5 th Annual Natural Gas Conference Powering Maine s Future

Transcription

1 5 th Annual Natural Gas Conference Powering Maine s Future Natural Gas as a Transportation Fuel Moderator: Katie Gray, Verrill Dana, LLP Panelists: Jerry Livengood, Bangor Gas Ben Lake, Greater Portland Council of Governments Michael Bostwick, Pan Am Railways Matt Smith, XNG

2 Natural Gas: Powering Maine s Future September 28, 2017 Jerry Livengood, President and General Manager

3 What is a NGV? Alternative Fuel Vehicle runs on NG 3,600 PSI Natural Gas Cylinder 8 gallons equivalent/ MCF 150,000 NGV is US Mostly buses

4 Top ten countries with the largest CNG fleets 2016 (millions) Rank Country Fleet Rank Country Fleet 1 Iran Brazil China Italy Pakistan Colombia Argentina Thailand India Uzbekistan 0.45 World Total = 22.4 million NGV vehicles

5 Why Not NGVs Advantages U.S. Reserves are Abundant 100yrs! Natural Gas already is a major energy source, particularly in Power Generation Existing Pipeline infrastructure Energy Independence Green, 30%-40% Less GHG emissions Fuel cost savings, 30%-50% 60 Million US Homes with Natural Gas

6 Why Not NGVs Disadvantages Slow adoption by consumers, Oil Prices Cost Premium for a NGV Limited range like Electric Lack of Filling Stations Competition from Electric and Hybrids 2016, 540,000 EF in US Not Green Enough Zero Emissions on Electric Vehicles

7 Points to Consider: About 29% of U.S. energy consumption in 2016 for transporting people and goods U.S. net imports for oil in 2016 is 25% U.S. on course for top NG exporter by Million Vehicles in US...Tipping point? NGV technology is proven and available; Chevy, GM, Ford, Honda, and Dodge Market Shift: Mercedes, Volvo, Tesla Policy or Incentives for NGVs or Filling Stations (1,300)

8 MAINE CLEAN COMMUNITIES = MC 2 Compressed Natural Gas as a Transportation Fuel Examples and Opportunities in Maine Natural Gas: Powering Maine's Future September 28, 2017 Clean Cities / 8 Presenter: Benjamin Lake Coordinator Maine Clean Communities blake@gpcog.org

9 About us The Maine Clean Communities Coalition is comprised of fleet managers, state and local officials, clean fuel providers, and other groups and individuals interested in promoting the use of clean fuels, clean fuel vehicles and reducing petroleum consumption in transportation. Designated in 1997, MC2 is a statewide Coalition administered by the Greater Portland Council of Governments (GPCOG) Our coalition has more than 80 partners and stakeholders What are our goals? Replace petroleum with alternative and renewable fuels Reduce petroleum use through fuel efficiency measures, smarter driving practices, and idle reduction Eliminate petroleum use by promoting mass transit, trip elimination, and congestion mitigation Clean Cities / 9

10 Gasoline and Diesel Consumption in Transportation in Maine Clean Cities / 10 Source: State Energy Data System based on beta data converted to gasoline gallon equivalents of petroleum (GGEs) for the transportation sector (which includes more than highway vehicles) from the U.S. Energy Information Administration

11 Propane and Natural Gas Consumption in Transportation in Maine Clean Cities / 11 Source: State Energy Data System based on beta data converted to gasoline gallon equivalents of petroleum (GGEs) for the transportation sector (which includes more than highway vehicles) from the U.S. Energy Information Administration

12 Compress Natural Gas as Transportation Fuel Overview Natural Gas powers 150,000 vehicles in US and roughly 22 mil. vehicles worldwide 750 natural gas fueling stations in the United States: 35 LNG & 727 CNG stations Energy Security Most of U.S. Natural Gas is domestically produced Transportation accounts for 75% of total U.S. petroleum consumption. Reducing our dependence on petroleum-based fuels in this sector supports our economy and our energy security. Convenience, Performance, Safety Natural gas vehicles (NGVs) are similar to gasoline or diesel vehicles with regard to power, acceleration, and cruising speed Public Health and Environment. Light-duty vehicles running on conventional and shale natural gas can reduce life cycle greenhouse gas emissions by 11% Renewable natural gas from landfills and livestock operations reduces emissions by preventing methane release into the atmosphere. Natural gas is non-toxic, non-carcinogenic and does not pollute soil, groundwater or surface water. According to the U.S. Department of Energy, there is a 20% 40% reduction in carbon monoxide compared to conventional gasoline 80% less particulate matter (PM10, PM2.5) Clean Cities / 12

13 Maine Clean Communities Stakeholders - CNG Maine Clean Communities Coalition CNG used for transportation: Xpress Natural Gas 26 vehicles (long-haul trucks) Greater Portland Transit District (METRO) 18 vehicles (city buses) Portland Public Schools 11 vehicles (school buses) Bangor Gas Company 5 vehicles (company cars + pickup truck) City of Portland 1 vehicle (waste truck) Clean Cities / 13

14 Examples of CNG Applications in Transportation Green Taxi Program Chicago Natural Gas Stations - OK's Interstate Highway System UPS CNG-powered Vehicles Atlanta Airport Shuttles Clean Cities / 14 Natural Gas Stations - Oklahoma's Interstate Highway System

15 CNG Public Stations in the US Source: AFDC Station locator 8/30/2017 Clean Cities / 15

16 LNG Public Stations in the US Source: AFDC Station locator 8/30/2017 Clean Cities / 16

17 VICE 2.0 CNG Online Tool The Vehicle and Infrastructure Cash- Flow Evaluation (VICE) model version 2.0 is the second generation of the financial model developed by the National Renewable Energy Laboratory Suitable for fleet managers to assess the financial soundness of converting their fleets to run on compressed natural gas (CNG). The tool helps to assess projects to acquire CNG vehicles and infrastructure VICE covers the following vehicle types: Transit Bus School Bus Trash Truck Paratransit Shuttle Delivery Truck Pickup Truck Taxi VICE 2.0 offers users visual and reporting enhancements, including graphic images of return on investment, cumulative cash flow, and payback periods Clean Cities / 17

18 Contact Information Benjamin Lake, Coordinator Clean Cities / 18

19 Natural Gas: Powering Maine s Future Falmouth, ME September 28, 2017

20 Pan Am Railroad Lineage 1981 Maine Central acquired by Guilford Rail System 1982 Boston and Maine acquired by Guilford Rail System Guilford Rail System operates as New England s Largest Rail Network 2006 Guilford Rail System becomes Pan Am Railways

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22 Pan Am s Class 1 Connections

23 Pan Am Served NGL Terminals

24 New England LNG Terminals

25 Current Rail Applications

26 THANK YOU

27 Maine Gas Conference The Woodlands September 3, 2015 September 2017

28 CNG for short- and long-haul trucking is a significant business opportunity for any transportation company. Currently, about 110,000 natural gas vehicles exist in the United States Between 1,000 and 1,500 fueling stations support those cars, buses and light trucks that use compressed natural gas (CNG) Fleets typically rely on a single fueling station at a central location on a pipeline Mobile CNG trailer technology changes that model We provide a central location at the customer site(s) off the pipeline, and We set up fueling depots at the opposite end of the route at locations up to 200 miles away. Real example: Port of Tacoma and Seattle represent 8th busiest port in the US 2 million cargo units annually require tractors per day on average Limited fuel infrastructure in the Port areas due to seismic and tsunami risk, mobile fueling solution would be ideal for the port area. 28 XNG State Street 8 th Floor Boston, MA

29 CNG for Transportation Solutions for Off-Pipeline Vehicle Fleets XNG Fleet Fueling System 29 XNG State Street 8 th Floor Boston, MA

30 Actual Installation Photo shows actual installation of the system at an off-pipeline location 30 XNG State Street 8 th Floor Boston, MA

31 Customers Have Significant Daily Transport Needs CNG Truck Station CNG Truck Station CNG Truck Fueling Station 31 XNG State Street 8 th Floor Boston, MA

32 CNG Offers Attractive ROI for Operator / Owners Even now, savings from CNG vs. diesel approaches $30k+ per tractor/year Difference between a diesel and a NG tractor at $70k is repaid in 2.3yrs A $200k tractor financed properly has positive cash flow to the driver immediately, and repays loans 40-50% more quickly than diesel NG Tractor Value Proposition Assumes $3.00 D and $1.50 NG 5mpg Base Case 5mpg 5mpg 6mpg 6mpg 6mpg Miles driven per year 150, ,000 80, , ,000 80,000 Miles driven per day Gas Mileage Days driven/year Est Annual Diesel Usage 30,000 20,000 16,000 25,000 16,667 13,333 Annual Savings $45,000 $30,000 $24,000 $37,500 $25,000 $20,000 Years to Payoff D/NG difference $70, XNG State Street 8 th Floor Boston, MA

33 Payback Remains Even if Spread Narrows 33 XNG State Street 8 th Floor Boston, MA

34 5 Click th Annual to edit Natural Master title Gas style Conference Powering Maine s Future Click to edit Master text styles Second level Third level Fourth level Fifth level 34 XNG State Street 8 th Floor Boston, MA