T he North American NGV Market Snapshot of Market Metrics, Recent Trends, Future Outlook Katrina Bell Marketing/CNG Business Development – ANGI Energy Systems On behalf of NGVAmerica
Jan 18, 2015
The North American NGV MarketSnapshot of Market Metrics, Recent Trends, Future Outlook
Katrina Bell
Marketing/CNG Business Development – ANGI Energy Systems
On behalf of
NGVAmerica
• Technology improvements are expanding our
economically recoverable base so much so
that the estimated supply is now @ 115+ yrs.!
• Natural gas and crude oil are decoupled
Currently, CNG saves $1.25-1.75 vs
gasoline, $1.50-2.00+ vs diesel.
• Major difference between crude oil and
natural gas as % of total fuel cost
Natural Gas Abundance Drives Price Differential
PGC Resource Assessments, 1990-2012
NG and Crude Oil Prices 1997-2012 Impact of base commodity on pump fuel price
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$4.00 Diesel($86 WTI)
$2.00Natural Gas
$3.50Natural Gas
$7.00Natural Gas
Retail Markup
Refining/Compression,Distribution, Taxes
Raw Commodity
$4.002%
40%
58%
$1.5022%
60%
18%
$1.7420%
52%
28%
$2.30
19%
39%
42%
Translating Abundance into Savings
One MMBtu is ~8.0 GGE of (uncompressed) natural gasOne MMBtu is ~7.2 DGE of (uncompressed) natural gas.
If average MMBtu is ~$4.75, commodity % is $.59/GGE ($.66/DGE) . Add gas company delivery, compression, maintenance, equipment amortization: ~$1.50-1.70/GGE ($1.67 -1.89/DGE) + fed and state taxes. LNG pricing derived differently but base gas cost is same
Snapshot of US NGV Market Today
• Existing NGV inventory: ~142K
• ~22-24,000 MDVs
– 9,000 gov’t
– 1,700 package delivery
– 3,000 airport/university/
community shuttle
– 9,000 utilities, F&B, comm.
services, household goods,
construction, misc.
• ~33-35,000 HDVs
• 11,000 buses
• 5,300 school bus
• 7,500+ refuse
• 5,000 ports/regional haul
• 4,500-5,000 muni/F&B/Misc.
• ~83,000 LDVs
(fleet and consumer vehicles)
• Cars/SUVs, trucks/vans
• 2012: ~17,450 NGVs added to US roads (net gain of ~10K vehicles)
• 2013: ~19,600 NGVs added (net gain of ~ 12K vehicles)
Growing Selection of NGVs from OEMs, SVMs
LD/MD Retrofits*
• Altech-Eco
• LandiRenzo/Baytech
• IMPCO Automotive
• Westport/BAF Technologies
• NGV Motori USA
• NatGasCar
• Auto Gas America
• Greenkraft
• PowerFuel Conversions
• World CNG
Retrofits of GM, Ford, Dodge, VW, Mazda,
Mitsubishi, Workhorse, Isuzu, JAC,
UtiliMaster, Freightliner Custom Chassis
LD OEMs
• American Honda
• General Motors
• Chrysler Ram Trucks
HD Truck OEMs• Freightliner Truck
• Volvo
• International
• Kenworth
• Peterbilt
• Mack
• Thomas Built Bus
• Blue Bird Bus
• Optima/NABI
• El Dorado
• New Flyer
• Motor Coach Ind.
• Gillig
• DesignLine
HD Bus OEMs
• Mack
• Peterbilt
• Crane Carrier
• Autocar Truck
• ALF Condor
• Elgin
• Johnston
• Schwarze
• Tymco
• Capacity
HD Vocational OEMs
HD Retrofit/Repowers• American Power Group
• Clean Air Power
• Fyda Energy Solutions
• NGV Motori
• Omnitek Engineering
Dual fuel retrofits and SING repowers of
Cummins, Daimler, Navistar, Detroit
Diesel, Mack, Volvo, Caterpillar
Snapshot of US NGV Market Today
• Vehicular natural gas consumption :~10-12% AGR past 6 years
– 2005: ~200MM GGE
– 2011: ~325MM GGE
– 2012: ~350MM GGE
– 2013: ~400MM GGE
– Medium- and Heavy-duty fuel use is growing
dramatically . Growth rate will accelerate with
new niche market successes, new platform
availability for MD/HD truck sector…and consumer market?
– Factors affecting timeframe include pace of worldwide economic
recovery, petroleum-natural gas differential, vehicle choices…
….vehicle and station tax credits, grants that accelerate adoption
Snapshot of US NGV Market Today
• Station count is now ~1485 after steady growth in past 36
months; installed capacity is up significantly.
– New stations are based on better economics, either higher
throughput with anchor accounts or aggregated loads and
better sizing of equipment to loads
– 2013 saw additional of ~250-275 stations
• About half are “public access;” emphasis today is on
upgrading experience to meet public expectations
• CNG able to handle local hub and spoke and many
regional trucking applications
• Increased LNG infrastructure is in place to serve
longer haul OTR trucking.
Multiple Stakeholders
Are Engaging NGV
Fueling Infrastructure
Development• Local Gas Dist. Co.
• NG Retailers
• NG Exploration & Production Co.
• Leasing Companies
• Customers
• “Traditional” Fuel Retailers
Q: How Do We Solve
The “Chicken & Egg” Conundrum?(A: Make a chicken-egg omelet*)
• Throughput (sales volume) is key to generating economies of scale for the
public access station owner, thus allowing pump price differentials that
drive reasonable payback and life-cycle savings for customers
• Minimum load thresholds vary based on a variety of factors including:
station type, station size, fuel price differential, ability to amortize
maintenance costs, equipment depreciation, grants …..ROI expectations
• Achieve minimum load thresholds by:
– Identifying an anchor fleet that justifies the investment…or
– Aggregate several semi-anchor fleets’ loads if their depots or operating areas are
geographically acceptable…or
– Create retail public access for small fleets and consumers….or
– All of the above
Observations/Predictions
“Crystal Ball” - Vehicle Sales in 2014
– 2014: 25K “new” NGVs will hit the road
• OEM LDV sales will benefit from:
– New sedan offerings (GM bi-fuel Impala, IMPCO bi-fuel Cruze)
– Increased OEM fleet sales division focus on van, pick-up products
• SVM LDV sales will grow slightly but they need to expand options
• LDV sales will hedge on NG-Gasoline price differential
– Gasoline has been relatively low (below $3.50 in most US markets;
$3.75 is the magic number that makes telephones ring
• SVM MDV sales will hedge on effort placed against the local
commercial services/delivery markets (step vans, COE units), better
integration of NG offering by FCCC, Isuzu, UtiliMaster, i/c/w SVM
“Crystal Ball” - Vehicle Sales in 2014(continued)
– HDV sales will be solid due to:
• Continued 8.9L sales gains in refuse sector (“2nd tier” firms are
embracing to compete with Republic and WM),
• Flat-to-low sales growth in 8.9L transit sector depending on new transit
agencies transitioning over to NG and/or current NG transits adding to
inventory. Gains will depend on ability to retain current bus counts in
fleets that are cycling out units purchased 10-14 years ago.
• Outlook for 11.9L engine sales is strong but not as optimistic as all the
hype; look for solid sales (~5-6K units) in 2014. Feedback from early
adopters is mixed but “cautiously optimistic.” Sufficient station
development is still a major concern as is residual value (unknown)
• Excitement over expected introduction of the CWI 6.7L and Volvo 13L
HPDI, but no impact until late 2015; Cummins 15L in 2016?
“Crystal Ball” – Station Counts in 2014
– Station count will continue at 225-275+ rate (avg. for past 2 yrs.)
• CNG will continue to get lion’s share (due to transit, refuse, etc.).
Regional trucking operations will continue to lean more toward CNG as
on-board fuel capacity and packaging issues are resolved. LNG will
continue to capture longer haul OTR accounts; pace has been
“painfully cautious.” Public “LNG vs CNG” debate is “off the mark”…
market needs both and will continue to support both.
• LNG station development will slow until current inventory is utilized
more completely; more opening of currently mothballed Clean Energy
locations, greater fuel throughput as 11.9L trucks hit the road.
Shell/TCA station development will face same challenges that leader
Clean Energy did in 2012-2013.
• Continued development of stations based on municipal/private fleet
partnerships but difficulty of process will hinder pace of development
For more information please contact:
Stephe Yborra
Director of Market Development
NGVAmerica
400 N. Capitol Street, NW - Suite 450
Washington, DC 20001
Director of Market Analysis, Education and Communications
Clean Vehicle Education Foundation
6011 Fords Lake Court
Acworth, GA 30101
[email protected] / [email protected]
(301) 829-2520