A Look at Natural Gas
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description
A Look at Natural Gas. FAPT– 2/21/14 [email protected]. Agenda. Florida HB579 A look at some basics How do I educate myself? Economic Considerations Operational Considerations Questions. HB 579 (Nat Gas Development). Takes Effect January 1, 2014 thru December 31, 2018 - PowerPoint PPT Presentation
Transcript of A Look at Natural Gas
Agenda
Florida HB579
A look at some basics
How do I educate myself?
Economic Considerations
Operational Considerations
Questions
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Takes Effect January 1, 2014 thru December 31, 2018
(1) Tax Free Holiday (Auto Fuel Only)– LNG
– CNG
– Propane
Beginning January 1, 2019– Nat Gas Taxed $.21 (dge)
– Diesel Taxed $.31 (g)
(2) $6 million per calendar year in rebate funds available to offset vehicle premium
– Maximum $250,000 per applicant
– Maximum $25,000 per vehicle
– Maximum 50% of incremental cost
– Purchase in prior year
HB 579 (Nat Gas Development)
Might Be A Deal – But Is It?Some Basic Facts
Natural Gas is primarily Methane
Methane – CH4 is the most basic hydrocarbon
The higher the ratio of hydrogen to carbon, the lower the “carbon footprint”
Natural Gas has a net 25% reduction in “Greenhouse Gas” wellhead to wheel
CNG, LNG, and RNG are essentially the same thing
Natural Gas is lighter than air and goes up
Gasoline, diesel, and LPG are heavier than air
LNG starts heavier but becomes lighter
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More Facts
Energy Density Index varies by fuel– Diesel - 100
– Gasoline - 90
– LPG - 67
– LNG - 58
– DME - 53
– CNG - 28
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And More
Natural Gas is a commodity sold by million BTUs
There are 7.213 DGE in one MBTU
This year price has ranged from about $3.30 to about $4.50, a range of about 36%
Impact on DGE is $0.46 to $0.62 for gas only
Balance of price is processing, distribution, and taxes
Transportation is a minor portion of demand for Natural Gas
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How Do I Learn?
NGVAmerica – (www.ngvc.org)
Cummins Westport – (www.cumminswestport.com)
Work with an expert (Paid consultant)
Your schoolbus OEM
Your Cummins Distributor
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CWI Natural Gas Academy(www.cumminswestport.com/natural-gas-academy-videos)
Video 1 – What is Natural Gas– Discussion of CNG, LNG, and RNG
– Features, benefits, and shortcomings of each
Video 2 – Natural Gas Engines– Discuss difference with gas or diesel engines
– Look at spark ignited, compression ignited, and dual fuel
Video 3 – Natural Gas Fuel Systems– What is different versus gas or diesel
– What is different CNG versus LNG
– Importance of fuel choice and tank sizing
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CWI NGA Continued
Video 4 – How to Fuel a Vehicle– Discuss what is involved in fueling with CNG and LNG
– Discuss safety and training
Video 5 – Natural Gas Engine Maintenance– Discuss differences and similarity with diesels
– Spark Plugs, Different Oil, Daily Requirement
Video 6 – Upgrading your facility for Natural Gas– NFPA 30A
– Local fire marshall
Videos 7 & 8 – Walk around of ISL-G and ISX 12G
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Background Done, Time To Evaluate
Economic Considerations– Price of Diesel Versus Natural Gas
• CNG or LNG available now
• Gas line available for CNG station
• Partnership available to share cost/facility
• Sufficient volume to attract investor or own
– Added maintenance cost
• Training of staff
• Facility modifications
• Confusion factor
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Continued
Economic– Schoolbus premium
• Fuel tank size
• Right size engine available
• Residual Value
– Incentives
• State of Florida
• Federal
• Other states
– Value of “Green Image”
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Operational Considerations– Routes
• Length of route
• Fuel availability/distance to fuel
– Performance Requirements
• “Right bus avaiable
• “Right Engine” Available
– Facility modifications
– Technician and Driver training
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Natural Gas Playbook
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February 21, 2014
Natural Gas Playbook Elements
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5 Step 5 Step PlaybookPlaybook
Step 1
Assess
Step 2
Specify
Step 3
Prepare
Step 4
Implement
Step 5
Operate
CWI Playbook Process
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Conduct fuel quality test
Implement
Conduct pilot truck test
Develop rollout plan
Confirm fuel economy & range
Conduct driver training
Truck delivery & PDI
Conduct fuelling training
Test problem resolution processes
Infant care support
Kick off event
4Operate &
Maintain
Conduct daily maintenance &
inspections
Monitor fuelling procedures
Monitor fuel consumption
Conduct scheduled maintenance &
inspections
Conduct scheduled fuel quality inspections
Manage & resolve problems
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Fleet profile
Assess
Routes & loads
Current fuel profile
NG fuel availability
Fuel price expectations
Environment & terrain
Incentives
Regulations & codes
Service capability
Facility requirements
Previous experience
Business case
Risks & mitigation
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OEM
Specify
Chassis
Engine
Transmission & gearing
Fuel type & quality
Fuelling procedure
NG fuel system type, capacity &
configuration
Safety equipment
Warranty package
Delivery dates
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Confirm fuel availability
Prepare
Confirm service & parts availability
Obtain permits, licenses & approvals
Complete facility modifications
Operations & maintenance training
Define driver training process
Safety training
Fire & emergency response plan
Define problem resolution processes
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