Alternative Fuel StudyAnalysis, Recommendations, VTOD Today

Dave Bird September 21, 2009

Background

• Environmental issues and oil dependency are amajor concern of airports, passengers and drivers.

• The cost of gasoline has negatively affected the stability and profitability of the transportation industry and most importantly our franchise/driver program.

• Alternative fuels have been tested and implemented.Now real commercial options do exist.

• Veolia is an environmental company and has very high standards. It is part of our DNA to reduce all waste that negatively impacts the world we live in. Additionally, VTOD as market leader has to be prepare for the impact the current fuel prices have on the industry.

Objectives of study

• Making recommendations for energy sources which:

• Reduce emissions• Reduce the dependency of foreign oil• Have a strong safety record• Improve profitability of our drivers

• Focusing on operational variables such as:

• Capital cost• Cost of fuel and maintenance• Infrastructure• Operational benefits and feasibility

Two major solutions

Alternative Fuels

– CNG– Propane– E85– Biodiesel– Hydrogen– LNG

Improved Gasoline Efficiency

- Hybrids- Smaller vehicles

Primary Exclusion List (currently not suitable for taxi or shuttle)

LNG - Not available for full size vans/cars, primarily used for heavy duty vehicles, specialized fueling procedures.

Hydrogen - Technology is not mature, minimal infrastructure exists, no vehicles are available.

Biodiesel - Minimal reduction in emissions or dependency on foreign oil. Conversion of vehicles in existing fleet is not an option; requires diesel engine.

Variable options

Alternative Fuels

– CNG– Propane– E85– Biodiesel– Hydrogen– LNG

Improved Gasoline Efficiency

- Hybrids- Smaller vehicles

Secondary Exclusion List (Shuttle Division)

E85 – Poor efficiency, limited fueling availability in most markets (except the Midwest). Not available currently in full size vans (although possible near term introduction). Little improvement in emissions.

Gas Electric Hybrid - Minimal to moderate reduction in emissions or foreign oil dependence, uncertain long-term reliability of batteries. Could be a viable current solution for taxi and sedan fleets. Not available in full size van.

Two Viable Alternative Fuel Options

CNG

Propane

CNG Strengths

Substantial improvement in energy security, as most (90%) is derived from domestic sources.

Improved emissions in all categories, except total hydrocarbons. These remain high because of methane emission.

Fuel is significantly cheaper than gasoline during most periods in most markets.

Recognized by airports and other regulatory authorities as a viable alternative fuel.

CNG Weaknesses

No Factory built vehicles (vans) at this time!

Vehicle conversion cost ($18,000) and limited options.

Limited vehicle range. (200 miles per tank fill)

Heavy fuel tanks increase vehicle weight and reduce fuel economy.

Limited fueling station availability.

Expensive to develop on-site fuel station.

Propane Strengths

Substantial improvement in energy security, as most (85%) is derived from domestic sources.

Improved emissions in all categories. The most widely used alternative fuel in the world. Excellent fuel tank capacity and range. Fuel is significantly cheaper than gasoline. Good availability of retail fuel stations. Practical to develop on-site fuel station.

Propane Weaknesses

No Factory built vehicles (vans) at this time!

Conversions are possible but at an additional cost. ($7000)

In some vehicles, fuel economy is slightly reduced.

Limited refueling options.

Not as recognized and not currently certified to be as clean as CNG.

Conclusions

Both CNG and Propane can be used in establishing a Clean Vehicle Policy for the shared ride industry however certain considerations need to be made in order to have a successful program.

Keep in mind that shared ride in itself is a clean air option.

Be aware of the weaknesses common to both and make concessions.

– No factory built units• Extend vehicle life• Push Manufacturers• Provide Capital

– Added expense of conversion• Establish long term grants• Assist in applications for outside grants • Reduce airport fees• Push and promote clean air transportation

– Limited Infrastructure• Build stations at the airport selling fuel at reasonable

prices• Push cities to build alternative fuel stations

Be aware of unidentified weaknesses that may be common to both.

– Conversion production• How early will orders need to be placed• How long will we have to wait

– Conversion performance• How will conversions hold up to the demands of the

shared ride industry• What can be expected as a warranty• What happens to manufactures warranty• Guaranty performance• Pay for vehicle down time

Understand the weaknesses that are exclusive to each fuel and push these

industries to address.

The only way to do that is allow choice for shared ride providers in alternative fuels.– Safer equipment– More competitive pricing of conversions– Better performance on conversions– Better fuel pricing– Better customer service

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