Kwik Trip Alternative Fuels - SIGMA
Joel Hirschboeck
Kwik Trip Alternative Fuels
Overview
Kwik Trip Today Brief CNG/LNG 101 – what is it? Natural Gas Vehicles Kwik Trip Natural Gas Program LNG vs. CNG – Who is using which? The CNG Retail/Fleet Experience Kwik Trip CNG Infrastructure Kwik Trip’s Path to Market
Kwik Trip History
May 1965, first store opened in Eau Claire Currently over 400 locations Family Owned and Operated
Kwik Trip Today
Conventional Petroleum Products Alternative Fuels : E-85, CNG, LNG, Propane, Bio Diesel Vertically Integrated Food
Production, Transportation, Construction, R&M Services, and Logistics Produce or handle 80% of the items sold in our stores Kwik Trip Natural Gas Program
Natural Gas
Natural Gas has been a part of our society for a long period of time Home
Heating Cooking Industrial Applications
Now
emerging as a vehicle fuel
Natural Gas as a Vehicle Fuel (cont.) Abundant & Domestic 98% of U.S. Natural Gas consumption is produced domestically
Environmentally Friendly Inherently clean fuel Up to a 90% reduction of emissions
Economics The ROI works: 12 – 24 months dependent on vehicle utilization
Natural gas is very safe ◦Lighter than air - dissipates when released ◦High ignition temperatures over 1200F ◦Composite & Kevlar wrapped tank vs. ¼ inch steel.
Natural Gas as a Vehicle Fuel
CNG Compressed Natural Gas Stored at 3600 psi in cylinders (similar to a SCUBA tank) Energy content is 290:1 of Natural gas at atmospheric pressure. Used to power vehicles ranging from Light duty civic – heavy duty semitractor
LNG Liquefied Natural Gas Stored at -260 degrees in cryogenic tanks (similar to a thermos bottle) Energy content is 600:1 of Natural gas at atmospheric pressure. Used to power medium, heavy and off-highway vehicles
Natural Gas Vehicles
Kwik Trip Natural Gas Vehicles
Kwik Trip Natural Gas Program
Natural Gas
U.S. Average Retail Fuel Prices 2005 - 2012 $5.00
Cost per GGE
$4.50
Propane
$4.00
E85
$3.50
B99/B100
$3.00 B20
$2.50 $2.00 $1.50 $1.00 $0.50 $0.00
Gasoline Diesel
CNG
What if…? Oil Up 5% /yr. – NG Up 10%/yr. $7.00 $6.00 $5.00 Oil Trend @ 5.0% Annual
$4.00 $3.00 $2.00 $1.00 $-
Change NG Trend @ 10.0% Annual Change Cost Differential Resulting from Change
What happens if the cost of fuel Doubles?
Diesel in Gallons
CNG in DGE
Today’s retail
$4.00
Today’s Retail
$1.80
Commodity
$3.00 (variable)
Commodity
$0.65 (Variable)
Taxes, Margin, Etc. $1.00 (fixed)
Taxes, Margin, Etc. $1.15 (fixed)
Commodity (x2)
$6.00
Commodity (x2)
$1.30
Taxes, Margin, Etc. $1.00
Taxes, Margin, Etc.
$1.15
Total Cost of Diesel
Total Cost of CNG
$7.00 / Gallon
$2.45 / DGE
LNG vs. CNG…What Vehicle is right for me?
CNG
Unlimited hold times, little or no fuel loss
More mature technology
Gas/Vapor instead of Cryogenic
Simple fuel tanks and pressure management
LNG Fewer Tanks
Greater fuel density Range and space Lower weight storage
Does not rely on pipeline gas
Less expensive tanks
Complexity of tanks is increased
Energy density lower than LNG Size and number of storage tanks
Pressure and temperature management of fuel to engine
Maintenance cost of cryogenic parts
Tanks are more expensive
Boil off (use it or lose it)
Increased vehicle weight
Fuel cost vs. CNG
No Diesel or DEF to also manage
System design can be customized for application
LNG vs. CNG…What Product is right for me?
CNG Pipeline infrastructure in place near most metros Dispenser and nozzle is user friendly and less industrial Supply on demand Odorized fuel Self-service fueling Fast fill/high flow capabilities at a cost General consumer/commuter & Heavy-duty compatible Noise of compression High
pressure systems Niche industry slowly making its way to retail Pipeline infrastructure NOT in place Limited service and support – some self-reliance needed
LNG vs. CNG…What Product is right for me?
CNG Pipeline infrastructure in place near most metros Dispenser and nozzle is user friendly and less industrial Supply on demand Odorized fuel Self-service fueling Fast fill/high flow capabilities at a cost General consumer/commuter & Heavy-duty compatible
Noise of compression High pressure systems Niche industry slowly making its way to retail Pipeline infrastructure NOT in place Limited service and support – some self-reliance needed
LNG vs. CNG…What Product is right for me?
LNG Proximity to LNG Supply High flow - high volume fueling Self-service fueling with specific training and PPE Ideal for areas with limited pipeline infrastructure
Complex Cryogenic storage management system Pressure and temperature management of fuel Maintenance cost of cryogenic parts Odorless Fuel – Methane detection required Boil off (use it or lose it) Anchor tenant required Fuel delivery by transport required Heavy-duty vehicle compatible only Industrial/commercial feel
Alternative Fuels Fueling Station
Kwik Trip Natural Gas Retail Sites
Kwik Trip Natural Gas Fleet Experience
Kwik Trip Natural Gas Retail Sites
Kwik Trip Natural Gas Retail Sites
Path to Market
Natural Gas Supply Infrastructure The Retail Experience CNG as a Standard Fuel vs. Alternative Fuel Long-term Commitment.
Opportunities…
LNG vs. CNG Do I have natural gas supply Anchor Tenant vs. Infrastructure Regionalization of Fleet activity Does my state offer any tax incentives Long-term Commitment.
Thank You Joel Hirschboeck – Alternative and Commercial Fuels: • •
•
[email protected] 608-792-8318 www.kwiktrip.com
Kwik Trip Alternative Fuels
Overview
Kwik Trip Today Brief CNG/LNG 101 – what is it? Natural Gas Vehicles Kwik Trip Natural Gas Program LNG vs. CNG – Who is using which? The CNG Retail/Fleet Experience Kwik Trip CNG Infrastructure Kwik Trip’s Path to Market
Kwik Trip History
May 1965, first store opened in Eau Claire Currently over 400 locations Family Owned and Operated
Kwik Trip Today
Conventional Petroleum Products Alternative Fuels : E-85, CNG, LNG, Propane, Bio Diesel Vertically Integrated Food
Production, Transportation, Construction, R&M Services, and Logistics Produce or handle 80% of the items sold in our stores Kwik Trip Natural Gas Program
Natural Gas
Natural Gas has been a part of our society for a long period of time Home
Heating Cooking Industrial Applications
Now
emerging as a vehicle fuel
Natural Gas as a Vehicle Fuel (cont.) Abundant & Domestic 98% of U.S. Natural Gas consumption is produced domestically
Environmentally Friendly Inherently clean fuel Up to a 90% reduction of emissions
Economics The ROI works: 12 – 24 months dependent on vehicle utilization
Natural gas is very safe ◦Lighter than air - dissipates when released ◦High ignition temperatures over 1200F ◦Composite & Kevlar wrapped tank vs. ¼ inch steel.
Natural Gas as a Vehicle Fuel
CNG Compressed Natural Gas Stored at 3600 psi in cylinders (similar to a SCUBA tank) Energy content is 290:1 of Natural gas at atmospheric pressure. Used to power vehicles ranging from Light duty civic – heavy duty semitractor
LNG Liquefied Natural Gas Stored at -260 degrees in cryogenic tanks (similar to a thermos bottle) Energy content is 600:1 of Natural gas at atmospheric pressure. Used to power medium, heavy and off-highway vehicles
Natural Gas Vehicles
Kwik Trip Natural Gas Vehicles
Kwik Trip Natural Gas Program
Natural Gas
U.S. Average Retail Fuel Prices 2005 - 2012 $5.00
Cost per GGE
$4.50
Propane
$4.00
E85
$3.50
B99/B100
$3.00 B20
$2.50 $2.00 $1.50 $1.00 $0.50 $0.00
Gasoline Diesel
CNG
What if…? Oil Up 5% /yr. – NG Up 10%/yr. $7.00 $6.00 $5.00 Oil Trend @ 5.0% Annual
$4.00 $3.00 $2.00 $1.00 $-
Change NG Trend @ 10.0% Annual Change Cost Differential Resulting from Change
What happens if the cost of fuel Doubles?
Diesel in Gallons
CNG in DGE
Today’s retail
$4.00
Today’s Retail
$1.80
Commodity
$3.00 (variable)
Commodity
$0.65 (Variable)
Taxes, Margin, Etc. $1.00 (fixed)
Taxes, Margin, Etc. $1.15 (fixed)
Commodity (x2)
$6.00
Commodity (x2)
$1.30
Taxes, Margin, Etc. $1.00
Taxes, Margin, Etc.
$1.15
Total Cost of Diesel
Total Cost of CNG
$7.00 / Gallon
$2.45 / DGE
LNG vs. CNG…What Vehicle is right for me?
CNG
Unlimited hold times, little or no fuel loss
More mature technology
Gas/Vapor instead of Cryogenic
Simple fuel tanks and pressure management
LNG Fewer Tanks
Greater fuel density Range and space Lower weight storage
Does not rely on pipeline gas
Less expensive tanks
Complexity of tanks is increased
Energy density lower than LNG Size and number of storage tanks
Pressure and temperature management of fuel to engine
Maintenance cost of cryogenic parts
Tanks are more expensive
Boil off (use it or lose it)
Increased vehicle weight
Fuel cost vs. CNG
No Diesel or DEF to also manage
System design can be customized for application
LNG vs. CNG…What Product is right for me?
CNG Pipeline infrastructure in place near most metros Dispenser and nozzle is user friendly and less industrial Supply on demand Odorized fuel Self-service fueling Fast fill/high flow capabilities at a cost General consumer/commuter & Heavy-duty compatible Noise of compression High
pressure systems Niche industry slowly making its way to retail Pipeline infrastructure NOT in place Limited service and support – some self-reliance needed
LNG vs. CNG…What Product is right for me?
CNG Pipeline infrastructure in place near most metros Dispenser and nozzle is user friendly and less industrial Supply on demand Odorized fuel Self-service fueling Fast fill/high flow capabilities at a cost General consumer/commuter & Heavy-duty compatible
Noise of compression High pressure systems Niche industry slowly making its way to retail Pipeline infrastructure NOT in place Limited service and support – some self-reliance needed
LNG vs. CNG…What Product is right for me?
LNG Proximity to LNG Supply High flow - high volume fueling Self-service fueling with specific training and PPE Ideal for areas with limited pipeline infrastructure
Complex Cryogenic storage management system Pressure and temperature management of fuel Maintenance cost of cryogenic parts Odorless Fuel – Methane detection required Boil off (use it or lose it) Anchor tenant required Fuel delivery by transport required Heavy-duty vehicle compatible only Industrial/commercial feel
Alternative Fuels Fueling Station
Kwik Trip Natural Gas Retail Sites
Kwik Trip Natural Gas Fleet Experience
Kwik Trip Natural Gas Retail Sites
Kwik Trip Natural Gas Retail Sites
Path to Market
Natural Gas Supply Infrastructure The Retail Experience CNG as a Standard Fuel vs. Alternative Fuel Long-term Commitment.
Opportunities…
LNG vs. CNG Do I have natural gas supply Anchor Tenant vs. Infrastructure Regionalization of Fleet activity Does my state offer any tax incentives Long-term Commitment.
Thank You Joel Hirschboeck – Alternative and Commercial Fuels: • •
•
[email protected] 608-792-8318 www.kwiktrip.com
