Compressed Natural Gas Vehicles

Chris Kroeker

December 6, 2018

My Background

Photo source Thermo KIng

Photo source Thermo KIng

Photo source Turbosquid

Agenda

CNG

• What is it?

• Current market and outlook

• Emissions Testing*

• Fueling Infrastructure

RNG

• Sources

• Supply Potentials

• Carbon Intensities

• Value Sharing*

Other Fuels

*New developments

Natural Gas as a Transportation Fuel

Compression Vehicle Fueling

Photo source

creative commons

license

Photo source Michigan State University

Photo source Bauer Compressors

Photo source CNG United

Photo source NW Natural

8

Current Market

26 million CNG vehicles, 31,000 fueling stations globally

Region NGVs Stations

Asia-Pacific 18,420,306 18,657

Europe 1,863,167 4,824

North America 205,000 1,923

Latin America 5,621,350 5,480

Africa 256,599 208

Fleet Growth

Currently have about 400 CNG vehicles in Oregon – large growth potential

CNG vehicles worldwide has grown annually at 30% for the past five years, anticipated to grow at a CAGR of 11.9% between 2018 and 2026

Some Local CNG Headlines

UPS added 700 new CNG vehicles in 2018

LA Metro awarded contract for 295 CNG buses in 2017

Pennsylvania building/expanding infrastructure at 29 transit locations to support 1,600 CNG buses state-wide

Houston METRO Celebrates 10 Million Miles of CNG

Some Global Headlines

India unveiled CNG infrastructure plans: 10,000 stations over the next 10 years to help obtain 50% CNG vehicles by 2030

Belgium has 100 CNG stations, projected to be 170 by 2020

900 CNG stations in Germany, 150 more coming in the next 3 years

R/CNG Emissions Testing

UC Riverside recently performed real-life CNG emission testing (April 2018)

Tested Cummins/Westport Low-NOx engine (12 liter, 400hp)

Current EPA/CARB NOx standard is 0.2 g/bhp-hr

The engine averaged between 0.0012 and 0.02 g/bhp-hr (90-99% lower)

Eg. One low-NOx R/CNG bus = 125 New Flyer pre-2007 diesel buses

CNG Fueling Infrastructure

NW Natural

Private

Public

Swan Island

Approximately 700 trucks in the area

Reached out to all the major fleets

Responses ranged from definitely yes (if a public station were there) to not interested

Partnership with the existing cardlock station could be a possible

Swan Island cont’d

Common themes were cost of trucks, and cost of fueling station (private)

Regions where CNG is successful have significant funding available

NW Natural is exploring funding options that have worked well elsewhere that do not require state funding

Photo source truckinginfo.com

Renewable Natural Gas (RNG)

Annual RNG Technical Potential

Total OR annual natural gas consumption: 236 BCF

Total NWN annual natural gas sales: 69 BCF

(1) “Wood and Agricultural Residues” is defined differently by different studies but generally includes urban waste wood, primary and secondary mill residues, and residues left after logging operations (e.g., trees cut or killed and left on the ground).

It assumes a large amount (35%-50%) is left on the forest floor to “maintain ecological functions.” Sources for data: https://www.nrel.gov/docs/fy14osti/60178.pdf#, NREL Bioenergy Database, U.S. EPA LMOP Database, Oregon DEQ Material

Recovery and Waste Generation Survey, Oregon Department of Agriculture, and Oregon Department of Energy.

3%

10%

10%

3%

74%

Oregon: 48 BCF

RNG Value Sharing

RNG used in vehicles creates value from RINs nation-wide

RNG used in Oregon vehicles creates value from the Oregon Clean Fuels Program

This value can be shared with fleets: $0.30-$0.60/GGE

Commodity cost of CNG: ≈$0.50/GGE

Other Fuels

Fuel Comparisons

FuelSpecific

Energy

Energy

DensityRange

kWh/kg Wh/L Miles/L

Diesel 13.3 9944 3.9

LNG 14.9 6167 2.4

DME 8.0 5361 2.1

CNG 15.4 2500 1.0

Hydrogen 39 1555 0.6

Battery 0.693 600 0.2Source: Peterbuilt

Carbon Intensities

PathwayCarbon Intensity

[g/MJ]

Energy

Economy Ratio

(EER)

EER Adjusted CI

[g/MJ]Source

Diesel (5% BD) 99.7 1.0 99.7 OR DEQ

CNG - Fossil 79.9 0.9 88.8 OR DEQ

R/CNG - Landfill 50.3 0.9 55.8 OR DEQ

R/CNG - WWTP 43.0 0.9 47.8 CARB

R/CNG - Dairy 13.5 0.9 14.9 OR DEQ

R/CNG - Food Waste -15.3 0.9 -13.8 OR DEQ

Hydrogen - Fossil SMR 120.7 1.9 63.5 OR DEQ

Hydrogen - Landfill SMR 116.8 1.9 61.5 OR DEQ

Hydrogen - Electrolysis (OR

Grid)205.4 1.9 108.1 OR DEQ

Battery Electric (OR Grid) 128.3 5.0 25.7 OR DEQ

Summary

Globally, CNG is growing

Great carbon and air quality benefits

Significant dollar savings for fleets

Proven, mature technology

Need incentives or policies to grow the marketPhoto source NGVAmerica

Thank you!