Efforts to implement alternate motor fuels programs, notably those involving compressed natural gas (CNG), continue to gain momentum.
In the U.S., the House fossil fuels subcommittee approved a bill designed to spur use of alternate fuels in the transportation sector. The bill is part of a series of measures the subcommittee has drafted in an effort to reform U.S. energy policy. The Senate energy committee has reported out an omnibus energy policy bill, which awaits floor action,
In U.S. alternate transportation fuels action:
- Wisconsin plans to expand its alternate fuels program.
- Gas Research Institute (GRI) is pressing CNG vehicle initiatives with Chrysler Corp. and Ford Motor Co.
- Hawthorne Power Systems, San Diego, and San Diego Gas & Electric Co. will offer CNG conversion services for fleets of light trucks and vans.
- Amoco Production Co. plans to convert some of its automobiles in New Mexico and Colorado to CNG.
- A number of companies and governments are pressing installation of CNG refueling stations.
Meantime, Canada's and Indonesia's governments will offer financial assistance to support use of CNG. And commercialization of CNG use by vehicles is gaining in India.
In addition, Global Environmental Industries Inc. (GEI), Austin, Tex., has signed an agreement with New Zealand company RIX New Zealand Ltd., Auckland, to distribute CNG products and technology in the U.S. and other markets.
HOUSE ACTION
The House subcommittee bill was negotiated behind closed doors the past few weeks with only Rep. William Dannemeyer (R-Calif.) dissenting.
The bill is designed to ensure that alternate fuels capture 10% of the U.S. transportation fuel market by 2000 and 30% by 2010 by requiring government and privately owned fleet vehicles to convert to CNG, methanol, or other fuels. Under the bill, reformulated gasoline will not qualify as an alternate fuel.
It gives the private sector incentives to convert fleets to alternate fuels, but if it appears the 10% and 30% goals will not be met, the secretary of Energy must issue a rulemaking in 1998 requiring fleet owners to convert.
The federal government, when buying new fleet vehicles, would be required to buy 75% alternate fueled vehicles. The federal alternate fueled fleet would total more than 27,000 vehicles by the end of 1998.
The bill establishes a $75 million fund so private vehicle fleets would be eligible for low interest federal loans to help them buy alternate fueled cars and trucks. Companies providing alternate fuels, including oil refiners, would be required to add some alternate fueled vehicles.
The Department of Energy would develop a vehicle conversion training program and be allotted $60 million to sponsor research and development on commercial applications for alternate transportation fuels. And it would study the potential for alternate fuels for offroad vehicles and engines.
The bill authorizes $90 million to help urban areas with more than 100,000 population buy alternate fueled buses and $50 million for grants and technical assistance for states and requires the federal government to coordinate its alternate fueled vehicles purchases with the states.
The bill contains provisions aimed at removing any regulations that obstruct sale of natural gas as a motor fuel.
WISCONSIN PROGRAM
Wisconsin Gov. Tommy G. Thompson's alternate fuels task force recommended that the state expand its alternate fuel grant program.
This year local governments and school districts were awarded $150,000 to modify 80 vehicles to operate on propane or CNG.
James R. Klauser, department of administration secretary and task force chairman, said the group wants to double that amount to fund local projects in 1992. Local communities match the state grants.
Klauser said the task force wants to expand the 1992 local grant program to include electric vehicles in addition to those fueled by ethanol, propane, methanol, and hydrogen. The task force also voted to expand the state's alternate fuel pilot program to include the use of hydrogen, liquefied natural gas, and electricity.
The governor and members of the task force test drove a prototype ethanol fueled car the first week in October and expect delivery of the vehicle in spring 1992. Wisconsin plans to purchase 12 ethanol fueled cars, 12 that run on gasohol-a blend of 90% gasoline and ethanol-and 12 that burn other combinations of ethanol and gasoline.
GRI JOINS AUTOMAKERS
GRI will team with Chrysler Corp. and Ford Motor Co. to increase the number of vehicles that operate on CNG.
Chrysler and GRI will test 25 CNG fueled Dodge B model vans to determine the feasibility of introducing full size, gas powered vans in the 1994 model year.
Researchers will monitor five vans to confirm accelerated durability of emissions control systems, engines, and gas metering components. Eighteen units will be placed with gas utilities to acquire in-service data on fleet operations, and two will be sold to the General Services Administration as demonstrators.
Initial work will focus on development of a Chrysler 5.2 1. V-8 engine with multi-port fuel injection and an electronic control system reprogrammed for CNG operation.
Ford has a $23 million joint development program with GRI and Southern California Gas Co. to build CNG powered pickup trucks.
Next year Ford plans to introduce a demonstration fleet of about 100 CNG light duty pickups for use by gas utilities and customers. As many as half will be for California utilities and the rest for customers in the U.S. and Canada. Another 600 CNG trucks will be introduced in 1993-94.
Ford has been testing CNG vehicles since 1984.
HAWTHONE/SDG&E
Hawthorne Power Systems signed an agreement with SDG&E to convert vehicles to use CNG, the first such program in San Diego County, Calif. Hawthorne was to begin retrofitting fleets of light trucks and vans to natural gas in mid-October. Retrofits take 1 day/vehicle.
Hawthorne and SDG&E estimate cost of conversion is recovered after 1-2 years.
SDG&E will supply gas for the converted vehicles and has opened three company owned fueling stations in the county and one public station in conjunction with Unocal Corp. in Vista, Calif. A second public station will be opened in Escondido, Calif., in mid-1992 with Shell Oil Co.
AMOCO CONVERSIONS
Amoco will convert a number of its vehicles operating in the Rocky Mountain region to run on CNG as well as alternate liquid fuels.
It will convert about 200 of its trucks and automobiles in Farmington, N.M., and Durango and Fort Lupton, Colo., to dual fuel use during the next 5 months.
Each of the three operating centers will have its own CNG fueling station.
About 100 cars and trucks associated with Amoco's San Juan basin operations in Farmington will be converted, 65 in Durango, and 35 in Fort Lupton.
Amoco also is evaluating opening a retail CNG station in Farmington. The company said there are some impediments to retail CNG marketing in the state, but it believes the issues can be resolved during the current session of the legislature that ends in mid-February.
U.S. CNG STATIONS
Installation of CNG refueling stations is proliferating across the U.S. In recent action:
- Chevron and PG&E have signed a joint venture agreement to build and operate CNG refueling facilities at Chevron stations within PG&E's service area of North and Central California. Dispensers will be installed at Chevron stations beginning early next year in the Sacramento area. Each new facility is expected to cost $250,00400,000, and the two will share costs and revenues.
- The California Public Utilities Commission recently ruled it will no longer regulate natural gas sales for vehicular use, enabling nonutility companies to enter the market. A bill recently signed into law exempts retail natural gas sales for vehicles from CPUC regulation. PG&E plans to convert 25% of the fleet vehicles in its 94,000 sq mile area by 2000. The utility currently operates 14 CNG refueling stations and plans 25 more the next 2 years.
- West Virginia opened its first public access CNG station Oct. 11 in Charleston. The $300,000 station was built by Natural Gas Transportation Co. It is the first of a network of 15-25 such stations planned in West Virginia by late 1993.
- Earlier this month Texas Gov. Ann Richards dedicated a CNG refueling station in North Dallas that United Parcel Service will use for 15 vans powered by CNG. Lone Star Gas Energy owns the station and agreed to sell UPS natural gas at rates competitive with gasoline prices.
INDONESIA
In Indonesia, City Development Bank of Jakarta offered soft loans to taxi owners to purchase CNG conversion kits.
The move is an effort to support the city government's plan to promote use of CNG in taxis to reduce air pollution. Details of the loan plan are still being worked out.
The municipal administration wants taxis operating in Jakarta to use CNG starting in July 1992.
Jakarta's taxi drivers have been reluctant to switch because of the price tag on the kits, about $1,134, and they are not readily available. Drivers also cite the few number of CNG filling stations in the city.
Wiyoga Atmodarminto, governor of Jakarta, said the state oil company Pertamina plans to build more CNG stations in the city.
To date there are six CNG stations in Jakarta, each of which can serve about 400 cars.
CANADA
Canada's Federal Energy Minister Jake Epp launched the Natural Gas Vehicle Refueling Appliance Program, financed at $4 million (Canadian), to encourage the use of natural gas as a transportation fuel.
Under the program, the federal government will contribute a $1,500 package for conversion of a vehicle to natural gas and installation of a vehicle refueling appliance. The package includes a $500 conversion grant available through the existing natural gas vehicle program and a $1,000 payment toward purchase of a natural gas vehicle appliance.
Funding will come from market development incentive payments, money made available to the federal government by Alberta gas producers to expand the markets for Alberta gas in Canada. The program will operate in Alberta and provinces to the east where Alberta natural gas is available.
Epp disclosed the program at the official opening of the new Fuelmaker Corp. factory in Toronto.
Fuelmaker recently began commercial production of its natural gas vehicle refueling appliances. It is a joint venture of B.C. Gas, Sulzer Canada Inc., and Questar Corp., Salt Lake City.
INDIA
India's Surface Transport Ministry expects CNG vehicles to be in commercial operation by April 1992, citing promising results of experiments involving CNG fueled trucks by the Indian Institute of Petroleum in the western state of Gujarat.
The tests were of a conversion kit, developed by an Indian company in Madras, enabling trucks to run on diesel fuel or CNG. Converted vehicles feature a cut in polluting air emissions of almost 50%, the ministry said.
GEI/RIX
GEI signed an exclusive agency agreement with RIX New Zealand Ltd., Auckland, providing GEI an exclusive territory to represent and distribute RIX's CNG products and technology. GEI's territory includes the U.S., Canada, Mexico, and Japan.
RIX manufactures, rebuilds, and distributes products that compress gas and deliver CNG. Its products include an enclosed and portable fast-fill fuel system, a low cost self-service fuel pump, a line of vehicle conversion products, and a new version of a home use gas compressor that could expand the CNG market for private use.
GEI converted Gov. Richard's auto to CNG, has been awarded a contract with Tinker Air Force base in Oklahoma City to convert 186 vehicles to CNG, and converted the transit system of Capital Metro of Austin.
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