CNG-at-home startup Simple-Fill raises $170K

Simple-Fill Inc., which is developing technology to allow vehicles running on compressed natural gas to fill up at home, has raised $170,000 through convertible notes offered to three investors, the company disclosed in a Securities and Exchange Commission filing.

 

UN Draft Report Lists Unchecked Emissions’ Risks

Runaway growth in the emission of greenhouse gases is swamping all political efforts to deal with the problem, raising the risk of “severe, pervasive and irreversible impacts” over the coming decades, according to a draft of a major new United Nations report.

Natural gas vehicles take the halfway route

In the early 1990s, California tried to force the introduction of electric cars by requiring that auto companies produce a zero-emissions vehicle in order to remain in the state. The result was Chevrolet’s EV1, which everyone agreed was the best electrical vehicle that could be built at the time. Owners loved them, but somehow the effort didn’t take off.

The infrastructure simply wasn’t in place. The car only had a 70-mile range and drivers spent much of their time worrying about their next charge. Many EV1s ended up on the lots of rental agencies where they attracted little attention. All this, of course, was interpreted by some people as the fault of the oil companies and the auto industry, which didn’t push the case hard enough. The award-winning documentary “Who Killed the Electric Car?” made this argument.

Then three years later, Toyota introduced the Prius, a gas-electric hybrid that gave drivers some breathing room. It was a spectacular success. By not trying to make the technological transition in one giant leap, the Prius introduced drivers to the advantages of electric propulsion without asking them to sacrifice anything in terms of a nerve-wracking search for a refill. In fact, when Toyota brought out the Prius it deliberately left off a home charger so that buyers would not associate it with the failed EV1. Not until several years later did the company release a plug-in hybrid. In both cases, the Prius has been the most successful of all hybrids.

Natural gas vehicles seem determined to avoid the same mistake. This year both Ford and General Motors are releasing commercial NGVs in their light-truck and sedan lines. But they are taking care to make them bi-fuel vehicles that run on both gasoline and natural gas, although they are expensive. (Both companies have been making tri-fuel — gasoline, ethanol and CNG — for many years in Brazil.) 

First out of the box will be the immensely popular Chevrolet Silverado and the GMC Sierra, both full-sized pickups that sold 480,000 and 184,000 last year, respectively, the highest sales mark since 2007. GM is offering bi-fuel versions for every cabin configuration. The 2015 model will offer a 16-gallon gasoline tank and a 17-gallon-equivalent compressed natural gas tank. When both are filled, the truck will have a remarkable range of 650 miles.

Along with that, GM will be releasing a bi-fuel Chevrolet Impala to introduce ordinary drivers to the advantages of natural gas. The Impala will feature an 18.5-gallon gasoline tank and a 7.7-GGE CNG tank. The result will be a 500-mile range.

Not to be outdone, Ford has already introduced a bi-fuel version of the immensely successful F-150 half-ton pickup truck. Released only last November, the company managed to sell 15,000 vehicles across eight models in 2013. That beat 2012 sales by 25 percent. When combined with its conventional gas tank, the CNG boost gives the F-150 an astounding 700-mile range, beating the Silverado by 100 miles. Unfortunately, the price differential for all these NGV models will be about $10,000.

But motorists could see a 2-3-year payback if the price gap between gasoline and its natural gas equivalent holds up. Right now it has settled around $1.50 gap per gallon and has remained there for almost five years. Give motorists the opportunity to save almost half the price on a gallon of gas is bound to make the new bi-fuel models more attractive.

Other developments are also moving in the direction of a transition to natural gas for high mileage vehicles. In 2012, ARPA-E, the federal government’s program for advanced energy research, awarded $2.3 million to GE Global Research, Chart Industries and the University of Missouri to design a gas refueling station for homeowners. GE already makes a $5,000 medium-sized refueling kit for commercial businesses called “CNG in a Box” that takes gas out of the utility pipes and compresses it for fleet vehicles. The target price for the scaled-down homeowner version is $500. The consortium has set a release date for later this year, at which point we’ll find out if they’ve been successful. The launching of such a cheap conversion system that would allow homeowners to tap the natural gas pipes in their house to refuel their cars would revolutionize the whole NGV effort.

Of course there’s always another possibility — converting our abundant natural gas supplies to ethanol or methanol that would fit right into our current gasoline delivery system. Switching to liquids would not require a new on-board gas tank but would simply involve adjusting existing engines so they could run on a variety of liquids — the “flex-fuel” system. Giving motorists the widest variety of choices would let them experiment with different strategies without having to make a giant leap over some technological chasm. That’s what California learned twenty years ago when it tried to rush the introduction of the electric car and the lesson still holds good today.

EPA extends comment period for proposed refinery regulations

The US Environmental Protection Agency has extended the public comment period by 60 days for its proposed rule that would force petroleum refiners to implement additional controls on toxic air emissions from their refineries (OGJ Online, May 15, 2014).

Southeast Alternative Fuel Conference & Expo set for October

The Southeast Alternative Fuel Conference & Expo is set for Oct. 22-24 at the Raleigh Convention Center in Raleigh, NC. Hosted by the N.C. Clean Energy Technology Center, the event will feature plenary and breakout sessions with national and regional leaders.

Utah grapples with toxic water from oil and gas industry

A massive stream of wastewater tainted with hydrocarbons has been flowing into Utah from oil and gas mining on Colorado’s West Slope. Evaporation ponds used to process the contaminated water in Grand County have released tons of toxic chemicals into the air since April 2008.

With Nearly 3.5 Million Barrels of Oil Per Day Offline, Why Aren’t Oil Prices Surging?

Since 2009, oil prices have enjoyed a prolonged period of remarkable stability characterized by annualized volatility significantly below its long-term average. And though volatility has ticked up markedly in recent months due to the escalating conflicts in Russia and Iraq, oil prices haven’t risen much above $115 a barrel and have actually declined sharply in recent weeks.

Paul Harvey, the rest of the news and natural gas

Paul Harvey was a conservative icon in radio news during the mid to end of the 20th century. While I often differed with the substance of his commentary, he was a welcome travel partner when driving, particularly on a long trip. What I liked most about him was that he generally articulated his views without being malicious, and his voice was just wonderful. He sounded like a symphonic rap musician, using iambic pentameter.

One of Harvey’s favorite phrases was here’s “the rest of the story.” Remembering it, gives me a wonderful opening for this column.

This week there were several optimistic articles on natural gas growth this past week . One article in particular caught my eye. The piece described the expanded, but still relatively low, market penetration of natural gas as a transportation fuel. Given the cost and environmental benefits of natural gas, I was pleased to read the content and see the numbers and quotations. But in Paul Harvey’s terms it did not tell “the rest of the story”!

Yes, natural gas is making inroads into the trucking industry, even among buyers of new cars, asserts the article. “The boom in natural gas production in the U.S. has ignited a revolution in the auto sector that could reshape the way Americans fuel their vehicles, market participants and analysts said in a week-long special on FOX Business.” ClearView Energy Partners, the Newport Beach, California company that is building fuel stations along major interstate trucking corridors, will likely facilitate the growth of natural gas as a fuel in trucks. It will provide one of the missing pieces that have impeded natural gas’ popularity — fear of running out of fuel. “About 25% of the truck market could convert to natural gas by 2020, according to a report by Citigroup…eight in 10 new trucks Waste Management brought in 2012 were powered by natural gas.” Your friendly bus driver’s bus is increasingly likely to run on natural gas.

“Only a tenth of a percent of natural gas consumed in U.S. last year was used for fuel in vehicles, according to the Energy Department. Of the more than 15.2 million natural gas vehicles on roads across the globe, [only] about 120,000 are in the U.S.” Natural gas clearly hasn’t taken off yet as a transportation fuel in the U.S. Kevin Book, ClearView’s managing director of research indicates that, “I think you look at locomotives, also a very interesting and potentially large market, and also some of the marine applications before you start talking about smaller passenger cars.” I suspect his negative perceptions of natural gas as a competitive fuel in cars stems from the present costs of CNG passenger vehicles and the present absence of CNG fuel stations — a possible temporary problem if ClearView’s commitment to develop a natural gas highway could extend to private automobiles. We have had many successful freedom movements in this country. There would be only relatively marginal costs to extend the capacity of the natural gas highway’s fuel stations to include CNG availability for all consumers of natural gas vehicles and to assure availability of natural gas derivative fuels like ethanol. If you build it, many of the 17 million FFVs now on the road will come and more will follow, given what’s presently on the (near term) horizon.

Here is more of “the rest of the story,” à la Paul Harvey. One of the most innovative programs to stimulate the use of natural gas, CNG, was initiated by Gov. Hickenlooper and Gov. Fallin. Under their nonpartisan umbrella, 22 states have agreed to replace older cars, when they are due to retire, with CNG cars. Their commitment will create a large pool of CNG purchases over the next few years. Detroit has agreed to work with the states and both the governors and carmakers want to use the effort to produce a less expensive CNG car for American households.

But there is more! Two companies, Coskata, Inc. and Celanese have had success in converting natural gas to ethanol and are both striving to commercialize and define strategies to market their product. If they are successful, other companies will follow in light of historical “copycat capitalism.” The result will be a fuel that will be environmentally better and clearly cheaper than gasoline. The result will also be increased demand for fuels like E85, which will generate consumer purchases of FFVs and the conversion of existing, older cars. It may also open up the pockets of investors concerning the support for future E85 pumps. If ethanol becomes popular because of price and environmental objectives, can methanol be far behind (excuse me, Percy)? Freedom to choose what you drive and what fuel you use on the high and bi ways of this nation would be consistent with the American way and creed.