Decision Point – Which Way to Go on Choosing a New Clean Fuel?
Delaware Valley Regional Planning Commission CNG and Propane School Bus Workshop October 2015 Rhea Courtney Bozic • Environmental Scientist and Clean and Alternative Fuel Consultant since 2003 DVRP Alternative Fuel School Bus Workshop • Worked for Lower Merion S.D. since 2003, and many other CNG station development projects • Organized Motor Fuel Workshops for the New York Propane Gas Association • Chief Judge of THE GREEN FLEET AWARDS™ since 2007
Why Green the Fleet?
- Potential to save money on fuel costs - Philadelphia region is in Non-Compliance with federal air quality standards Where do we start? Considering CNG vs. propane
What are my options??? CNG vs. Propane -- Overview CNG Propane PROs PROs Does not contaminate or dilute the crank case Non-toxic and non-corrosive. oil, increasing the oil’s life Lower tailpipe emission than diesel. Lower tailpipe emission than diesel Less space than CNG for storage. Disperses easily in air (lighter than air) Fueling infrastructure is less expensive than for No chance of spills CNG 98 percent of natural gas is domestic Lower price volatility than CNG or diesel CONs Lower energy density than gasoline or diesel CONs and hence the equivalent fuel consumption is Occupies more space than diesel or LPG. more Mitigated in factory-built CNG vehicles by LPG provides less upper cylinder valve integrating the tanks into the vehicle body lubrication. If a LPG-fueled engine is not design. suitable modified, it will lead to valve wear Fueling infrastructure can be expensive Does not disperse easily and is readily Vehicle cost differential higher than for LPG inflammable
Regional Infrastructure and Utility Concerns • Natural Gas- where are existing stations? US DOE Station Locator: http://www.afdc.energy.gov/locator/stations/ Ideally would want at least one if not two backups Do I have gas on the street? (may not be a dealbreaker) Propane must be delivered Who else has done it? Investigate fueling agreements with other organizations. How much help can I get with this? Utility, Clean Cities, Consultant, Turnkey Fuel Provider…
Gaseous vs. Liquid Fuel
• Propane is a liquid and handles more like a traditional fuel- psi around 150-175 • Compressed natural gas is around 3,600 psi • Potential bus garage improvements/modifications Propane can sink into pits; indoor storage issues Natural gas may require lighting upgrades and methane detectors tied to the HVAC system and garage doors Either Fuel Requires Driver and Mechanic Training Build Your Own vs. Turnkey Fuel Provider • Will I really save money by using a turnkey contractor who builds my station and sells me back the fuel? – Depends on scale of entry – Annual mileage driven by the buses – Are we just against turnkey on principal – What are our long-term objectives? – Established fuel provider with a track record of commitment and stability (this is harder than you think) Let’s Look at Rough Costs Example CNG Fleet: Example Propane Fleet: Middle Country Central School G. Davis Inc., Contractor Fleet Serving District, Long Island, NY Dallas and Wallenpaupack SDs, PA • New contractor for District and wanted to • 32 CNG School Buses address age of buses and air quality issues • Got Turnkey fuel station provider but • 12 year depreciation period on buses now taking over station itself • 27 Propane Buses and 19 Diesels • Saves $200 per bus service (filters, oil) • Cost of fuel with Turnkey- $3.80/dge • Locked in price for a year. First year was • Total Final Cost of fuel in-house 2015 $1.51 ($2.02/dge) before tax rebate. Second year it was $1.72 ($2.30 dge). $2.52 but apply $0.50 rebate= $2.02 Third year at present cost is $0.71 vs. diesel cost $2.38 ($0.95/dge). • $0.27 highway usage tax applicable to • 66,536 gallon equivs. used per year private contractor- District would be x $0.36= exempt • Alt. Fuel Data Center shows retail propane $23,952.96 fuel savings $2.85 vs $2.97 for diesel but we have to This is with cheap diesel; remember look at energy equivalency which equates to $3.82 for a diesel gallon equivalent so when it was nearly $4.00??? it’s really $3.82 propane vs. $2.97 diesel. This is counting very expensive places like U-Haul facilities. • http://www.afdc.energy.gov/uploads/publication/alternative_fuel_price_report_ap ril_2015.pdf Fuel Cost Components for Example Middle Country District Owned CNG station Central School District
• Gas- $1.72 • Natural Gas (taken from National Grid bills) • Electric- $0.39 • Electricity (taken from • O&M- $0.41 PSEG bills) ______• Operations and Maintenance Cost (used $2.52 Total three example costs in Less IRS Rebate local market) (minus $ 0.50) • Tax Credit per Gallon Rebate Final Total Cost: • Amortization Costs of
Station Construction (but this station is paid for so not $2.02 Diesel included in example) Gallon Equivalent
of CNG
Comparing Fuel Energy Contents on an Even Basis Fuel: Energy Content in BTU’s • Diesel • 138,327 per gallon • Gasoline • 125,070 per gallon • CNG • 138,237 per DGE (100,000 BTU/Therm) • Propane • 91,333 per gallon (1.5 gallons = 1 DGE) Source: New York State Energy Research and Development Authority, Implementation Funding for Small Municipalities, ARRA, Appendix Q Propane Costs of Fuel
Rack Rough Costs ex. $0.60/gallon ≈ $0.90/DGE + Transport and Delivery- Depends on Bulk vs. non- bulk, is there a pipeline nearby. Added to “laid-in” cost. This varies could be $0.50 to $1.00/gallon ≈ $0.75 to $1.50/DGE. Large deliveries have lower laid in costs + Profit- again can vary and depends on volume. Smaller volumes can have large markup
= ±$1.75 to $2.50/DGE?? Price Variability Over Time How about building the station
CNG- Time fill vs. Fast Fill Dispenser Propane • Time fill is cost effective but you lack • Small station example size 2,000 flexibility. Example for ten buses/350- gallon $60,000- $70,000 (20 400 gge’s overnight $450-550K. Helps if you have other stations in buses/day). Dispenser cost is more network where you can fast fill. commensurate with traditional • A dispenser can be $70K fuel. Small stations will have higher fuel costs due to delivery costs. • Fuel stored in cylinders, not a fuel http://www.afdc.energy.gov/uploads/publication/propane_costs.pdf tank- uses electronics to dispense from the cascade • Houston Independent School • Fast fill CNG stations’ costs highly District spent $300,000 for its dependent upon site conditions and 18,000 gallon tank and dispensers fleet requirements. Depends on Largest station of 18,000 gallons capacity, flow rate and dispenser • capability. $550-850K for medium will have the lowest fuel costs sized 500-800 gge Example- Town of due to delivery cost benefits Oyster Bay, NY fast fill and time fill array for 50 refuse trucks, 2 dispensers $3.2 Million
(http://www.afdc.energy.gov/uploads/publication/cng_infrastructure_costs.pdf) Visuals
Natural Gas- Time Fill Array Propane More Visuals
Natural Gas- Fast Fill Dispensing Propane- Larger Commercial Station Vehicle Additional Costs and Providers- Heavy Duty Platform
CNG Propane • Cummins • Ford/Roush • $38,300 public bid Lower • GM/Clean Fuels USA Merion for 72 passenger • Ranges, but as a potential rear engine ballpark $7,500- verbal, Roush
Vehicle Cost Delta may close on smaller platforms- pickup trucks, vans… You can green these types of vehicles too! Simple Cost Calculations
• How much diesel fuel do you currently use? • How much does that cost you per year? • What is the cost in DGE of CNG/Propane? • What is annual fuel savings? • What is the extra cost of vehicles? • Other extra costs (garage, maintenance)? • Other benefits (no USTs, quieter buses, clean air)? • What is payback period? • If the simple calculation makes sense, consider a more in-depth analysis. Interested in Greening? Do a fleet study
Efficiency/ROI on Fuel Transition Alternative Fuel Options and Costs Getting Grants for Vehicles or Station Important Metrics Greenhouse Gas Reduction
Watch our for inexperienced engineers charging you for their own learning curve! Rhea Courtney Bozic Clean Fuels Consulting and Greening Your Fleet, LLC Greeningyourfleet.com [email protected] 631-665-6513
Certified Women-Owned Business in the State of New York, and certified Small Diverse Business in the Commonwealth of Pennsylvania Helpful Resource Links:
Propane Station Construction Costs http://www.afdc.energy.gov/uploads/publication/ propane_costs.pdf
CNG Station Construction Costs (http://www.afdc.energy.gov/uploads/publication/ cng_infrastructure_costs.pdf)