Energy Conversion and Financial Overview
Our Strategies - LNG Refuelling Stations in North America
ENN 新奥
Improving economics accelerates LNG adoption
Average life of a heavy duty truck is 5-10 years, payback period
shorter than 2-3 years is attractive to truck owners
The bulk of the incremental cost for LNG truck depending on the
fuel tank and tank systems, Blu has launched the new fuel tank
system for Class 8 trucks which reduced cost substantially
Retail price of LNG is more stable than diesel
Natural gas represents only 1/3 the cost of a DGE of LNG at the pump, the rest is
taxes, liquefaction, infrastructure and margin, while 65-70% of diesel is tied to the
commodity cost of oil
$3.00
$2.50
$0.00
LNG ($/Gallon)
Sales Tax
$2.00
Payback calculation for LNG trucks
State Excise Tax
$1.50
Average diesel price¹ (USD/gallon)
3.3
Federal Excise Tax
$1.00
Refueling Station
Average LNG price² (USD/DGE³)
2.6
Fuel Price
$0.50
Delivered
Spread (USD/DGE)
0.7
Average miles travelled (miles/year)
100,000
LNG consumption (DGE/year)
18,000
Savings (USD/year)
12,600
Incremental cost for adopting LNG truck (USD)
70,000
Payback (years)
5.6
LNG ($/DGE)
Diesel ($/DGE)
Favourable tax policies
Volumetric Excise Tax Credit (VETC) - The bill of $0.5/gallon fuel tax credit for
the business use of natural gas as a transportation fuel has been extended for the
calendar year 2014
-
LNG Excise Tax Equalization Act The current federal highway excise tax for
both LNG and diesel is $0.243/gallon, however, it takes 1.7 gallons of LNG to
equal the same energy content as 1 gallon of diesel. Since the excise tax is
volumetric basis, not energy content, LNG is taxed at 1.7x more than diesel. The
bill proposing the change of excise tax on LNG to be based on energy equivalent
basis was introduced in Senate, if it is passed, LNG trucks will pay 40% less on tax
Excise Tax
/gallon
24.3cents
Current Tax
Payment
$4,374
2.8
Fuel Type
Diesel
LNG
Annual Mileage
100,000
100,000
Gallons/year
18,000
30,600
24.3cents
$7,436
9
With Blu v2. fuel system
35,000
Incremental cost for adopting LNG truck (USD)
Payback (years)
Notes: 1. Diesel price on West Coast on 29/12/2014 released on EIA
2. Average LNG retail price at the pump at ENN US stations in Dec
3. Diesel gallon equivalentView entire presentation