Natural Gas Vehicles 101 Natural Gas, It s What Fuels A Better Bottom Line 2014 NE ASPHALT PAVERS Conference

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Alban Morris
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1 Natural Gas Vehicles 101 Natural Gas, It s What Fuels A Better Bottom Line 2014 NE ASPHALT PAVERS Conference Black Hills Corporation Presenter: Tim Hess, Sr. NGV Program Manager Presentation slides: Clean Vehicle Education Foundation/NGVAmerica, DOE & EIA February 13, 2014

2 Black Hills Corporation BHC is a diversified energy company. Based in Rapid City, SD, with corporate offices in Denver, CO, and Papillion, NE. We serve 763,000 utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company s non-regulated businesses generate wholesale electricity; produce natural gas, crude oil and coal. Gas CO Gas KS Gas NE Gas IA Gas CLF&P* Utilities Electric Black Hills Power CLF&P* Colorado Electric Improve life with energy. Non-Regulated Businesses Power Generation Coal Mining Oil & Gas E&P * Supplies electric and gas utility service to Cheyenne, Wyoming and vicinity Appliance Repair

3 Natural Gas Vehicles Natural gas is America s fuel Offers Energy Security America s resource Reduced reliance on foreign oil supplies NGV s reduce exhaust emissions Environmentally Friendly: Carbon monoxide (CO) by 70 percent 90 percent Non-methane organic gas (NMOG) by percent Nitrogen oxides (NOx) by percent Carbon dioxide (CO2) by percent Lower fuel / O&M costs Economically Viable Fast payback of initial purchase premium Generate substantial life-cycle savings

4 Shale Gas Sources 4

5 Facts About Natural Gas Natural gas is an inherently clean fuel Natural gas is mostly methane: CH4 (Diesel C14H30; Gasoline C8H18; Propane C3H8) Less NOx, soot and greenhouse gases than petroleum fuels Natural gas is very safe Lighter than air dissipates when released High ignition temp.: F Fuel/air combustion ratio (5-15%) Colorless, odorless, non-toxic Doesn t leak into groundwater Comprehensive fuel tank, vehicle and station design/mfg codes & standards Methane Molecule

6 Why Should We Care? Sending money abroad! More than $31.2 Billion in Dec. 13 or $698,900 per minute Imported 47% of U.S. Requirements - or Million Barrels (Sourced by Pickens Plan website)

Cargo van for contractor GVWR: >8500 and < 14,000 lbs. Ford E-350 cargo van Chevy/GMC 3500 cargo MPG: 13/15 City/Hwy, 35K miles/year Fuel Use: 8-10 GGE/day; 2700-3100GGE/yr CNG Veh.

7 Cargo van for contractor GVWR: >8500 and < 14,000 lbs. Ford E-350 cargo van Chevy/GMC 3500 cargo MPG: 13/15 City/Hwy, 35K miles/year Fuel Use: 8-10 GGE/day; GGE/yr CNG Veh. Premium: $11,500 Life-Cycle Cost Savings (Best Case): $9,735 Life-Cycle Cost Savings (Worst Case): $6,995 Simple Payback (Best Case) (Yrs): 2.71 Simple Payback (Worst Case) (Yrs): 3.11 Based on 5 yr life and $ 1.37/GGE savings

with 2010-compliant CWI ISL-G 8.9L 320hp engine MPG: 2.5 3.

8 Refuse Truck GVW - 26,000+ lbs. Models: Crane Carrier LET, Autocar Xpeditor, Peterbilt LCF 320, Int l Condor, Mack TerraPro, Freightliner M2, & Kenworth T8SH/T440 All with 2010-compliant CWI ISL-G 8.9L 320hp engine MPG: (lots of idle and PTO time) Fuel Use: DGE/day; ,000 DGE/yr CNG Veh. Premium: $45,000 Life-Cycle Cost Savings (Best Case): $115,000 Life-Cycle Cost Savings (Worst Case): $91,00 Simple Payback (Best Case) (Yrs): 3.28 Simple Payback (Worst Case) (Yrs): 3.86 Based on 8-year life & $2.00 per DGE Savings

9 BHC Internal NGV Fleet Work BHC Began NGV Transition in 2010 (Walk-The-Talk) BHC CNG Fueling Facilities in: Private Stations in Dubuque, IA; Lawrence, KS (BHE) Private Station in Council Bluffs, IA Under Construction (BHE) Private Station in Fountain, CO (BHE) Public Station in Lincoln, NE (BHE) Public Station in Cheyenne, WY (CLF&P) BHC NGV Fleet In-Service Currently or by YE NE 35 utility service vehicles IA 15 utility service vehicles KS 11 utility service vehicles CO 8 utility service vehicles WY 4 utility service vehicles Current total of 73 vehicles 152 CNG vehicles by 2015 YE

10 BHC External NGV Work BHC Began NGV Load Building Initiative in 09 BHC Delivery Svcs - Fueling Facilities: 5 Private Stations (IA, KS & NE) 7 Public Stations (CO, IA, KS & NE) 19 Private/Public Stations (Potential for 2014) BHC NGV Fleet Vehicles In-Service Currently or by YE 266 Vehicles in Vehicles in Vehicles in 12 Current total Vehicles 14 Vehicle # NGV s

11 BHC External NGV Fleet Work What Does BHC Do To Promote CNG Market? Create NGV Awareness w/ Commercial Fleet Operators! Introduce Commercial Fleet Operators w/ NGV/CNG Industry Contacts! Coordinate the Installation of Nat. Gas Utility Service Provider Assets! Facilitate Commercial Fleet Operators NGV/CNG Needs for Vehicles and/or Fueling Infrastructure! Work to Aggregate Fleets! (NEW BURNER-TIP!)

12 What s Your Plan? 1. Develop a Local Collaborative Local Champion(s) Fleet Operators, Policy Makers/Clean Cities Coalitions & Utility Representatives 2. Identify the Type of Fueling Infrastructure Which Fleets Locally can Transition the Fleet? 3. Analyze the Economic Benefits 4. Identify Ways for Funding 5. Involve Local Fire Marshalls & City Inspectors, Consult NFPA 30A, 52 & 57.

Natural Gas for America s Fleets. cleanenergyfuels.com 1

Natural Gas for America s Fleets 1 What s the Problem? In 1970, we imported 24% of our oil. Today it is nearly 60% Increased Dependence on OPEC OIL 2 Worldwide Marketplace Worldwide Increasing Demand For