Natural Gas for Transportation in Wisconsin Maria Redmond Wisconsin State Energy Office MG&E Breakfast Seminar Madison, WI April 25, 2013 Wisconsin State Energy Office (SEO) The SEO works with policy makers, businesses interested in energy opportunities, innovators, public/private initiatives and federal agencies to implement cost‐effective, reliable, balanced and environmentally‐friendly clean energy projects. The SEO’s Mission is to invest in Wisconsin by: • Increasing energy efficiency; • Developing renewable and alternative energy sources; • Promoting energy-related economic development & jobs; and • Reducing reliance on imported oil. The SEO manages over $85 million in federal energy-related grants and loans www.stateenergyoffice.wi.gov Dane County Landfill Bio-CNG Station Economics: WI Petroleum Use • Wisconsin has no fossil fuel deposits • Wisconsin has one small oil refinery • Petroleum is Wisconsin’s largest energy expenditure Source: Wisconsin Energy Statistics 2010 Energy Expenditure Figure on Page 131 (right) www.stateenergyoffice.wi.gov Fossil Fuel use in Transportation • 2011 On-road diesel consumption: 736.7 million gallons • 2011 On-road gasoline consumption: 2.5 billion gallons • Cost WI consumers $11.8 billion for gasoline and diesel • ~$1.3 million (~11%) stays in WI Source: WI State Energy Office Annual Energy Statistics Report www.stateenergyoffice.wi.gov Wisconsin Registered Vehicles Fuel Type Registered Vehicles as of December 31, 2011 Registered Vehicles as of December 31, 2012 5,052,758 5,013,419 Diesel 172,191 181,568 Ethanol (E85) Flexible Fuel 271,732 337,394 Hybrid Electric 29,874 36,249 Propane (LPG) 60 47 Compressed Natural Gas 138 262 Electric 51 157 Unleaded Source: *As of March 2012, State Energy Office/DMV Registration Database www.stateenergyoffice.wi.gov Natural Gas www.stateenergyoffice.wi.gov Benefits and Considerations Energy Security • • • Plentiful in U.S. Existing infrastructure (distribution) US largest producer Driving Range • • Shorter than gasoline Comparable power and speed Public Health and Environment • • • Lower greenhouse gas (GHG) emissions Lower particulate pollution Lower carcinogens Deployment • • Proven and established 120,000+ natural gas vehicles in U.S. www.stateenergyoffice.wi.gov Energy Security • New technology has unlocked natural gas from shale; production has increased dramatically – 100 years www.stateenergyoffice.wi.gov Basics: CNG and LNG Compressed Natural Gas (CNG) • • • Stored in onboard tanks under high pressure Fuel economy similar to gasoline 1 GGE = 5.7 lb CNG Liquefied Natural Gas (LNG) • • • • Kept at cold temperatures Stored in double-wall, vacuum-insulated pressure vessels Heavy-duty vehicles 1 GGE = 1.5 gal LNG www.stateenergyoffice.wi.gov Basics: Natural Gas Vehicles Dedicated Natural Gas Vehicles (NGV) • • • Run only on natural gas Better performance Lower emissions Bi-fuel NGVs • Two fueling systems o o • Natural gas Gasoline Fueling flexibility Dual-fuel NGVs • • Run on diesel and natural gas Heavy-duty vehicles only Basics: Natural Gas Vehicles Fleet Applications Light-Duty NGVs • • Suitable for light-duty needs in private and government fleets Honda Civic GX Medium-Duty NGVs • • Vans and shuttles Airports and taxi fleets Heavy-Duty NGVs • • • • • • • Refuse haulers Transit buses School buses Long-haul trucks Street sweepers Snowplows Short-haul delivery trucks Natural Gas Vehicles for America www.ngvamerica.org Best CNG Applications • High fuel use vehicles with return to base operations • Repetitive route • Pre-set geographic operating areas • Fleet implementation will drive consumer market as infrastructure becomes available www.stateenergyoffice.wi.gov CNG Fueling Time-Fill Fueling • • • Good for centrally-based fleets with consistent schedules CNG is dispensed slowly, often overnight Lower cost investment Fast-Fill Fueling • • • Fueling takes place in minutes Necessary for public-access stations Good for vehicles with little downtime Combo-Fill Fueling • • Time-fill and fast-fill More flexibility in fueling www.stateenergyoffice.wi.gov Wisconsin CNG Stations • 26 public CNG stations throughout the state. • 6 private CNG stations - 2 private biogas stations • 1 public LNG stations • Anticipate 200-300 new station within the next 5 yrs Wisconsin CNG Station Map Source: USDOE EERE Alternative Fuels Data Center www.stateenergyoffice.wi.gov Economics: WI Transportation • • Gasoline/Diesel Prices create uncertainty for fleets due to price volatility Current natural gas prices are dramatically lower than petroleum fuels • Recently extended 0.55 per gallon tax credit has also driven down prices CNG Prices 9/12/12 Source: CNGPrices.com www.stateenergyoffice.wi.gov Wisconsin’s Role Natural Gas is an attractive energy source from an economic, energy security and environmental perspective So why didn’t everyone get here on natural gas? • Domestic natural gas supplies have only increased recently • Limited OEM and conversion options for vehicles • It will take some time to overcome the problem of supply (retail infrastructure) and demand (vehicle availability) to meet the needs in the marketplace www.stateenergyoffice.wi.gov State Programs to Support Advances in Transportation Fuels and Vehicles www.stateenergyoffice.wi.gov NEW! Forwarding Wisconsin's Fuel Choice $500,000 award from USDOE Clean Cities Grant Program Program Team – SEO, Wisconsin Clean Cities and WI Technical College System Goals to expand alternative fuels use by: - Expand accessibility to alternative fuels off highways; - offer training for first responders, public safety officers, and permitting officials; and - assist public fleets in developing and implementing petroleum reduction strategies and policies. Launch in Q1 2013 www.stateenergyoffice.wi.gov Wisconsin Clean Transportation Program $300 million USDOE Clean Cities Grant Program 25 awards across the US, WI received largest award $15 million awarded to WI 36 partners, 315 vehicles, 18 alternative fuel locations Additional $17 million leveraged by public and private fleets Goals: • Reduction of Petroleum Use in Transportation • Cleaner Air Through Reduced Emissions • Acceptance of Alternative Fuels • Acceptance of Advanced Vehicle Technology www.stateenergyoffice.wi.gov More Information Wisconsin State Energy Office www.stateenergyoffice.wi.gov Wisconsin Clean Cities website www.wicleancities.org Alternative Fuels & Advanced Vehicles Data Center www.afdc.energy.gov Natural Gas Vehicles for America www.ngvamerica.org www.stateenergyoffice.wi.gov Thank you! Maria Redmond maria.redmond@wisconsin.gov 608-266-1521 www.stateenergyoffice.wi.gov