1 / 15

A Look at Natural Gas

Explore the fundamentals and practicalities of natural gas as a fuel source, from economic implications to operational insights. Learn how to educate yourself and evaluate the viability of integrating natural gas into your operations. Consider economic factors, operational logistics, and key resources for learning.

finley
Télécharger la présentation

A Look at Natural Gas

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Look at Natural Gas FAPT– 2/21/14 craig.h.weerts@cummins.com

  2. Agenda • Florida HB579 • A look at some basics • How do I educate myself? • Economic Considerations • Operational Considerations • Questions Cummins Confidential

  3. HB 579 (Nat Gas Development) Takes Effect January 1, 2014 thru December 31, 2018 • (1)Tax Free Holiday (Auto Fuel Only) • LNG • CNG • Propane • Beginning January 1, 2019 • Nat Gas Taxed $.21 (dge) • Diesel Taxed $.31 (g) • (2) $6 million per calendar year in rebate funds available to offset vehicle premium • Maximum $250,000 per applicant • Maximum $25,000 per vehicle • Maximum 50% of incremental cost • Purchase in prior year

  4. Might Be A Deal – But Is It?Some Basic Facts • Natural Gas is primarily Methane • Methane – CH4 is the most basic hydrocarbon • The higher the ratio of hydrogen to carbon, the lower the “carbon footprint” • Natural Gas has a net 25% reduction in “Greenhouse Gas” wellhead to wheel • CNG, LNG, and RNG are essentially the same thing • Natural Gas is lighter than air and goes up • Gasoline, diesel, and LPG are heavier than air • LNG starts heavier but becomes lighter Cummins Confidential

  5. More Facts • Energy Density Index varies by fuel • Diesel - 100 • Gasoline - 90 • LPG - 67 • LNG - 58 • DME - 53 • CNG - 28 Cummins Confidential

  6. And More • Natural Gas is a commodity sold by million BTUs • There are 7.213 DGE in one MBTU • This year price has ranged from about $3.30 to about $4.50, a range of about 36% • Impact on DGE is $0.46 to $0.62 for gas only • Balance of price is processing, distribution, and taxes • Transportation is a minor portion of demand for Natural Gas Cummins Confidential

  7. How Do I Learn? • NGVAmerica – (www.ngvc.org) • Cummins Westport – (www.cumminswestport.com) • Work with an expert (Paid consultant) • Your schoolbus OEM • Your Cummins Distributor Cummins Confidential

  8. CWI Natural Gas Academy(www.cumminswestport.com/natural-gas-academy-videos) • Video 1 – What is Natural Gas • Discussion of CNG, LNG, and RNG • Features, benefits, and shortcomings of each • Video 2 – Natural Gas Engines • Discuss difference with gas or diesel engines • Look at spark ignited, compression ignited, and dual fuel • Video 3 – Natural Gas Fuel Systems • What is different versus gas or diesel • What is different CNG versus LNG • Importance of fuel choice and tank sizing Cummins Confidential

  9. CWI NGA Continued • Video 4 – How to Fuel a Vehicle • Discuss what is involved in fueling with CNG and LNG • Discuss safety and training • Video 5 – Natural Gas Engine Maintenance • Discuss differences and similarity with diesels • Spark Plugs, Different Oil, Daily Requirement • Video 6 – Upgrading your facility for Natural Gas • NFPA 30A • Local fire marshall • Videos 7 & 8 – Walk around of ISL-G and ISX 12G Cummins Confidential

  10. Background Done, Time To Evaluate • Economic Considerations • Price of Diesel Versus Natural Gas • CNG or LNG available now • Gas line available for CNG station • Partnership available to share cost/facility • Sufficient volume to attract investor or own • Added maintenance cost • Training of staff • Facility modifications • Confusion factor Cummins Confidential

  11. Continued • Economic • Schoolbus premium • Fuel tank size • Right size engine available • Residual Value • Incentives • State of Florida • Federal • Other states • Value of “Green Image” Cummins Confidential

  12. Operational Considerations • Routes • Length of route • Fuel availability/distance to fuel • Performance Requirements • “Right bus avaiable • “Right Engine” Available • Facility modifications • Technician and Driver training Cummins Confidential

  13. Natural Gas Playbook February 21, 2014

  14. Natural Gas Playbook Elements Step 5 Operate Step 1 Assess Step 4 Implement 5 Step Playbook Step 2 Specify Step 3 Prepare Cummins Westport Confidential

  15. CWI Playbook Process 2 1 5 4 3 Operate & Maintain Assess Specify Prepare Implement Fleet profile OEM Confirm fuel availability Conduct fuel quality test Conduct daily maintenance & inspections Routes & loads Chassis Conduct pilot truck test Confirm service & parts availability Environment & terrain Engine Current fuel profile Complete facility modifications Confirm fuel economy & range Monitor fuelling procedures Transmission & gearing NG fuel availability Develop rollout plan Obtain permits, licenses & approvals Monitor fuel consumption Fuel price expectations Fuel type & quality Truck delivery & PDI Operations & maintenance training Service capability Conduct scheduled maintenance & inspections Conduct driver training Fuelling procedure Incentives Safety training NG fuel system type, capacity & configuration Conduct fuelling training Regulations & codes Fire & emergency response plan Conduct scheduled fuel quality inspections Facility requirements Test problem resolution processes Safety equipment Previous experience Define driver training process Warranty package Manage & resolve problems Business case Infant care support Define problem resolution processes Delivery dates Risks & mitigation Kick off event Cummins Westport Confidential

More Related