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Ted Barnes, Gas Technology Institute, presented information on Developments in the Surrounding States for our Natural Gas for Transportation Roundtable in Janesville, WI.
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Wisconsin Natural Gas Roundtable: Developments in Surrounding States
Ted Barnes
Gas Technology Institute
October 2014
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Objectives
1. GTI Background
2. What’s Already Here - Locating Current Stations
3. What’s Coming and When?
4. Grants/Upcoming Developments
5. Contact your local Clean Cities Coordinator
3 3
ESTABLISHED 1941
GTI: Company Overview
> Staff of 250
> 350 active projects
> 1,200 patents; 500 products
Energy & Environmental Technology Center
Office & Labs Pilot-Scale Gasification Campus
Training
Natural Gas Research and
Development Focus
4
GTI – Barrier Reduction Grant
Webinar Series
I. Inspection Guidelines for CNG/LPG Vehicle Conversions
II. Considerations for Garage & Maintenance Shops When Using CNG/LPG
III. Station Installation Guidelines for CNG
IV. Station Installation Guidelines for LPG
V. Best Practices for End Users for CNG, LPG & Electric Vehicles
The webinars and slides are available online at www.wicleancities.org/webinars.php
Barriers Survey
Survey to gather barriers for adoption of alternative fuels
Please complete the survey at:
www.wicleancities.org
5 5
What’s Available Now?
Locating Current CNG Fueling Stations
• Use AFDC Station Locator
(http://www.afdc.energy.gov/locator/stations/)
• Access through all local Clean Cities websites
• Shows stations that are planned to be available soon
• Shows public and private stations
• Gives details on each facility
• Other websites include: CNGnow.com; station provider
websites; fuel management card websites; utility websites
• Often incomplete because of regional or proprietary nature
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Local Public CNG Station Count
Public Stations Existing Planned Total
Wisconsin 47 3 50
Minnesota 9 4 13
Iowa 5 2 7
Illinois 16 2 18
Indiana 19 3 22
Michigan 12 0 12
Totals 108 14 122
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What’s Coming and When?
• List from AFDC – incomplete but still promising
Provider City State Date
Barnes Inc - US Oil Madison WI 4/15/2015
GAIN Clean Fuel Middleton WI 10/24/2014
Kwik Trip Windsor WI 12/1/2014
Clean Energy Chicago IL 12/1/2014
WM Rockdale IL 12/1/2014
CNG Source Indianapolis IN 7/15/2014
GAIN Clean Fuel Indianapolis IN 11/15/2014
CNG Fuel Inc Fort Wayne IN 4/1/2015
South Bend South Bend IN Mid 2015
Great River Energy West Burlington IA 4/15/2014
GAIN Clean Fuel Des Moines IA 1/1/2015
CHS Inc Fairmont MN 9/15/2014
Kwik Trip Austin MN 11/20/2014
Kwik Trip Albert Lea MN 10/30/2014
Saint Cloud Metro Bus Saint Cloud MN 12/31/2014
DTE Energy Grand Rapids MI TBD
12 12
Grants / Upcoming Developments
• Drive Clean Chicago – CNG Stations (6 county area)
• CMAQ IL – Two vehicle programs (Taxi and HD)
• IL DCEO – ~$1 million per year for CNG stations
• DieselWise Indiana – awards in early November
• CMAQ IN – Lake, Porter, LaPorte Counties
• SSCC Webinar – Oct. 27th at 1 PM (CST)
• US EPA DERA Grants for IN Ports
• RNG – Biogas from anaerobic digesters or landfills
• Dane County and Fair Oaks
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Private Developments
• Many companies will support development of new stations for fleets/municipalities
• Guaranteed load (>100,000 GGEs per year), guaranteed pricing, volumetric discounts
• Grant funding
• Capital investment
• More than ten major providers across the country
• Companies can build and operate stations themselves
• Flexibility on components/size but most upfront capital
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$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$4.00 Diesel($86 WTI)
$2.00Natural Gas
$3.50Natural Gas
$7.00Natural Gas
Retail Markup
Refining/Compression,Distribution, Taxes
Raw Commodity
$4.002%
40%
58%
$1.5022%
60%
18%
$1.7420%
52%
28%
$2.30
19%
39%
42%
Ratio of raw commodity contributions to pump prices
Components of CNG Fuel Price
$/G
GE
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Components of CNG
Fuel Price
> Gas Commodity (.55/GGE @ “weighted average” cost of $4.40/MCF)
> Pipeline transportation/services to utility “city gate” and then delivered under regulated tariff by your local utility to your meter uncompressed ($.10 - .25)
> Compression - Rule of thumb: One fully-loaded kWh/GGE ($.10-15/GGE)
> Station Maintenance - Normal PM, repair/replace parts, rebuild ($.15-.30/GGE)
> Equipment amortization ($.35 - .65/GGE)
─ Cost of equipment or cost of capital factored into each
GGE over life of station equipment (typically10 years)
> Station operator profit (if a retail provider)
> Add federal motor fuels excise tax & State/Local tax
─ FEET = $.183/gallon; State of IL $0.19/gallon = $0.373/GGE
> Bottom line: approximately $1.52 to $2.02 (without profit margin or any incentives)
22 22
Natural Gas Station Development and
Ownership-Operations Options: #1
> Fleet owns & operates station ─ Fleet takes responsibility for building and
then operating its own station. Fleet works with vendors or design consultant, manages build-out and takes responsibility for PM (parts, etc).
─ Applies to small-to-mid sized fleets that do not have offsite options nearby, b/c their fuel use does not meet the threshold required by most LDCs or independent developers to invest in developing, owning and operating station for them.
─ Some large fleets also opt for this but many do not have experience nor want responsibility for station operations and maintenance
23 23
Natural Gas Station Development and
Ownership-Operations Options: #2
> Outsource station development, ownership, O&M to independent fuel provider
─ Fleet serves as anchor for independent operator’s station, contracts long term fuel agreement with set price(s) and expected throughput for duration.
─ One stop shop. All capital investment and O&M risks are borne by independent fuel provider while fleet focuses on core competencies.
─ Fleet usually provides low-cost lease for property – important to making deal work - land is costly!
─ Often allows fuel provider option to create public access as well – sometimes a “royalty” paid back to fleet for retail sales from premises
24 24
Natural Gas Station Development and
Ownership-Operations Options: #3
> Fleet owns/leases station but contracts out operations for a fee (e.g., monthly fee or GGE basis)
─ Option used by many large fleets that need/desire ownership of their own station equipment but want to reduce risk, assure best O&M practices, etc
─ Contract is often (but not always) awarded to the firm that builds station; usually a 5-7yr contract.
─ Some fleets that initially Own & Operate their own stations decide that they want to delegate to others – put out RFP for O&M contract
─ Decision weighs pros/cons of “leaving $ on table” versus potential downtime risks, maintaining parts inventories, updated training of techs, etc