compressed natural gas symposium and showcase cng 101 keith gruetzmacher november 5, 2013

Compressed Natural GasSymposium and Showcase

CNG 101

Keith GruetzmacherNovember 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

• 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)

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

• 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

CNG Station Components

Fast-Fill Dispenser Time-Fill Posts

Fueling Options

Target Markets

Key Characteristics:High Mileage

Low fuel efficiencyCentral -refueling

Refuse

Transit

Airports / Taxis

Municipals

Service

Distribution

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

NGV Pricing Benefits

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

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

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

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

NGV Pricing Benefits

Source: NGVAmerica

NGV Pricing Benefits

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

Compelling case forvehicle conversions

• 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

• 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

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

peoplesgas.com/ngv

ngv@tecoenergy.com