South Coast Air Quality Management District

Execute Contract to Develop and Demonstrate Advanced Storage Tanks for Storing CNG/LNG and Compressed and Liquid Hydrogen

SYNOPSIS:

Gaseous fuel vehicles powered by natural gas or hydrogen vehicles, though environmentally superior to conventional fuels, have range limitations. Structural Composites Industries, a leading US manufacturer of gaseous fuel tanks, in conjunction with Lawrence Livermore Laboratories and Sunline Transit, have proposed developing and demonstrating advanced storage tanks to address range issues. Type III tanks, used to store compressed natural gas or hydrogen, will be insulated to store cryogenic liquids. This would substantially increase vehicle range, without incurring significant evaporation. Staff recommends co-funding two projects, one for compressed/liquid natural gas and one for compressed/liquid hydrogen, in an amount not to exceed $500,000. Total project cost is $1.3 million, with DOE and the project proponents providing the remaining cost-share.

COMMITTEE:

Technology, September 28, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Structural Composites Industries to develop and demonstrate advanced storage tanks to (a) store compressed and liquid natural gas and (b) compressed and liquid hydrogen in an amount not to exceed $500,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMP identifies the use of alternative clean fuels in mobile sources as a key attainment strategy. Pursuant to AQMP goals, the AQMD recently adopted several fleet rules that require public and certain private fleets to purchase clean-burning alternative-fueled vehicles when adding or replacing vehicles to their vehicle fleets. These include natural gas vehicles in the near term, and possibly hydrogen fuel cell vehicles in the future.

The advantages of gaseous fuels, such as natural gas and hydrogen, are that these fuels have very low to zero tailpipe emissions. However, due to their low energy density, these fuels can limit the range of gaseous-fueled vehicles relative to conventional fuels, such as gasoline or diesel. Advances of on-board storage technologies are necessary to improve the vehicle range, and thus accelerate the entry and acceptance of these vehicles for a variety of light-duty and heavy-duty applications.

Currently, the majority of the gaseous-fueled vehicles carry gases in compressed form. Cryogenic, or liquefied fuels, can significantly improve vehicle range. However, boil-off due to evaporation is a serious concern for cryogenic liquid fuels, particularly since these fuels have a premium value over compressed fuels due to the higher costs involved in liquefying such fuels.

Proposal

Structural Composites Industries, a leading US manufacturer of gaseous fuel tanks, in conjunction with Lawrence Livermore Laboratories and Sunline Transit have proposed advanced storage tanks to overcome these barriers. By insulating Type III tanks, normally used to store compressed gases, cryogenic liquids that substantially increases vehicle range, can be stored without incurring significant evaporation of the fuel.

Testing of prototype insulated tanks, carrying compressed and later cryogenic hydrogen, was conducted using 900 high-pressure cycles and 100 low-temperature cycles. Encouraging results were obtained, in that no damage to the tanks was observed after these tests. Burst tests were also conducted with success. More intensive testing will be conducted in the next phase.

Two projects are being proposed:

a)	To develop and demonstrate insulated on-board tank(s) to store compressed and liquid natural gas
b)	To develop and demonstrate insulated on-board tank(s) to store compressed and liquid hydrogen.

In light-duty applications, these tanks are capable of being filled with compressed gas to address weekday driving, and during weekends, filled with cryogenic fuels to address longer range drives. In heavy-duty vehicles, such as transit buses, cryogenic liquids could potentially overcome the range limitations of gaseous vehicles relative to diesel buses. Thus, in both light and heavy-duty applications, premium cryogenic liquid is used only when needed, while significantly reducing boil-off.

Expected Benefits

The proposed project is included in the March 2001 update of the Technology Advancement Plan under Project 2001CFM2-4, "Development of Advanced Technologies for On-Board Gaseous Fuel Storage." The AQMP identifies the use of alternative clean fuels in mobile sources as a key attainment strategy. NGV and hydrogen-fueled vehicles have significantly lower emissions than gasoline and diesel vehicles, and can be used to comply with the recently adopted AQMD fleet regulations. Successful demonstration and commercialization of these tanks has the potential to address and overcome the perceived range limitations traditionally associated with clean gaseous-fueled vehicles, improving their competitive edge in the market, and thus accelerating the commercialization of natural gas and fuel cell vehicles. This, in turn, would provide substantial emissions reductions of NOx, VOC, CO, PM, and toxics throughout the Basin.

Sole Source Justification

Section VIII.B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for a sole source award is made under provisions B.2.d (1) other circumstances, including projects involving cost sharing by multiple sponsors. It is in the best interest of the AQMD to cosponsor the proposed project, whose participants include Structural Composites Industries, Lawrence Livermore Lab, Sunline Transit and DOE.

Structural Composites Industries (SCI) is a leading manufacturer in the world for Type III composite cylinder manufacturing used extensively in gaseous fueled vehicles. SCI provides state-of-art composite products for the global aerospace, launch vehicle, and satellite industries as well as for the newest military aircraft. Using proprietary techniques and technologies, it has converted aerospace technology into its cylinder manufacturing processes. Since 1975, it has produced over 1 million pressurized cylinders for a range of applications including breathing apparatus, satellite propulsion, aircraft safety and natural gas vehicles, and has an excellent safety record for its pressurized vessels. If the project is successful, SCI will use its manufacturing and distribution facilities to commercialize the new tanks.

Lawrence Livermore National Laboratory (LLNL) is a leading national laboratory engaged in analytical and experimental research, and is well equipped with significant computer resources and facilities to test high-pressure vessels. These facilities were used to successfully develop and test earlier prototypes of these tanks, particularly in developing the proper insulation and testing of the tanks at cryogenic temperatures. LLNL will provide the lead engineering expertise to optimize the design of the proposed tanks.

Sunline Transit has become a leading transit agency in clean fuel applications. Sunline has aggressively and voluntarily implemented alternative fueled vehicles in their commercial operations. These technologies are both near term and longer term. Sunline has extensive experience in designing, implementing and successfully operating natural gaseous refueling and natural gas fueled vehicles. Sunline was the first to develop a CNG training center at the nearby College of Desert where mechanics are trained to operate and maintain CNG vehicles. Sunline was among the region’s first agency to open a 24- hour CNG refueling station. Sunline recently took a step further, it plans to integrate zero emission vehicles in its fleet. It recently completed the construction of a hydrogen production and dispensing system, and is currently testing hydrogen buses. In this project, for field testing and demonstration purposes, Sunline will assist in integrating the new tanks into its natural gas and hydrogen vehicles.

Resource Impacts

For the two proposed projects, the amount of AQMD funding will not exceed $500,000. Other co-funders include

SCAQMD	$500,000 (direct)
DOE, through LLNL,	$500,000 (direct),
Sunline Transit	$200,000 (in-kind), and
SCI	$110,000 (in-kind)
Total cost	$1,310,000

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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