President Obama Praises Natural Gas in his State of the Union Address (01 - 25 - 2012)

APTA Expo New Orleans, LA (Oct. 3 - 5, 2011) Booth 152 (09 - 28 - 2011)

We look forward to seeing you all at the APTA Expo in New Orleans next week.

 

Increasing Visibility for Natural Gas Fuel in North America (09 - 14 - 2011)

As the North America Gas Summit draws near, Michael Gallagher, Senior Adviser Westport Innovations, Chairman Natural Gas Group of the NPC Future Transportation Fuels Study & Chairman of Cummins Westport Inc and Agility Fuel Systems (also a member of the NGV Global Board) discussed the transformations occurring in the energy landscape across North America with Monika Gonda, Director North America Gas Summit. 

Gallagher sees the increased abundance of economically recoverable natural gas and the drive to reduce oil imports to the US as the twin pillars upon which the future role of natural gas is defined. “We see the possibilities of natural gas transforming the transportation sector, too, which currently is the primary use of oil in most countries. We see natural gas having significant penetration into different segments of that transportation market.”

He speaks of the increased market share for natural gas vehicles for commercial fleets, including a greater than 20% share of all new orders for refuse trucks, and of beneficial role natural gas can play for operators of heavy duty transportation.

With regards the NPC Future Transportation Fuels Study, Gallagher candidly observes,”It is a huge deal to elevate the debate to the level where we, the oil companies, the gas companies and other technology companies come together and compare notes and views on the key economic factors driving the US transportation sector. We are aiming to finish our work by March next year and while there is still much work to do, it is also likely to create increased visibility of the possibilities of natural gas as a transportation fuel.”

 

GFX - Government Fleet Conference and Expo 2011 (06 - 09 - 2011)

Thank you for visiting us at the GFX - Government Fleet Conference and Expo in San Diego earlier this week.

I was good to see that CNG is beginning to enjoy increased attention from government fleets that are no longer just

focusing on electric or hybrid vehicles.

Not long ago a lot of individuals one talked to at trade shows equated alternative fuel vehicles exclusively to electric vehicles.

That appears to be finally changing as people are becoming increasingly aware of other technologies being able to provide

feasible alternatives.

The NAT GAS Act was once again a hot topic, especially since we have seen growth in the supporters of this next big step

towards increased commitment to an alternative fuel that is readily available.

We look forward to seeing you at the next show ... hopefully another step closer to a cleaner future with CNG.

 

CNGci Team

 

 

Thank you for visiting us at ACT Expo 2011 (05 - 09 - 2011)

We like to thank everyone who visited our booth and expressed interest in our product.

It was good to hear and see a lot of familiar names and faces but equally important to meet

new customers and individuals who are expanding their product range.

Overall it was a short but successful event which benefited tremendously from the new push

and enthusiasm now that the NAT GAS Act is within reach.

 

 

We look forward to seeing you at the Waste Expo in Dallas, TX later this week!

CNGci Team

 

CNGci UPDATE (02 - 16 - 2011)

The $4 dilemma

(This photo from a gas station in Southern California was taken on February 15, 2011).

Here we are without a workable energy plan and high taxes on gasoline still importing in excess of $1 billion a day of foreign oil,  and as proficient energy sources clearly predicted we will be back to $4 per gallon – or even more once we recover from the recession.

 

 

History of Gas Prices

The table below will help you take a quick look at the gas prices history over the years.

Decade	Average Price(per gallon)
1950 - 1959	$0.19 to $0.26
1960 - 1969	$0.31 to $0.35
1970 - 1979	$0.36 to a little less than $1
1980 - 1989	About $1
1990 - 1999	About $1.10
2000 - 2009	$1.65 to $4

The gas price history shows us that the fluctuation in the price is not always due to a limited supply of gas. There are various other factors involved, such as the energy policies we make, wars, government taxes, crude oil markets etc.

 

Increasing Demand for Oil

One of the main catalysts for the incessant rise in gas prices has been one of the most fundamental economic reasons – the juggling that takes place between demand and supply. Indeed, the demand for oil has never been as high as it is these days. And one of the main reasons for this is the continuing rapid economic growth of China and India, the two largest economies of the developing world.

Today, China consumes only a third as much oil as the United States, which burns a quarter of the world’s daily production of oil each day. By 2030, India and China together will import as much oil as the United States and Japan do today.

America has an energy crisis that needs to be addressed urgently. We imported 4.25 billion barrels in 2010, sending approximately $337 billion, or $641,172 per minute, to foreign countries.

And it is getting worse; in January 2011 we imported $32.6 billion the highest since 2008.

Exxon Mobile Corp., the world's largest publicly traded oil company, announced today that they are struggling to find more oil.

Exxon now has more natural gas in reserve for future production than oil. And while the company has been very successful at finding or buying new natural gas, it has struggled to do the same with oil. Many observers feel the move toward gas—a trend across the oil industry.

Exxon Mobil also reports that by 2030, natural gas will become the world’s second leading fuel, displacing coal in the number two slot and second only to oil. The prediction is one of many contained in the company’s annual survey titled Outlook for Energy (http://www.exxonmobil.com/corporate/files/news_pub_eo_2010.pdf), which was released last month.

 

Natural gas will be the fastest-growing major fuel. By 2030, demand for natural gas will be more than 55 percent higher than in 2005. Technologies that have unlocked “unconventional” gas will help satisfy this demand.

The Exxon Mobil report cites numerous benefits associated with this abundant fuel, including significant environmental ones.

I just want to mention two strong statements recently made by President Obama and T. Boone Pickens;

"And for the sake of our economy, our security, and the future of our planet, I will set a clear goal as president: In 10 years, we will finally end our dependence on oil from the Middle East."

— President Barack Obama

On January 31, 2011 T. Boone Pickens issued the following statement today urging Congress and President Obama’s Administration to move now to enact an energy policy that addresses the national security and economic risks associated with the United States’ ever- escalating dependence on oil from the Middle East:

"The turmoil in Egypt and growing concerns about more crises in the Middle East has the potential to

interrupt our oil supplies and drive prices higher. Brent crude oil, the global benchmark, closed at

$101.01 today, its highest level since late September 2008. Our dependence on oil from the Middle East creates a national security and economic risk that is totally unnecessary.

The question isn’t whether there will be more uncertainty in the Middle East. That’s a question of when

not if. The greater question is whether our leadership is ready to solve this problem once and for all.

I urge Congress and the Obama Administration to enact energy legislation now that gets America on our own resources. We have a tremendous supply of natural gas that can be used as a transportation fuel and is an immediate alternative to OPEC oil.”

http://www.youtube.com/watch?v=5UdE6P4IyFs&feature=player_embedded

I strongly believe the trend across the oil industry, the continuous effort of the Pickens army, and the commitment from president Obama to move towards natural gas will bring the long expected change.

We at CNG cylinders international are highly committed to contribute to the growth of the CNG vehicle market with our CNG cylinder program.

Together we are going to make a safer, cleaner, more prosperous America.

 

Siegfried Rivalta, President

CNG cylinders international

 

CNGci UPDATE (09 - 20 - 2010)

I just returned from a trip to Xiamen a scenic port city at China’s Southeastern coast.

Arriving from Seoul we landed late in the evening and the hotel shuttle did not operate anymore so I needed to take a taxi for the 20 minute ride to the hotel.

Waiting in the taxi line I observed most of the taxis in the long line were newer models.  Finally my taxi pulled up and the friendly driver opened the trunk to store my suitcase and to my surprise I find a CNG tank in the trunk.

Arriving at the Hotel entrance one of the hotel shuttle buses was parked in front of the hotel building – a CNG powered shuttle bus.

Why am I sharing this experience?  It once again drives home the point that the international CNG markets are very strong and China is moving ahead aggressively while we here in the US we keep talking about how good it would be to utilize our abundant gas resources and become less independent of foreign oil but are still slow making CNG powered vehicles our own.

Asia, Africa, Europe, and South America have insistently implemented CNG technology and today with more than 12 million CNG vehicles in operation worldwide; up from 4 million vehicles 5 years ago with an average growth rate of 30.6% since 2000.

Experts expect this to increase fivefold, to more than 65 Million by the end of 2020.

In the US however the CNG penetration increased from 140,000 to about 150,000.

What is going on in the US?  Don’t we get it?

In late July Senate Majority leader Harry Reid (D-NV) introduced the Clean Energy Jobs and Oil Company Accountability Act. The bill contains a number of positive provisions for Natural Gas Vehicles, including rebates of up to $64K for purchasing vehicles and credits for building fueling infrastructure, but it does not include the $0.50/gallon Volumetric Excise Tax Credit (VETAC).

It was hoped that the bill would move through the Senate before the August recess, but the Kagan Supreme Court nomination and the small business bill took priority. There also were conflicting views over the oil spill liability provisions. It is hoped that these got worked out during the August recess, and that the Senate can take up Senator Reid’s energy bill in September.

Regarding the status of the $0.50 per gallon of gas equivalent fuel tax credit for

CNG and LNG when used as transportation fuel, efforts to extend the credit, which expired on December 31, 2009, remain stalled. In 2009, the House passed legislation to extend the $0.50 per GGE natural gas tax fuel credit. Despite three efforts to do similarly in 2010, the Senate has failed to enact legislation that contains that same provision. In the last attempt, the Senate and the House both passed, and the President has signed, the Unemployment Extension Bill HR

4213. Originally, that bill (HR 4213) was a $141 billion, 426-page government stimulus package for unemployed Americans, and it included a group of tax credits — including the $0.50 tax credit. However, concerns were raised in the Senate that the bill was not fully offset in terms of cost and would add billions to the deficit. Consequently, the bill was reduced to include only $34 billion for unemployment provisions, and the numerous expired tax credits were stripped from the legislation.

Congress was in recess until early this week, but there is a possibility that they may deal with tax issues in September. Most recently, the House Ways & Means Committee released a draft copy of the Domestic Manufacturing and Energy Jobs Act of 2010, which includes a provision to reinstate the natural gas tax credit effective on 1/1/2011 and to make the credit retroactive to 1/1/2010 if Congress had not already done so. The fate of that bill is still uncertain.

What can we do now??

We all have an opportunity to speak up for more CNG vehicles, stations, and insist that legislators implement policies to accelerate growth in NGV manufacturing, purchase and use.

Contact your local legislator today and encourage their support of NGV’s that will give Americans a choice to use clean American energy.

Visit www.cngnow.com or www.pickensplan.com  for more information.

Through teamwork and collaboration, we can lead an energy revolution in America – saving our cities, schools and governments on fuel and transportation costs while improving air quality.

We can create our own clean energy future, but again, we need to act now. 

 

Siegfried Rivalta, President

CNG cylinders international

 

CNGci UPDATE (07 - 06 - 2010)

The past few months have been very exhilarating for us at CNG cylinders international.

The marketing maneuver of being “green” and reducing our dependence on foreign oil and the diverse government initiatives are resulting in a clear upwards trend for the CNG technology.

This was shown first at the NAFA Fleet Management Association Expo – Detroit, MI where we presented the Type 1 Inflex cylinders at the NGV America Pavilion.

Then at the Alternative Fuels & Vehicles National conference and Expo in Las Vegas we proudly presented our first prototype of a 300 liter Type 3 cylinder.

We had the opportunity to meet with dozens of pre-qualified buyers, present our products and to build solid relationships with new and existing clients.

We are very pleased about a very positive customer response and demand for this new product.

In the meantime we have continued the testing procedures for NGV2-2007 and DOT approval and to prepare the production facility. Our plan is to be in production in fall 2010.

First of all, it is incredible that we are still lacking an energy plan when many of the non industrial countries have one. T. Boone needs all our support to get the GAS Act approved by the congress.

We need a comprehensive energy plan to get us off of foreign oil and leverage American energy resources.  And we need Congress to take action now.

Back to the transition away from fossil fuel-based transportation to cleaner fuels. There is still uncertainty and curious minds want to know:

What will the automotive industry in the US look like one year from now?

Will gas prices go up and when?

While the price per barrel of oil may have fallen from its summer 2008 highs, it is beginning to rise again.  What has not changed is the percentage of oil we import every day: over the past 12 months we have continued to import nearly two-thirds of the oil we use, spending one billion dollars every day on imported oil.

Most of the oil we import is used as a transportation fuel.  There are eight million heavy trucks on America's highways and these trucks use approximately one-third of all oil used for transportation.  Moving a significant percentage of America's heavy truck fleet from imported diesel to domestic natural gas is the most effective way to reduce our dependence on OPEC oil starting today.

Due to recent advances in technology, we now have more than twice the domestic natural gas that Saudi Arabia has in oil reserves. 

Natural gas is cheaper than diesel fuel.  Natural gas is cleaner than diesel.  It is abundant and most importantly it is ours.

As America weans itself off foreign oil, there is no better alternative than natural gas.  It is ready to become the nation's new "fuel of choice" for years to come.

The time to act is now and the NAT GAS Act is the best tool we have had in decades to reduce our dependence on foreign oil.

 

About the NAT GAS Act:

The NAT GAS Act is a bi-partisan bill in both the U.S. House of Representatives and the Senate.  In the House, Congressmen Boren (D-OK), Larson (D-CT) and Sullivan (R-OK) introduced H.R. 1835 and it already has more than 140 bi-partisan cosponsors.  In the Senate, Senators Menendez (D-NJ) and Hatch (R-UT) were joined by Senate Majority Leader Reid (D-NV) to introduce S. 1408.

The NAT GAS Act provides industry with the incentives to replace older diesel trucks with newer natural gas vehicles -- it's a great step in the right direction.  It will provide the momentum for engine manufacturers, natural gas producers and natural gas distributors to ramp up and make a real difference in our dependence on foreign oil.

I hope we can find additional members to sign up as a cosponsor to support this important legislation and continue to push Congress to enact a comprehensive energy plan this year with the NAT GAS Act at the center. 

 

Siegfried Rivalta, President

CNG cylinders international

 

THE ENERGY PLAN MAY LEAD AMERICA OUT OF RECESSION!  (04 - 13 - 2010)

Without a workable energy policy or high taxes on gasoline, we’ll have $3.00 plus per-gallon gas, which will go back up to $4.00 per gallon - or even more once this recession ends.

Either way, we might all end up in the same situation as in the 1070’s, when we had long lines at gas stations and were waiting to see whether the oil would run out or just become a trickle.

Unless, of course, you’re driving a CNG car.

Siegfried Rivalta, President

CNG cylinders international

 

U.S. must tap natural gas
by: T. Boone Pickens
April 13, 2010 05:09 AM EDT

This is a tale of two countries — and two energy futures.

In spite of promises to reduce its dependence on foreign oil, the United States continues to import nearly two-thirds of its daily oil requirements.

Meanwhile, China has quietly and effectively been locking in long-term oil supplies to make certain that its internal needs will be met when the world’s economies rebound and global oil production has peaked.

The U.S. economy is the world’s largest and requires a huge amount of energy. In 2009, during the deepest recession in 80 years, the U.S. still imported about 12 million barrels of oil a day.

About 70 percent of that is used as the principal transportation fuel for America’s 250 million cars and light trucks, and 8.5 million heavy trucks.

China’s economy, the world’s second-largest in terms of purchasing power, is about half the size of the U.S. gross domestic product. According to its central bank, China’s economy grew at an annual rate of 10.7 percent in the fourth quarter of 2009.

To keep its economy growing at that rate, China needs about 8 million barrels of oil a day. It imports about half of that.

At some point, after the world emerges from the recession, worldwide demand for oil will increase faster than the producers can supply it. So the price of oil is sure to go up — maybe by a lot, and probably rapidly. One hundred dollars a barrel is not out of the question.

Even now, Americans are witnessing a steady price increase at the gas pump. Prices of $3 a gallon for regular-grade gasoline are now common.

The Chinese government clearly understands the law of supply and demand. It has been busily going around the world locking in future oil supplies now, during the recession. In fact, China is on a worldwide buying spree so that it will have the oil it needs to fuel its fast-growing economy well into the future.

During the past few years, China has spent nearly $200 billion on oil deals. This paid for exploration, production, petroleum-infrastructure construction and “loans for energy” deals with more than 19 countries — including Russia, Turkmenistan, Kuwait, Yemen, Libya, Angola, Venezuela and Brazil.

In addition, China has made deals to develop the Iraqi oil fields in Ramallah and Ahdab, which are among the richest in the world.

It is a bitter irony that we have secured China’s ability to buy Iraqi oil at the cost of nearly 3,500 American lives.

In sum, China has locked in about 5.2 billion barrels of oil to import. Five billion barrels is the amount the United States must import (at current levels) between now and 2023. But China has a big advantage because its state-owned oil company is financed by its state-owned bank.

Oil, on the world market, is produced, shipped and sold to whoever can pay. But this may not always be true. As demand grows and production shrinks, oil could well be sold as much for political and military reasons as for commercial purposes.

The United States is in the perfect position to fend off a costly price war for imported oil. It has an abundance of a nearly perfect substitute: domestic natural gas.

Yet here we sit with no energy plan. As a consequence, our economic, energy and national security is imperiled.

During the past decade, advances in technology have made the natural gas contained in the enormous shale fields of Texas, Louisiana, Arkansas and Appalachia more easily accessible.

Recent studies show that North America has some 8,000 trillion cubic feet of natural gas reserves. Even if only half that is available for commercial production, it would give the U.S. a 200-year supply of natural gas. Right here.

Approximately one-third of the oil the U.S. now uses for transportation is diesel fuel for 18-wheelers. Why don’t we use electric motors or fuel cells? Because batteries can’t be used to move an 18-wheeler, and hydrogen technology is not yet available.

But natural gas can be used as a substitute for diesel. In fact, it is the only fuel instead of diesel that can realistically do the job.

My father used to say, “A fool with a plan can beat a genius with no plan.”

China has a plan and is executing it.

We have a plan available, but we need to implement it.

The plan would provide the tax incentives needed to jump-start the natural gas vehicle industry in America. This is sure to create American jobs and keep billions of dollars in our economy.

The United States has not had an energy plan for the past 40 years, China has not needed an energy plan. But as soon as Beijing realized it did need one, it put a plan together.

By putting the right incentives in place, we can get our heavy trucks and fleet vehicles off foreign diesel and onto clean and abundant domestic natural gas. We will reduce our need for foreign oil by as much as one-third.

And Barack Obama can be the first president to see oil imports actually drop during his administration.

That’s a plan.

T. Boone Pickens, who operates BP Capital, an energy-focused investment firm, is the author of the Pickens Plan, a blueprint for U.S. energy security. Pickens is due to testify Wednesday before the House Ways and Means Committee about his plan for energy reform and a proposed natural gas act.

© 2010 Capitol News Company, LLC

 

CNG - THE FACTS  (03 - 18 - 2010)

The history of compressed natural gas (CNG) as a transportation fuel dates back to World War II.  Natural gas vehicles are a proven technology that have been enhanced and refined over the years into a convenient and extremely safe method of transportation.

Compressed Natural Gas (CNG) is a readily available alternative to gasoline that is made by compressing natural gas to less than 1% of its volume at standard atmospheric pressure. Consisting mostly of methane, CNG is odorless, colorless and tasteless. It's drawn from domestically drilled gas wells or in conjunction with crude oil production.

Natural gas powers more than ten million vehicles on the road today. Unfortunately, only 150,000 of these are being used today in the U.S. The average growth rate in the U.S. shows a 3.7% per year since 2000, as contrasted with a booming global growth rate of 30.6% per year. Expanding the numbers of CNG fueling stations would allow for the increase of CNG vehicles on U.S. roads. There are 12,000 around the world, yet the U.S. claims about 1,100. More stations will continue to be built in America in the coming years.

 

How safe is CNG (Compressed Natural Gas)?

When used as an automobile fuel, compressed natural gas (CNG) is stored onboard vehicles in tanks that meet stringent safety requirements.

The cylinders distributed on the market by CNG cylinders international are produced by Inflex and comply with the highest levels of quality.  More then 4,000,000 cylinders have been sold in the past 40 years worldwide with an admirable zero accident record.

Natural gas fuel systems are "sealed," which prevents spills or evaporative losses. Even if a leak were to occur in a fuel system, the natural gas would dissipate up into the atmosphere – unlike gasoline, which in the event of a leak or accident, pools on the ground, creating a fire hazard.

Natural gas has a high ignition temperature, about 1,200° Fahrenheit, compared with about 600° Fahrenheit for gasoline.

Natural gas is not toxic or corrosive and will not contaminate ground water.

Here to help you take the next step forward.

As we have experienced so many times, and it seems we do not learn from history, the oil price has doubled since a year ago (see graph below), and as global economy is recovering, oil demand will increase which will further drive up the oil price.

 

 

Oil Prices to Reach USD$350 in Near Future

January 12, 2020 - Even though the oil price crossed another barrier earlier this week with US$ 320 a barrel, we have probably not seen the end of it. With the stumbling of the world's current oil production even higher oil prices are to be expected in the future.

When Saudi Arabia officially announced in 2010 that the oil production in Ghawar, the biggest oil field in the world, was significantly decreasing, the price for a barrel passed US$ 200. The current total world production of oil is 91 million barrels a day. To get down to the same oil price as before 2010, adjusted for inflation, an estimated world production increase of about 10% is needed.                                                                                                                                                                                                    News of Future

 

Let’s get prepared this time and raise the American interest in CNG. And with good reason – CNG costs about 40% less than gasoline, it emits up to 90% less pollutants when compared to gasoline, there’s an abundant supply and it is produced right here in America. So it is affordable, clean, abundant and American.

We also need to continue our efforts to insist that legislators implement policies to accelerate growth in NGV manufacturing, purchase and use.

We just completed an important step, the “Natural Gas Fuel Tax Credit Extension passed Senate” last week.

The 50 cents per GGE fuel tax credit for natural gas when used as a transportation fuel passed the Senate by a 62 to 36 vote. The bill must now be reconciled with the house version of the bill, passed in December 2009 before being sent to the president for his signature.

We need to demand to be heard and give Americans the opportunity to use a clean, American fuel.

We will fully support the Green Technology and Oil Independency effort supplying affordable and high quality storage tanks for CNG vehicles.

 

Siegfried Rivalta, President

CNG cylinders international

 

 

WHAT IS THE DIFFERENCE BETWEEN CNG, LNG, LPG AND HYDROGEN? (01 - 13 - 2010)

Dear Friends:

I would like to extend my best wishes to everyone for a healthy and successful new year!

We at CNG cylinders international believe that 2010 will be a great CNG year and that we can contribute to the growth of the CNG vehicle market share by supplying high quality, affordable cylinders to OEM’s and retrofitters for NGV’s.

Thanks to a large group of alternative energy enthusiasts and wide support from the media more and more consumers are becoming aware of the benefits of alternative energies and the need to think about environmental impact as well as becoming less dependent on foreign oil.

Nevertheless, we need to continue the consumer education to familiarize Americans with the various alternatives of clean energy fuels and technologies.

A common question regarding alternative fuels:

What is the difference between CNG, LNG, LPG and hydrogen?

The following is a brief summary highlighting the main differences of these fuels. 

Compressed Natural Gas or CNG is stored on the vehicle in high-pressure tanks - 20 to 25 MPa (200 to 250 bar, or 3,000 to 3,600 psi).  Natural gas consists mostly of methane and is drawn from gas wells or in conjunction with crude oil production.  As delivered through the pipeline system, it also contains hydrocarbons such as ethane and propane as well as other gases such as nitrogen, helium, carbon dioxide, sulfur compounds, and water vapor.  A sulfur-based odorant is normally added to CNG to facilitate leak detection.  Natural gas is lighter than air and thus will normally dissipate in the case of a leak, giving it a significant safety advantage over gasoline or LPG. 

Liquefied Natural Gas or LNG is natural gas stored as a super-cooled (cryogenic) liquid.  The temperature required to condense natural gas depends on its precise composition, but it is typically between -120 and -170°C (-184 and –274°F).  The advantage of LNG is that it offers an energy density comparable to gasoline and diesel fuels, extending range and reducing refuelling frequency.

The disadvantage, however, is the high cost of cryogenic storage on vehicles and the major infrastructure requirement of LNG dispensing stations, production plants and transportation facilities.  LNG has begun to find its place in heavy-duty applications in places like the US, Japan, the UK and some countries in Europe.  For many developing nations, this is currently not a practical option.

Liquefied Petroleum Gas or LPG (also called Autogas) consists mainly of propane, propylene, butane, and butylenes in various mixtures.  It is a by-product of natural gas processing and petroleum refining.  The components of LPG are gases at normal temperatures and pressures.  One challenge with LPG is that it can vary widely in composition, leading to variable engine performance and cold starting performance.  At normal temperatures and pressures, LPG will evaporate. Because of this, LPG is stored in pressurized steel cylinders.  Unlike natural gas, LPG is heavier than air, and thus will flow along floors and tend to settle in low spots, such as basements.  Such accumulations can cause explosion hazards, and are the reason that LPG fuelled vehicles are prohibited from indoor parking structures in many countries.

Hydrogen or H2 gas is highly flammable and will burn at concentrations as low as 4% H2 in air.  For automotive applications, hydrogen is generally used in two forms: internal combustion or fuel cell conversion.  In combustion, it is essentially burned as conventional gaseous fuels are, whereas a fuel cell uses the hydrogen to generate electricity that in turn is used to power electric motors on the vehicle.  Hydrogen gas must be produced and is therefore is an energy storage medium, not an energy source.  The energy used to produce it usually comes from a more conventional source.  Hydrogen holds the promise of very low vehicle emissions and flexible energy storage; however, the technical challenges required to realize these benefits may delay hydrogen’s widespread implementation for several decades.

Hydrogen can be obtained through various thermo-chemical methods utilizing methane (natural gas), coal, liquified petroleum gas, or biomass (biomass gasification), from electrolysis of water, or by a process called thermolysis.  Each of these methods poses its own challenges.

 

Siegfried Rivalta, President

CNG cylinders international

 

RECENT EVENTS IN THE CNG ENVIRONMENT (12 - 21 - 2009)

The recent weeks have been filled with exciting events pertaining to conventional and unconventional resources and transportation solutions.

First and foremost, legislature appears to be making decent progress with regard to the NAT GAS Act so that further NGV tax incentives are on the horizon and the overall outlook for NGV expansion appears to be quite favorable.  

Legislature is also well on its way to approving additional funding for CNG related workforce and infrastructure expansion which is of vital importance to maintaining the current inertia towards expansion in these new business fields. 

This trend in the right direction has been further emphasized by the US's never before seen active participation during the current climate summit in Copenhagen, Denmark.

Although not exclusively benefitting CNG applications, the overall trend is leading in the right direction so that all unconventional energy sources will greatly benefit from this newfound enthusiasm towards green/alternative energies.

 

On another note, Exxon Mobil's recent announcement of the takeover of XTO Energy valued at $41 billion illustrates that these days even key conventional resource powerhouses are acknowledging that CNG has indeed "arrived" and is here to stay as a vital resource in the foreseeable future.

This signifies the first move by a key player in conventional resources attempting to establish a very noticeable presence in unconventional resources and will with no doubt serve as an incentive for other global players to follow.

 

CAN THE ENERGY FUTURE BE BUILT IN AMERICA?CAN THE ENERGY FUTURE BE BUILT IN

After decades of debating about achieving energy independence, we have only grown more dependent on imported oil; and dangerously so.  We are currently spending $500 billion a year to pay for foreign oil, which threatens to bankrupt our nation.

There are 85 million barrels of oil produced globally, 21 million barrels of which are used by the US alone.  To put this into perspective: 25% of global oil production is consumed by 4% of the global population.  

We have 5 billion feet³ of natural gas that has no market. CNG costs about 40% less per gasoline gallon equivalent (GGE) and cuts pollution by up to 90%. It is American, it is plentiful and it is available now!

When it comes to alternative fuels and becoming independent from foreign oil we lately hear more and more about electric plug-in’s as the best and cleanest solution.

The frightening part is that our Secretary of Energy, Mr. Stephen Chu, is spearheading these efforts. 

Here everyone seems to forget that we cannot afford to charge electric cars on a completed obsolete and inefficient electrical distribution grid.  For example, today we lose about 25% of energy due to outdated distribution lines.

Supposing the electrical distribution system is fixed with the already promised billions of government grants, 60% of the electrical power in the US is still generated in power plants fueled by coal, which is by fare the dirtiest fuel on earth.

In other words we would be using an environment friendly vehicle generating 4 times more greenhouse gas then cars with gasoline or diesel fuels. Does that make sense?

Furthermore, we would be moving away from Saudi Oil into full dependency of Chinese batteries. China and Korea are by far the largest lithium-ion battery manufacturers.

And last but not least, what about the nation’s 6.5 million diesel-burning heavy trucks, they do not run on batteries!

Is it really in America’s best interest to be permanently dependent on the foreign oil supply or do we want to be independent using an American fuel?

CNG is clean, 100% American and we are in a great position to have access to a supply that will last us 120 years.

Two weeks ago the NGV America Conference and Board Meeting was held in Long Beach, CA followed by the WASTECON.

Starting with the chairman’s report the government affairs legislative report was presented and while NGV America is continuing to focus on all vehicle sectors, the emphasis is certainly on the medium and heavy duty vehicle markets and the role that natural gas can play in reducing petroleum fuel utilization in such vehicles.

Also discussed were the legislative efforts to reduce conversion costs. NGV America has been working with Congress to remove barriers and make it less difficult to certify conversions.

On the regulatory affairs, the major new issue was the availability of stimulus funding (American Recovery & Reinvestment Act of 2009). NGV America has also been working with Congress to develop a legislation that would ensure flexibility with respect to OBD compliance, modification of the model year timeframe for conversions and adoption of system certification approach similar to what is used in Europe.  The issue of safety was also discussed. There have been several incidents involving CNG vehicles and non-certified systems that have appeared on the US market.

On the marketing affairs activities the encouraging news regarding AT&T’s decision to purchase 8,000 NGV’s and other American corporations testing NGV’s for their fleets.

One of the guest speakers was the former NGV American Board member and founder of NGV Europe Dr. Jeffrey M. Seisler now CEO of Clean Fuels Consulting.

Dr. Seisler is a respected NGV industry leader discussed world NGV market development, sharing his observations from over 20 countries he studied in detail.

There are 10.5 million NGV’s and 15,919 filling stations in the world.

Pakistan (2.19 million), Argentina (1.79 million), Brazil (1.6 million), Iran (1.54 million), India (700,000), Italy (523,000), China (400,000) and Columbia (295,000) are the top 8 countries operating NGV’s.

Annual NGV growth rate is close to 40%.

The NGV technology is available and more OEM products can be obtained than any other alternative fuel vehicles. About 65 manufacturers worldwide producing 295 + vehicle models this does not include China (China alone counts with 58 OEM’s).

270,000 buses operate worldwide of which China has the largest penetration with 112,000, followed by Korea (19,000), India (12,000) and the US (11,000).

On the car and SUV side Fiat is the largest NGV manufacturer in the world; Fiat sold more then 100,000 units in Italy last year alone.

In summary the CNG business continue to grow; LNG popularity will help drive the L-NGV market and biogas will advance but will be dependent on public commitment to new waste management infrastructures.

This leads me to the next topic the WASTECON and the appearance of T. Boone Pickens as the presidential keynote speaker.

T. Boone Pickens was very inspiring as always and we all hope that he will continue to educate Americans and more importantly our politicians for many years to come.

T. Boone started the education process in July 2008 with the formation of the Pickens Plan and I was proud to be one of the first 100 members, today we are more then 1.6 million nation wide.

T. Boone warns that oil may reach $150 a barrel in the next two years as economic activity rebounds to pre-recession levels. The petroleum industry will have trouble raising production fast enough to meet demand, he says. And even if it could, that would mean the U.S. would continue funding foreign governments by buying their output.

“Show me another country where they import 70 percent of their oil and over half comes from their enemy,” Pickens says, counting Iran, Saudi Arabia and Venezuela among the foes. “This is the largest transfer of wealth in human history.”

Again T. Boone is exceptionally driver and we all feel his passion for teaching Americans about NGV and that clean burning natural gas is the future fuel for America.

We at CNG cylinders international have several initiatives going forward supporting the Pickens Plan and the CNG industry in North America.

We have signed a sole agency agreement with Inflex S.A. and are distributing affordable Type1 cylinders in the North American market.  We have DOT approval for the 3,600 PSI pressure cylinders with volumes starting from 40 liters or 3.6 GGE up to 142 liters or 12.7 GGE.

Inflex S.A. has more then 40 years of experience in the CNG cylinder business and there are more Inflex Type 1 CNG cylinders in operation then any other brand.

For the Long Beach conference we had the pleasure of having Juan Carlos Fracchia with us in Los Angeles.

Mr. Fracchia, Vice President and owner of Inflex S.A., used to be the president of NGV South America and has spoken on many events around the world.

The re-introduction of the Type 1 cylinder is perfectly in line with the legislative efforts to reduce conversion costs.  Our type 1 cylinders have the highest safety factor at significant lower costs and present a great opportunity for applications where weight is a less significant factor.

We are also developing a new Type 3 cylinder that will greatly benefit the industry.

The future potential for large and high pressure cylinders for CNG and tube trailer applications is sizeable and demand will exceed the actual installed capacities in North America.

CNG cylinders international is in possession of the know-how and technology for the manufacturing of high pressure industrial cylinder liners. CNG cylinders international has partnered with Hypercomp Engineering, Inc. (HEI).

HEI has significant experience in filament winding of both thick- and thin-walled high pressure composite cylinders and tubular structures for a vast variety of applications.

Type 3 cylinders are the preferred choice for weight sensitive applications due to having the best capacity to size ratio.

I have no doubt that NGV’s with CNG hybrid technology can deliver ever-lower emissions while providing a good start for advanced technologies that will be key for a path towards continuing green house gas reduction and energy independency.

Siegfried Rivalta, President
CNG cylinders international