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Canadian Renewable Fuels Summit November 30, 2010 Roger Smith, Executive Director

Canadian Renewable Fuels Summit November 30, 2010 Roger Smith, Executive Director. DRIVING CHANGE. Green Solutions for Fleet Operators. Elements of Today’s Presentation. About Fleet Challenge Origin of the Green Fleet Today’s Green Fleet A Fleet Manager’s Green Toolkit

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Canadian Renewable Fuels Summit November 30, 2010 Roger Smith, Executive Director

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  1. Canadian Renewable Fuels Summit November 30, 2010 Roger Smith, Executive Director DRIVING CHANGE Green Solutions for Fleet Operators

  2. Elements of Today’s Presentation • About Fleet Challenge • Origin of the Green Fleet • Today’s Green Fleet • A Fleet Manager’s Green Toolkit • Fleets and Renewable Fuels

  3. Fleet Challenge Ontario About us…

  4. Fleet Challenge Ontario • Not-for-profit program since 2004 • Close collaboration - private and public sector fleets to reduce emissions • Regional workshops, consultations, research & demonstration projects • Facilitate market adaptation of green technologies

  5. Fleet Challenge Inc. • Delivers for-fee projects and assignments • Clients include governments, private and public sector fleets • Fleet Intelligence Tool (FIT™) – web-based data modeling & performance management system

  6. Mission The Fleet Challenge Mission is… To reduce carbon and smog-causing emissions from on-road transportation fleets by responsibly facilitating the adaptation of proven green technologies and best management practices.

  7. Some Past Projects • Fleet Review – Ontario Public Service fleet, TDL Group Corp. (Tim Hortons), Direct Energy • Green Commercial Vehicle Project (MTO) • GoGreen Plan - Ontario Public Services (MGS) • Ontario BioFleet - biodiesel market development

  8. Some Current Projects • Ontario Municipal Fleet Review Program • Workshops and Clinics • Police & EMS (PEMS) Idling Reduction Project • EV300 • Green Fleet Expo • Green Fleet Leadership Awards • CBC National Green Fleet Strategy

  9. Partnerships • Pollution Probe • Cities of Toronto and Hamilton • Toronto Atmospheric Fund • US Environmental Defense Fund • Clinton Global Initiative • University of Windsor • Federation of Canadian Municipalities • Association of Municipalities of Ontario

  10. Origin of the Green Fleet How it started…

  11. The Beginning • Oil embargo of 1970’s • Widespread fuel shortages, soaring prices • North American crisis • Fuel efficiency translated to fiscal bottom line – fleet survival

  12. Policy Changes • Corporate Average Fuel Economy (CAFE) requirements (1975) • California Air Resources Board (CARB) – alternate fuel vehicle incentive program, ZEV program • Energy Policy Act (EPACT) required government fleets to use alternate fuels (1992)

  13. As A Result • Conservation measures (55 mph) • Alternate fuels • Smaller, lighter cars • Higher efficiency trucks with aerodynamics and maximized load capacity The first ‘green fleets’ emerged

  14. From 1972 to 1997 By 1997 average MPG was 28.5 In 1972 average MPG was 14.5 U.S. fuel mileage (CAFE) almost doubled between 1972 and 1997

  15. Post 1997 • LD vehicle engines became smaller and more powerful

  16. Source: U.S. National Highway and Traffic Safety Administration

  17. Post 1997 • LD vehicle engines became smaller and more powerful • Sales of SUVs and pickups increased

  18. Source: U.S. National Highway and Traffic Safety Administration

  19. Source: Natural Resources Canada www.nrcan.gc.ca

  20. Post 1997 • LD vehicle engines became smaller and more powerful • Sales of SUVs and pickups increased • Net result? CAFE flat lined at 27.5 MPG to the present day

  21. Source: U.S. National Highway and Traffic Safety Administration

  22. Post 1997 • LD vehicle engines became smaller and more powerful • Sales of SUVs and pickups increased • Net result? CAFE flat lined at 27.5 MPG to the present day Despite lighter and more fuel efficient cars, fuel economy stagnated since it peaked in 1997 due to public preference for SUVs, pickups and larger vehicles. Emissions continued to rise.

  23. Today’s Green Fleet Green Fleet Evolution

  24. Today’s Green Fleet • Profitability remains primary focus for fleets • World facing another major concern – climate change and global warming due to GHGs • Carbon emissions from fossil fuels primary source of GHGs • 50% to 80% carbon reduction required to slow advance of global warming

  25. Carbon Emissions • In Canada, transportation responsible for ~30% of national GHG emissions • For corporations, transportation division typically one of the biggest sources of GHGs • Internationally corporations and governments setting targets and taking action on GHG reductions

  26. NAFA (U.S.) 2010 Survey Over 76% of private and 80% of public sector fleets have sustainability initiatives in place

  27. Green Fleet Leadership

  28. A Fleet Manager’s Green Toolkit Options

  29. Fleet Manager’s Green Toolkit

  30. Fleet Manager’s Green Toolkit

  31. Fleet Manager’s Green Toolkit Source: GHGenius V3.11

  32. Calculating Fleet Carbon Emissions • Example 1: • Gasoline (tailpipe) - 2.216 kg/L • Fleet “A” consumes 1,000,000 litres gas per year • 1,000,000 x 2.216 = 2,216,000 kg (2,216 tonnes) Source: GHGenius V3.11

  33. Calculating Fleet Carbon Emissions • Example 2: • Diesel fuel (tailpipe) - 2.717 kg/L • Fleet “A” consumes 1,000,000 litres diesel per year • 1,000,000 x 2.717 = 2,717,000 kg (2,717 tonnes) Source: GHGenius V3.11

  34. Calculating Fleet Carbon Emissions • Fleet “A” carbon baseline: • Gasoline: 2,216 • Diesel: 2,717 • Total: 4,933 tonnes

  35. Carbon Emissions – Renewable Fuels • Example 3: • E85 (tailpipe) - 0.369 kg/L • Fleet “A” consumes 1,000,000 litres gas per year • 1,000,000 x 0.369 = 369,000 kg (369 tonnes) Source: GHGenius V3.11

  36. Carbon Emissions – Renewable Fuels • Example 4: • B20 biodiesel (tailpipe) - 2.187 kg/L • Fleet “A” consumes 1,000,000 litres • diesel per year • 1,000,000 x 2.187 = 2,187,000 kg (2,187 tonnes) Source: GHGenius V3.11

  37. Carbon Emissions – Renewable Fuels • Fleet “A” carbon baseline using renewable fuels: • E85: 369 • B20: 2,187 • Total: 2,556 tonnes

  38. Carbon Emissions – Renewable Fuels • Fleet “A” net carbon reduction over baseline: • Before: 4,933 • After: 2,556 • Total: 2,377 tonnes Fleet “A” would reduce their GHGs by 48% by switching to renewable fuels.

  39. Today’s Green Fleet Renewable Fuels for Fleets

  40. A Decade of Biodiesel Success

  41. NAFA 2010 Fleet Manager Survey U.S. Public Service fleets: • 16% used propane • 34% used CNG • 64% used biodiesel • 64% used E85

  42. NAFA 2010 Fleet Manager Survey U.S. Private Sector fleets: • 9% used propane • 10% purchased carbon credits to become carbon neutral • 55% adopted smaller motors (4 cylinder) • 77% used hybrids • 91% used E85

  43. Canadian Confidence in Renewables • No Canadian statistics on E85, however… • Federation of Canadian Municipalities 2010 • almost 60% of municipalities surveyed now use biodiesel • Fleet Challenge Ontario 2010 survey : • 80% of fleets surveyed now using biodiesel • Of those: • 50% will increase use of biodiesel • 50% will increase their blend rate

  44. Why Biodiesel? • One of the most cost-effective methods to reduce air pollution • Reduces GHGs, black smoke, air toxins, odor • Provides enhanced performance characteristics: • Higher cetane for smoother & quieter engine operation • Increased lubricity for longer injector life, fewer oil changes

  45. Why Biodiesel? • Higher flashpoint – safe product to use & store • Adds lubricity to ULSD • Non-toxic • Easy to use, ready for use in all modern diesel vehicles without modifications • Warranty-acceptable by all OEMs

  46. Why Biodiesel? • Made from diverse feedstock • Easily blended to match all climatic conditions • High quality ASTM biodiesel now • Injection blending Biodiesel blends up to B20 have had one decade and millions of kilometers of successful use in all seasons in Canadian municipal and private sector fleets since 2000

  47. Ethanol – E85 • In the U.S., almost 2,000 E85 fuelling stations and growing • No E85 fuelling infrastructure currently exists in Canada

  48. Ethanol - Brazil • Ethanol accounts for 40% of fuel • FFV production is 67% of new car production • Annual ethanol production four billion gallons • Since 1970, ethanol has displaced 800 million barrels of oil Source: Ethanol Fact Book, Clean Fuels Development Coalition

  49. Why Ethanol ? • High level blends (i.e., E85) result in dramatically reduced greenhouse gases (83% less per liter), plus: • Air toxins by 28% • Volatile organic compounds by 17% • Nitrogen oxides by 3% • Carbon monoxide by 13% • Sulphur oxides by 11% • Carbon dioxide by 4% • Particulate matter by 9% Source: Ethanol Fact Book, Clean Fuels Development Coalition

  50. Why Ethanol ? • About 550,000 flex-fuel vehicles in Canada ready to use E85 ethanol now • Boost for the agricultural industry • Job creation – in U.S., estimated that use of foreign oil diverts 800,000 jobs overseas • Ethanol a renewable fuel, grown here meaning energy independence • Produced from corn and other feedstocks • Biodegradable and safe Source: Ethanol Fact Book, Clean Fuels Development Coalition

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