CNG Cars Can Go the Distance and Be Affordable, Says Lobbying Group

Natural Gas Bi fuels

Just the Facts

  • Natural gas backers are launching a drive to persuade automakers to build compressed-natural-gas fueled cars and trucks.
  • Six custom-built CNG vehicles are on display now in Washington, D.C., and builders say production versions would not cost much more than standard gasoline vehicles.
  • Fuel can cost less than $1 a gallon-equivalent when produced at home.

 

WESTCHESTER, California — A natural gas lobbying group is launching a national effort today to persuade automakers and lawmakers to get off the gasoline and turn to natural gas as a significant fuel for new passenger vehicles in the U.S.

Natural gas advocates say that increased use of the suddenly plentiful fuel — made so by the opening of huge domestic reserves that can be exploited through an extraction process called hydraulic fracturing, or “fracking” — can help the country cut its dependence on imported oil while reducing greenhouse gas emissions and saving consumers millions of dollars in fuel costs.

But all that doesn’t matter if no one can afford the cars — of if they don’t offer the levels of performance, convenience and utility American buyers expect.

The big selling point of the Alliance program is that properly designed CNG-gasoline “bi-fuel” vehicles can be “no-compromise” cars and trucks that don’t sacrifice performance or storage space and don’t have exorbitant price tags, said Eric Noble, a consultant for the American Natural Gas Alliance-backed project.

Noble’s company, CarLab Inc., built four bi-fuel cars and SUVs that borrowed their operating philosophy from the new generation of plug-in hybrid-electric vehicles: use the alternative fuel for most daily driving chores but keep plenty of gasoline on board for extended trips and to avoid the danger of being stranded if the alternative fuel can’t be found.

To drive home those points the Alliance recently gave Edmunds.com and several other news organizations an advance look at six purpose-built bi-fuel cars, vans and trucks at a Southern California Gas Co. pumping facility on a hill overlooking a vast underground natural gas storage field just north of Los Angeles International Airport.

The same vehicles were rolled out in Washington, D.C., this week in a bid to wow legislators and people attending the annual ACT Expo.

“The cars in this program are the first step on the path to [mass] production,” said Barry Carr, an ANGA member and business development director for Landirenzo USA, the North American arm of a major Italian producer of CNG bi-fuel systems for automakers and aftermarket conversion companies.

Landirenzo, which built two cars for the ANGA demonstration, also makes systems for Fiat, General Motors, Volkswagen, Renault, Nissan and others in Europe, he said, and is doing aftermarket systems in the U.S. for Ford and GM trucks.

CNG could account for up to 80 percent of the average car owner’s annual mileage in a properly designed bi-fuel vehicle, Carr said. Natural gas fuel can cost well under a dollar a gallon when produced on home-based compression and pumping systems being developed by companies including Whirlpool.

Natural gas is a widely used passenger vehicle fuel in parts of Europe and South America and there are more than 15 million natural gas vehicles worldwide, said Kathryn Clay, executive director of the Drive Natural Gas Initiative and an ANGA member.

“But less than 1 percent of them are in the U.S., despite our big natural gas production,” she said.

Noble, whose Orange, California-based company built four of the six demonstration vehicles in the program, provided detailed cost sheets that showed the market price of every screw, fitting and supply line used in the conversions.

CNG costs vary from region to region based on the cost of the electricity used to compress the gas and the regional price of the gas itself. At retail pumps around the country the price is typically at least 50 cents a gallon less than gasoline and it can be half the price of gasoline in many areas.

A huge drawback of CNG passenger vehicles so far has been the high cost of the systems, which require expensive high-pressure fuel tanks; the loss of cargo or passenger space that’s given over to those large, cylindrical fuel tanks; and the lack of a nationwide CNG refueling system.

The system being pitched by ANGA tries to address all of those issues.

The average premium over MSRP for the all-gasoline versions of the four bi-fuel vehicles shown by CarLab was just under $2,900 for cars built in small commercial quantities of 20,000 units a year, and slightly less than under $1,900 for vehicles built in large volumes of 200,000 or more per year.

“The average payback period is 2.2 years for someone driving 12,000 miles a year with gasoline at $3.53 a gallon and CNG at $1.17” a gasoline-gallon equivalent, Noble said.

“That compares to 3.4 years for a Toyota Prius (at the same fuel costs), 7.4 years for a Nissan Leafelectric car and 34.4 years for a Chevrolet Volt” plug-in hybrid, he said. “This isn’t a technology with the promise that the price will come down in 10 years” he said of the natural gas conversions. “It’s cheap now.”

The costs Noble cited contrast sharply with the nearly $7,500 price premium Honda charges for the 2012 Civic Natural Gas — the only factory built CNG passenger car sold in the U.S. today.

The key difference is that the Honda is a dedicated CNG vehicle that can’t use any other fuel — and thus has a large and very expensive high-pressure fuel tank — while the alliance is promoting bi-fuel vehicles that don’t need substantial CNG tanks.

The four CarLab demonstrators — a Ford Mustang GT, a Hyundai Sonata sedan, a GMC Acadia large crossover SUV and a BMW X-3 small crossover — all are designed to travel 50 miles on CNG before switching over to gasoline.

The two vehicles prepared by Landirenzo — a Honda CR-V small crossover SUV and a Chrysler 300sedan — emphasized CNG use and thus had larger tanks for the pressurized fuel and correspondingly higher conversion costs that added $4,800 to the MSRP of each.

The computerized engine control unit in each of the demonstration vehicles decides which fuel to use for the best performance, but prioritizes CNG until that fuel is depleted and gasoline is all that’s left to burn.

The CarLab vehicles kept their stock gas tanks and added small CNG tanks, typically holding the energy equivalent of 2 to 4 gallons of gasoline, while keeping all of their original cargo space. The Landirenzo vehicles had 9-gallon-equivalent CNG tanks plus their stock gas tanks, adding almost 180 miles of CNG travel to their range but losing a substantial amount of cargo space — 75 percent in the Chrysler’s case.

All six vehicles maintained their stock horsepower and fuel economy levels with either fuel.

The idea in both cases, said Noble, is to “give people the cost savings of using CNG for most of their driving but enable the vehicles to seamlessly switch to gasoline when the CNG tank is empty. That way people can just keep on driving with no inconvenience. Long trips aren’t a problem. And there’s no problem if you forget to fill up with CNG overnight.”

Edmunds says: Sounds like a couple of interesting approaches. Is anyone in the car business listening?

This article was first published by Edmunds.com.

Advertisements

State Offers $10M for NGVs

Cars in Traffic Reuters

Pennsylvania environmental officials are offering $10 million worth of incentives to companies, government agencies and nonprofits for the purchase of cars or light trucks that run on natural gas or to convert lighter-weight vehicles that now use gasoline.

The Pennsylvania Department of Environmental Protection launched the program Wednesday in a bid to generate demand for natural gas vehicles. A drilling boom in Pennsylvania and other states in recent years has produced enormous quantities of cheap gas.
The DEP grant program is open to nonprofit organizations, companies, local governments and local transportation agencies for natural gas vehicles weighing less than 14,000 pounds. The program also covers conversion or purchase of electric, propane or other alternative fuel vehicles of any size.
Grants will be awarded in the fall. Funding comes from a tax on utilities.
The program will help put new or converted police patrol cars, passenger vehicles and light-duty trucks on the road, DEP Acting Secretary Chris Abruzzo said.
Earlier this month, the state awarded more than $6.7 million in funding to 18 companies and local governments that switched to natural gas for buses, garbage trucks and other heavy-duty vehicles. That money came from an impact fee on drillers.
This article was first published by PennLive.com.

Heavy Duty Vehicles lead the growth – average annual growth rate of 14.6 percent

trucks-natural-gas-fueling-station

Natural gas, as compressed natural gas (CNG) and liquefied natural gas (LNG), is the fastest-growing fuel in the transportation sector in the USA, reports the U.S. Energy Information Administration (EIA). The agency projects an average annual growth rate of 11.9 percent from 2011 to 2040.

Heavy Duty vehicles (HDVs) — which include tractor trailers, vocational vehicles, buses, and heavy-duty pickups and vans with a gross vehicle weight rating (GVWR) of 10,001 pounds or more — lead the growth in natural gas demand throughout the projection period. Natural gas fuel consumption by HDVs increases from almost zero in 2011 to more than 1 quadrillion Btu in 2040, at an average annual growth rate of 14.6 percent.

Although HDVs fueled by natural gas have significant incremental costs in comparison with their diesel-powered counterparts, the increase in natural gas consumption for HDVs is spurred by low prices of natural gas compared with diesel fuel, as well as purchases of natural gas vehicles for relatively high-VMT (vehicle miles traveled) applications, such as tractor trailers.

The total number of miles traveled annually by HDVs grows by 82 percent in the Reference case, from 240 billion miles in 2011 to 438 billion miles in 2040, for an average annual increase of 2.1 percent. HDVs, those with a GVWR greater than 26,000 pounds (primarily tractor trailers), account for about three-fourths of truck VMT and 91 percent of natural gas consumption by all HDVs in 2040. The rise in VMT is supported by rising economic output over the projection period and an increase in the number of trucks on the road, from 9.0 million in 2011 to 13.7 million in 2040.

Beverly Hills Opens CNG Fueling Station and Replaces Four Refuse Trucks With CNG Models

NewsImageViewer('m-beverly-hills-cng-2

The City of Beverly Hills, Calif., recently opened its new compressed natural gas (CNG) fueling station. The new station will fuel the City’s growing fleet of CNG vehicles, which now includes four new refuse trucks.

According to the City, the $1.2 million project will save the City $250,000 each year in estimated fuel costs and will pay back the City’s investment in five to six years (based on comparing the price of CNG to that of diesel fuel).

“This project makes sense for the City and for the region,” said Beverly Hills’ Mayor William W. Brien, MD. “With the price of diesel climbing, and no end in sight, it was necessary that we do something to control these costs. In addition, we are proud to do our part to keep the air in the Los Angeles basin clean and livable for Beverly Hills residents and the surrounding communities.”

For the four new refuse trucks, the City purchased CNG models due to a mandate from the California Air Quality Resources Board (CARB). The City received a $550,000 grant from the Southern California Air Quality Management District (SCAQMD) to offset the cost of the CNG vehicles and related infrastructure. Out of that amount, Beverly Hills applied $300,000 to help fund the construction of the fueling station and put the rest toward the CNG refuse trucks themselves.

In addition to the new refuse trucks, the City has already purchased a number of CNG models or has converted them to CNG. They include six refuse trucks, four street sweepers, a Honda Civic sedan, and a vactor truck (for cleaning sewers).

Regarding the new CNG fueling station, it features fast- and slow-fill dispensers. It has a total of nine posts with dual-fill hoses for slow-fill dispensing and a single fast-fill dispenser, which can dispense up to 20 gallons within 10 minutes at maximum pressure. It has a production capacity of 653 gasoline gallon equivalents within eight hours and comes with two storage spheres (the City can add one more sphere if greater capacity is needed). The City contracted with Mansfield Equipment Corp. to set up the station.

Beyond fueling up current and future City-owned CNG vehicles, the new CNG station will also allow Beverly Hills to enter into mutual fueling agreements with other public agencies in the region.​

This article was first published by Government Fleet.

BP Publishes Energy Outlook 2030 — Natural Gas Grows as Transportation Fuel


Strong growth in production from unconventional sources of gas and oil will have a major impact on global energy markets to 2030, redefining expectations for major economies and rebalancing global trade flows, according to BP’s latest Energy Outlook 2030. The transport sector illustrates a strengthening role for natural gas as a fuel for transportation.

The world has ample proved reserves of oil and natural gas to meet expected future demand growth. At the end of 2011, global proved reserves of oil were sufficient to meet 54 years of current (2011) production; for natural gas that figure is 64 years.

Transport Sector

Of all sectors, transportation shows the weakest growth, with OECD transport demand projected to decline. The sector starts to show some diversification away from oil; gas accounts for 16% of transport energy demand growth, with another 13% coming from biofuels, and 2% from electricity. Oil will remain the dominant fuel in transport, although its share falls from 94% in 2011 to 89% in 2030. Nevertheless biofuels and natural gas both reach 5% share of transport by 2030. Gas (including gas-to-liquids) is the fastest growing alternative and likely to overtake biofuels in transport by 2030.

Energy consumption growth in transport slows to 1.2% p.a. (from 1.9% p.a. 1990-2010) primarily due to accelerating gains in fuel economy. Other factors include the impact of high oil prices on driving behaviour, vehicle saturation in the OECD, and non-OECD subsidy reduction.

The Outlook’s overall expectation for growth in global energy demand to 2030 is little changed from last year, with demand expected to be 36% higher in 2030 than 2011 and almost all the growth coming from emerging economies. However, expectations of the pattern of supply of this growth are shifting strongly, with unconventional sources – shale gas and tight oil together with heavy oil and biofuels – playing an increasingly important role and, in particular, transforming the energy balance of the US.

By 2030, energy use in the non-OECD economies is expected to be 61% higher than in 2011 whereas use in the OECD will have grown by only 6%, and actually to have fallen in per capita terms.

While the fuel mix is evolving, fossil fuels will continue to be dominant. Oil, gas and coal are expected to converge on market shares of around 26-28% each by 2030, and non-fossil fuels – nuclear, hydro and renewables – on a share of around 6-7% each.

Natural Gas

Natural gas is expected to be the fastest growing of the fossil fuels – with demand rising at an average of 2% a year. Non-OECD countries will generate 76% of demand growth. Power generation and industry account for the largest increments to demand by sector. LNG production is expected to grow more than twice as fast as gas consumption, at an average of 4.3% a year and accounting for 27% of the growth in gas supply to 2030.

Shale gas supplies are expected to meet 37% of the growth in gas demand and account for 16% of world gas and 53% of US gas production by 2030. North American shale gas production growth is expected to slow after 2020 and production from other regions to increase, but in 2030 North America is still expected to account for 73% of world shale gas production.

Carbon Emissions
While the rate of growth is moderating, carbon emissions are still expected to increase by 26% from 2011 to 2030. Most of the growth will come from non-OECD countries, so that by 2030 70% of CO2 emissions are expected to come from outside the OECD. However, per capita emissions in non-OECD regions will still be less than half those in the OECD.

BP assumes continued tightening in policies to address climate change, yet emissions remain well above the required path to stabilise the concentration of greenhouse gases at the level recommended by scientists (450 ppm).

The BP Energy Outlook 2030 is available online at www.bp.com/energyoutlook.

(This article primarily compiled using information from a BP press release)

Oil and gas usage in the transport sector has been revised up, largely reflecting the need to offset a drop in biofuel supplies resulting from more modest expectations of the penetration of next generation fuels.

Source : NGV  Global

Natural gas vehicles are coming to Pennsylvania

Los Angeles Auto Show Previews Latest Car Models

Today the term Marcellus Shale is a household name. It’s transformed Pennsylvania’s economy and has elevated the state’s energy profile. Recent production figures from the Pennsylvania Department of Environmental Protection illustrate the prolific nature of this play. Production topped 895 billion cubic feet of natural gas for the first six months of 2012, pushing the total production over 2.5 trillion cubic feet since 2008.

How big is this? Pennsylvania has gone from importing 75 percent of its natural gas just five years ago to being a net exporter today.

Thanks to an abundance of this resource, much attention has been focused on its safe and responsible development. However, another area gaining attention is the role natural gas plays in our transportation sector.

With substantial cost saving and environmental benefits, employing more vehicles fueled by natural gas will put us on the road to a cleaner energy future. The increasing attention on natural gas as a transportation fuel is evident in a variety of ways.

Nearly 200 people attended a recent Natural Gas Utilization Conference in State College. Hundreds of residents are attending PA Department of Environmental Protection’s natural gas vehicle workshops.

The Turnpike Commission is engaged in a study looking at the feasibility of liquefied natural gas stations along the turnpike. Even at the recent annual ShaleNET Workforce Forum, the discussion included new careers in transportation related to NGVs and natural gas fueling infrastructure.

Announcements have been made by auto manufacturers such as Chrysler to offer bi-fuel engines on its Ram model, and Honda is increasing production of its natural gas Civic.  Other auto manufacturers such as Ford and GM also offer natural gas fleet options and all heavy duty truck manufacturers now offer natural gas in their lineup.
In addition, engine manufacturers are developing natural-gas powered engines for on-road and off-road equipment.

To support these new natural gas vehicles, drivers need fueling infrastructure. In response, numerous cities and companies have announced plans to open natural gas fueling stations for public and private use nationwide.

And Pennsylvania is leading that charge. Chesapeake Energy has announced the development of several compressed natural gas filling stations in the Northern Tier to fuel its vehicles while opening the stations to the public. EQT has had a public CNG station opened for more than a year in Pittsburgh’s Strip District.

Other companies have recently opened CNG stations in Bucks and Delaware counties and more are being planned throughout the state — including LNG stations.

Building on these infrastructure and auto manufacturing announcements, the Department of Environmental Protection has aggressively been educating the public on its natural gas energy development program.

Through public workshops and via its website, DEP is helping consumers, fleet owners and public officials make informed decisions on utilizing natural gas as a transportation fuel.

To put a finer point on the potential benefits, natural gas use in power generation has helped achieve the lowest carbon dioxide emissions in 20 years, with significantly lower smog and ozone-causing emissions as well. It can similarly help clean up transportation emissions. It’s also cheaper than conventional gas and diesel — by more than 50 percent.

That’s more money kept in our communities and in your pockets. Costs to convert fleets can be recaptured in short order, helping businesses save money, expand their operations and increase their competitiveness in a national and global economy.

Using more natural gas vehicles is a solution to help Pennsylvania and other states reach their clean air goals.  Thanks to an abundance of supply and exciting advances in vehicle and engine production, we can safely and responsibly use this resource to get on the road to a cleaner transportation future.

GE and Chesapeake Energy Launch CNG In A Box™ System at NACS 2012


GE (GE) and Peake Fuel Solutions, an affiliate of Chesapeake Energy Corporation (CHK), today launched the CNG In A Box™ system, which allows easier adoption of compressed natural gas (CNG) refueling options for large- and small-scale retailers. The solution was unveiled at the National Association of Convenience Stores (NACS) 2012 Annual Show.

Natural gas is an abundant, reliable and cleaner-burning source of energy for consumers and commercial users. A vehicle fleet operator that uses the CNG In A Box system for natural gas fueling instead of traditional gasoline fueling can save about 40 percent in fuel costs1. The CNG In A Box system is a plug-and-play on-site fueling solution that comes with everything retailers need to add low-cost natural gas fuel to their operations quickly and simply. This GE ecomagination™ qualified refueling option provides an easy, lower-cost fueling experience for consumers and a higher-margin solution for facility operators compared to gasoline or diesel.

“In collaboration with Peake Fuel Solutions, GE is developing infrastructure solutions to accelerate the adoption of natural gas as a transportation fuel,” said Mike Hosford, general manager—Unconventional Resources, GE Oil & Gas. “The CNG In A Box system is a unique fueling solution that brings together some of the best innovation from across GE to help fleet owners and everyday drivers realize the benefits of cleaner burning, abundant, more affordable natural gas.”

“After working extensively with GE to develop the CNG In A Box system, we are excited to unveil it at NACS and to the fueling industry overall. Combining Peake Fuel Solutions’ natural gas expertise and GE’s breadth of cross-industry technology capabilities will advance the use of abundant and affordable natural gas fueling solutions,” said Kent Wilkinson, vice president—Natural Gas Ventures, Chesapeake.

The CNG In A Box system compresses natural gas from a pipeline into CNG on-site at a traditional automotive fueling station or industrial location. CNG-powered vehicles such as taxis, buses or small trucks, as well as individual consumer vehicles, can then refill their tanks using a dispenser with the same look and feel as a traditional diesel or gasoline dispenser.

GE ecomagination Vice President Mark Vachon said, “Natural gas is produced at a relatively lower cost and is cleaner burning than gasoline or diesel fuel—natural gas vehicles can show an emissions reduction of up to 80 percent compared to gasoline vehicles2. Through ecomagination, we’ll continue to deliver to the industry innovative solutions that deliver both great economics and environmental performance, and the CNG In A Box system exemplifies this commitment.”

Financing for the CNG In A Box system is offered by GE Capital, providing competitive rates and flexible payment options. By combining an entire acquisition—including equipment, delivery and installation—into a single monthly payment, Peake Fuel Solutions’ customers can structure payments according to their cash flow and eliminate the costs and time associated with paying multiple vendors. With this solution, business owners can work with a single provider to acquire, finance and maintain their CNG In A Box system.

The CNG In A Box system’s 8 foot x 20 foot container is easy to ship and maintain due to its compact design. Its modular and novel design makes it plug-and-play on-site. Wayne, A GE Energy Business, manufactures the dispensers that deliver the CNG from the CNG In A Box system unit to vehicles. These alternative fuel dispensers feature PCI-compliant pay-at-the-pump technology for a familiar and secure fueling experience. Using the same dispenser and payment terminal interfaces as Wayne petroleum dispensers simplifies point of sale integration.

As part of this collaboration between GE and Peake Fuel Solutions, beginning in the fall of 2012 GE will provide more than 250 CNG In A Box systems for natural gas vehicle infrastructure.

To learn more about the CNG In A Box system, visit us online or stop by the Peake Fuel Solutions booth at the NACS show (booth #6101).

Ecomagination is GE’s commitment to imagine and build innovative solutions to today’s environmental challenges while driving economic growth. For more on ecomagination, please visit:www.ecomagination.com.

About GE

GE (GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company’s website at www.ge.com.

About Chesapeake Energy Corporation

Chesapeake Energy Corporation (CHK) is the second-largest producer of natural gas, a Top 15 producer of oil and natural gas liquids and the most active driller of new wells in the U.S. Headquartered in Oklahoma City, the company’s operations are focused on discovering and developing unconventional natural gas and oil fields onshore in the U.S. Chesapeake owns leading positions in the Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara unconventional liquids plays and in the Marcellus, Haynesville/Bossier and Barnett unconventional natural gas shale plays. The company also owns substantial marketing and oilfield services businesses through its subsidiaries Chesapeake Energy Marketing, Inc. and Chesapeake Oilfield Services, L.L.C. Further information is available at www.chk.com where Chesapeake routinely posts announcements, updates, events, investor information, presentations and news releases.

About Peake Fuel Solutions

Peake Fuel Solutions advances innovative fuel solutions with products and services that create demand for clean, affordable natural gas. A significant focus of PFS is to increase compressed natural gas (CNG) and liquefied natural gas (LNG) infrastructure across the U.S. Other PFS projects include development of on-road and off-road technologies that reduce emissions and dramatically cut fuel expenses for the trucking, maritime, rail and oil and gas industries. An affiliate of Chesapeake Energy Corporation, Peake leverages the expertise of other Chesapeake affiliates to implement many of its fuel solutions. Further information is available at www.peakefuelsolutions.com.

1 Assuming 25,700 miles per year driven, gasoline priced at $3.50/gallon and CNG at $2.09/gasoline gallon equivalent.

2 Calfornia Energy Commission – Consumer Education Center:http://www.consumerenergycenter.org/transportation/afvs/cng.html

ecomagination is a trademark of the General Electric Company

CNG In A Box is a trademark of the General Electric Company

© 2012 General Electric Company—All rights reserved

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50433209&lang=en

MULTIMEDIA AVAILABLE:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50433209&lang=en

SOURCE- CNGNOW.com