SCOPE: CNG (Compressed Natural Gas): CNG Residential users About 700 Danish companies use natural gas for processes and heating.

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1 SCOPE: CNG (Compressed Natural Gas): CNG Residential users About 700 Danish companies use natural gas for processes and heating. Residential users fall into two main categories: Individual houses Apartment buildings For each of these categories, the main domestic uses of natural gas are: heating hot water cooking and even NGV transport with home filling of a NGV vehicle In individual houses, there are individual systems for heating and hot water. In apartment buildings, there are different possibilities: Individual apartments may produce their own heating and hot water, Heating and hot water production may be centralised. There may also be other variants, e.g.: heating may be centralised and hot water individual, etc. Below, we describe the appliances employing natural gas for heating, hot water, cooking and NGV transport for each of the categories: individual house and apartment building. Natural gas appliances are economically competitive and help make homes energy-efficient. The use of natural gas is fully compatible with the most efficient and up-to-date methods of building insulation. The latest innovations in gas appliances are increasingly efficient and consistent with the new environmental policies introduced in France and Europe (3X20 Package, Grenelle de l Environnement). Moreover, with the gradual introduction of the new French Thermal Regulation RT 2012 for new buildings, natural gas s market share for domestic use has been growing significantly since 2010 in France. Uses of Natural Gas in US Homes Over one-half of the homes in the United States are supplied with natural gas. About 21% of the natural gas consumed in the United States during 2013 went to homes. This gas is delivered to homes through pipelines or in tanks as CNG (compressed natural gas). Most of the natural gas consumed in homes is used for space heating and water heating. It is also used in stoves, ovens, clothes dryers, lighting fixtures and other appliances. Uses of Natural Gas in Commercial Buildings In 2013 about 14% of the natural gas consumed in the United States went to commercial buildings. The use of natural gas in commercial buildings is similar to its use in residences. It is used mainly for space heating, water heating and sometimes for air conditioning.

2 22 Trillion Cubic Feet During 2009 the United States consumed about 22.8 trillion cubic feet of natural gas. That's enough gas to fill a room with a footprint the size of Pennsylvania and about 18 feet high. Most of that gas was delivered to nearly 70 million homes and places of business through more than a million miles of natural gas pipelines Uses of Natural Gas Natural gas is an important fuel and a raw material in manufacturing. Natural Gas: A Fuel and a Raw Material Natural gas is used in an amazing number of ways. Although it is widely seen as a cooking and heating fuel in most US households, natural gas has many other energy and raw material uses that are a surprise to most people who learn about them. In the United States, most natural gas is burned as a fuel. In 2012 about 30% of the energy consumed across the nation was obtained from natural gas (1). It was used to generate electricity, heat buildings, fuel vehicles, heat water, bake foods, power industrial furnaces, and even run air conditioners! Gas can also be used as a fuel for vehicles. This application is similar to domestic uses, because a light natural gas-powered vehicle can be charged from a mini filling station in the garage of the house. In some markets, light vehicle manufacturers supply a range of natural gas-fuelled vehicles ( Natural Gas Vehicles: NGV). NGV powered by compressed natural gas (consisting essentially of methane) should not be confused with LPG vehicles, which run on liquefied petroleum gas (butane, propane). NGV emit less CO2 per kilometre than vehicles powered by other fuels and are no different in their everyday performance from today s standard petrol or diesel vehicles. In 2012, the United States consumed nearly 26 trillion cubic feet of natural gas, primarily in the electric power and industrial sectors. Although domestic natural gas production has grown substantially in the last decade, consumption still exceeded production in Pipeline imports from Canada supply most of the balance. A smaller amount is imported as liquefied natural gas via supertankers. The fastest growing use of natural gas today is for the generation of electric power. Natural gas power plants usually generate electricity in gas turbines (which are derived from jet engines), directly using the hot exhaust gases of fuel combustion. Single-cycle gas turbines generally convert the heat energy from combustion into electricity at efficiencies of 35 to 40 percent. Higher efficiencies of 50 percent or more are possible in natural gas combined-cycle (NGCC) plants. NGCC plants first use the combustion gases to drive a gas turbine, after which the hot exhaust from the gas turbine is used to boil water into steam and drive a steam turbine. Low natural gas prices in the 1990s and early 2000s stimulated the rapid construction of gas-fired power plants. In 2003, natural gas passed coal as the energy source with the largest installed electricity generation capacity in the U.S. Natural gas-fired plants are currently among cheapest power plants to construct. Historically, their operating costs were generally higher than those of coal-fired power plants because the fuel was more expensive. Natural gas-fired plants have greater operational flexibility than coal plants because they can be fired up and turned down rapidly, so many natural gas plants were used primarily to provide peaking capacity at times when electricity demand was especially high, such as the summer months when air conditioning is widely used. During much of the year, these natural gas peaker plants were idle, while coal-fired power plants typically provided base load power. However, since 2008, natural gas prices in the U.S. have fallen significantly, and natural gas is now increasingly used as a base and intermediate load power source in many places. Natural gas can play a role in reducing global warming pollution, but using it for transportation fuel does not represent one of the best climate solutions. For example, a natural gas-powered Honda Civic delivers about a 15 percent reduction in global warming pollution compared with a conventional gasoline-powered Civic, but a gasoline-electric Civic hybrid costs less and delivers a 30 percent reduction in emissions. A better use for natural gas in the transportation sector would be as a resource to generate electricity for plug-in vehicles or hydrogen for fuel cell vehicles, which can provide global warming emissions savings on the order of 40 percent.

3 Electric Power Generation The electric power industry was the largest consumer of natural gas in the United States during About 34% of natural gas consumption was used to make electricity. Of the three fossil fuels used for electric power generation (coal, oil, natural gas), natural gas emits the least carbon dioxide per unit of energy produced. It emits 30% less carbon dioxide than burning oil and 45% less carbon dioxide than burning coal. Burning natural gas also releases lower amounts of nitrogen oxides, sulfur dioxide, particulates and mercury when compared to coal and oil. As the United States becomes more concerned about climate change, carbon dioxide emissions, and air quality, the use of natural gas for electricity generation is expected to increase. Natural gas is used to manufacture a wide variety of products. The fertilizer being spread in the top left image might have been made with ammonia produced from natural gas, the plastic parts of the spreader and the operator's clothing were most likely produced with the help of natural gas as an ingredient or as a fuel in the factory. Most bricks and cement are produced using natural gas as a heat source. Many pharmaceuticals and plastic bottles are made with natural gas as an ingredient. Cereal and fruits are often baked or dried using natural gas as a heat source. Images (clockwise) Bill Grove, John Leung, Kristine Slipson, Amanda Rohde, istockphoto. Industrial Uses of Natural Gas Natural gas is used in a wide variety of manufacturing processes. About 31% of the 2013 consumption of natural gas in the United States was by industry. Natural gas is used as both a raw material and as a source of heat. Natural gas is an ingredient used to make fertilizer, antifreeze, plastics, pharmaceuticals and fabrics. It is also used to manufacture a wide range of chemicals such as ammonia, methanol, butane, ethane, propane and acetic acid. Many manufacturing processes require heat to melt, dry, bake or glaze a product. Natural gas is used as a heat source in making glass, steel, cement, bricks, ceramics, tile, paper, food products and many other commodities. Natural gas is also used at many industrial facilities for incineration. The United States government has done many cooperative studies with businesses, local governments and public agencies related to the use of natural gas as a fleet vehicle fuel. The results of these studies have overwhelmingly favored natural gas. Summaries of these studies and many full reports can be downloaded from the U.S. Department of Energy website What vehicles use natural gas? CNG vehicles have been introduced in a wide variety of commercial applications, from light-duty trucks and sedans - like taxi cabs, to medium-duty trucks - like UPS delivery vans and postal vehicles, to heavy-duty vehicles like transit buses, street sweepers (pictured right) and school buses. In California, transit agency buses are some of the most visible CNG vehicles. Where is CNG fuel available in California? With the consumption of CNG increasing nationwide 145 percent over the past six years, the fueling infrastructure for natural gas vehicles continues to grow. In 2005, California has more than 200 CNG fueling stations. In Southern California alone, there are more than 100 public fueling stations in major metropolitan areas from Los Angeles to the Mexican border. Another 50 stations are now under construction. Link to The California NGV Coalition s 2013 Natural Gas Fueling Station Directory.

4 What types of CNG vehicle projects has the California Energy Commission funded? The Energy Commission has provided more than $4 million in grant cost-share funding for about 40 CNG fueling stations, the incremental cost of light-duty vehicles, and purchase of 369 CNG-powered school buses. The Energy Commission has also funded research and development to improve the performance of natural gas engines. AFFORDABLE A clean, reliable solution to rising gasoline costs. Companies that convert their fleets to CNG reduce their fuel costs by as much as 50%, while reducing emissions and breaking away from foreign-oil dependence. We think of it as a win-win-win %: The amount business and consumers can typically expect to save when using CNG versus gasoline or diesel CLEAN Breathe easier. Compressed Natural Gas is a clean-burning alternative to traditional fuels. Vehicles that run on CNG have dramatically lower greenhouse gas emissions. Compared with petroleum-based fuels, CNG emits 30% less carbon dioxide, 75% less carbon monoxide, and 90% less particulate matter. It s an economical solution for greening your fleet and meeting EPA standards. Natural gas vehicles improve air quality through dramatic reductions in emissions: 30 % reduction in carbon dioxide 75 % reduction in carbon monoxide 50 % reduction in nitrogen oxide 90 % reduction of particulate matter DISCOVER A SMARTER WAY TO FUEL YOUR FLEET. Commercial vehicles around the world are saving as much as 30-50% on their fuel costs by choosing Compressed Natural Gas (CNG). It s easier than you think to convert your fleet and use a cleaner, more reliable domestic fuel. Why use CNG for vehicles? CNG offers several advantages, and is widely used in many different types of vehicles. Some of the benefits of CNG are listed below: CNG is environment friendly. It emits fewer pollutants like carbon monoxide. The amount of pollution caused by CNG is very small compared to gasoline and diesel. CNG does not contain any lead or benzene. This means that there is no fouling of spark plugs in vehicles, which means that vehicles have a longer life and can run efficiently. The use of CNG in vehicles also increases the life of lubricating oils. This is because CNG contains no elements that can cause dilution or contamination of the oils.

5 When CNG is used in vehicles, there is no danger of any leakage or spills because CNG fuel systems are always sealed. CNG does not auto ignite on heated surfaces, which means that CNG is much safer than gasoline in vehicles. CNG is less expensive compared to other fuels, where prices are rising in the international market every day. Physical Form: Gas stored at high pressure at 3,600 psi Volume vs Diesel: 4x Cost: Lower cost to produce and store Refueling: Easy System Pressure: 60-4,500 psi Hold Time: Unlimited (no fuel loss) Storage: Carbon fiber wrapped cylinders Conclusions: New, lightweight large capacity CNG tanks enable long-haul trucking applications. Physical Form: Liquid produced cryogenically at -260F Volume vs Diesel: 2x Cost: Higher cost to process, liquefy and store Refueling: Requires special handling equipment System Pressure: psi Hold Time: Limited (fuel will vent if not used) Storage: Vacuum-insulated stainless steel tanks Conclusions: LNG's high energy density makes it relevant to trucking and off-road applications where space is at a premium.

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