BOARD MEETING DATE: March 1, 2002
AGENDA NO. 4

Execute Contract to Cost Share Development of Odorant for Liquefied Natural Gas

SYNOPSIS:

Gaseous odorants are used in commercial and residential natural gas to alert consumers of gas leakage. These odorants are also found in compressed natural gas (CNG) which originates from odorized pipeline natural gas. However, liquefied natural gas (LNG) is a cryogenic liquid in which normal natural gas odorants freeze, separate and are not useful. Current LNG vehicles have methane detectors to warn of leakages instead of odorants. Staff proposes the initial development of an economical LNG odorant which expands the options for detecting methane leakage. Total project cost is approximately $418,320. Total AQMD cost to fund this project will not exceed $123,835.

COMMITTEE:

Technology, January 25, 2002, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with USA PRO & Associates to develop an odorant for liquefied natural gas, for an amount not to exceed $123,835.

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. Alternative fuel vehicles, such as natural gas vehicles (NGVs), have demonstrated significantly lower VOC, NOx, CO and toxic emissions than gasoline and diesel vehicles. Liquefied natural gas (LNG) has become the alternative fuel of choice for some heavy-duty NGVs because of the high energy density of the stored fuel and the increased vehicle range it affords.

Natural gas delivered to commercial and residential users contains odorants to alert consumers of gas leakage. These odorants are also found in compressed natural gas (CNG) which usually originates from odorized pipeline natural gas. However, LNG is a cryogenic liquid (kept at –259° F) in which normal natural gas odorants freeze and separate and are not useful for leakage warning.

Because of the lack of odorants in LNG, LNG vehicles in California are required by the California Highway Patrol to have on-board methane detection systems. Methane detectors are currently available and are used extensively throughout the state. These detection systems and their associated cost are not required by CNG nor propane (LPG) vehicles because these fuels are odorized. Some operators of L/CNG refueling stations have been adding odorants as the LNG is vaporized into the CNG tanks. However, LNG odorization is not necessarily applicable to all refueling sites.

Proposal

The objective of the proposed project is to develop a viable LNG odorant package which expands the options for operators to detect natural gas leaks in their equipment. In Task 1, a technical review of both historical and current data will be conducted. This will include a survey of the technical literature, review of automotive, federal and state requirements, and a review of pipeline and commercial odorant requirements. The second part of this task includes a technical analysis of odorant and blended hydrocarbon materials that have been proposed as LNG odorants. In Task 2, odorant-mixing systems will be investigated. These include both systems at liquefaction plants and those utilizing receiving tanks or cargo tankers. The pre-conditioning (cooling) of the odorant will also be considered. This task also involves verifying the modeled solubility of candidate odorants in LNG in a laboratory. In Task 3, blending compounds (carrier) for the odorant will be investigated as well as a full-scale evaluation of candidate odorant blends. Finally, an odorant blend and LNG mixing system will be recommended.

Benefits to AQMD

The proposed project is included in the March 2001 update of the Technology Advancement Plan under Project 2001CFM3-2 "Development of Liquefied Natural Gas Detection Technologies." The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. By developing this odorant technology, another safety option for LNG vehicles will be provided at lower cost. The indirect emission benefits from greater use of LNG vehicles because of this odorant technology cannot be directly estimated.

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 sponsors include the Gas Research Institute and USA PRO & Associates.

The Gas Research Institute was founded in 1976 as the major research and technology development organization for the U.S. natural gas industry and its customers. Since its founding, GRI has moved more than 350 gas-related products from its research, development and commercialization program into commercial service, and has considerable collaboration experience with market development initiatives of the federal government and other national organizations. In 2000, GRI combined with the Institute of Gas Technology (founded in 1941) to create the Gas Technology Institute (GTI), an independent, not-for-profit natural gas technology organization with headquarters in Des Plaines, Illinois; GRI plans and manages the Institute’s substantial research and development program to improve the efficiency, safety, environmental quality, and supply of natural gas systems.

USA Pro & Associates, along with its President Gary Pope, is recognized for its expertise in natural gas engines, vehicles and fueling facilities. In particular, Mr. Pope has expertise in the design of LNG fueling facilities. He is well versed in state and local codes, and has established relationships with the major engine and chassis manufacturers. USA PRO & Associates, headquartered in Huntington Beach, CA, is a participant in stakeholder meetings of the Natural Gas Vehicle Coalition and the Society of Automotive Engineers, and has performed a number of successful projects in co-sponsorship with DOE and the California Energy Commission.

Resources Impacts

AQMD funds shall not exceed $123,835; total project cost is estimated at $418,320. The cost sharing for this project is:

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 and stationary sources to support projects to increase the utilization of clean fuels in both sectors, 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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