Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — NGV Feb 2013 Webinar
41 slides from Centerpoint Energy, Inc (holding Co)'s conference presentation, February 2013
Slide 1: Natural Gas Vehicles (NGV) and Fueling Options
Natural Gas Vehicles (NGV) and Fueling Options Justin Stiff and Jim Tilley CenterPoint Energy 1
Slide 2: Which Comes First? Vehicles or Infrastructure
Which Comes First? Vehicles or Infrastructure 2
Slide 3: Overview
Overview • Natural Gas as a Transportation Fuel • CNG Compressed Natural Gas • LNG Liquefied Natural Gas • Environmental Advantages • Economic advantages over other fuels • Economic/Technologies that have changed supply and prices • Tax Credits • CNG & LNG Availability • Station Examples • Contacts
Slide 4: Facts About Natural Gas
Facts About Natural Gas Compressed Natural Gas (CNG) • Gas delivered to site by the local gas utility and compressed and stored onsite and/or distributed directly to vehicles • Onboard 3,600 psi vehicle cylinders • CNG is measured in Gasoline Gallon Equivalents • NGVs are proven and reliable (11,000
Slide 5: Typical Natural Gas Compressor Station
Typical Natural Gas Compressor Station How it works • The natural gas enters the compressor station going through the dryer to the compressor. • If a slow fill system, no storage is required. • If Fast Fill, storage required. • To the dispensing equipment into a NGV. • Stations can range from $5,000
Slide 6: Liquefied Natural Gas (LNG) Facts
Liquefied Natural Gas (LNG) Facts • Natural Gas cryogenically cooled to liquid @ (-260 Degree)F, stored in liquid form onboard vehicle and vaporized back to a gas before it enters engine cylinder. Natural gas replaces the energy (Btu’s) in gasoline or diesel with the energy (Btu’s) in natural gas. •
Slide 7: Typical LNG Station
Typical LNG Station How it works •LNG is stored in the Storage vessel. •Upon Demand, LNG is pumped to the dispenser using a cryogenic pump into a NGV. •LNG Stations vary in price based on the amount of fuel dispensed per hour and the amount of storage on site. Flow The prices range from several hund
Slide 8: Environmental Advantages
Environmental Advantages Natural gas is cleaner than other fuels • Reduces carbon monoxide emissions 70-90% • Reduces carbon dioxide emissions 20-30% • Reduces nitrogen oxide emissions 75-95% (less smog and soot) • Potentially reduces non-methane hydrocarbon emissions 50-75% • Emits fewer toxic and
Slide 9: Economic Advantages - Price Stability Compared to Diesel
Economic Advantages - Price Stability Compared to Diesel Price of Natural Gas Commodity Delivery Electricity Cost Compressor Capital Federal & State Total DGE Gas per Dth Cost Cost DGE DGE Maintenance Amortization Fuel Tax Note 7 DGE Note 1 Note 2 Note 3 Cost DGE Cost DGE Cost DGE Note 4 Note 5 Note
Slide 10: Economic Advantages - Continued
Economic Advantages - Continued Conversions from commodity to GGE or DGE: • 6.22 pounds of LNG = 1 DGE per NWCM (National Conference of Weights and Measures) •5.66 pounds of natural gas (CNG) and 126.67 cubic feet = 1 GGE per NWCM •One cubic foot = ~1,000 BTUs (Note: cf = volume, BTU = energy) • One
Slide 11: Annual Fuel Savings Estimator
Annual Fuel Savings Estimator Annual Fuel Consumption (values in DGE per year per truck) Miles per DGE 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 5.0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Annual Fuel Savings (values in dollars per year per truck) Fuel Price Diff $D
Slide 12: Operating Cost Data: Natural Gas vs. Diesel and Gasoline
Operating Cost Data Natural Gas vs. Diesel and Gasoline Airport/ Airport Local Long Municipal School Refuse Transit Regional Regional Haul Haul /Utility Buses Taxis Shuttles Annual Fuel $12,0 $16,500 $12,000 $18,000 $4,500 $3,750 $6,000 $3,000 Savings 00 Incremental $45,0 $40,000 $45,000 $65,000 $40
Slide 13: Recent Trends
Recent Trends • Recent decoupling of natural gas and crude oil • Increased demand for energy world- wide(India, China, Latin America, Other Asia Pacific countries, Middle East and Africa) • Shale Gas Development in US 13
Slide 14: Price Creates Incentive to Switch
Price Creates Incentive to Switch $/MMBtu $30 $25 $20 Crude Oil $15 $10 $5 Natural Gas shale $0 1992 1998 2004 2010 Source: Clearport NYMEX
Slide 15: Supply By Source
Supply By Source Source: EIA Annual Early Release Energy Outlook 2013 15
Slide 16: Supply - Short & Long Term
Supply- Short & Long Term • Storage inventories are still at record levels and are well above historical five-year average levels. • Average wellhead prices are predicted to remain low for the foreseeable future due to the extensive shale gas resources. • Natural gas produced from shale currently ac
Slide 17: Domestically Produced… Shale Basins in the U.S.
Domestically Produced… Shale Basins in the U.S. 17
Slide 18: Where is the Shale Gas?
Where is the Shale Gas? Groundwater aquifers Private well, about 500 ft deep Public well, about 1,000 ft deep Several layers of steel tubes encased in cement protect groundwater supplies Protective steel casing encased in cement extends to shale depth Fracking depth from the surface is typically mor
Slide 19: Bakken Formation Oil & Gas Fields At Night
Bakken Formation Oil & Gas Fields At Night Illustration by NPR/NASA 19
Slide 20: Global Natural Gas Vehicle Growth by Region
Global Natural Gas Vehicle Growth by Region Millions of Vehicles 10 Asia-Pacific 38.7% 8 6 Latin America 14.8% 4 Europe 2 16.2% Africa 16.1% - -1.2% 2002 2004 2006 2008 2010 North America Source: www.iangv.org 20
Slide 21: Tax Incentives - Current Fuel Tax Credit
Tax Incentives-Current Fuel Tax Credit • Tax credits of $.50 per GGE (Gasoline Gallon Equivalent) of CNG (per 121 cubic feet) and $.50/gallon of LNG when used as a transportation fuel. (Tax Credit Goes to Fleet owner or party dispensing CNG/LNG, party that adds value) • For business property, a tax
Slide 22: CNG and Diesel Blending
CNG and Diesel Blending • Techno Carb http://www.ecodieselinjection.com/products.htm • Eco Dual http://www.ecodual.com/products-2/ 22
Slide 23: Engines Available for Conversion
Engines Available for Conversion • NGV America http://www.ngvamerica.org/pdfs/Available_ Vehicles_and_Engines.pdf 23
Slide 24: Automotive and Truck Kit Manufacturers
Automotive and Truck Kit Manufacturers • IMPCO Technologies http://www.impcoautomotive.com/AdvHTM L_Upload/pdfs/IMPCO-CK-Product- Offerings.pdf • Altech Eco http://altecheco.com/pages/CNG_Conversi ons.htm 24
Slide 25: Light Duty Truck Availability
Light Duty Truck Availability 2013 Bi-Fuel Silverado/Sierra 2500HD (3/4 Ton) Extended Cab Pick-up • ¾ Ton, 6.0L Vortec V8 engine • Available for long or short-bed models in both 2WD and 4WD • Combined 17 GGE CNG tank and 36 gallon gasoline tank provide a range of more than 650 miles • Bed space used
Slide 26: Light Duty Truck Availability - Cont.
Light Duty Truck Availability- Cont. Ford F-250, ¾ Ton/350, 1 Ton, Bi-fuel Super Duty Truck • 6.2L V8 engine • 4X2 or 4X4 • Standard 18.4 GGE (24.5 GGE optional) composite CNG fuel tank (behind cab) • With 35 gallon gasoline tank provides combined range over 650 miles • Bed space used by tank/weight
Slide 27: Light Duty Truck Availability - Cont.
Light Duty Truck Availability- Cont. 2013 Dodge Ram HD 2500 (3/4 Ton) CNG, Crew Cab 4X4 • Standard 5.7-liter V-8 Hemi engine • 18.2 gallon CNG tank in the bed = 255 mile capacity at 14 MPG • Bed space used by tank/weight = 39” / 600 lbs.+ • Eight-gallon gas tank provides 100+ miles of range. (35 Gal
Slide 28: Heavy Duty Vehicle Options
Heavy Duty Vehicle Options OEM Freightliner Peterbilt Kenworth Volvo Model M2-112 320 T800SH VHM 384 W900S 365 T440 T470 Engine ISL G 320 ISL G 320 ISL G 320 ISL G 320 ISL G 300 Application 6X4 Tractor Tractor Tractor Tractor 4X2 Tractor Vocational 4X2 Truck Mixer 6X2 Truck Vocational 28
Slide 29: Heavy Duty Vehicle Options: Cummins Westport, Inc.
Heavy Duty Vehicle Options Cummins Westport, Inc. Primary Supplier to OEM’s in: • Refuse = ISL G &/or ISX12 G (American LaFrance, Autocar, Crane Carrier, Kenworth, Mack, Peterbuilt) • Buses: (School, shuttles, Transit, Coach) = ISL G (Blue Bird, Thomas, El Dorado, Foton America, Gillig, NABI, New Fl
Slide 30: CNG Fueling Infrastructure Costs
CNG Fueling Infrastructure Costs CNG Refueling Infrastructure Cost* Type Rate/Size Cost Range Application Time Fill-CNG .25 GGE/HR $4,500-$5,500 Home Time Fill-CNG 1.0 GGE/HR $9,000-$12,000 Home/Fleet Time Fill-CNG 10.0 GGE/HR $14,000-$50,000 Home/Fleet Time Fill-CNG 50-200 GGE/HR $250,000-$500,000
Slide 31: CNG Station Locations
CNG Station Locations Link to Station locations in US or in your State http://www.afdc.energy.gov/fuels/natural_gas_locations.html App for Smartphone http://www.cngnow.com/app/pages/information.aspx 31
Slide 32: Example of CNG Station
Example of CNG Station City of Bossier 2580 E. Texas Street, Bossier, LA • 220 GGE/Hour Fast Fill (@ 28 PSIG Inlet) • $1.5mm • 240 GGE Storage • Room to add storage and additional compression • One acre site (compressor is 30 ft. x 90 ft.) 32
Slide 33: Example of CNG Station
Example of CNG Station City of Bossier 2580 Barksdale Blvd., Bossier, LA • 220 GGE/Hour Fast Fill (@28 PSIG Inlet) • $1.5mm • 240 GGE Storage • Room to add storage and additional compression • One acre site (compressor is 30 ft. x 90 ft.) 33
Slide 34: Example of CNG Station
Example of CNG Station Ace Solid Waste 6601 McKinley Street NW., Blaine, MN • 150 GGE/Hour Slow Fill (20PSIG Inlet) • $1.5mm • Propane Air Plant near this location 34
Slide 35: Example of CNG Station
Example of CNG Station City of Shreveport 1731 Kings Highway, Shreveport, LA • 175 GGE/hour Slow Fill (limited Fast Fill) • $1.3 mm • 1 additional compressor for redundancy. Compressor sized for 50 refuse trucks • Small Footprint only 20 slow fill nozzles were installed originally (60 ft x 20 ft)35
Slide 36: Example of CNG Station
Example of CNG Station Sportran Transit Authority 1115 Jack Wells Blvd., Shreveport, LA • 285 GGE/hour Fast Fill (125 PSIG Inlet) • $1.3MM • 240 GGE Storage (Fills 60 DGE in 7 Minutes) • Large Footprint • Saved on Compressor stage, with 125 PSIG Inlet 36
Slide 37: Example of CNG Station
Example of CNG Station Public CNG Station Time It Lube 6828 Pines Rd., Shreveport, LA • 120 GGE/hour Fast Fill • $650,000 • 240 GGE Storage • Small Footprint (60 ft x 20 ft) • LA State Tax Credit $250,000 37
Slide 38: Why Natural Gas Vehicles?
Why Natural Gas Vehicles? Abundant Affordable American Clean Proven Estimated The more you natural gas US Imports drive the Converting reserves about 50% of more you one refuse Millions of provide over oil save with truck from vehicles 100 more consumption, average diesel to worldwide years of while
Slide 39: CenterPoint Energy CNG Contacts
CenterPoint Energy CNG Contacts Minnesota Region Texas Region Jon Williams Justin Stiff Jon.Williams@centerpointenergy.com Justin.Stiff@centerpointenergy.com 612-321-4390 or 713-207-9077 or 612-321-4330 713-859-6429 (LNG Sales) LA/MS Region AR/OK Region Jim Tilley Jose Laboy Jimmy.Tilley@centerpoint
Slide 40: Working Together
Working Together c joa
Slide 41: Questions?
Questions? 41