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Northeast and Mid-Atlantic States Regional Low Carbon Fuel Standard Newark Stakeholder Meeting October 27, 2009 Transportation Fuels Panel Liquid Fuels . Past Experiences versus New Low Carbon Fuel Standard Possibilities.
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Northeast and Mid-Atlantic StatesRegional Low Carbon Fuel StandardNewark Stakeholder MeetingOctober 27, 2009 Transportation Fuels Panel Liquid Fuels
Past Experiences versus New Low Carbon Fuel Standard Possibilities • Creating a Low Carbon Fuel Standard is new uncharted waters. Over the last three decades, we have successfully transitioned to cleaner lower sulfur fuels. Here in the U.S. and throughout the world, countries continue to reduce sulfur limits in distillate and gasoline. This has become common practice as a result of what we will call “simply” refinery modifications and upgrades. As we research and plan for cleaner carbon-less fuels to reduce greenhouse emissions and transition to a more efficient sustainable society, we find a more complex set of parameters and challenges. Undoubtedly we can accomplish the implementation of a sustainable society incorporating low carbon if not carbon-free fuels, but it will take time and monies as technologies constantly evolve while becoming more efficient and less costly. Rather then spend time on the science, this brief presentation will afford you other requirements with which fuels and equipment must comply.
Challenges – Approvals, Timing, Feasibility, Costs • Equipment Manufacturers • Product demonstration projects • Equipment operability in all climates and seasons • Equipment warranty acceptance • Blend ratio • Feedstock • ASTM, EMA, ASME, UL Acceptance • Infrastructure Development • Production Capacity • On-site storage and distribution accessibility • Continuous ratable quantities • Segregated or Fungible Supply and Distribution System • Local/regional supply vs. foreign or domestic • Mode of transportation • Local Bulk Storage, Blending and Distribution • Special handling • National and Local Approvals • Weights and Measures, Fire Department, etc. • UL approved dispensers • User Handling, Storage and Dispensing • Special handling and product use
What If’s • Technology unavailable or not commercialized • Product quantities entirely unavailable or intermittently available • Assumptions inaccuracy • Supply • Infrastructure • Available quantities • Science to reduce greenhouse emissions and carbon life cycle evolves, changes, modifies or incorrect
Solutions • Sprague applauds the initiative to move forward to reduce emissions and the carbon footprint in northeastern U.S. through a Low Carbon Fuel Standard • Begin introduction in early years of LCFS with proven biofuels as a known product with available supply and proven infrastructure development • Evolve into sophisticated technologies when they are proven options For Example: • Biodiesel and bioheat from various feedstock sources are currently available in suitable quantities to begin a program for on-road, off-road and heating equipment • Expand the options to incorporate newer technologies once proven and commercially available
Solutions • Require extended period of time to meet challenges for each accepted technology/product • There are hurdles and challenges to overcome. A LCFS can be achieved if all parties work together
Contact Information Steven J. Levy Sprague Energy 4 New King Street White Plains, NY 10604 914.328.6770 914.328.6701 fax slevy@spragueenergy.com www.spragueenergy.com
Sprague Energy • Sprague has been focused on the needs of energy consumers and wholesalers for over 130 years. Our vast network of facilities and global expertise have made us a leader in the procurement, handling and delivery of fuel, unique products and management programs and services. • Corporate headquarters in Portsmouth, New Hampshire • Employs 400 people • Annually distributes/handles more than: • 2.5 billion gallons of petroleum products • 170 billion cubic feet of natural gas • 3 million tons of bulk materials • Owns and operates 20 major oil terminals • Throughputs and exchanges at over 50 additional facilities
Sprague’s Commitment to Our Customers • Focused on “Doing More” to make our customers successful • Premium product designed to help maintain and boost heating systems • Premium product designed to help maintain and preserve diesel engine systems year round • Fuel source derived from vegetable oils and/or animal fats (Sprague’s source is soybean oil). Domestic, environmentally sound and sustainable. BioDiesel/BioHeat • Specialty price protection program designed to allow customers to match real demand to financial instruments. • The BTU Options program is designed to leverage the cost gaps between natural gas and oil to lower total cost of energy. • Daily natural gas and oil commentaries help customers make informed energy decisions with the two MarketWatch reports. • Sprague Real-Time is a web-based tool to allow certified customers access to their information on a real time basis.