BOARD MEETING DATE: September 10, 1999 AGENDA NO. 8


PROPOSAL:

Execute Contract to Co-Sponsor Development and Demonstration of an Advanced High Capacity, High Performance NGV Storage Tank

SYNOPSIS:

Limitations of current compressed natural gas storage tank technology, among other factors, have hindered the widespread commercialization of NGVs. IMPCO has proposed to design, fabricate and test advanced all-composite tanks that provide increased capacity of up to 20 gasoline-gallons equivalent of compressed natural gas, significantly reduced weight, substantial improvement in safety margins, and reduced costs. Total cost of this project is $1.42 million. AQMD cost-share will not exceed $320,000.

COMMITTEE:

Technology, August 27, 1999. Less than a quorum was present; those Committee Members who were present communicated their concurrence.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with IMPCO Technologies Inc. to co-sponsor the development and demonstration of advanced all-composite NGV storage tanks in an amount not to exceed $320,000 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. ARB has also passed LEV regulations that require light- and medium-duty vehicles to comply with increasingly stringent emission standards. In addition, the Federal Energy Policy Act requires that a percentage of new purchases of vehicles in centrally fueled, captive fleets be AFVs.

Alternative fuel vehicles, such as NGVs, have demonstrated significantly lower VOC, NOx, CO and toxic emissions than gasoline vehicles. However, despite more than a decade of development and government incentives, NGVs remain a very small fraction of the total vehicle population. Among other obstacles, a key barrier to the entry and acceptance of NGVs include the limitations imposed by current storage tank technology. Natural gas is carried onboard under high pressures in cylinder-shaped tanks. Current tanks have limited capacity, thereby limiting vehicle range. To increase range, OEMs use several cylinders in each vehicle. This may reduce the safety margin, since the connections, rather than the cylinders themselves, generally have a higher chance of failure. In addition, current tanks are either steel tanks that are too heavy, or all-composite tanks that are too expensive, contributing between 25% to 40% of the differential price between an NGV and its gasoline or diesel equivalent.

Consequently, high capacity, light-weight fuel tanks are needed to increase fuel economy and improve the range of NGVs. Light-weight composite tanks, relative to conventional steel tanks, have less impact on gross vehicle weight, which in turn, improves fuel economy, load capacity and reduces vehicle wear and tear. Moreover, by making these tanks both lighter and economically affordable, the premium paid by end-users for NGVs can be reduced.

Proposal

IMPCO Technologies Inc. (IMPCO) has proposed the development and demonstration of an advanced all-composite natural gas tank that can store up to 20 gasoline-gallons-equivalent of natural gas. The proposed tanks should be significantly safer, lighter and more affordable than current NGV tanks, and will be hydrogen compatible. In addition, these tanks will be developed to comply with all applicable industry standards and validated to stringent OEM requirements.

In particular, the proposed tanks will match or exceed the performance of existing tanks in terms of mechanical and environmental durability, will provide for 40% additional safety margin in terms of burst pressure limits, will use a redundant composite shell to enhance safety, and will have a double CNG-seal to ensure leak-free performance for at least 15 years.

Proposed tasks include the installation of equipment for liner molding, composite filament winding, composite curing, pressure testing, finish coating and equipment for testing, measurement and inspection. IMPCO will adapt equipment to batch manufacture, cure and coat large diameter tanks. The batch manufacturing process will be at a pre-production pilot-scale to identify and optimize equipment for volume production. For each piece of equipment and process, IMPCO will perform detailed failure modes and effects analysis (PFMEA); identify areas of high risk for process failure, develop procedures to minimize such risks, establish quality control, and move towards automation.

IMPCO will then design, engineer and safety test various prototypes, including the tanks’ inner liners and the external shells. IMPCO will conduct finite element analysis and detailed stress analysis of the various composite layers, polymer liner and metallic hardware connections at various operating and burst pressures. IMPCO will perform detailed design failure modes analysis of various fuel tank designs, and conduct empirical tests of the manufactured tanks. These tests include gas leakage tests at various hot and cold temperatures, and tests for accelerated creep and relaxation, fast-fill and discharge cycling, extended hydraulic fatigue, corrosion, extreme impacts, and extreme environmental conditions. Finally, these tanks will be integrated and tested in vehicles, including engineering and design of the interface with the vehicle fueling system, integration with the fueling control module, and conducting driveability and refueling tests under various weather conditions.

IMPCO’s cost-share contribution will primarily go towards pilot-production design, equipment, and installation efforts. The proposed AQMD co-funding will primarily focus on purchasing the materials for production, testing and field evaluation of the resulting prototype tanks.

Benefits to AQMD

The proposed project is included in the November 1998 update of the Technology Advancement Plan under Project 98M1-6, "Development of Advanced Technologies for On-Board Gaseous Fuel Storage." The proposed project addresses the air quality objectives stated in the AQMD’s AQMP which heavily rely on the expedited implementation of low-emission, clean fueled vehicles to achieve air quality standards in Southern California.

The proposed project addresses one of the major obstacles facing NGV commercialization. The project has the potential to significantly advance NGV storage tank technology, which would include improving the storage capacity of each tank thereby improving the range of NGV vehicles, improving the tank’s safety margin, lowering the weight of the tank and improving the economics of installing and integrating these tanks in vehicles. If successful, this project could accelerate the commercialization of NGVs in the Basin, which in turn, would help expedite air quality gains in 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.c(1), "the desired services are available from only the sole source based upon the unique experience and capabilities of the proposed contractor or contractor team," B.2. c(2), " the proposed project involves the use of proprietary technology," B.2. c(3), "the contractor has ownership of key assets required for project performance," and B.2. d(1), "other circumstances, including projects involving cost sharing by multiple sponsors." It is in the best interest of the AQMD to co-sponsor this innovative project proposed by IMPCO Technologies, Inc. as described below.

IMPCO has unique experience and capabilities in alternative fuel systems manufacturing and commercialization. It is among the leading companies in the world that provide both OEM and retrofit markets with a range of gaseous fuel related components, particularly in the natural gas and propane vehicle markets. In the last 40 years, IMPCO has supplied over 4 million alternative fuel management systems worldwide making it the global leader in these systems. In 1997, IMPCO entered into an exclusive supplier agreement with General Motors to jointly develop fuel systems for several GM models, including passenger cars, light-duty and medium-duty trucks. As part of this strategic alliance, IMPCO will assist GM to introduce worldwide alternative gaseous fuel vehicles for model years 2001 and beyond. IMPCO recently invested heavily in its Advanced Technology Center in Irvine, CA. It is the largest alternative fuel systems research and development facility in the world fully equipped with production tooling, instrumentation and testing equipment. This includes facilities for design, development and safety testing of fuel storage tanks. IMPCO has developed proprietary designs and has applied for several patents in tank design and tank development.

Resource Impacts

The total cost of this project is $1.42 million. AQMD contribution will not exceed $320,000. IMPCO Inc. is providing the balance in direct co-funding.

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. This project is a proper use of these funds because the proposed technology, if successful, will facilitate the greater use of clean burning natural gas vehicles in the Basin.

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