Efficiency and Alternative Fuels Natural Gas: Options for Municipal Fleets Alicia Milner Canadian Natural Gas Vehicle Alliance

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1 Efficiency and Alternative Fuels Natural Gas: Options for Municipal Fleets Alicia Milner Canadian Natural Gas Vehicle Alliance February 21, 2008

2 Presentation Overview 2 Why consider natural gas for your fleet? Abundant low carbon fuel with well established distribution Commercially-available vehicle technologies Range of refueling alternatives Emissions benefits (GHG and air quality) Economic benefits Renewable option Enables hydrogen

3 Abundant Low Carbon Fuel 3 Canada is the 3 rd largest producer of natural gas 51% of domestic production is exported to the USA 80 years worth of annual consumption in remaining resources Long term supply and pricing outlook are positive Non-conventional sources of natural gas Supply of offshore liquefied natural gas (LNG) Existing gas distribution networks are extensive

4 Abundant Low Carbon Fuel 4 Natural gas (CNG) is much lower in carbon than conventional gasoline and diesel fuel g CO2e/MJ Ratio Gasoline Diesel CNG As per UC Davis study in support of California Low Carbon Fuel Standard

5 Commercially Available Natural Gas Vehicles Aftermarket Original Equipment Conversions Manufacturer (OEM) 5 Bi-fuel Vehicles Dedicated Fuel Vehicles

6 Commercially-Available Light Duty Vehicles 6 Proven aftermarket technology is available to convert vehicles Net cost to convert in Ontario is an estimated $5,000 per vehicle Fuel savings over life more than cover upfront costs and added maintenance Fuel Saving/Year Break-even zone ,000 km / year Years 50,000 km / year

7 Light Duty Vehicle Municipal Success Stories 7 The City of Toronto and Enbridge Gas Distribution developed the Better Transportation Partnership Goal - to reduce smog-related emissions Means was a public-private partnership Result was purchase of 70 natural gas vehicles Fuel savings used to repay the upfront capital

8 Light Duty Vehicle Municipal Success Stories 8 Moose Jaw, SK, gradually introduced natural gas pickup trucks into their fleet and is pleased with results Total fleet is about 500 pieces of equipment 13 pickup trucks are natural gas conversions Refuel at public station on City property Continue to convert new pickups as acquired Include conversion kits in municipal tenders Break-even is about year 1 and vehicles are kept for more than 12 years

9 Commercially-Available Heavy Duty Vehicles 9 Many OEMs offer natural gas as a factory option TRANSIT BUSES - Daimler Chrysler Commercial Bus (40 CNG) - New Flyer (40 CNG) - North American Bus Industries (40 and 60 CNG) REFUSE HAULERS - Peterbilt - Autocar - Crane Carrier - Sterling Condor

10 Commercially-Available Heavy Duty Vehicles 10 Lifecycle cost savings can be significant due to lower fuel costs even when incorporating maintenance and buildings TRANSIT BUSES 20 % lower all-in lifecyle cost for CNG according to 2007 US Federal Transit Adminstration study REFUSE HAULERS US environmental advocacy group INFORM found fuel cost savings to be major factor in doubling of number of natural gas refuse haulers in the US in 3 year timeframe

11 Heavy Duty Vehicle Municipal Success Stories 11 City of Hamilton operates Canada s largest fleet of natural gas- powered transit buses CNG buses Early adopter with support of Province Extensive operational expertise on CNG Internal municipal champion was key to success A NOx emission credit application is being pursued with Province

12 Refueling Alternatives - Time 12 Return-to-base vehicles can be refueled overnight with cost-effective options ranging from private stations to vehicle refueling appliances

13 Refueling Alternatives - Fast 13 Fast refueling is available at public refueling stations or via onsite private stations tailored to municipal requirements

14 Emissions Benefits 14 Significantly lower carbon and air quality-related emissions Light duty vehicles compared to gasoline 23% less CO2/ year (about 2.6 tonnes/yr) 72% less CO 84% less VOCs Heavy duty vehicles compared to diesel 13% less CO2e/year (17 tonnes transit; 10 tonnes refuse) 83 % less NOx 39% less VOCs

15 Economic Benefits 15 Price History of Crude Oil, Diesel Fuel, and Natural Gas 250 US Dollars of the day Natural Gas Diesel Jan Jan Jan- 96 Crude Oil 31-Dec Dec Dec Dec Dec Dec- 30-Dec Dec- 29-Dec

16 Renewable Option 16 Biomethane produced upgraded from biogas can be used in conventional natural gas vehicles Feedstocks include: Municipal solid waste Green bin organic waste Wastewater treatment Landfill gas

17 Enables Hydrogen 17 Hydrogen-enriched natural gas can be used in conventional natural gas vehicles up to 20% hydrogen by volume TransLink in Vancouver has an estimated 75 CNG transit buses 4 buses operate on HCNG NOx emissions are about 50% lower than CNG Local waste hydrogen is used Transport Canada is one of several funding partners for this project

18 Summary 18 Why consider natural gas for your fleet? Abundant low carbon fuel with well established distribution Commercially-available vehicle technologies Range of refueling alternatives Emissions benefits (GHG and air quality) Economic benefits Renewable option Enables hydrogen

19 Encourage Others 19 Municipalities can also reduce emissions in their communities by encouraging green bids from their service suppliers Award additional points for green vehicle-based bids Mandate green vehicle use for contracted services so as to level the field for all bidders while reducing local emissions

20 20 Thank You & Questions Comments? Canadian Natural Gas Vehicle Alliance 350 Sparks Street, Suite 809 Ottawa, ON K1R 7S8 Tel: (613)