Natural Gas Offers Triple Bottom Line Benefits - Economic, Environmental & Social

Natural Gas Offers Triple Bottom Line Benefits - Economic, Environmental & Social OWMA Waste Sector Symposium November 13th, 2012 Toronto, ON “Appro...
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Natural Gas Offers Triple Bottom Line Benefits - Economic, Environmental & Social OWMA Waste Sector Symposium November 13th, 2012 Toronto, ON

“Approximately half of all new refuse trucks in the US are natural gas trucks…”

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Natural gas refuse truck use is ramping up in Canada: 2010 2011 2012

3 trucks 23 trucks > 250 trucks

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If your fleet is not already using natural gas, now is the time to go with natural gas

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About CNGVA National not-for-profit trade association promoting the use of natural gas as a primary transportation fuel that offers economic and environmental benefits for Canada

Members Natural Gas Value Chain – ATCO Gas, Enbridge Gas Distribution, Encana, FortisBC, GazMetro, Shell Canada, Spectra Energy, Union Gas

Vehicle, Equipment & Fuel Suppliers – Agility Fuel Systems, ATW Automotive, CanGas Solutions, Change Energy, Clean Energy, Cummins Westport, ECO Fuel, Ferus, GNA, Hi-Tec, IMW Industries, Jenmar Concepts, Marathon Technical, Navistar, Peterbilt, Ryder Systems, Waste Management, Westport Innovations, Westport LD Research Organization –Powertech Labs 5

Why Go With Natural Gas? 1. Fuel savings & lower cost per kilometer 2. Environmental advantages

3. Community benefits 4. No exhaust aftertreatment needed 5. Factory-built trucks & proven stations

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Fuel Savings & Lower Cost Per Km  Dispensed natural gas typically 30–40% less expensive than diesel

 Higher fuel consumption (+10-12%) more than offset by fuel savings  Maintenance cost similar to diesel trucks

 Less tax applied to natural gas: – No federal excise tax ($.04/litre) – No provincial road tax ($.143/litre)

 Fleets can lock in commodity portion of fuel price for up to 5 year term 7

Lower Cost Fuel & Ample Supply  Natural gas historically trades at a discount to oil  Prices de-coupled due to natural gas supply outlook  Each barrel of oil = estimated 6 MMBtu of natural gas Henry Hub vs. West Texas Intermediate (Average forecast for NEB, EIA and Various Consultants)

$US/MMBtu

$20 $15 $10 $5 $0 2000

2005

2010 Henry Hub

2015

2020

2025

2030

West Texas Intermediate

Source: Natural Resources Canada 8

Environmental Advantages  20-25% well-to-wheels greenhouse gas reduction:  Estimated 10 tonnes less carbon per truck travelling 40,000 km/year  About 255 grams less carbon per km

(Natural Resources Canada, GHGenius)  Provides a way to “green” collection services  No toxic elements in exhaust emissions  No adverse air quality impacts  Able to use renewable natural gas produced from waste sources for near zero emission fleet 9

Community Benefits  Natural gas refuse trucks are up to 10 decibels quieter at idle than diesel trucks  Less noise in urban environments helps to improve community quality of life  Lower noise levels also improves working conditions for drivers

 Seattle, WA, and Surrey, BC, have selected natural gas as a way to demonstrate community environmental leadership while reducing the cost of collection services 10

No Exhaust Aftertreatment  Cummins Westport 8.9 litre ISL G natural gas engine used for refuse trucks meets 2010 emissions standard without: – Diesel particulate filter – SCR to neutralize NOx emissions

 Significant benefit particularly in low speed, frequent stop duty cycles  Use passive three-way catalyst that does not require any maintenance 11

ISL G Natural Gas Engine  8.9 litre, in line 6 cylinder

 Spark-ignited  Peak rating – 320 hp, 1000 lb-ft torque

 More than 80% parts common with diesel ISL  Service/support through Cummins dealer network  New 11.9 litre ISX G engine

LNG

- Q1 2013 availability

– 400 hp; 1350 lb-ft torque 12

Factory-Built Trucks  All major truck manufacturers offer a factorybuilt natural gas option  Trucks come with complete warranty and dealer-level support

 Additional cost for natural gas typically about 10% more than a diesel truck Various tank package options available 13

Proven Station Options

 Overnight time fill station with filling post for each truck to “plug in”  No need for end-of-shift refueling  Fast fill station options also available  For right scale of fleet, refueling station capital cost can be built into fuel supply contract 14

Who’s already using natural gas in Canada: 

Emterra Environmental



Waste Management



Progressive Waste



EBI Environmental



City of Toronto



Miller Waste

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www.GoWithNaturalGas.ca www.EnrouteAvecLeGazNaturel.ca

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Contact & Panel Discussion Alicia Milner Canadian Natural Gas Vehicle Alliance 350 Sparks Street, Suite 809 Ottawa, ON, K1R 7S8 Tel: (613) 564-0181 Fax: (866) 690-8468 E-mail: [email protected] Web: www.cngva.org

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