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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