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.
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
