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 Terminology (continued) • 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 Natural Gas Properties Safety Benefits 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” CNG Cylinders 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 Station Components Fueling Options Fast-Fill Dispenser Time-Fill Posts Target Markets Refuse Distribution Key Characteristics: Transit High Mileage Low fuel efficiency Service Central refueling Municipals Airports / Taxis Dedicated NGVs Class Vehicle Type Premium or Conversion Diff Costs Heavy Duty Refuse, transit, distribution $35,000 - $50,000 per and school buses 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 NGV Pricing Benefits Projected Price of CNG and LNG Through 2035 - in DGE Source: US EIA – Energy Information Administration, Energy Outlook 2012 NGV Pricing Benefits NGV Pricing Benefits Source: NGVAmerica Florida Fuel Costs Rate Cost/ Schedule GGE CNG FL Avg.1 $2.25 Unleaded2 $3.26 Mid2 $3.51 Premium2 $3.47 Diesel2 $3.87 1 – www.cngprices.com (November 1, 2013) Compelling case for vehicle conversions Benefits • 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 reduces America’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 Florida Growth 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 peoplesgas.com/ngv ngv@tecoenergy.com