Lng use in trucking
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This document discusses the use of liquefied natural gas (LNG) as a fuel for trucks. It notes that LNG produces 30% fewer tailpipe carbon emissions than diesel fuel and represents a significant cost savings. While LNG is more dense than compressed natural gas (CNG), allowing for better vehicle range, it also requires more expensive infrastructure and vehicle modifications. The document outlines factors to consider when choosing between LNG and CNG, such as vehicle costs, engine types, weight and space requirements, and fuel availability. It predicts increasing adoption of LNG trucks and fueling stations in coming years, driven by economic benefits and pressure from shippers, with natural gas potentially displacing 12% of diesel fuel used for trucks
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Lng use in trucking
- 1. LNG Use in Trucking P. Sean Garney Policy Analyst American Trucking Associations
- 2. Agenda β’ Why Natural Gas β’ LNG vs CNG β’ Considering a change β’ Fueling Infrastructure β’ Industry Momentum β’ The future
- 4. Why Natural Gas? β’ Environmental Benefit β 30% less tailpipe carbon emissions β Compromised by well-to-wheel methane leakage β Bridge fuel β’ Cost β Represents a significant economic benefit β’ Fuel and Payroll are the two largest expenditures for trucking β’ $4.00 per gallon β’ Less volatile β’ Movement to convert is largely driven by economic benefits
- 5. LNG vs CNG β’ Fuel choice is driven by scope of operations β CNG is good for short haul, intracity, return to base β’ Less Dense β Requires more storage, more tanks β Range is compromised. Under 350mi β More CNG infrastructure is available β’ No βboil offβ β’ Cheaper β LNG longer haul, regular route β’ More Dense β Less storage β Lighter tanks β’ Better Range. 350-900mi. β’ βBoil Offβ
- 6. LNG Special Considerations β’ Vehicle Cost β’ Estimates range. 40-80K premium β’ Engine Type/Availability β’ Spark Vs Compression β’ Compression Pros: Power, fuel economy, better well to wheel emission reduction β’ Compression Cons: Heavier, Requires Diesel and DEF Tank, After-treatment maintenance required, more expensive β’ Spark Pros: No after-treatment , Lighter, No diesel or DEF required β’ Spark Cons: Less efficient, additional maintenance
- 7. LNG Special Considerations β’ Weight/space penalty β’ Range β Up to 850 mi. β’ Maintenance Cost β’ Maintenance facility upgrades β’ Tax Penalty β’ Fuel Tax β’ FET β’ Fuel Availability β’ Resale β’ ROI
- 8. LNG ROI β’ ROI is dependent on β Fleet Turnover β’ Many large fleets aim for 4 years β Mileage Driven β Fuel Price β’ At $3.00 diesel, economics break even
- 9. LNGβs Best Application β’ Hub and Spoke β Centrally fueled β Predictable routes β Private refueling infrastructure β’ Established Freight Corridors β Must be regular route β Must be medium range (500-700 miles)
- 10. Fueling Infrastructure β’ Chicken and Egg β Public build-out has begun β’ Clean Energy β 100-125 stations by end 2013 β 70 in 33 states last year (waiting for trucks) β Many co-located at Pilot Flying J Truck Stops β’ TA/Shell β 200 Lanes in 100 locations β’ Loveβs Travel Stops β Balanced CNG Distribution approach β’ Encana β 1 public station, experimenting with mobile LNG refueling β’ ENN β Plans for 50 stations by end of 2013
- 11. Fleet Adoption of LNG β’ UPS β β April announcement 700 LNG truck purchase β June announcement 285 additional trucks β’ Nine additional fueling stations β’ Ryder β β 300 natural gas powered trucks β 2 fueling stations, plans for 4 more β Also building maintenance facilities β’ Waste Management β 1,700 CNG Vehicles β’ Creates own Natural BioGas
- 12. Fleet Adoption β’ Many other fleets in the testing phase β’ Shipper Pressure β Proctor & Gamble: 20% of freight hauled in next 2 years β’ 8 carriers under contract β Owens Corning: 22 lanes under contract for natural gas users β Office Depot: Dedicated Philly to Chicago β May shift fuel surcharge paradigm
- 13. The Future β’ More Engines become available β 11.9 L 2013, 6.7 L 2015, 15L Spark 2015 β’ More trucks will be sold (Estimates vary) β Low case: 4% by 2017 β High case: 15% by 2017 β’ Distant Future β Low case: 40% by 2050 β High case: 48% by 2050.
- 14. The Future β’ EIA β LNG prices 40% below diesel for Next 30 years β Natural gas as a fuel for vehicles will rise 12% per year through 2040 β 700,000 million bbl/day displaced by 2040 β Will be 6% of total highway energy mix by 2040
- 15. Thank You Contact: P. Sean Garney 703.838.8804 sgarney@trucking.org