VI 13 Euro VI GasNOx 2 0.4 0.12
90%
70%
Particulates NOX
Fuel cost saving pays for infrastructure
BCC 19/09/17 7
Assumptions Diesel 95p/litre and LNG 65p/kg Conversion 0.72kg LNG per litre of diesel Duty, diesel 57.95p/litre and gas 24.7p/kg
Indicative economics which may or may not be representative of individual circumstances
8
Alperton – temporary refuelling facility
Refuelling 8 RCV’s
11/10/2017 NATURAL GAS TRANSPORT
9
Alperton
Refuelling 17 RCV’s with planned capacity for 34
11/10/2017 NATURAL GAS TRANSPORT
Scunthorpe
Swindon
Enfield
Tamworth
Bristol
Exist
ing
stat
ions
Bridgwater Various
DIRFT Various
Alperton In construction
Act NOW and implement what’s possible today
NATURAL GAS TRANSPORT 11/10/2017 11
Step 2
Reduce carbon
STEP 1
Improve air quality
Immediately substitute natural gas for diesel and create refuelling infrastructure Ensure vehicle and service tenders require alternative fuel offers
Progressively substitute bio-methane to reduce carbon impacts Promote waste collection and recycling opportunities
Step 3
Apply innovative
technologies
Seek out alternative low carbon technologies that innovation make possible
Gasrec has been supplying natural gas to the transport sector for over 10 years
Gasrec was founded on the production of biomethane from a landfill facility
Gasrec was the first supplier of biomethane directly to the transport sector
Natural gas vehicles represent the only, current, viable clean alternative to diesel for heavy applications
NATURAL GAS REFUELLING 11/10/2017 13
Introduction to Gasrec
Baden Gowrie-Smith Chief Financial Officer CNG Fuels
CNG Fuels- LoCITY Gas Roadshow
“ For us, operating dedicated gas trucks has transitioned from being a trial, to being 'business as usual', with positives on carbon reduction, driver acceptance and cost. Operating them has, in the best way possible, become boring.
– Justin Laney, General Manager Transport Waitrose & John Lewis Partnership
Accolades FY16/17
“ - Grant Funding
- Runner-up
– Innovate UK – Low Carbon Freight Trial – EU Horizon 2020 - Innovation – Low Carbon Vehicle Awards – Renewable Energy Association Awards
Accolades FY17/18
- Winner
- Runner up - Shortlisted (tbd)
–Renewable Energy Association Awards – Low Carbon Transport award & Highly Commended in Innovation category –BusinessGreen Leaders Awards –LowCVP Awards –Brake Fleet Safey Awards –Energy Innovation Awards –Energy Savings Trust Fleet Hero Awards
Contents
1 WHO WE ARE AND WHAT WE DO
2 THE BENEFITS OF RENEWABLE BIOMETHANE
WHO WE ARE AND WHAT WE DO
01
• CNG Fuels is the UK’s leading operator of Compressed Natural Gas (CNG) refuelling infrastructure
• We own the UK’s two highest capacity CNG stations,
located in Leyland and Crewe.
• More than ten public access ‘mother’ CNG stations in development, as well as numerous private ‘daughter’ stations
• Currently the UK’s only supplier of RTFO- approved
Biomethane.
• Now dispense 100% of our station CNG as renewable biomethane, more than 240 tonnes per month
CNG Fuels – Who Are We?
• Our Biomethane is predominantly made from food waste, however there are other waste sources such as sewage sludge, manure etc
• All volume dispensed is verified quarterly both independently and then by the Department for
Transport’s Renewable Transport Fuel Obligation (RTFO)
• We do not blend or supplement fossil gas with biomethane, we only dispense 100% biomethane. Fossil gas is not available!
• Our biomethane is derived from gas which is ‘unsupported’, meaning:
• that it has not collected any previous subsidies, such as the Renewable Heat Incentive (RHI) • the full emissions benefit derives to, and is reportable by the fleet customer.
• Customers are issued with a quarterly certificate/report verifying that they have purchased approved renewable fuel, and the emissions savings detailed can be claimed in corporate accounts
100% Renewable Biomethane
UK Market Sizing
5,000 operators have fleets between 10-50 vehicles
460,000 , 49%
165,000 , 17%
323,621 , 34%
300 operators have over 100 vehicles and make up 15% of HGV numbers
Number of Vehicles in Addressable Heavy Duty Vehicle Segment
HGVs Buses Off Road Vehicles
0
50
100
150
250 200
2015 2020 2025 2030 2035
Num
ber o
f veh
icle
s ('0
00) Projection for on-road HGV fleet >18 tonnes
• HGVs represent 1.31% of all UK road vehicles, yet produce 17% of its CO2 emissions and 21% of all road NOx emissions
• The UK’s network of public access CNG stations is growing rapidly and additional providers are now entering the market
• Leyland is the UK’s only station connected to the high
pressure (LTS) gas pipeline, providing capacity to dispense 30 million kgs/year of Biomethane to around 600 high mileage HGVs.
• The UK would need only 100 LTS stations to cover 90% of its
trunking routes
• LTS CNG stations can be equipped with dedicated CNG trailer loading bays, for refuelling high-capacity CNG trailers.
Public-Access ‘Mother’ Stations
• CNG trailers can be used to deliver gas to ‘Daughter’ stations at more convenient refuelling locations.
• A ‘Virtual Pipeline’ solution, is still highly economical
• Daughter stations are extremely flexible, and can be developed to suit particular fleet requirements:
• be located on or off depot • be private, shared or public access • vary in capacity depending on space and fleet size • be located up to 150 miles from the mother
station
Private ‘Daughter’ Stations Brit European’s trailer fills up at Crewe CNG Station
Trailer connects to Brit’s ‘daughter station’ in Scunthorpe 100 miles away to refuel their gas truck fleet
THE BENEFITS OF RENEWABLE BIOMETHANE
02
CNG Fuels’ Leyland LTS CNG station has been independently monitored for more than one year. The results show:
• A dedicated CNG truck provides a CO2eq. savings of 80-85% WTW compared to a diesel HGV
• A high-mileage HGV running on Biomethane saves more than 140 tons CO2 equivalent per year
• 45-75% NOx reductions compared to a Euro VI diesel HGV and as much as 99.6% total reduction in NO2 (the nasty part of NOx emissions).
• CNG HGV is approx. 50% quieter than diesel
Why the Focus on Biomethane?
• Biomethane is the only viable fuel choice currently available for truly heavy duty vehicles.
• DFT Freight Carbon Review 2017
Pros
Future fuel choice
LNG
Biomethane from waste available – RTFO approved Low-cost vehicles, fuel and infrastructure Rapid and Safe Refuelling Range sufficient >500 miles Available across vehicle types (HGV, Bus, RCV, Van)
Which Fuel?
Cons
Not zero tailpipe emissions Still some particulates and NOx
CO2 emissions at tailpipe Lack of refuelling infrastructure
Hydrogen
Electric
CNG (Biomethane)
Rapid Refuelling Range >700 miles Available across HGVs
Very Limited Bio Content Refuelling requires safety equipment Only c.20% reduction in GHG emissions Still has particulate emissions
Rapid refuelling Zero tailpipe emissions, although pathway not necessarily Available for buses, refuse, small HGVs
Very expensive vehicles and fuel Lack of
refuelling infrastructure Not suitable for large
HGVs
Lack of economical and scalable fuel supply
Zero tailpipe emissions Available for buses, small HGVs, vans
Expensive vehicles Slow refuelling - not suitable for large HGVs
No grid infrastructure support for commercial applications Low range Heavy and large batteries
• Updated monthly, and available for free on our website showing indicative fuel cost across our public access stations
• Renewable Biomethane supplied at same price as Fossil CNG • Fleet/Volume customer would receive a discount based on high volumes
CNG Fuels – CNG Price Index
Since January 2017 there have been 10 companies that have used our sites to trial CNG – using both our Scania Demo vehicle and Iveco’s Demo vehicle • The average trial lasted 4 weeks • 54,500kms has been driven in our own CNG Demo Vehicle in 2017 • Results showed potential fuel cost savings of between £16k - £31k per annum depending on
annual mileage • Average CO2 emission savings were between 80% - 85% • Both vehicles displayed excellent results compared to diesel equivalent vehicles on the same
routes • The customers were seeing north of 40% pence/mile fuel savings
CNG Vehicle Trial Data
THANK YOU
Baden Gowrie Smith
Chief Financial Officer
+44 (0)7768 007 009
OR
For sales, general or enquires regarding trailing our CNG demo truck-
Contact Information
