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Budweiser trades Clydesdales for natural gas

The famous Clydesdales that have hauled Budweiser’s barrels of beer since the 19th century are finally being replaced by 21st century compressed natural gas-driven vehicles.

Well, it isn’t quite that simple. There’s been an 80-year interval between the 19th and 21st centuries, when Budweiser’s trucks ran on gasoline and diesel fuel. But for 66 trucks at Budweiser’s Houston brewery, the 53-foot trailers loaded with 50,000 pounds are now going to be hauled by trailers running on compressed natural gas.

Anheuser-Busch actually has plans to convert its entire fleet to natural gas, according to James Sembrot, senior transportation director. “It’s significant that A-B feels comfortable swapping for an entire fleet that runs on CNG,” Christopher Helman wrote in Forbes. According to Sembrot, “the intention of shifting to natgas…is to reduce carbon emissions and fuel costs, while doing something green(ish).”

“The Houston brewery is among the biggest of the 14 that A-B operates nationwide. The closest breweries to this one are in Fort Collins, Colo., and St. Louis. Each truck rolls virtually around the clock — traveling in an average of 140,000 miles in a single year hauling beer to wholesalers. They move 17 million barrels of beer each year.” That’s a lot of beer running on natural gas.

Actually, it’s not Anheuser-Busch that is taking the initiative on Budweiser. The natural gas vehicles are being made available through Ryder, the nation’s largest trucking company since merging with Budget Truck Rental in 2002. Budget now has 2,800 businesses and 132,000 trucks around the country. Although only a small percentage run on natural gas, the company is dedicated to converting its fleet with all due dispatch, and the savings may prove to be extraordinary. According to Helman, “Sembrot tells me that the old trucks were getting 6.2 miles per gallon of diesel and running 140,000 miles per year. That equates to 1.45 million gallons of diesel to go 9.2 million miles. At about $3.80 per gallon, that’s roughly $5.5 million in total diesel costs per year. If they save about 30 percent per ‘gallon equivalent’ when buying CNG, that’s a savings of about $1.65 million per year.” That’s a lot of money save for switching to natural gas.

But it’s not just Budweiser and Ryder and a few forward-looking companies that are pushing ahead with natural-gas vehicles. The whole state of Texas seems to have gotten the bug. The Lone Star State now has 106 CNG filling stations, the most in the country. Forty are them are open to the public, while the others are fleet vehicles where vehicles from Anheuser-Busch and Ryder can fill up. Actually, far ahead of these innovators are FedEx and UPS, which have not converted their fleets for many years. And hovering in the background is T. Boone Pickens and his “hydrogen highway,” which is installing huge natural gas depots at key truck stops along the Interstate system. Much of this is aimed at Texas and the first complete link has joined San Diego to Austin in a seamless string of stations that will allow tractor-trailers to make the whole trip on natural gas.

All this has done wonders for Texas tax collections. At the start of the year, the Texas Controller’ Office was anticipating revenues less than $ million from excise taxes. Yet by July 31, 2014, collections were 220 times of that anticipated, and the Texas Controller’s office had collected $2,178,199. “These collections are more than double the estimated amount,” said David Porter, Texas Railroad Commissioner. “At 15 cents per gallon equivalent, $2 of motor fuels tax equals sales of 14,521,326 gallon equivalents of natural gas.”

Texas may be famous for fracking and producing more oil than Iraq, but they do not hesitate to look for new uses for gas and oil as well.

 

Photo by by Paul Keleher from Mass, US.

Are We Entering the Age of Batteries?

Last week in Houston, Secretary of Energy Dr. Ernest Moniz told CERA Conference attendees that storage batteries may be the next big energy breakthrough.  “It’s pretty dramatic,” he said.  “The research is moving very, very fast.”

Indeed, if you’re looking for “energy breakthroughs” on the Internet these days, most of the hits are likely to turn up something new about “flow batteries,” “ten times the storage capacity,” or some new cathode material that dramatically improves the performance of lithium-ion batteries.

So where do we stand in this energy revolution now, and what are the possibilities that any of these breakthroughs are likely to lead to real improvements in our attempts to wean ourselves off traditional energy resources like fossil fuels?

A good place to start is “Next Generation Electrical Energy Storage: Beyond Lithium Ion Batteries,” a panel put together for last February’s meeting of the American Association for the Advancement of Science in Chicago.  Three experts – Haresh Kamath; of the Electric Power Research Institute, Mark Mathias; of General Motors, and Jeff Chamberlain; of Argonne National Laboratory – discussed the latest developments in the industry.

All three panelists agreed that battery research is progressing along two separate tracks:

1) lithium-ion batteries that power most consumer electronic devices are now being scaled up for electric vehicles; and

2) larger and more durable conventional batteries for the storage of grid-scale electricity.

Despite whatever hopes Elon Musk may have that his new “Gigafactory” will be able to address both of these markets at the same time, that does not seem likely.  “Lithium-ion just doesn’t have the durability that we’re looking for in the utility industry,” Kamath of EPRI told the audience.  He continued:

I was doing cable research one time and we had a model for a product that would last 40 years.  The utilities looked at it and said, `Could you try for 60 or 80?’  The utilities are looking for things that last a long, long time.’ said Kamath.

“There’s a lot of experimenting going on,” Kamath added, “but everything that is on the grid right now is a demonstration.  No one has yet come up with a sustainable business model.”

With electric cars, on the other hand, the challenge will be in equipping batteries with enough energy density so that their weight does not load down the vehicle to the point of being counterproductive.  “The standard measure is that you need 100 kilowatt-hours of power to drive a mid-sized vehicle 300 miles,” said Mathias, who works at GM’s electrical storage research and development project.  He explained.

If you get up in the density range of 350 Watt-hours per kilogram, you can make it.  But current batteries are operating at around 150 Wh/kg, which gives them a range of 125 miles.  The best we can project is that they can achieve 225 Watt-hours per liter, which still leaves them short. (Mathias).

“Fuel cells operating on hydrogen actually do a much better job at this point,” he added.  “They can now get us up in the 300-mile range.  We regard them as electric vehicles as well.  It’s just that you generate the electricity on board.”

Then there’s the matter of cost.  Capital costs for lithium-ion batteries quickly rise into the $20,000 range.  Fuel cells cost only $6,000 and gas-electric hybrids, $4,000.  “The good news for EVs is that fuel costs are only about one-third that of gasoline,” said Mathias. “Over a span of 100,000 miles, a gasoline engine will cost you $10,000 in fuel.  A hydrogen fuel cell vehicle will cost only $6,000 and a pure EV, $3,333.”  Still, that’s a long time to wait and a long way from complete cost recovery.

Refueling time is also a bit of a problem.  “When you pump gasoline into your car, you’re actually adding range at a rate of 150 miles per minute,” said Mathias.  He went on to say:

With hydrogen fuel, it’s 100 miles-per-minute, which is acceptable. But even with the new 120-kW superchargers, you can only add mileage to an EV at a rate of 6 miles per minute.  If you take a long- distance trip, you’re going to spend 20 percent of your time       recharging. (Mathias)

Overall, Mathias was not overly optimistic about further improvements.  “There’s not much on the horizon,” he concluded.  He was more optimistic about hydrogen cars.

Chamberlain, of Argonne National Laboratory, is part of a $120 million program funded by the Department of Energy that is aimed at developing batteries with five times the current energy density at 1/5th the cost within five years.  “That’s a very ambitious goal,” he told the audience, “but we feel that’s what’s needed to transform the transportation sector.”  A long chain of national and university laboratories are involved in the project.  Of course, government goals and mandates are just that – projections that may or may not come true.  Steve Jobs was good at inspiring his cast to pursue seemingly impossible goals but the federal government does not always have the same success.

So far, the research has involved searching the periodic table for more candidates.  “We’re not sure what we’re going to come up with,” said Chamberlain, elaborating:

We’ve decided that capacitors will never help us reach our goal.  The charge dissipates too quickly.  So we’re exploring other materials.  It may involve a metallic anode and a suspended-particle cathode.  If you move to magnesium or aluminum, you’re releasing two electrons  instead of one.  But zinc-air and lithium-air doesn’t get you there               because they simply don’t have the power.”  (Chamberlain)

Chamberlain said that a lot is already known about lithium-ion.  “We may be able to get two times what we have now.”  He had to agree with Mathias that no other significant developments are on the horizon right now.

Mathias warned against new reports that are constantly announcing progress at the material level.  “We often realize right away that they’re not going to work,” he said.  “It’s not worth the manufacturing dollars.

Overall, the takeaway from the panel was that Tesla has its work cut out for it.  Progress on electric vehicles will be tough.  The panelists agreed that natural gas vehicles make a lot of sense.  “The problem is you don’t really solve the CO2 problem,” said Mathias.  He did express confidence that battery research would eventually pay off in the end.  “All this progress will eventually be harvested at the hybrid level,” he said.  “It may not lead to pure electric level, but there is going to be a lot of improvement in hybrids.”