LNG application in medium-long

transportation

Federico Giovanetti
M&HT Product Management
CNG/LNG VEHICLES Product Manager
21-01-2014, Roma
Contains confidential proprietary and trade secrets information of CNH Industrial. Any use of this work without express written consent is strictly prohibited.

Contents

Main drivers for CNG/LNG

Potential market

LNG technology in EMEA

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Main drivers for CNG/LNG

3 are the main reasons of the fast-growing global interest in adopting methane-based
gas in commercial transport as sustainable alternative to crude oil-based fuels:
ENERGY SECURITY: independency from crude oil producers Countries
ENVIRONMENTAL IMPACT: reduce pollutants emission and noise
TOTAL COST OF OWNERSHIP : reduce cost per km

In the last years, the focus has moved from ENVIRONMENTAL IMPACT to TOTAL
COST OF OWNERSHIP
DISTRIBUTION and
FOOD AND
BEVERAGE

REFUSE
COLLECTION

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MEDIUM-LONG
HAUL

Main drivers for CNG/LNG

ENVIRONMENTAL IMPACT
POLLUTANTS
LIMITS

NOX
0,4
0,2

Euro VI
Cursor 8 CNG/LNG Euro VI

WHTC - g/kWh
HCNM
Particolato
0,16
0,01
0,08
0,002

CO
4
2,44

CH4
0,5
0,18

According to experimental activities the CO2 reduction is from 2 to 8% according to

mission
NOISE

DIESEL

dB(A)

CNG

74
72

Avg
71 dB(A)

70
68

Avg
66 dB(A)

66
6

64

1
5

Mic distance: 7m
Mic height: 1,5m
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MODEL (DIESEL/CNG): IVECO 240E25 6x2

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Main drivers for CNG/LNG

TOTAL COST OF OWNERSHIP MEDIUM-LONG HAUL
AT440S36T/P
DIESEL Euro VI

AT440S33T/P
LNG Euro VI

New vehicle cost

67.000

92.200

Cost of capital

- 7.000

- 11.000

Residual value

- 13.000

- 2.500

Net vehicle cost

61.000

100.700

14.500

28.200

Fuel consumption

205.400

127.500

Urea consumption

4.000

800

TIRES
TOLLS

TCO

DEPRECIATION

M&R IVECO

61.000
14.500

100.700

DEPRECIATION

28.200

M&R

210.200
FUEL
128.300
TIRES
6.000

6.000

800

63.000

63.000

TOLLS

6.000

6.000

27.200

27.200

63.000

63.000

TAXES AND
INSURANCE

Taxes

2.200

2.200

DRIVER SALARY

Insurance

25.000

25.000

DRIVER SALARY

175.000

175.000

TOTAL

556.900

528.400

DIFFERENCE

- 28.500

FUEL

Lubricant cons.

TAXES AND
INSURANCE

175.000

175.000

AT440S36T/P

AT440S33T/P - LNG

Simulation based on (the data shown has to be considered CONFIDENTIAL and not binding for IVECO):
Market: Italy

Mission: regional

Mileage: 100,000km / year

Period: 5 years

Interest rate: 5%

Diesel: 1,3 / liter (w/o VAT)

LNG: 0,85 / kg (w/o VAT)

Urea: 0,3 /l

Oil: 5 / liter

Diesel consumption: 31,6 liter

/ 100km

LNG consumption: 30kg /

100km

Tires life: 200,000km

Toll: 0,18 /km

Mission: 70% motorway

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Main drivers for CNG/LNG

TOTAL COST OF OWNERSHIP

The economic sustainability for natural gas in the medium-long haul business relays
dramatically in the difference of cost between diesel ( / liter) and CNG (/kg)

In a medium-long haul mission (100.000km / year, 5 years) a difference in cost of

0,26 between diesel diesel ( / liter) and CNG (/kg) make the 2 technology
equivalent for the fleet owner

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Contents

Main drivers for CNG/LNG

Potential market

LNG technology in EMEA

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Potential Market
Frost & Sullivan

Source: Strategic Analysis of the Medium- to Heavy-duty Natural Gas Commercial Vehicle Market in Europe 02/2013
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Potential Market
BIPE

Source: Heavy Vehicle Powertrain Prospective 2030 112013

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Potential Market
IVECO in Europe
The more conservative figure below reflects the IVECO truck sales forecast n the 5 major
Markets + Benelux. With a Heavy Truck Market of 250.000 units in 2016-2017, the CNG+LNG
Market is expected between 2 and 5%, with a market share of IVECO around 25-33%.
1400
RCV

1200
1000
800

Distribution

600
400
200

Regional

0
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

While the natural gas application in distribution and refuse collection missions is expected
steady, the adoption of LNG in medium-long haul missions is expected to boom thanks to
- homologation and registration for LNG trucks by middle 2014 (amended UNECE R110)
- increasing confidence of fleet managers in CNG/LNG technology
- development of the infrastructure
- cost reductions through economies of scale
- OEM development of natural gas engines dedicated to medium-long haul applications
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Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti IVECO CSST
dAD

Destinazione dello
spostamento

Area 1 di rifornimento LNG

dOA

dOA + dAD < Dautonomia (km)

Area 2 di rifornimento LNG

Origine dello spostamento

Area di rifornimento LNG

dAD
Destinazione dello
spostamento
dDO

dOA

dOA + dAD + dDO < Dautonomia (km)

Origine dello spostamento
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Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti IVECO CSST

Ipotesi:

Brescia

Prato
Ancona
Jesi

Livorno
Livorno
Piombino

I punti di rifornimento LNG siano

localizzati presso i principali Porti e
Interporti della Rete TEN-T

Orte
Pescara

Raggio medio area di adduzione d OA =

20 km / 50 km

Civitavecchia

Fiumicino

Pomezia
Nola

Gaeta

Bari
Marcianise

Napoli
Salerno

Bari
Brindisi

Trapani

Milazzo
Messina

Taranto

Palermo
Termini I.

Vado

Savona
Genova

Novara
Mortara
Torino
Rivalta Scrivia

Cervignano
Portogruaro
Monfalcone
Verona Padova
Trieste
Mantova
Venezia
Chioggia
Piacenza
Rovigo
Parma
Bologna
Ravenna

La Spezia
Carrara

Busto Arsizio

Trento

Gela
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Autonomia del veicolo LNG D

autonomia = 600 km
Coppie Origini/Destinazioni DIRETTE /
Coppie Origini/Destinazioni A/R

Gioia Tauro
Reggio Calabria

Catania
Augusta
Siracusa

Fonte: List of nodes of the Core and Comprehensive Network

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Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti IVECO CSST

O/D

O/D

O/D

TOTALI

ATTRATTE

DIRETTE

O/D
A/R

311.346

Spostamenti
Scenario dOA < 20 km

66.524

17.280

49.244

Spostamenti
Scenario dOA < 50 km

190.519

144.333

46.186

Veicoli * km
Scenario dOA < 20 km

10.019.130
(+ 12,98%)

Veicoli * km
Scenario dOA < 50 km

30.880.547
(+38,90%)

Spostamenti
Scenario Attuale

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Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti IVECO CSST
Principali spostamenti O/D potenzialmente interessati allalimentazione LNG
(segmento in area di adduzione <20 Km)

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Potential Market
Modello di valutazione del mercato potenziale e dei relativi impatti IVECO CSST
Principali spostamenti O/D potenzialmente interessati allalimentazione LNG
(segmento in area di adduzione <50 Km)

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15

Contents

Main drivers for CNG/LNG

Potential market

LNG technology in Europe

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LNG technology in Europe

How it works
CNG SYSTEM
(200 bar)

ENGINE
CURSOR 8

CRYOGENIC LNG TANK

(-120 C, 9 bar) AND
EVAPORATOR

3-WAY
CATALYST

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LNG technology in Europe

Why LNG for medium-long haul
TOTAL CNG CAPACITY (liters)
CRUISE RANGE (km) (*)
500
219
600
262
700
306
800
350
900
393
1000
437
1100
481
1200
525
1300
568
1400
612
1500
656
500 liters LNG tank + 280 liters CNG
762
500 liters LNG tank + 320 liters CNG
780
While on rigids CNG tank combinations up to 1.200 liters are
technically possible (tanks on the chassis side, above the frame
upper edge, behind the cab), on standard 4x2 tractors LNG is
necessary to achieve the requested mileage
(*) calculated with T=25C, fuel consumption 30kg/100km, 1 liter CNG = 0,13kg CNG
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LNG technology in Europe

Main technologies

BENEFITS

DRAWBACKS

SPARK IGNITED
MONO-FUEL METHANE

DUAL FUEL
DIESEL-METHANE
(PORT INJECTED)

HPDI - DUAL FUEL

DIESEL-METHANE
(DIRECT INJECTED)

Cost-effective method to use

natural gas
Compatible with CNG and LNG
Low complexity cost (on top very
simple passive exhaust aftertreatment, 3-way catalyst)
Reduced noise (- 5dB)

Engine can operate under Diesel

or Diesel-gas mode (flexibility)
Compatible with CNG and LNG
Retrofit Opportunities for existing
Diesel engine (no certification for
duration with CNG use)

Full Diesel torque, cycle efficiency

and compression braking
High Diesel substitution rate (up
to 90-95%)
Same heat rejection as Diesel

Reduced compression braking

Increased exhaust temperature
Mono-fuel system, without limphome recovery mode

Engine not optimized for natural

gas operation (compromise at low
and high operating loads)
High sensitivity to fuel quality due
to knock limitations (low
methane number)
Lower advantages in TCO due to
higher complexity costs and
higher fuel costs due to
substitution rate (CNG/LNG max
60-70%)
Requires full Diesel emissions
after-treatment (DOC+DPF+SCR)
with urea injection for NOx
controls
Methane emissions control is a
challenge for Euro VI emissions
compliance

Very high system cost (requires

specific injectors and high
pressure cryogenic pump for LNG
fuel)
Engine can operate only with LNG
Requires full Diesel emissions
after-treatment (DOC+DPF+SCR)
with urea injection for NOx
controls
Limited field experiences for
engine reliability
Engine cant operate under
Diesel mode for limp-home

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LNG technology in Europe

SAFETY

IF YOU ARE POURING WATER IN THE LNG: LNG does not dissolve in water and in contact with it, it
evaporates without mixing and without leaving any residue.

LNG IS NOT THE TOXIC: If you spill of LNG in a glass of water, once the water has evaporated gas can be
safely drunk . It can not pollute the sea or groundwater.

IN THE EVENT OF A SPILL OF LNG: the LNG is stored at atmospheric pressure in the system: even in the
unlikely event of spills disperse in the air evaporates without leaving a trace. If LNG is spilled on the ground
evaporates and leaves no residue to clean.

LNG CAN CATCH FIRE? The LNG is not flammable if not in very special conditions that can not occur
inside the regasification or LNG carriers (should be in a closed environment and saturated, mix with an oxygen
percentage of between 10% and 15% and simultaneously be in contact with a source of ignition of the flame)

LNG MAY EXPLODE ? Also coming in contact with fire, LNG does not explode and does not create flareups, but it creates a lazy flame that evaporates without creating a shock wave. To confirm this, it is known that in
1984, during the war between Iran and Iraq, a ship carrying gas at low temperatures, the Gaz Fountain, was hit by
three missiles and caught fire. The crew managed to extinguish the fire and then to recover 93% of the gas load
without further incident.

Thanks to this characteristic of LNG a study by the U.S. Coast Guard is satisfied that: LNG is one of the less
dangerous substances among the many normally carried by sea and discharged in coastal deposits such as chemical /
petrochemical / fuels. During over 33,000 trips in the world of gas tankers in the last 20 years there have been no major
accidents

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LNG technology in Europe

SAFETY
LNG tank is tested also for
Drop Test
http://www.youtube.com/watch?v=ibgAHfkKF4E

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Bonfire Test Chart LNG tank

http://www.youtube.com/watch?v=NK3z0GSXZBA