Transforming our Nation s Transportation Sector The Role of Natural Gas Vehicles Nadia Anderson, Ph.D. Drive Natural Gas Initiative

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1 Transforming our Nation s Transportation Sector The Role of Natural Gas Vehicles Nadia Anderson, Ph.D. Drive Natural Gas Initiative LNG- CNG- NGV Technical Conference Albany, New York May 22, 2013

2 The mission of the Drive Natural Gas Initiative is to provide a forum for its participating companies to develop and implement industry-wide strategies that accelerate the use of natural gas as a clean, domestic, safe, and abundant transportation fuel. 2

3 Natural gas as a Transportation Fuel The State of Play for Natural Gas Vehicles Momentum Building in North America Natural Gas as a Part of our Transportation Future 3

4 Natural gas: Clean, domestic, secure, affordable energy for transportation Clean. NGVs emit between 20 and 30 percent fewer GHG at the tailpipe Affordable. Natural gas prices are projected to remain low and stable compared to gasoline and diesel, benefiting consumers and budgets for cities and school districts. Job Creating. Supports local economies and can improve our national balance of trade. 4

5 Other nations are realizing the potential of natural gas vehicles and moving forward. North America 140,000 NGVs Europe 1,800,000 NGVs Asia and Middle East 8,800,000 NGVs South America 4,300,000 NGVs Africa 158,000 NGVs There are over 15 million natural gas vehicles on the road worldwide but only 140,000 are in the United States. 5

6 Momentum is building in North America 6

7 Natural gas vs conventional gasoline Seattle CNG - $1.82 Gas - $3.59 On average, CNG costs 44 % less than gasoline San Francisco CNG - $2.19 Gas - $4.02 Los Angeles CNG - $2.89 Gas - $3.91 Salt Lake City CNG - $2.08 Gas - $3.70 Denver CNG - $2.55 Gas - $3.46 Omaha CNG - $1.93 Gas - $3.37 Nashville CNG - $1.79 Gas - $3.29 Detroit CNG - $2.64 Gas - $3.76 New York CNG - $1.30 Gas - $3.74 Wash., DC CNG - $2.05 Gas - $3.79 San Diego CNG - $2.06 Gas - $3.85 Dallas CNG - $2.24 Gas - $3.36 Atlanta CNG - $2.39 Gas - $3.45 Ft. Lauderdale CNG - $2.19 Gas - $3.50 Source: CNG prices captured in April 2013 by CNGnow.com Gas prices captured April 2013 and reflect city average from GasBuddy.com 7

8 The economics and payback of natural gas are so strong that it dwarfs any other technology. - Eric Woods Vice President of Fleet and Logistics Waste Management 8

9 NGVs in Fleets Across America UPS, AT&T, Waste Management, PepsiCo, FedEx, Kwik Trip and Ryder have made significant commitments to NGVs in their national fleets. Eighteen percent of US public transit buses run on natural gas today, and market share of is growing. More than 35 U.S. airports use NGVs in their fleets or encourage NGVs in private fleets operating on premises. 9

10 State Governments Led by CO, OK, PA and WY, states are joining together to use NGVs in state fleets Aggregate vehicle purchase numbers for vehicle manufacturers to issue a joint RFP Commit to converting state fleets (county, municipal, and other government) To date, the MOU is supported by 23 states 10 10

11 Major vehicle manufacturers are bringing NGVs to the North American market Medium and Heavy Duty Light Duty 11 1

12 Recent OEM Announcements: Bi-Fuel Pickup Trucks Hit the U.S. Market Chrysler Ram 2500 (bi-fuel) America s only factory-built, CNGgasoline bi-fuel pickup truck Chevrolet Silverado and GMC Sierra 2500 (bi fuel) OEM built means more than $6,000 in savings over comparable vehicle conversions. 650 miles of combined natural gas and gasoline range GM previously ended NGV production in 2006 but is now returning. 12

13 Innovative programs supporting Infrastructure development Station Development NGV Corridors Partnerships directed toward station construction Station Equipment Contracting with private owners and installing compression and CNG storage equipment 13

14 Home/ Vehicle Refueling Appliances Leasing Equipment Providing consumers with the option of leasing a vehicle refueling unit that is connected to the household meter ARPA E MOVE Program $30 million dollars to 13 projects aimed at natural gas vehicle technologies, including compressor for home refueling 14

15 Transforming the transportation sector to meet our energy and environmental goals: America s natural gas industry is committed to being a part of the solution. 15

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