Transcript Clean Energy

Clean Energy Update to the
California Air Resources Board
Todd R. Campbell
Director of Public Policy
September 2, 2009
1
Agenda
Company Vision
Low Carbon Fuel Standard Consideration
2
Policy
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National policies are key drivers worldwide
– Energy Security and Greenhouse Gas reductions
• “National Program” and “RFS Phase 2”
– Economics – Create green US jobs
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Regional policies are key in U.S.
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California fleet rules
California petroleum reduction goals for state (AB 1007)
California GHG legislation (AB 32 and Low Carbon Fuel Standard or “LCFS”)
Northeast/Mid-Atlantic consideration of LCFS
Individual business strategies
– Refuse companies promoting green image
– Airport taxi/shuttles to reduce emissions at airports
– AT&T
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U.S. finally realizing it needs
– An Energy policy
– Petroleum reduction strategy
– GHG strategy
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How Policies Shaping International NGV Growth
August
2003
June 2008
March 2009
Global NGVs
2,814,438
8,600,000
10,052,000
Global NGV
Stations
6,455
13,000
14,880
1,450,000 vehicles/1,800 stations in last 9 months!
World average of 675 vehicles/station (LD)
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Notable NGV Growth
Country
NGVs 2003
NGVs Mar
2009
Stations 2003
Stations Mar
2009
Argentina
1,000,000
1,750,000
1,000
1,810
Pakistan
350,000
2,000,000
200
2,600
Brazil
550,000
1,588,000
535
1,705
India
137,000
822,000
116
325
Iran
*
1,216,000
*
764
Italy
400,000
580,000
490
700
*
280,000
*
437
69,300
400,000
270
1,336
2,814,000
10,052,000
6,455
14,883
Colombia
China
Global Total
Worldwide: 95% NGVs are Light-duty vehicle, 2% are Trucks, 3% are Buses
76% of New CNG Stations are Public
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World NGV Products – Consumer Oriented
World NGVs (millions)
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9
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7
6
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Apr-09
Jan-09
Oct-08
Jul-08
Apr-08
Jan-08
Oct-07
Jul-07
Apr-07
Jan-07
Oct-06
Jul-06
Apr-06
Jan-06
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Note: Austria 2008 - 69 makes & models in NG
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Leadership in Advancing NGV Technologies
VW Passat
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Acquisition of BAF
Technologies and Vehicle
Production Group (VPG)
Financed the first 100
Kenworth LNG trucks at the
Ports of LA and LB
Successfully advocated to
broaden the CPUC’s Order
Instituting Rulemaking to
include NGVs and encourage
NGV and EV Industry co-op
Supporting AT&T’s 8,000 AFV
purchase announcement with
fueling infrastructure (decision
changed thinking at Ford)
Fiat
Multipla
VPG MV1
Opel
Zafira
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Toyota Camry
CNG HEV
Support Mercedes, Fiat,
and other OEM interests
in bringing over NGVs
Support OEM
advancement like the
Toyota Camry NGV HEV
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Expanding Products and Markets
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NGV technology exists worldwide
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Capable of expanding the number of engines & OEM products
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Adapt technology to new engines and vehicle platforms
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Adapt NGV technology to include hybrid technologies
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Leadership in supporting Heavy Duty Class 5-8 Trucks
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2007 saw Sterling, Kenworth,
Peterbilt, Freightliner offer HD
trucks
Volvo/Mack will bring NG refuse
product to market in 2009/2010
Volvo/Mack developing 13L engine
for Class 8 trucks
Discussions with International on
natural gas product
All refuse truck manufacturers offer
natural gas
All transit bus manufacturers offer
natural gas
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US possesses an Ocean of Natural Gas
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22 major gas shale basins in
U.S.
Only a few have been
significantly explored
Have developed the technology
to extract gas from these shale
deposits
6% of U.S. gas produced from
Barnett Shale
Production surplus could grow
to 27 BCF/day by 2015
Current reserve estimates
2240 TCF = 118 years
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Landfill Gas Landscape
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578 landfills that EPA monitors in Landfill Methane
Outreach Program
422 landfill projects producing electricity
– Difficulty in emission permits for electricity generation projects
making electricity generation less attractive
– Restrictions on power generation can’t maximize biomethane use
– Considering shifting to gas cleanup as more viable market
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24 pipeline quality gas projects in U.S.
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–
–
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Using a variety of cleanup technologies
Multiple projects under construction
New technologies emerging every day
Technology is becoming cost effective for smaller landfills
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What Value Carbon?
WTW Greenhouse Gas Emissions
(in grams CO2eq/MJ)
95.9*
94.7*
68.0*
72.2**
11.4*
Gasoline
Diesel
CNG
LNG
16.7**
CNG from
LNG from
Landfill Gas Landfill Gas
* CARB October 2009 Update on the CARB LCFS Program, WTW data on p. 22-23.
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Leadership in Hydrogen Development:
LAX, Translink, and CA Fuel Cell Partnership
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Partnership with GM to
support Equinox
Support Translink
HCNG fleet
Believe in strong
bridging connection
between CNG and H2
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Regional Cluster Example – Los Angeles
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65 Stations in
greater Los Angeles
area
Plus over 200
additional private
stations
Great market
opportunity for OEMs
to introduce NGV
product
Existing infrastructure
can accommodate
more than 100,000
additional NGVs
California
Infrastructure 450+
stations is the
largest in the U.S.
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Heavy-duty Trucking Regional Cluster
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Regional trucking out of
ports of California can be
accommodated with
minimum LNG infrastructure
Can be expanded to
intrastate
Eventual expansion to major
N-S and E-W routes out of
California
Ultimately throughout the
U.S.
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Agenda
Company Vision
Low Carbon Fuel Standard Consideration
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Energy Economy Ration for HDV NGVs
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Proposed LCFS unfairly penalizes natural gas vehicles by
applying an EER value that includes aging fleet population
EER for diesel fails to assume same principles (value only
reflects current engines)
Current NGV technology for HDVs more efficient than 0.90
value
Proposed LCFS also fails to account for past GHG benefits that
aging NGV population over diesel counterparts
Recommend that CARB average current NGV HDV technology
without the inclusion of what’s left of the aging NGV
population and to allow site specific EERs when specific fleets
can be identified
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Conclusion/Recommendation Summary
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Worldwide NGV market mature and can provide immediate
reductions in fuel carbon intensity
North American natural gas is abundant, affordable, and the
lowest carbon intense fossil fuel
Natural gas performance can improve with hybrid- and plug-in
hybrid drive platforms, and biomethane or hydrogen blending.
NGV Industry focused to deploy NGVs in key markets to
maximize volume.
Suggest more accurate EER application for HHDV NGVs
– EER for spark-ignited technology and HPDI (pilot-ignited) technology
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Clean Energy and NGVAmerica support the Northeast/MidAtlantic adoption of a LCFS
– RFS Phase 2 and National Program will not solve the need for low
carbon fuels.
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Thank you
Todd R. Campbell
562-493-2804
cleanenergyfuels.com
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