The Role of NGVs in

The Role of NGVs in The Role of NGVs in America’s Transportation FutureAmerica’s Transportation Future

Presentation to Presentation to Utah Alternative Fuel Vehicle SeminarUtah Alternative Fuel Vehicle Seminar

April 27, 2009April 27, 2009

Transportation Energy Reality 1 Transportation Energy Reality 1

• When the world recession is over, growth in demand for oil will again exceed growth in supply of oil

– Vehicle penetration in China (vehicles per thousand population) is at the level of the US during World War I

(continued)

Transportation Energy Reality 1 Transportation Energy Reality 1

• When the world recession is over, growth in demand for oil will again exceed growth in supply of oil

– Vehicle penetration in China (vehicles per thousand population) is at the level of the US during World War I

• Oil prices will rise again to $150 per barrel or more.

Transportation Energy Reality 2Transportation Energy Reality 2

ransportation is the only major energy market (residential, commercial, industrial, electricity generation, transportation) reliant on only one fuel.

hat must change.

Transportation Energy Reality 3Transportation Energy Reality 3

or energy security, balance of trade, military flexibility, America job protection, climate change, and urban pollution reasons …

America must significantly reduce its use of petroleum – especially foreign oil.

n fact, that will happen – plan-fully or painfully.

Transportation Energy Reality 4 Transportation Energy Reality 4 • For the foreseeable future, there is no one, silver-

bullet, panacea technology or alternative fuel that is going to replace petroleum.

(continued)



• We have many options – natural gas, ethanol, methanol, propane, gasoline/diesel hybrids and plug-in hybrids and natural gas hybrids.

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• We have many options – natural gas, ethanol, methanol, propane, gasoline/diesel hybrids and plug-in hybrids and natural gas hybrids.

• But we don’t have choices. We have to use them all – in the applications and in the parts of the country where they make the most sense.

Transportation Energy Reality 5 Transportation Energy Reality 5 • Some argue that we should focus all our efforts on

future technologies or fuels that aren’t here yet -- but promise to be wonderful when they do get here.

(continued)



• We can’t and shouldn’t:– We should invest heavily in R&D on those future options– If and when they come to market and they are as

wonderful as hoped, great

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• We can’t and shouldn’t:– We should invest heavily in R&D on those future options– If and when they come to market and they are as

wonderful as hoped, great

• In the meantime, we should act now -- with the technologies and fuels that are available now.

Transportation Energy Reality 6Transportation Energy Reality 6• Most of the options being discussed are for the light-

duty market.• There are few options for the heavy-duty and

medium-heavy duty market.• That’s a real problem:

– These vehicles are the heart of our economic system.– They use a lot of fuel (over 20% of on-road petroleum

use)– They are most affected by high fuel prices.– High fuel costs are passed along to all of us as a hidden

tax.

Natural Gas Reality 1Natural Gas Reality 1

• Natural gas vehicles offer:– Lower urban emissions:

• 1/6th the NOx of the best available diesel engine

– Lower greenhouse gases:• 22% less than diesel; 29% less than gasoline

– Reduced foreign oil use:• 98% of natural gas used in US is produced in N. America

– Better economics:• On average, 40% less than gasoline or diesel

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– Effective fuel for heavy-duty vehicles• Available options are:

– Bio-diesel/petroleum diesel blends (B20 max)– Diesel-hybrids (limited applications)– Natural gas (as CNG or LNG)

Natural Gas Reality 2Natural Gas Reality 2• America’s natural gas resource base is huge:

– Because of technology improvements, in just the last few years, the economically recoverable volume of natural gas almost doubled

– With technology and at current production levels, America has over 115 years of natural gas resources

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Natural Gas Reality 2Natural Gas Reality 2• America’s natural gas resource base is huge.

– Because of technology improvements, in just the last few years, the economically recoverable volume of natural gas almost doubled

– At current technology and production levels, America has over 115 years of natural gas resources

• Renewable natural gas (biomethane can make the supply unlimited:– Landfill gas, sewage and animal waste can generate

enough biomethane to fuel 10 million cars– Cellulosic biomethane can be limitless


• Natural gas is the best alternative to gasoline -- and especially diesel -- in high fuel-use, urban vehicle applications – especially fleet applications – including:– Transit buses ─ school buses ─ trash trucks, – airport vehicles (e.g., hotel and door-to-door shuttles)– water port vehicles (e.g., drayage trucks and yard hostlers) – goods delivery vehicles ─ taxis ─ commuter vehicles

International NGV PositionInternational NGV Position

August 2003 April 2009

Global NGV Total 2,814,438 10,055,340 +357%

Global Station Total 6,455 14,897 +231%

Worldwide NGVs

LDVs94%

Trucks3%

Buses3%

Worldwide refuelling stations

Private 49%

Public 51%

Refuelling stations under construction

Public 76%

Private 24%

Notable NGV GrowthNotable NGV GrowthCountry NGVs 2003 NGVs 2009 Stations '03 Stations '09

Pakistan 350,000 2,000,000 200 2,600

Argentina 1,000,000 1,750,339 1000 1,808

Brazil 550,000 1,588,331 535 1,705

Iran * 1,215, 593 * 764

India 137,000 821,887 116 325

Italy 400,000 580,000 490 700

China 69,300 400,000 270 1,336

Colombia * 280,638 * 437

Global Total 2,814,438 10,055,340 6,455 14,887

International Vehicle AvailabilityInternational Vehicle Availability

• Every major car manufacturer is making natural gas vehicles for some market somewhere:– GM/Opel Chevrolet Ford Mercedes

– Volkswagen Fiat Citroen Hyundai

– Renault Peugeot Tata Mitsubishi

– Toyota Honda Nissan Isuzu

– Skoda Volvo Geely Lifan

• GM alone makes 18 natural gas models

U.S. OverviewU.S. Overview• Number of vehicles: 110,000 (out of 220 million)

– Total has grown slowly– But focus has been on urban fleets -- especially, trucks and

buses – Consumer interest skyrocketing when gasoline was $4.00

per gallon

• 2008 NGV consumption: – 300 million GGEs (37 BCF)

• 2020 Industry Target:– 10 billion GGEs (1.25 TCF)

OEM: Light-DutyOEM: Light-Duty

• American Honda Civic GX“Cleanest production vehicle on earth”

• While manufacturing quantities are limited, production is being increased for MY2009

• Fed tax credit eliminates mostof premium; state creditsoften wipe out remainingpremium

OEM: Trash TrucksOEM: Trash Trucks

• CWI 8.9L ISL-G engines in the leading refuse chassis suppliers– Peterbilt LCF 320– Crane Carrier LET line– Autocar Xpeditor– American LaFrance Condor

– Mack TerraPro expected to announce soon!

OEM: Transit BusesOEM: Transit Buses

• Buses with CWI 5.9L B Gas Plus and 8.9L ISL-G engines are offered by the leading transit bus suppliers– Orion– New Flyer– NABI– Blue Bird– El Dorado– Optima– Freightliner CCC

OEM: School BusesOEM: School Buses

• School buses with CWI 8.9L ISL-G engines are factory built by 2 of top 3 manufacturers

• Blue Bird All American RE• Thomas Built Saf-T-Liner HDX

OEM: Walk-in Vans/ ShuttlesOEM: Walk-in Vans/ Shuttles

• CWI 5.9L B Gas Plus is factory available from Freightliner Custom Chassis Corp. in their MT 45 and MT 55 walk-in van chasses and MB55 bus chassis

OEM: Work TrucksOEM: Work Trucks

• CWI 8.9L ISL-G equipped factory-built Freightliner M2 112 tandem-axle tractor due off assembly line in June 2009; replacing similar unit that was in production by sister brand Sterling Trucks, which Daimler Trucks is now phasing out

Freightliner Trucks management has indicated that they will have “straight truck” version of M2 in early 2010

OEM: Class 8 TrucksOEM: Class 8 Trucks

• Westport Innovations ISX-G equipped T800 now available from Kenworth and additional field trials are underway in several Peterbilt trucks in Wal Mart fleet

• Most of 2008/09 production allocated to LA/LB ports program but Westport is looking to expand sales to other niche applications and geographic areas

OEM: SweepersOEM: Sweepers

• CWI 5.9L B Gas Plus and 8.9L ISL-G engines in the top sweeper models– Elgin– Schwarze– Tymco– Allianz

SVM: SedansSVM: SedansSedans • Ford 2.0L Focus bi-fuel and dedicated (Altech-Eco)• Ford 4.6L dedicated Crown Victoria, Lincoln Town

Car and Mercury Grand Marquis (BAF)• GM 3.5L and 3.9L Impala bi-fuel (Impco) and

dedicated (Natural Drive)• Pending but soon to be “officially” announced: – Ford Fusion (Altech-Eco)– GM 5.3L (NaturalDrive, Impco) – Others?

?

SVM: Light Trucks/VansSVM: Light Trucks/VansCommercial work trucks and vans• Chevy G1500/2500/3500 Series vans

with 4.8L and 6.0L engine (Baytech, IMPCO)

• Chevy G4500 cab+chassis with 6.0L (Baytech)

• Chevy C/K1500/2500/3500 series pick-ups with 6.0L engine (Baytech, IMPCO)

• Ford F150/250/350 pick-ups with 5.4L engine (BAF, FuelTek)

• Ford Expedition/Navigator with 5.4L engine (BAF)

• Ford E150/250/350 series vans with 5.4L engine (BAF, FuelTek)

SVM: Work TrucksSVM: Work Trucks

Medium- and Heavy-duty work trucks• Chevy W3500/W4500 and Isuzu NPR

and NPR HD COE with 6.0L engine (Baytech)

• Chevy C6500/7500/8500 Topkick work trucks with 8.1L engine (Baytech)

• International DT466/MaxxForceDT-equipped work trucks and tractors repowered with S.I.N.G. 7.6L NG engine (Emission Solutions Inc)

SVM: ShuttlesSVM: Shuttles

Shuttle bus/trolley platform retrofits Ex: StarTrans, Goshen, Krystal, Champion,

Glaval, Starcraft, Supreme

• Chevy G3500 Series cutaways with 6.0L• Chevy G4500 series cutaway with 6.0L • Ford E450 series cutaways with 6.8L• Chevy C4500/5500 cutaways with 8.1L• Int’l 3200/3300 series repowered with Phoenix

7.6L spark-ignited engine)• Freightliner Custom Chassis MB55

Why?Why?

• NGVs have had oil displacement, greenhouse gas, urban pollution and economic advantages.

• Now the political and pragmatic winds are blowing our way– The political climate has never been more positive for NGVs

Boone Pickens

“Electrifying the auto fleet, using natural gas for the 18- wheelers and the heavy vehicles as a transition -- then we can get off of all those imported liquid fuels that come from foreign oil and foreign products and solve the security and economic problem and put people to work in the process.”

-- Al Gore at the , at the National Clean Energy Roundtable, 02/23/09

Support From the Obama AdministrationSupport From the Obama Administration

• Bush Administration not supportive of NGVs.

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• Last year, Congressman Rahm Emanuel, now President Obama’s chief of staff, introduced the Nat Gas Act – to provide significant new incentives to grow the NGV market faster.

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• Last year, Congressman Rahm Emanuel, now President Obama’s chief of staff, introduced the Nat Gas Act – to provide significant new incentives to grow the NGV market faster.

• Last year, Senator Obama also introduced a bill to increase the use of NGVs.

Support From the CongressSupport From the Congress

• NGVAmerica has a list of 50 legislative provisions for NGV programs and incentives.

• Some are already in the Economic Stimulus bill.

• Still to be addressed this year are:– Energy bill– Climate Change bill– Transportation bill– Appropriations bill

Extension of NGV Tax Credits (Plus)Extension of NGV Tax Credits (Plus)• On April 1st, HR 1835 was introduced -- the “New

Alternative Transportation to Give Americans Solutions Act of 2009 (NAT GAS Act)

• Lead sponsors: Reps. Dan Boren (D-OK); John Larson (D-CT); and John Sullivan (R-OK) and 26 cosponsors

• Would extend and expand tax credits for:

– Buying an NGV; Using natural gas as a fuel; installing NGV fueling stations

Climate Change LegislationClimate Change Legislation• Legislation likely:

– Cap-and-trade– Carbon tax

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• On a well-to-wheels basis, natural gas has less carbon than:– Gasoline – Diesel– Many other alternative fuels

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• On a well-to-wheels basis, natural gas has less carbon than:– Gasoline – Diesel– Many other alternative fuels

• Biomethane is among the best (CEC)

New Diesel Engine Emission StandardsNew Diesel Engine Emission Standards

• 2007 Emission Standards:– Reduced:

• NOx by 50%• PM by 90%

– Increased:• Vehicle purchase cost• Operating cost • Maintenance cost

• 2010 Emission Standard will reduce NOx by another 80%– Even greater cost impact expected


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Graphic courtesy of Cummins-Westport


• Diesel vehicles will cost more to buy

• Diesel vehicles will cost more to operate

• Diesel vehicles will cost more to maintain

Natural Gas Engines Meet 2010 Natural Gas Engines Meet 2010 Standards EarlyStandards Early

• Cummins-Westport’s class 6 and 7 engine already meets the 2010 standard– Use stoichiometric engines with three-way

catalyst

• Emission Solutions Class 7 engines do, too.

Why NGV Market Will GrowWhy NGV Market Will Grow

• Huge domestic supply

• Lower urban emissions

• Lower greenhouse gases

• Reduced foreign oil use

• Better economics

• Effective fuel for heavy-duty vehicles

• Political support

Questions?Questions?

Contact Rich KolodziejContact Rich Kolodziej202.824.7366202.824.7366

[email protected]@ngvamerica.org

www.ngvamerica.org www.ngvamerica.org

The Role of NGVs in The Role of NGVs in America’s Transportation FutureAmerica’s Transportation Future

Presentation to Presentation to Utah Alternative Fuel Vehicle SeminarUtah Alternative Fuel Vehicle Seminar

April 27, 2009April 27, 2009

““If You’re So Smart, Why Ain’t You Rich”If You’re So Smart, Why Ain’t You Rich”

• Inertia/cheap gasoline and diesel• Greater first cost• Natural gas option not available for all models• Sparse fueling infrastructure• Less truck space/range on small sedans• Lack of natural gas industry support• Lack of political support

The Role of NGVs in

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