Presentation

• Introduction to Hardstaff Group

• Dual Fuel Overview

• The Need for Dual Fuel

• Hardstaff, the OEM’s and Technology

• Containment Options• Containment Options

• Where Next - Cost and Climate

• Cost Management

• Facts and Figures

Road Transport & DistributionT. Baden Hardstaff Ltd (parent

Dual Fuel Vehicle Technology

Natural Gas Fuel Supply & Infrastructure

Hardstaff Group

T. Baden Hardstaff Ltd (parent

company)Technology Infrastructure

Portal Gas Services

Truck Dealership & Support ServicesMercedes-Benz and DAF Trucks

Concrete Safety Barriers for Highway & Security ApplicationHardstaff Traffic Barrier Services Ltd

Registered Training SchoolCPC Driver Training

Hardstaff History

• 150 year Heritage – 5th

Generation

• Established haulage business

• Key role in introduction of Dual

fuel to road haulagefuel to road haulage

• Key Patents in Dual Fuel space

• In discussion with all but 1 EU

OEM

• Strategic gas storage

What is Dual Fuel

Dual fuel is a combustion technology that

simultaneously burns two fuels - natural gas or bio-

methane and diesel.

Methane or natural gas is not the same as LPG

Progress in Dual Fuel

1999 The Hardstaff Innovative Transport and

Environmental Scheme (H.I.T.E.S)

2002 We were the first Energy Saving Trust /

Department for Transport Stakeholder for Dual

Fuel systems and later for LCNG Stations

2003 Formed Portal Gas Services2003 Formed Portal Gas Services

2002/4 Hardstaff Caterpillar collaboration

2006 OIGI® Dual Fuel Technology patented

2008/9 OIGI® patented HDX-I Dual Fuel Technology

no access to the OEM’s ECU required.

Why Natural Gas – Why Dual Fuel

• Methane is the cleanest fuel next to hydrogen

– Diesel dual fuel IC engine

• Around 60% gas substitution

• Around 15% CO2 reduction

– Industry and legislators now endorse

dual fuel technology

• Spark ignition losing support

– State-of-the-art dedicated gas may reach 10 %

– Typically closer to zero due to relative inefficiency.

– Limited power ratings inefficient by comparison

– Does it tick the CO2 box ?

– Costly maintenance regimes and residual issues

Why Dual Fuel - Climate Change

Compared to conventional diesel

Why Dual Fuel – Tax Incentive

Government

Tax = 58p Tax = 0.18p

Forecou

rt

signage

with

prices

Operator

Natural gasDiesel

Why Hardstaff Dual Fuel

• Clear financial model

• Proven “in the real world”

technology

• Supported by OEM

warranties

• Precision electronic control

– Maximum safe substitution

– Best emission performance

• No effect on OBD systems

• Its available, its supported

Hardstaff and the OEM’s

• Always work with OEM acceptance

• Usually sold through an OEM dealer

• Un-interrupted OEM warranty

– Strive for OEM engineering

standardsstandards

– Developed in own facilities

– Tested in own fleet

• Develop technology by engine platform

• Develop installation by chassis

Hardstaff Approach to the Technology

• Non invasive installations

– Quick to install, or remove

• Patented electronics package -

– Works by stealth, maximum control,

– Sequential gas injection, metered on a

• No interface with CAN – Key to OEM acceptance

– Sequential gas injection, metered on a

cylinder by cylinder basis.

• Right solution

– Flexible pricing options

– Flexible gas containment options

– Flexible exhaust after treatment options

– No impact on residual value

Cylinder by Cylinder Control

What Tools are in the Toolbox

Vehicle type Present fuel LPGLiquid

bio fuels Full electric

Hybrids (energy

recuperation)

Bio-natural gas

(CNG & LNG)

Cars Petrol & diesel Yes (conv.) Yes (%) Yes (city cars) Yes Yes (CNG)

Vans Diesel Yes (conv.) Yes (%) No Yes Yes (CNG)

Delivery trucks

Diesel No Yes (%) No Yes Yes (CNG)

Urban buses Diesel No Yes (%) Yes (wired) Yes Yes (CNG)

Coaches Diesel No Yes (%) No No Yes (LNG)

Heavy on road trucks

Diesel No Yes (%) No No Yes (LNG)

Heavy off road trucks

Diesel No Yes (%) No No Yes (LNG)

Railway locomotives

Diesel &

electric? Yes (%) Yes (wired) No Yes (LNG)

Ships Diesel ? Yes (%) No No Yes (LNG)

Storage Choices

LNG opens the way for medium

to long distance road transport

Containment Choices - Vehicle Fuel

PROS•Ambient temperature

•Security of supply

•Higher methane content

•Summer gas price for winter use

CNG LNG

PROS•Security of supply •Summer gas price for winter use

•Immediate and easy access to Bio methane

CONS•Moisture content

•Variable methane content

•Gas price fluctuation (summer/winter)

•Cannot be odourised

•Cryogenic

•Limited shelf life

•Transport by road

Containment Choices – Vehicle Storage

PROS

•User friendly – easy to fill

•Accurate metering

•Accurate dash board ‘fuel gauge’

•Ambient temperature

•Long cylinder life (20-years)

•Established Standards & Code of Practice

•Over 7 million CNG vehicles worldwide

•Better range availability

•Less chassis space required

CONS

•Cylinder inspections required every 3 years

•Heavier containment

•Cannot part fill

•Varied driver acceptance

•Use it or loose it

CNG LNG

CONS •Heavier containment

•Requires extra chassis space•Use it or loose it

•No written standards (currently in progress)

•Additional driver training

•LNG tanks require re-vacuuming (3-5 years)

•Methane release during refuelling (currently)

Filling Stations

PROS•Established technology

•Low site inventories (no bulk storage)

•Low power consumption

•Lower capital cost

•No oil carry over

•Bio-methane option with attainable CO2 credits

•Mobility – no pipeline

•Modular design

CNG LCNG

•Modular design

•LNG dispensing option

CONS•High capital cost

•Higher maintenance cost

•Susceptible to oil carry over

•High power consumption

•No Bio-methane option

•Specialist engineers required

•Cryogenic bulk storage

Filling Station Locations

http://binged.it/GHxhDM

European Picture

Global Picture

Naturally Versatile

• Designed to be cost effective for

working fleets

– Proven in Hardstaff fleet - over 100 m KM

– No driver intervention required

– Switches in and out of gas automatically

– Excellent drivability– Excellent drivability

– Runs on diesel only if required

– No effect OEM maintenance regime

– Serviced in own VMU or OEM dealer

– Major components have second life

– Flexible depreciation options

– No effect on residuals

“When it drops out of

dual fuel and goes onto

diesel I can’t tell the

difference.

Oil Price Moving Forward

• Momentum is currently upwards

– Production below expectations around the globe

– Libya not fully on line

– Syria embargo

– Conflicts in Yemen and South Sudan

• Against back drop of tight supply• Against back drop of tight supply

– Emerging market demand +1.5 mbo /day each year

– $100 dollar oil here to stay

• Potential shocks to system

– Prospect of Israeli strike on Iran

– Straights of Hormuz becomes uninsurable

Gas v’s Diesel - Trends

Cost Management

• KPI’s in the industry – MPG

• Cost of a mile is also driven by the cost rather than

amount of fuel

– But this is usually a given input into the p/mile equation

Diesel truck – Pence / litre determined

by fuel suppliers:by fuel suppliers:

Diesel = 1.16/ ltr

MPG = 8.5mpg

p/mile = 116p/ltr x 4.546 / 8.5= 62p/m

Dual fuel technology influences your fuel price

Dual Fuel Equivalent Ltr.

Dual Fuel truck – Pence / litre

Determined by gas substitution rate:

lets say at 60% gas subs’

Diesel = 1.16 / ltr * 40%Diesel = 1.16 / ltr * 40%Gas = 63.4 / equiv’ ltr x 60%

Your DF ltr costs 84.4p

MPG = 8.5 mpg

p/mile = 84.4p/ltr X 4.546 / 8.5 = 45.1p/m

Assumes 3.6 kg/gal and gas at 80p / kg

Model Range Coverage

• Engine Platforms

• Mercedes OM501

• Mercedes OM457

• Mercedes OM926

• Mercedes OM906

• Volvo D7• Volvo D7

• Models

• Mercedes Axor

• Mercedes Actros

• Mercedes Econic

• Volvo FL 240

• Volvo FE 340

Facts and Figures - Clear Financial Model

• MPG

• MPA

• Substitution rate

• R&M figure

• Boil the complex issues down to some thing really simple

• R&M figure

• Cost of fuel

Typical Operating Scenarios

• Typical result - Primary

• MPG – negative 0.5mpg (8.5)

• 60% Substitution

• R&M 1 p/mile

• 16p/mile saved

• Payback in 175000 km

• Typical result – Multi-drop

• MPG – negative 0.5mpg (7.0)

• 55% Substitution

• R&M 1 p/mile

• 17p/mile saved

• Payback in 165000 km• Payback in 175000 km • Payback in 165000 km

Operators

Waitrose

Thank You for Your Time

Photos