Domestic Fuel

According to the 11th annual Energy Industry Outlook Survey conducted by the KPMG Global Energy Institute, 62 percent of energy executives believe the U.S. can attain energy independence by 2030, eliminating dependency on foreign oil. The survey polled more than 100 senior energy executives in the U.S. and found that this is a 10 percent increase from last year’s survey. Of this number, 23 percent believe the country can attain energy independence as soon as 2020.

In addition, 17 percent of respondents believe that U.S. energy independence will never happen, a drop of 10 percent.

“Increased domestic production, particularly from shale assets, is having a profound impact on the global energy sector, introducing new sources to the energy matrix,” said John Kunasek, national sector leader for energy and natural resources for KPMG LLP.

He continued, “This ‘shale gale’ is certainly contributing to the increased optimism among energy executives on the potential for U.S. energy independence and driving large investments into the development and production from these shale assets, including ‘Greenfield’ investment plays.”

The survey shows that natural gas is predicted to play an important role and 79 percent of those surveyed agree that the energy industry’s emphasis in developing environmentally friendly technologies should focus on natural gas, followed by nuclear (39 percent), solar (33 percent), and clean coal technologies (32 percent), indicating a slight shift away from the total bullishness around natural gas seen in the 2012 survey results, to a more balanced view with solar and wind technologies making gains.

Ninety-five percent of energy executives expect continued R&D investment in alternative energy projects this year while 55 percent anticipate investments will remain unchanged in 2013. However, the percentage of respondents predicting a 10 percent increase in R&D investment nearly tripled, from 11 percent in 2012 to 30 percent in 2013.
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Clean Energy Fuels and Mansfield Energy have created a strategic partnership to offer customers a comprehensive solution in the compressed natural gas (CNG) fuel industry. The partners will offer Clean Energy’s natural gas fueling station construction and operational services. The services will be supported by Mansfield’s large-scale fuel supply capabilities and Gas-2-Gallons fuel management system.

“This agreement joins two leaders of fleet fueling into strategic partners that will provide the highest level of service and best value for customers in the rapidly-growing natural gas fuel market,” said Andrew J. Littlefair, president and CEO of Clean Energy. “No other company offers fuel customers the benefit of scale and expertise that Mansfield provides. Clean Energy has built and operated more CNG stations and fueled more natural gas vehicles than any company in the U.S. Together, we will be the best solution in the marketplace.”

Mansfield Gas Equipment Systems has ongoing CNG service and operations contracts with 43 locations as well as 20 new CNG sites currently under development in the waste, transit, and municipal fleet sectors. This portfolio will be combined with the 348 CNG and liquefied natural gas (LNG) fueling stations Clean Energy currently owns, operates or supplies. Clean Energy’s total strategic partnerships to-date represent over 11 billion gallons of gasoline and diesel delivered annually. The company also will become the Western distributor of Mansfield Gas Equipment Systems’ FuelMaker, a small scale business and home re-fueling system.

Michael Mansfield, CEO of Mansfield added, “We want our customers to have the best solution possible for fueling with natural gas. We bring scale in commodity supply, risk management, and transaction processing. Clean Energy has scale in design, engineering and operations. Bringing these strengths together for our customers provides the benefits of proven technology coupled with large scale operating efficiencies to provide the best value and simplest path to natural gas adoption in the market today.”

Indiana University Bloomington has reduced its greenhouse gas emissions (GHG) by 43 percent last year from the previous year and has now cut its direct emissions by more than half in the past two years, according to campus officials. The major reduction in GHG emissions over the past two years reflects a concerted shift from coal to natural gas usage at the campus’s Central Heating Plant according to Mike Jenson, director of IU’s Office of Environmental Health and Safety Management. The campus has already exceeded a goal set forth in IU Bloomington’s 2010 Campus Master Plan, which called for a 30 percent reduction in greenhouse gas emissions by 2020.

“This is a very positive step — perhaps the most significant step the campus has taken so far — toward carbon neutrality,” said Mike Jenson, director of IU’s Office of Environmental, Health and Safety Management.

The Campus Master Plan, spanning several years, established a goal to build “fuel flexibility” into the boiler system, ensuring the campus could take advantage of falling natural gas prices to dramatically cut its carbon footprint. “In recent years, there has been a strong dedication among our utilities group toward reducing our emissions and increasing our energy efficiency as much as possible, so when there were changes in the marketplace, we were in a position to shift more and more resources to natural gas,” said Jenson.

“Still, we were surprised by the magnitude of our reduction,” he added. “Because we were burning so much more natural gas than ever before, we knew it was going to drop, but we didn’t expect it to drop that much.” The campus power plant now uses 95 percent natural gas and only 5 percent coal. Among the next steps for the campus is increasing its focus on energy efficiency in its buildings and facilities.

In December, IU trustees approved a new Integrated Energy Master Plan for the IU Bloomington campus that provides detailed guidelines for reducing campus energy use and cutting carbon emissions while maintaining sound economic rationales for conservation-related improvements. The plan benchmarks energy consumption by campus buildings and addresses the current and future effectiveness of the Central Heating Plant, Central Cooling Plant and utility distribution systems for electricity, chilled water, and steam and condensate.

Primus Green Energy is providing financial support to engineers at Princeton University to support research on synthetic fuels including assessments of various gas-to-liquids (GTL) technologies for sustainability and economic viability. Primus’ STG+ technology converts syngas derived from natural gas and/or biomass into drop-in high-octane gasoline and jet fuel with industry-leading process efficiencies. According to the company, the fuels produced from the Primus STG+ technology are very low in sulfur and benzene compared to fuels produced from petroleum, and they can be used directly in vehicle engines as a component of standard fuel formulas and transported via the existing fuel delivery infrastructure.

“Primus is always looking for opportunities to support academic research on issues that impact our business and our commercialization efforts,” said George Boyajian, vice president of business development at Primus Green Energy. “Chris Floudas is one of the premier experts in the field of gas-to-liquids technologies, and we believe that his research will play a key role in identifying important developments and financial differentiators among GTL technologies, especially as they relate to our STG+ technology.”

The work at Princeton University will be conducted in the laboratories of Professor Christodoulos Floudas, Ph.D. Floudas is an expert in chemical process systems engineering, with a specific emphasis on process synthesis and design, interaction of process design and control and process operations.

“Primus’ STG+ platform is a next-generation gas-to-liquids technology that has the potential to have a significant impact on process efficiency standards and economic viability in the alternative fuels industry,” said Floudas, Princeton’s Stephen C. Macaleer ’63 Professor in Engineering and Applied Science. “As part of my research, I will be comparing STG+ to other leading GTL platforms against a variety of metrics, including financial, technical and sustainability.”

Primus Green Energy estimates that the cost of production for its fuels will be competitive with petroleum-based fuels when crude oil is trading at $65 per barrel (oil is currently trading at approximately $95 per barrel). The company is nearing completion of its demonstration plant, which is expected to reach mechanical completion in Q2 2013, and expects to break ground on its first commercial plant in the first half of 2014.

Getting natural gas out of the ground, especially by using hydraulic fracturing, better known as “fracking,” has been a hot topic lately, especially in agricultural areas. Our friends at the Farm Foundation will sponsor a free forum to talk about the issue from 9-11 am EDT, Wednesday, April 3, at the National Press Club, Washington, D.C.

Issues and policies related to natural gas extraction will be discussed by Shannon Ferrell and Larry Sanders, both of Oklahoma State University. They are the authors of a policy brief, Natural Gas Extraction: Issues and Policy Options, published by the National Agricultural and Rural Development Policy Center (NARDeP).

Also presenting at the Forum will be Brian Rahm, a post doctoral associate at the New York State Water Resources Institute. Other speakers are to be named.

Former Texas Congressman Charlie Stenholm will moderate a discussion after the presentation.

Sign up for the free event here.

According to President Obama, America is poised to take control of our energy future, but this could be compromised due to the arbitrary cuts caused by the so-called “sequestration” now taking place. During his speech last Friday at Argonne National Laboratory in Chicago, Illinois, the President pointed out the cuts would affect the federal research projects, “at a time when the country is poised to take control of our energy future.”

“After years of talking about it, we’re finally poised to take control of our energy future. We produce more oil than we have in 15 years. We import less oil than we have in 20 years. We’ve doubled the amount of renewable energy that we generate from sources like wind and solar — with tens of thousands of good jobs to show for it.  We’re producing more natural gas than we ever have before — with hundreds of thousands of good jobs to show for it.  We supported the first new nuclear power plant in America since the 1970s. And we’re sending less carbon pollution into the environment than we have in nearly 20 years.”

While focusing much of his speech on his proposed actions to replace the cuts, he also discussed his proposal to create an Energy Security Trust that would use revenues generated by oil and gas development on federal lands to support new research and technologies that will shift cars and trucks to non-oil fuels. With gas prices high during the past month, Obama urged Congress to adopt his approach.

The renewable energy industry responded to the President’s remarks as well as his proposed Energy Security Trust.
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The North Carolina Solar Center at North Carolina State University has been awarded a grant from the U.S. Department of Energy (DOE) to expand the use of alternative fuel and advanced vehicle technologies with a $500,000 award for the Alternative Fuel Implementation Team (AFIT) for North Carolina Project. The AFIT project is a two-year collaboration of U.S. DOE designated Clean Cities coalitions in the Triangle, Charlotte and Asheville regions, Clean Cities coalitions in five nearby states, Advanced Energy and industry leaders such as the Biofuels Center of North Carolina, Duke Energy, Holmes Oil Co, the NC Propane Gas Association, Public Service North Carolina, and Piedmont Natural Gas.

The AFIT project is focused on reducing barriers to more widespread deployment of biofuels such as biodiesel and E85, electric vehicles, natural gas and propane in public and private sector fleets. Fuel specific charettes will result in actions to accelerate the use of alternative transportation technology solutions to enhance North Carolina’s economy and environment. In year two, a Petroleum Displacement Plan (PDP) toolkit will be developed to assist fleet managers and vehicle owners in making decisions on which alternatives will best support their mission and goals. The PDP toolkit will include cost/benefit criteria and best application options and scenarios for specific alternative fuels based on national and North Carolina specific parameters.

As part of the AFIT project, a two-day North Carolina symposium, “Southeast Regional Alternative Fuels Conference,” will be held that includes sharing success stories and recognition awards.

“We are very excited to have the opportunity to bring together all the key parties in the southeast to leverage our unique talents and common interests in providing transportation technology and policy solutions to energy and air quality concerns,” said Anne Tazewell, Transportation Program Manager at the N.C. Solar Center and the AFIT project lead. “We look forward to the results of a cleaner environment and more business opportunities for alternative fuels.”

The U.S. Department of Energy (DOE) has announced 20 new projects to help states and local governments develop infrastructure, training, and regional planning needed to help accelerate the adoption of alternative fuel cars and trucks. These alternative vehicles can run on “fuels” such as natural gas, electricity and propane. In total, the DOE has awarded nearly $11 million.

“Building a clean and secure U.S. transportation system that leverages our domestic energy sources will give American families, businesses, and communities more options and reduce fueling costs,” said U.S. Energy Secretary Steven Chu in a press statement. “At the same time, these projects will help lead the way to further reducing America’s dependence on foreign oil and protecting our nation’s air and water.”

Through the DOE’s Clean Cities initiative, projects will address a range of community infrastructure and training needs, such as providing safety and technical training for fleet operators, mechanics, first responders, and code officials; streamlining permitting and procurement processes; and helping public and private fleets integrate petroleum reduction strategies into their operations.

For example, the American Lung Association in Minnesota, based in St. Paul, Minnesota was awarded $248,788. The funds will be used for The Accelerating Alternatives for Minnesota Drivers project, that will provide safety and technical assistance and training related to Plug-in Vehicle (PEV) and natural gas fueling infrastructure; establish the Minnesota Natural Gas Vehicle Workgroup and create a strategic plan for statewide natural gas vehicle implementation; establish a Minnesota green fleet recognition program; and create the DriveElectricMN.org website as an online resource for electric vehicle (EV) users (and potential EV users) in Minnesota.

Click here for a full list of Clean Cities Coalitions that were awarded funds.

Solar power is expected to reach grid parity when solar panels can be produced for under $0.70/watt with a total system cost under $2.00. As solar PV costs have been trending downward, grid parity could be reached as early as 2013 if the trend continues. This is according to a new free white paper, “Investing in the Power of the Sun: The Capitalist Case for Solar Energy,” authored by Michael Gorton, chief executive officer and chairman of Principal Solar along with Dan Bedell, executive vice president of corporate development of Principal Solar.

In addition, the white paper states, “Solar PV has experienced exponential cost drops year-after-year for over 30 years, with projections putting PV module costs at $.50/watt, total system costs under $2.00 per watt and output electricity at just under 6 cents per kWh – grid parity in 2014.”

Today, China is leading the way on solar PV production and pricing. I had the opportunity to correspond with Dan Bedell and the first question I asked was if U.S. solar panel manufacturers can also reach grid parity or will we see China reach this first and the U.S. to follow?

“The U.S. will likely continue to trail China and other lower cost manufacturing countries in the race to the cheapest-priced solar module,” said Bedell. “However, the U.S. supplies a large percentage of the silicon that China uses to manufacture modules and the modules we import are then installed by Americans. It’s only the assembly process in the middle that is currently occurring primarily overseas. To focus too much on the location of the manufacturing, obscures the true financial impact and the huge benefit on the U.S. economy of dropping solar prices.”

With concern over the loss of government support of solar power and other renewables I asked Bedel what would happen if the U.S. can’t reach grid parity by 2013. Will it put the industry is greater jeopardy?
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The Gas Technology Institute (GTI) is partnering with the Center for Electromechanics at the University of Texas at Austin (UT-CEM) to engineer ways to fuel natural gas vehicles at home. GTI has been focused on making natural gas vehicles more competitive in the marketplace, and last week I brought you the story about how their FuelMule fueled up natural gas buses during both the republican and democratic conventions.

There are two major barriers to widespread adoption of natural gas vehicles. One is infrastructure and two is cost. With a $4 million grant to develop a cost-effective compressor for at-home natural gas refueling systems, these two issues could become a part of the past. The U.S. Department of Energy (DOE), through its Advanced Research Projects Agency-Energy (ARPA-E), is funding this cutting-edge project. It is part of DOE’s new program, titled Methane Opportunities for Vehicular Energy (MOVE).

The team will develop a compressor that will use fewer moving parts. The goal is to replace current technology, which comprises multiple pistons and cylinders, with a single cylinder and piston moving through a linear motor. This easier to use system will also be a safer fueling technology. Current technology costs around $4,000 but this new system would cost less than $2,000.

Researchers will also work with Argonne National Laboratory to identify and apply a cost-effective surface coating for the inside wall of the cylinder. “With their help, we look to identify a coating system that will extend the longevity of our one moving part—the component most susceptible to wear and maintenance,” said Tony Lindsay, GTI RD&D Director, who will oversee the project.

Natural gas vehicles took the stage as part of both the Republican and Democratic National Conventions. It is in the news again today with the launch of the FuelMule, a mobile fast-fill compressed natural gas (CNG) fueling station. Developed by Gas Technology Institute (GTI), the station allows fleets fueling capability at their home base, or anywhere, without the need to build a fueling station.  GTI worked with Ultimate CNG to bring the technology to the marketplace.

Tony Lindsay, R&D Director at GTI said, “This technology helps to overcome the capital investment issues associated with building new fueling infrastructure. In the past, there haven’t been enough NGVs to justify the high investment in building many fueling stations, and there are too few stations to allow widespread growth and adoption of NGVs in various fleets. This new innovation can work to balance things out with its ability to bring fueling capability to where it’s most needed.”

In Tampa, NGV buses transported convention participants to several hotels and local attractions. Peoples Gas partnered with Ultimate CNG to provide CNG fuel for the buses. A better showcase of the technology, though, may be that the NGV buses were driven 1,372 miles from Janesville, Wisconsin to Tampa, Florida without one single fuel stop. When the buses then headed to Charlotte, North Carolina, Piedmont Natural Gas Company keep the buses rolling.

“With FuelMule CNG fueling services, no longer must fleets choose between the convenience of diesel and clean natural gas. They can have access to CNG with no capital investment required and no fueling infrastructure maintenance,” said Dennis Pick, President of Ultimate CNG.

According to GTI, CNG fuel costs about $1.69 less per gallon equivalent compared to diesel.

The Alternative Fueled Vehicle Roadshow is driving into Florida. Sponsored by Clean Cities North Florida, Clean Cities Gold Coast, Clean Cities Tampa Bay and Clean Cities Central Florida, the eight city tour begins on September 18, 2012 and ends on September 27, 2012. During the event, attendees will learn about options for fueling vehicles with alternative transportation fuels rather than traditional gasoline or diesel. They will also learn about the economic and sustainable benefits of alternative fuels.

Each three hour event is free and will also showcase options for fleet managers and municipalities to save money when powering their vehicles with fuels such as biofuels, propane, natural gas and electricity. Several vehicles on site will be a hybrid Chevy Volt, bi-fuel Ford Fusion, propane-fueled truck, a compressed natural gas (CNG) school bus, and an all electric Nissan Leaf are only a few of the vehicles being showcased.

Following the showcase, attendees can participate in a two hour roundtable presentation featuring 10 speakers who will cover the technologies more in depth. Several Florida state officials will be participating in various events as well as individuals from the Florida Public Service Commission, Florida Department of Agriculture and the Consumer Services’ Office of energy.

The event is free to attend, but registration is required. Click here to get a list of tour locations.

The upcoming 2012 Republican National Convention being hosted by Tampa, Florida, shuttle buses will be fueled with compressed natural gas (CNG). The buses, coined GOP EZ Shuttles, will be transporting participants to hotels and local attractions. America’s Natural Gas Alliance (ANGA) is coordinating with local TECO Peoples Gas and Ultimate CNG to provide the CNG fuel for the shuttles. ANGA says CNG provides significant cost savings over diesel-fueled buses. When compared to diesel, CNG costs about $1.69 less per gallon equivalent.

“We are proud to have this opportunity to provide transportation to convention participants in Tampa and to give them a first-hand experience with natural gas vehicles,” said ANGA President and Chief Executive Office Regina Hopper. “Companies and local leaders across the country are embracing natural gas as a fuel choice and calling for more vehicle options and filling stations to help drive this change. Our message in Tampa and beyond is that this is an extraordinary opportunity for our nation, and it’s time to get on board with this American fuel choice.”

The city and surrounding areas such as St. Petersburg are not strangers to CNG. Some companies operating as part of the Hillsborough Area Regional Transit use the fuel for airport transit vehicles. Florida is the second largest natural gas user in the U.S., and the country is the larget producer of natural gas, which can be used for transportation, electricity generation or industrial purposes.

“As mayor, I have seen firsthand the benefits that natural gas vehicles can bring in terms of lower fuel costs and clean air. I am pleased to welcome natural gas buses to the convention. These buses will not only provide a cleaner, cheaper method of transport but will also connect the thousands of guests here for various convention events to our local attractions,” said City of Tampa Mayor Bob Buckhorn.

William Harris, CEO of the 2012 Republican National Convention Committee on Arrangements added, “We’re delighted that these 12 natural gas vehicles – what we call ‘the Clean Dozen’ – will be part of our convention. Energy independence is critical to Mitt Romney’s vision of a better future for all Americans, which is what this convention is all about.”

ANGA also will be providing buses for the Democratic National Convention in Charlotte, NC.

Propel Fuels has been named to Inc. Magazine’s annual “Inc. 500” list of American’s fastest growing private companies. During the past three years, the company has grown more than 1,000 percent making them the 17th fastest growing company in the energy sector and 352nd overall. Today Propel operates 28 fueling locations along the west coast with plans for at least another 200 more stations to be opened over the next two years.

“This recognition is a tribute to our thousands of loyal customers and fleet partners that choose to fill with clean, renewable, domestically-produced fuels,” said Matt Horton, CEO of Propel. “This honor is just a start for Propel. As we continue to build our network of stations, we’re making progress toward our nation’s energy goals and providing choice at the pump for consumers seeking cleaner mobility options.”

Today, Propel offers fuels such as ethanol, E85 and biodiesel. In the future, the company has positioned itself and its stations to grow as fuel flexibility grows. Looking forward, stations may offer fuels such as natural gas or the ability to charge electric vehicles.

To show off their new $7 million demonstration plant in Hillsborough, New Jersey, the folks at Primus Green Energy’s took out for a spin a car fueled with the company’s 93-octane gasoline made from natural gas and biomass.

Primus offcials were joined by several federal, state and local officials, including former N.J. Gov. James J. Florio:

The speakers’ remarks centered on Primus’ landmark achievement, which marks a milestone in the transition from a fuel economy based on petroleum to one based on domestically produced alternative fuels. This theme was sounded by Gov. Florio when he reminded the audience in his keynote address that they will some day be able to look back and “take pride at being here at the beginning.”

IC Green Energy’s president and CEO, Dr. Yom-Tov Samia reminded government officials of the importance of committing funds for research and development to an industry that is vital to the energy security of the United States and Israel.

The new plant is expected to be completed late this year.