CHP & NGV Technology Strategies Presented By:

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1 CHP & NGV Technology Strategies Presented By: Barry Wentzel, Technical Advisor UGI Utilities, Inc. May 31, 2012

2 Topics to be discussed Combined Heat & Power (CHP) What is CHP and how does it work? What are the CHP Market Drivers? What are the CHP Strategy Factors? Successful UGI CHP Projects Natural Gas Vehicles (NGVs) Facts about NGVs and Types of NGVs What are the NGV Market Drivers? What are the NGV Strategy Factors? Successful UGI NGV Projects

3 Education - What is CHP? CHP stands for Combined Heat and Power CHP is the sequential production of power and useful thermal energy from a single energy source. CHP is also another name for cogeneration and is a form of Distributed Generation (DG). CCHP stands for Combined Cooling, Heating and Power

4 Education - How does CHP work? One source of energy into the CHP system (engine or turbine) and two sources of useful energy out Fuel with Air into turbine, engine, or micro-turbine of the CHP system Utilize the electrical power output from the generator and capture the rejected thermal heat from the CHP system Economic viability is based on the displacement of expensive grid power used to operate a building or plant

5 What are the CHP Market Drivers? Expensive Electricity PPL rate caps off as of 1/1/2010 First Energy caps off as of 1/1/2011 Expensive Boiler Fuel oil or steam Low Cost Natural Gas Fuel Sustainability or being Green More Efficient, Lower Emissions Reliable Power

6 What are the CHP Strategy Factors? High all-in electric prices Low all-in natural gas prices To max the savings, 24 x 7 need for thermal load & power use; or 6,000 to 7,000 annual hours of operation First Cut Economic Evaluation Paybacks in the 5 year or less range; can be greater for sustainability initiatives Reliable CHP Equipment (Upgrades) Maintaining the CHP System Project Grants & Financing

7 Successful UGI CHP Projects Bucknell University Albright College Mt. Joy Wire PSECU Masonic Homes Reading Housing Auth Reading Hospital Geisinger Hospital Williamsport Hospital 7 MW 1 MW 1 MW.8 MW.4 MW.3 MW 10 MW 5 MW 1.5 MW

8 Albright College CCHP 1 MW, 500 tons

9 Reading Housing CHP 0.3 MW

10 Masonic Homes - CHP 0.4 MW

11 UGI Middletown Turbines DG 130 KW, no heat recovery

12 Here are some Facts about NGVs. There are 112,000 NGVs in the U.S. There are more than 13 million NGVs worldwide: 2.8 million in Pakistan, 2.0 million in both Iran and Argentina There are about 1,000 NGV fueling stations in the U.S. and about half are open to the general public NGVs produce 20 to 30% less Greenhouse Gas Emissions The major automobile manufacturers support NGV technology

13 What are the different Types of NGVs? NGVs operate in one of three modes: Dedicated run only on natural gas Bifuel can run on either natural gas or gasoline Dual Fuel run mainly on natural gas and use diesel fuel for ignition assist Light Duty Vehicles, dedicated or bifuel Med Duty Vehicles, dedicated or bifuel Heavy Duty Vehicles, dedicated or dual fuel

14 What are the different Types of NGVs? Light Duty Vehicles, dedicated or bifuel Less than 8,500 lbs vehicle weight Med Duty Vehicles, dedicated or bifuel 8,501 to 14,000 lbs vehicle weight Heavy Duty Vehicles, dedicated or dual fuel 14,001 to 26,000 lbs vehicle weight 26,001 lbs and up vehicle weight

15 What are the NGV Market Drivers? Expensive, High Cost Gasoline & Diesel Gasoline: $3.50 to $4.00 per gallon range Diesel: $3.75 to $4.25 per gallon range Low Cost Compressed Natural Gas (CNG) Retail CNG: $2.00 to $2.50 per GGE Retail CNG: $2.25 to $2.75 per DGE Low Cost Liquefied Natural Gas (LNG) Retail LNG: $2.75 to $3.25 per DGE Reduced Maintenance Costs Reduced Greenhouse Gas Emissions

16 What are the NGV Strategy Factors? High Gasoline, Diesel Fuel Prices Low CNG, LNG Retail Natural Gas Prices To max the savings, need Fleets with low fuel economy & high annual miles Bi-Fuel, Dual Fuel NGV Options Public CNG, LNG Retail Fueling Stations First Cut Economic Evaluation Paybacks in the 6 year or less range Maintaining the NGVs & CNG Station Project Grants & Incentives

17 UGI NGV Successes Plains Township Peterbilt 28 ton Recycling truck Dedicated CNG $9,000 per year fuel savings $149,000 DEP Grant for the truck and CNG station Time-Fill CNG station

18 UGI NGV Successes Meals on Wheels 2 of 11 Ford Transit Connects Bi-Fuel CNG and Gasoline $2,500 per year fuel savings $86,500 DEP Grant for the conversions and CNG station Time-Fill CNG station

19 UGI NGV Successes RVT Buses 4 of 30 new Transit CNG Buses Dedicated CNG $400,000 per year fuel savings $400,000 DEP & $3.5 million DOT grants for CNG Buses & CNG station Fast-Fill CNG station Public Access

20 UGI Proposed NGV Projects Forest City & Dupont Boro dedicated CNG Recycling truck Proctor & Gamble: Short haul heavy-duty trucks & forklift trucks Transportation Company Trash Hauler Major Food Company Lehigh Gas Retail CNG Public Fast-fill Stations

21 UGI CNG Station & Vehicles

22 UGI Family Promotes CHP & NGV Projects UGI Utilities provides free first cut CHP & NGV Economic Evaluations; plus technology education & guidance UGI Utilities provides low cost natural gas transportation rates UGI Energy Services provides low cost natural gas supply (as do others) UGI Performance Solutions can provide Energy Audits, detailed CHP & NGV Economic Evaluations, and Project Financing

23 Thank You! Contact Information: Barry Wentzel Technical Advisor Questions?