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NGVAmerica News Week in Review: February 15, 2016


  • UPS Expands Agreement for Renewable LNG in Texas
  • S. DOE’s 2017 Budget Request Reduces Funding for Clean Cities Program
  • New York Clean Cities Coalition Announces AFV Funding Opportunity
  • Jacksonville Transit Authority Secures $17 Million in Federal Funding
  • American Power Group Receives $600,000 in Additional Dual Fuel Orders
  • Clean Energy’s Redeem Sales More than Double in 2015
  • New Technology Converts Livestock Waste Streams in Renewable Natural Gas
  • Quantum Fuel Systems Receives $8.4 Million Order for Virtual Pipeline Trailers
  • CNG Source to Deliver Advanced CNG Infrastructure Project in Mexico
  • Wärtsilä Dual-Fuel Engines Supporting Japan’s Shipping Sector


UPS Expands Agreement for Renewable LNG in Texas

February 10, 2016

UPS announced it has expanded its agreement with Clean Energy to use up to 500,000 GGEs of renewable LNG (RLNG) annually in Texas. UPS stations in Houston and Mesquite will dispense the RLNG to a fleet of about 140 UPS tractors. The deal builds on UPS’s current agreement with Clean Energy to provide approximately 1.5 million GGEs of renewable CNG (RCNG) annually in California where UPS operates nearly 400 CNG vehicles.

“Renewable natural gas is helping us to meet growing customer demand while reducing our environmental impact,” said Mark Wallace, UPS senior vice president, global engineering and sustainability. “By the end of 2017 we will have driven one billion miles with our alternative fuel and advanced technology fleet.”

Redeem by Clean Energy is a renewable natural gas program that sources RNG. It can be used as CNG or LNG and is derived from numerous renewable sources, including decomposing organic waste in landfills, wastewater treatment and agriculture.

The deal is part of an initiative announced last year by UPS to significantly expand its use of RNG natural gas in UPS’s alternative fuel and advanced technology fleet. In 2014, 5.4 percent of total gas and diesel purchased was displaced by using natural gas and other alternative fuels.


U.S. DOE’s 2017 Budget Request Reduces Funding for Clean Cities Program

February 15, 2016

This week, the U.S. Department of Energy (DOE) released the Fiscal Year (FY) 2017 Congressional Budget Request. In brief, DOE’s FY 2017 budget decreases investment in the Clean Cities deployment program by 32 percent below last year’s enacted level and 53 percent below last year’s budget request.  This is a significant departure from previous years.  In addition, the additional FY 2016 funding that was secured through the FY 2016 Appropriation process does not include innovative alternative fuel and advanced technology deployment activities.

The Clean Cities program has been critical in advancing the nation’s economic, environmental, and energy security by supporting local actions to cut petroleum use in transportation. At the national level, the program provides resources and information to help transportation stakeholders evaluate options and achieve goals around alternative fuels, advanced vehicles, and other strategies to cut petroleum use. At the local level, nearly 100 coalitions leverage these resources to foster public-private partnerships amongst businesses, fuel providers, vehicle fleets, state and local government agencies, and community organizations.

A copy of the DOE’s Vehicle Technologies Budget request for FY 2017 can be found here.


New York Clean Cities Coalition Announces AFV Funding Opportunity

February 15, 2016

The Genesee Region Clean Communities (GRCC) in New York has opened a Request for Proposal (RFP) application period for the Congestion Mitigation & Air Quality (CMAQ) program-Round 2.0, which provides approximately $1 million for the purchase or conversion of fleet vehicles to natural gas and other alternative fuels.

Funding is available to offset a portion of the incremental cost associated with the purchase of alternative fuel vehicles or conversion of vehicles operating in the Rochester Nonattainment Area counties, which include Monroe, Wayne, Ontario, Livingston, Genesee and Orleans. The CMAQ funds can be used to pay up to 75 percent of the incremental cost of the purchase price of a new alternative fuel fleet vehicle or conversion of an existing vehicle to operate on an alternative fuel. Eligible entities may include, but are not limited to the following: Public, private and nonprofit organizations with fleets of five or more vehicles operating in the Rochester Nonattainment Area.

The application deadline is March 18, 2016 at 5:00 p.m. Contact David Keefe, GRCC Coordinator, for additional information at 585.301.2433 or dkeefe@grcc.us. More information is also available at the GRCC website here.


Jacksonville Transit Authority Secures $17 Million in Federal Funding

February 9, 2016

This morning, the Office of Management and Budget announced the President’s Budget for Fiscal Year 2017, and it includes $17 million for the Jacksonville Transportation Authority’s (JTA) First Coast Flyer (Bus Rapid Transit) East Corridor Project. The project includes the purchase and deployment of 19 new energy-efficient CNG buses.

Funding was proposed under the Federal Transit Administration (FTA) Capital Investment Grants. The President’s Budget for Fiscal Year 2017 requests $3.5 billion to support the construction of major capital projects that provide new and expanded transit service, important economic benefits to communities, and help address existing fixed-guideway transit corridors that are at or near capacity. The President’s Budget supports 31 high-impact projects in 18 States.

“We are grateful for the ongoing support from Congressman Ander Crenshaw, Congresswoman Corrine Brown, and Senator Bill Nelson,” said JTA Chief Executive Officer Nathaniel P. Ford Sr. “Their support will ensure funding is secured to expand frequent and reliable transportation on quiet, energy efficient compressed natural gas buses, making is easier for First Coast residents to get to work, school and doctor appointments.”

The 18.5 mile East Corridor is the fourth segment of a five-phased First Coast Flyer system planned for the Jacksonville area. The $33.9 million project is funded by the FTA, Florida Department of Transportation and the JTA. When completed in 2019, the Flyer system will cover 57 miles of destination travel, and will be the largest bus rapid transit system of its kind in the Southeast.


American Power Group Receives $600,000 in Additional Dual Fuel Orders

February 10, 2016

American Power Group has received follow on purchase orders from two of its top U.S. customers for APG V5000 Turbocharged Natural Gas Systems and supporting CNG fueling systems. These new orders, which total over $600,000, are expected to ship during the second and third quarters of 2016 and will bring the two customers’ collective APG dual fuel truck fleets to over one hundred units.

“Our vehicular efforts are benefiting from a recent Congressional approval of an alternative fuel excise tax credit of $0.50 per gallon retroactive to 2015 and in place for 2016,” said Lyle Jensen, American Power Group Corporation’s CEO. “In addition, a recent federal law change provides that LNG will be taxed on its BTU value which reduces the federal fuel tax by $0.17 per gallon.”

APG says it continues to provide state regulatory agencies, especially those in California, with emission reduction data of its dual-fuel technology to show it is a proven and immediate solution in meeting emission reduction mandates.


Clean Energy’s Redeem Sales More than Double in 2015

February 10, 2016

Clean Energy announced that sales of Redeem, its renewable natural gas (RNG) vehicle fuel offering, more than doubled in 2015 to 50 million GGEs from 20 million GGEs in 2014. Redeem sales have expanded from Clean Energy public-access stations in California, to become the contracted fuel choice of customers like UPS, Republic Services, the City of Santa Monica’s Big Blue Bus, the University of California San Diego and others. Sales of Redeem also have recently expanded into Oregon and Texas. Clean Energy launched Redeem in 2013 and has rapidly increased sales as more fleets want to realize a significant reduction in greenhouse gas emissions as compared to diesel fuel.

UPS, already the largest user of Redeem, currently fuels close to 400 vehicles in California, and will now take delivery for portions of its delivery vehicle fleet in Texas. “UPS is committed to expanding our use of alternative fuels, including renewable natural gas, to minimize our impact to the environment,” UPS senior VP for global engineering and sustainability Mark Wallace said in a release. “Renewable natural gas turns naturally occurring methane into an alternative fuel that replaces diesel and its carbon emissions.”

The University of California, San Diego (UCSD) became the first university transit fleet to fuel with 100 percent RNG, fueling its fleet of 52 vehicles, including 19 transit buses with Redeem.  The fleet fuels at the UCSD campus station and is expected to consume approximately 240,000 GGEs of Redeem annually.

Redeem is a renewable natural gas vehicle fuel and is derived from biogenic methane, or biogas, which is methane that is naturally generated by the decomposition of organic waste. The methane gas is processed, purified and sent into the interstate natural gas pipeline and made available exclusively to Clean Energy customers.


New Technology Converts Livestock Waste Streams in Renewable Natural Gas

February 10, 2016

Bion Environmental Technologies, a provider of livestock waste treatment technology, has modified its technology platform to enable the capture of ammonia and its conversion into commercial products, which enables the production of RNG from the volatile solids in the waste stream.

Bion estimates the potential byproduct revenues from renewable energy (and associated carbon-reduction credits) and fertilizer production, based on present market prices, to be in the range of $15 to $20 million.

The technology platform can now employ anaerobic digestion to produce methane which can then be cleaned and injected into existing pipelines, resulting in clean, renewable natural gas. The gas can then be delivered anywhere in the country for use as a vehicle fuel, such as California where it would qualify for significantly more renewable energy credits.


Quantum Fuel Systems Receives $8.4 Million Order for Virtual Pipeline Trailers

February 10, 2016

Quantum Fuel Systems has received a purchase order from Xpress Natural Gas for 15 Q-VP650 virtual pipeline trailers with delivery dates expected to start in the second half of 2016. The order includes a customer option for 20 additional trailers and system upgrades which, if exercised, would have delivery dates starting in 2017. The trailers will be used to supply natural gas to customers throughout North America that lack access to or capacity on existing pipelines.

Quantum’s Q-VP650 is mounted in a 45 ft. hi-cube shipping container and has been designed for use on over-the-road trailer and sea applications. The trailers have been integrated with high capacity Q-Lite storage containers, delivering approximately 650,000 standard cu. ft. of storage when used at 5,000 psi system levels.

“The engineering design and high capacity storage of Quantum’s new virtual pipeline trailer will allow us to substantially improve our transportation efficiencies in delivering CNG to our customers,” said John Nahill, CEO of XNG.


CNG Source to Deliver Advanced CNG Infrastructure Project in Mexico

February 9, 2016

CNG Source is formalizing a deal with V-Energia for a large public CNG station to be built in Mexico. The station will be a high-capacity station with the ability to service both the vehicular as well as the virtual pipeline industry. The station will feature four compressors driven by natural gas engines, providing high performance and a low cost of operation.

The vehicle side of the station will feature the latest dispensers based on a custom version of CNG Source’s Triumph model. The dispensers include the proprietary Tank-Sense technology, which allows for an accurate temperature compensated fill. The fueling hoses will provide both NGV1 and NGV2 options for each position.

The V-Energia group operates several gas stations under the Pemex brand, maintains a fleet management company, and also manufacture and provide wet-fuel dispensers to the Mexican market.


Wärtsilä Dual-Fuel Engines Supporting Japan’s Shipping Sector

February 10, 2016

A total of 16 new gas carrier ships being built in Japan for Japanese owners are to be powered by Wärtsilä dual-fuel engines capable of running on LNG or conventional diesel fuels.

The orders specify 20 nine-cylinder, 25 six-cylinder and 16 eight-cylinder Wärtsilä 50DF dual-fuel engines. This total of 61 engines that will be running primarily on LNG represents a significant expansion of Japan’s gas fueled merchant fleet. These will be the first Wärtsilä 50DF engines delivered for Japan’s LNG carrier market. The first of the Wärtsilä machinery was delivered at the end of December 2015.

“We at Wärtsilä have always been at the forefront in making it possible, through our technologies, for LNG to become a viable marine fuel,” said Lars Anderson, Vice President, Wärtsilä Marine Solutions.

The 16 vessels have a gas cargo capacity of between 5.50 and 6.35 million cu. ft. They will be employed mainly in delivering shale gas from the U.S. to Japan.