CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015...
Transcript of CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015...
CNG Collection Innovations
May 22, 2015
Steven Saltzgiver
Vice President, Fleet Management
Republic Services, Inc.
Protecting Our Blue PlanetȠ
We believe in the preservation of a Blue Planet... a cleaner, safer and healthier
world where people thrive – not just for today, but generations to come.
We are guardians of our environment and have a responsibility to regenerate our
planet with the materials we are entrusted to handle every day by driving
increased recycling, generating renewable energy and
helping our customers be more resourceful.
We must lead by example, working diligently to improve
our relationship with the environment and society
through decreased vehicle emissions, innovative
landfill technologies, use of renewable energy,
community engagement and employee growth
opportunities.
This is not a fleeting cause. It is the foundation
of our future, and the very heart of who we are as
we work every day to protect our Blue Planet.
About Us: Republic Services at a Glance
YE 2014
14 Million Customers
39 States & Puerto Rico
31,000 Employees,
including 15,000 drivers
340 Collection Operations
198 Transfer Stations
66 Recycling Centers
29,000 Total Vehicles,
including 16,000 Collection Vehicles
189 Active Solid Waste Landfills
2,200 Natural Gas Trucks
36 Natural Gas Fueling Stations
73 Landfill Gas-to-Energy Projects
Two Landfill Solar Energy Projects
100 million tons
Waste Collected Annually
$8 billion annual revenue,
$20 billion total assets, NYSE RSG
CNG Collection Vehicles
A Republic Services Perspective
• Why CNG?• Where Does CNG Make Sense?
• What is the Impact?CNG Fleet Photos
1. It’s the right thing to do – and it’s environmentally
responsible
2. It’s cleaner – emissions are lower and increasingly alternative
fuels are mandated
3. It’s local – natural gas is abundantly available from North
American sources
4. It’s cheaper – current natural gas costs are lower than diesel
5. It’s quieter – customers like less noise
Why CNG?
Republic’s CNG Experience
Region 2008 2009 2010 2011 2012 2013 2014 2015
East 0 0 0 1 153 331 469 TBD
Central 0 0 0 0 133 211 253 TBD
West 126 229 482 669 987 1,215 1,535 TBD
Total 126 229 523 712 1,273 1,757 2,257 2,757
Cumulative NGV Counts by Region
We have successfully operated Natural Gas Vehicles since 1995
Site Profile: Baton Rouge
10
Station Design Assumptions:
Fueling Requirements:
• 113 trucks consuming 35 DGE/day• Total 3,955 DGE/day
Trucks (Phase 1) 38
Trucks (Full Build) 113
Posts (Phase 1) 19 Twin
Hoses 38
SCFM Required (Phase I) 296
# of Compressors 2
SCFM Compressor 430
Total Station SCFM 860
Shop Mod Requirements:
• Install continuous methanegas detection control
system
• Install non-sparkingexplosion proof exhaust
fans
• Install explosion proofmotorized roll up garage
doors
• Install safety signage• Remove open flame heaters• Install CNGV facilitycompliant infrared heaters
A progressive regulatory
environment
A large fleet
Fleet returns to base
Where Does CNG Make Sense?
A suitable site
(e.g. access to gas pipeline,
adequate space, ease of
permitting, etc.)
Fleet composition
(link to fleet life cycle –
replacement and redeployment)
Customer service
Natural Gas vs. Diesel (Forward Curves)
Despite updated EIA projections, the current spread between
diesel and natural gas continues to make economic sense.
Source: Energy Information Administration (“EIA”), 20 YR Annual
Price Projection April 2015 Update
$/DGE
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
'14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24
CNG $/DGE *EIA STEO Diesel *EIA STEO Spread *EIA STEO
6
Fleet Size
Conversion Rate 25 50 75 100
20/20/20/20/20 < 5.0%
25/25/25/25
33/33/33
50/25/25
100% Year One > 20.0%
Candidate Sites 72 32 18 11
Candidate Trucks 2,500 1,923 1,581 1,329
Site Development Opportunity Matrix
Our primary focus continues to be sites with more than 50 trucks.
There are still significant numbers of site/truck candidates for CNG.
Sweet Spot
Site Development Opportunities
CNG Challenges
CNG conversion is not a one size fits all solution. Depending on site
characteristics, CNG may not be practical.
Engine size, payload
Location, Location, Location
• Site feasibility
• Access to adequate gas and power
• Public infrastructure
Shop Improvements
Permitting & Zoning
Environmental – it’s good for
our communities
• 85% NOx reduction (less smog)1
• 23% Greenhouse Gas reduction1
Source: 1 South Coast Air Quality Management District 2007 Air Quality Management Summit Panel
What is the Impact?
Operational – drivers love it.
It’s quiet and it does not smell
Financial – potential to
save money
WhatistheImpact?
CNG Collection Innovations
Thank You.