Natural Gas for Transportation Energy Efficiency Opportunities

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Natural Gas for Transportation Energy Efficiency Opportunities Becoming the National Leader in Energy Efficiency & Sustainability Alberta Energy Efficiency Alliance Event Fairmont Palliser Hotel, Calgary February 7, 2013 David Conn ATCO Gas 1

ATCO Gas NGV Fleet Operate 11 public Natural Gas Vehicle (NGV) fueling stations in Alberta 260 NGVs in our fleet CNG dual fuel (gas or diesel) Experience with NGVs since 1969 Province-wide, local operations, well-trained staff 24/7 emergency response 2

ATCO Gas Public CNG Stations Edmonton Stations: Hughes Petroleum 10330 178 Street 11027 101 Street 5012 130 Avenue Edmonton Stations: Edmonton International Airport 1st Avenue & Operations Road Edmonton Stations: ATCO Gas 4221 74 Avenue Red Deer Station: ATCO Gas 7590 Edgar Industrial Dr. Banff Station: ATCO Gas 123 Eagle Crescent Lethbridge Station: ATCO Gas 410 Stafford Drive North Calgary Stations: ATCO Gas 3055 37 Avenue NE 500 Crowfoot Cres. NW 383 Midpark Blvd. SE

Why Natural Gas?...SAVE! Save significant operating cost savings potential Abundant Supply 100+ years of North American supply Validated Technology mature, proven, reliable, safe Efficiency and Environmental Benefits domestic, reduced pollution, GHG emissions & noise 4

Efficiency Opportunities Economic Decade low prices = reduced exploration & production Increases in U.S. supply = less reliance on imported NG from Canada / Alberta Therefore additional market opportunities such as new export markets, power generation and transportation 5

Efficiency Opportunities Environmental 1 GHG emissions 15 25% below diesel vehicles on a well-towheels (total lifecycle) basis NGVs comply with new 2016 emissions standards Improved air quality NGVs emit fewer air pollutants such as smog-related emissions of sulphur dioxide and non-methane hydrocarbons Minimizes environmental risks of fuel spills / site contamination No risk to soil or groundwater as NG is lighter than air Reduced noise quieter vehicle operation One idling diesel bus = 10 idling natural gas buses Note 1: Source Go With Natural Gas website www.gowithnaturalgas.ca 6

Natural Gas Safety Natural gas is lighter than air (unlike propane) Natural gas is non-toxic Safer than liquid fuels such as gasoline or diesel Due to narrow flammability range and higher ignition temperature Will not pool or seep into the ground Both CNG and LNG dissipate quickly in the event of an accident or leak Odourized by local distribution company for ease of detection (CNG only) 7

Natural Gas Fuel Properties Relatively low energy density compared with conventional transportation fuels Therefore must be compressed (CNG) or liquefied (LNG) in order to have sufficient energy for vehicle use Energy Density Petro-Diesel 36 MJ/L Bio-Diesel 33 MJ/L Ethanol 23 MJ/L LNG (20 psig) 21 MJ/L CNG (3000 psig) 7.5 MJ/L 8

Compressed Natural Gas Compressed Natural Gas CNG Natural gas stored on the vehicle at high pressure in special reinforced containers Public stations - dispense at 3,000 psi Private stations - option to dispense at up to 3,600 psi 9

Typical CNG Applications Typical Fleet Characteristics Light-duty / medium-duty fleets Local or short-haul routes Return to base Typical Fleet Types Short-haul MD trucking Transit Refuse Service vans Shuttles / taxis Images courtesy Cummins Westport Inc. 10

Fast fill station Fill times comparable to gasoline or diesel Station cost increases as fill time decreases Time fill station Ideal for fleets that can refuel overnight Decreased station infrastructure cost vs. fast fill CNG Refuelling Fast-fill Station Fast fill Station Time fill Station Images courtesy Cummins Westport Inc. 11

Liquefied Natural Gas Liquefied Natural Gas LNG Natural gas cooled to -160 C becomes liquid Must be kept at this low temperature to remain liquid NGVs that use LNG incorporate systems to vaporize the liquid to a gaseous state for use in the engine Suited to vehicles with high daily mileage LNG has greater energy density than CNG = improved range Liquid form requires less weight and space for equivalent fuel storage than CNG 12

Typical LNG Applications Typical Fleet Characteristics Heavy-duty highway fleets Medium-duty fleets with high mileage / consumption Typical Fleet Types Highway tractors High consumption Medium-duty trucking Transit (CNG more common) 13

CNG / LNG Fit Decision Decision Considerations CNG LNG Long distances / high consumption Heavy-duty fleet Light- or medium-duty / return to base Current Alberta fuel supply availability X Evolving Existing public fuelling stations X Evolving Time fill option Indoor refueling option X Evolving Indoor vehicle storage X X Vehicle performance comparable to traditional fuels X X X X X X 14

Keys to Successful Adoption Targeted, fleet-focused approach required Implement Natural Gas Use in the Canadian Transportation Sector Deployment Roadmap recommendations Support with: Education and outreach Appropriate standards 15

Additional Resources Go With Natural Gas www.gowithnaturalgas.ca Canadian Natural Gas Vehicle Alliance www.cngva.org Natural Gas Vehicles for America www.ngvamerica.org Natural Resources Canada http://oee.nrcan.gc.ca/transportation/alternative-fuels/780 Canadian Gas Association www.cga.ca Canadian Natural Gas Initiative www.canadiannaturalgas.ca 16

Questions? David Conn ATCO Gas Marketing & Sales (403) 245-7874 david.conn@atcogas.com 17