Geospatial,Temporal and Economic Analysis of Alternative Fuel Infrastructure: The Case of Freight and U.S. Natural Gas Markets

Abstract

ABSTRACT

The transition to low-carbon fuel in the United States has spatial, temporal and economic aspects. Much of the economic literature on this topic has focused on aspects of the cost effectiveness of competing fuels. We expand this literature by simultaneously considering spatial, temporal and economic aspects in an optimization framework that integrates geographic information system (GIS) tools, network analysis, technology choice pathways and a vehicle demand choice model. We focus on natural gas fuel as a low-carbon alternative to oil-based diesel fuel in the heavy-duty sector primarily because of the recent cost benefits relative to diesel fuel and the high vehicle turnover rate in heavy-duty trucks. We find that the level of profitability of natural gas fueling infrastructure depends more on volume of traffic flows rather than proximity to natural gas supply.

Keywords

Natural gas Spatial optimization Alternative fuels Fuel infrastructure

Get full access to this article

View all access options for this article.

References

Agnolucci

McDowall

(2013). “Designing future hydrogen infrastructure: Insights from analysis at different spatial scales.” International Journal of. Hydrogen Energy 38: 5181-5191. https://doi.org/10.1016/j.ijhydene.2013.02.042.

Almansoori

Shah

(2009). “Design and operation of a future hydrogen supply chain: Multi-period model.” International Journal of Hydrogen Energy 34: 7883-7897. https://doi.org/10.1016/j.ijhydene.2009.07.109.

Alternative Fuels Data Center, (2017a). Alternative Fueling Station Counts by State [WWW Document]. URL http://www.afdc.energy.gov/fuels/stations_counts.html (accessed 2.11.17).

Alternative Fuels Data Center, (2017b). Natural Gas Vehicles [WWW Document]. URL http://www.afdc.energy.gov/vehi-cles/natural_gas.html (accessed 2.11.17).

Apanel

Johnson

(2004). “Direct methanol fuel cells-ready to go commercial?” Fuel Cells Bulletin. 2004:1217. https://doi.org/10.1016/S1464-2859(04)00410-9.

Balinski

M.L.

(1965). “Integer Programming: Methods, Uses, Computations.” Management Science. 12: 253-313. https://doi.org/10.1287/mnsc.12.3.253.

Bandivadekar

Evans

Groode

Heywood

Kasseris

Kromer

Weiss

(2008). On the Road in 2035: Reducing Transportation’s Petroleum Consumption and GHG Emissions. 2008. Massachusetts Institute of Technology.

Charles

Revelle

R.W.S.

(1970). “Central Facilities Location,” in Geographical Analysis. pp. 30-42.

Church

Revelle

(1972). The Maximal Covering Location Problem. Pap. Reg. Sci. Assoc. 6.

10.

Dagdougui

(2012). “Models, methods and approaches for the planning and design of the future hydrogen supply chain.” International Journal of Hydrogen Energy 37: 5318-5327. https://doi.org/10.1016/j.ijhydene.2011.08.041.

11.

Dominguez-Faus

Folberth

Liu

Jaffe

A.M.

Alvarez

PJ.J

(2013). “Climate change would increase the water intensity of irrigated corn ethanol.” Environmental Science Technololgy 47: 6030-6037. https://doi.org/10.1021/es400435n.

12.

Freeman

L.C.

, (1977). “A Set of Measures of Centrality Based on Betweenness A Set of Measures of Centrality Based on Betweenness,” in: Sociometry. American Sociological Association, pp. 35-41.

13.

Fulton

Miller

(2015). Strategies for Transitioning to Low-Carbon Emission Trucks in the United States, A white paper from the Sustainable Transportation Energy Pathways program at UC Davis and the National Center for Sustainable Transportation.

14.

Greene

D.L.

Leiby

P.N.

James

Perez

Melendez

Milbrandt

Unnasch

Rutherford

Hooks

(2008). Analysis of the transition to hydrogen fuel cell vehicles and the potential hydrogen energy infrastructure requirements. Oak Ridge National Laboratory (ORNL).

15.

Grønhaug

Christiansen

(2009). Supply Chain Optimization for the Liquefied Natural Gas Business, in: Al.,L.B. et (Ed.), Innovations in Distribution Logistics, Lecture Notes in Economics and Mathematical Systems. Springer-Verlag Berlin Heidelberg. https://doi.org/10.1007/978-3-540-92944-4_10.

16.

Guo

Deride

Fan

(2016). “Infrastructure planning for fast charging stations in a competitive market.” Transportation Research. Part C Emerging Technology 68: 215-227. https://doi.org/10.1016/j.trc.2016.04.010.

17.

Hakimi

(2014). Optimum Locations of Switching Centers and the Absolute Centers and Medians. Informs 12: 450-459.

18.

Hamacher

Z.D.H.W.

(2002). Facility Location—Applications and Theory.

19.

Hartley

P.R.

Medlock

K. B.

Rosthal

J.E.

(2008). “The Relationship of Natural Gas to Oil Prices.” The Energy Journal 29(3): 47-65. https://doi.org/10.5547/ISSN0195-6574-EJ-Vol29-No3-3.

20.

Hugo

Rutter

Pistikopoulos

Amorelli

Zoia

(2005). Hydrogen infrastructure strategic planning using multi-objective optimization. International Journal of Hydrogen Energy 30, 1523-1534. https://doi.org/10.1016/j.ijhydene.2005.04.017.

21.

Johnson

Yang

Ogden

(2008). “A GIS-based assessment of coal-based hydrogen infrastructure deployment in the state of Ohio.” International Journal of Hydrogen Energy 33: 5287-5303. https://doi.org/10.1016/j.ijhydene.2008.06.069.

22.

Kelley

Kuby

(2013). On the way or around the corner? Observed refueling choices of alternative-fuel drivers in Southern California. Journal of Transportation Geography 33:258-267. https://doi.org/10.1016/j.jtrangeo.2013.08.008.

23.

Knittel

C.R.

(2012). Reducing petroleum consumption from transportation. Journal of Economic Perspectives 26: 93-118. https://doi.org/10.3386/w17724.

24.

Kristoffersen

T.K.

Fleten

S.E.

(2010). Stochastic Programming Models for Short-Term Power Generation Scheduling and Bidding, in: Bj0rndal

Bj0rndal

M..

Pardalos

P.M.

Ronnqvist

(Eds.), Energy, Natural Resources and Environmental Economics, Energy Systems. Springer Berlin Heidelberg, Berlin, Heidelberg, pp. 187-200. https://doi.org/10.1007/978-3-642-12067-1.

25.

Krupnick

A.J.

(2011). Will Natural Gas Vehicles Be in Our Future? Resources for the Future. Issue Brief. 11-06.

26.

Kuby

Lim

(2007). “Location of alternative-fuel stations using the Flow-Refueling Location Model and dispersion of candidate sites on Arcs. Networks.” Spatial Economics 7: 129-152. https://doi.org/10.1007/s11067-006-9003-6.

27.

Kuby

Lim

(2005). The flow-refueling location problem for alternative-fuel vehicles. Socioecon. Plann. Sci. 39, 125-145. https://doi.org/10.1016/j.seps.2004.03.001

28.

Kuby

Lines

Schultz

Xie

Kim

J.-G.

Lim

(2009). “Optimization of hydrogen stations in Florida using the Flow-Refueling Location Model.” International Journal of Hydrogen Energy 34: 6045-6064. https://doi.org/10.1016/j.ijhydene.2009.05.050.

29.

Lee

Parker

Dominguez-Faus

Scheitrum

Fan

Jaffe

A.M.

(2015). Sequential Buildup of Liquefied Natural Gas Refueling Infrastructure System for Heavy-Duty Freight Trucks. Proc. Present. to Transp. Res. Board Annu. Meet.

30.

Lin

Chen

Ogden

Fan

(2008a). “The least-cost hydrogen for Southern California.” International Journal of Hydrogen Energy 33: 3009-3014. https://doi.org/10.1016/j.ijhydene.2008.01.039.

31.

Lin

Ogden

Fan

Chen

(2008b). “The fuel-travel-back approach to hydrogen station siting.” International Journal of Hydrogen Energy 33: 3096-3101. https://doi.org/10.1016/j.ijhydene.2008.01.040.

32.

Medlock

K.B.

(2012). “Modeling the implications of expanded US shale gas production.” Energy Strategy Review 1:3341. https://doi.org/10.1016/j.esr.2011.12.002.

33.

Medlock

K.B.I.I.I.

Hartley

Peter

(2006). The BakerInstitute World Gas TradeModel. Cambridge: Cambridge University Press.

34.

Melo

M.T.

Nickel

Saldanha-da-Gama

(2009). “Facility location and supply chain management—A review.” European Journal of Operations Research 196: 401-412. https://doi.org/10.1016/j.ejor.2008.05.007.

35.

Morrison

G.M.

Parker

N.C.

Witcover

Fulton

L.M.

Pei

(2014). “Comparison of supply and demand constraints on US biofuel expansion.” Energy Strategy Review 5: 42-7. https://doi.org/10.1016/j.esr.2014.09.001.

36.

Murthy Konda

N.V.S.N.

Shah

Brandon

N.P.

(2011). “Optimal transition towards a large-scale hydrogen infrastructure for the transport sector: The case for the Netherlands.” International Journal of Hydrogen Energy 36: 4619-4635. https://doi.org/10.1016/j.ijhydene.2011.01.104.

37.

Nakicenovic

(1987). The automobile road to technological change?: diffusion of the automobile as a process of technological substitution. Internat. Inst. for Applied Systems Analysis.

38.

National Petroleum Council (2012). Advancing Technology for America’s Transportation Future: Fuel and Vehicle Systems Analyses: Natural Gas Analysis.

39.

National Renewable Energy Laboratory (2015). 2015 Natural Gas Vehicle Research Roadmap (Draft).

40.

Johnson

Manager

Ogden

J.M.

Yang

A.C.

Johnson

Studies

Davis

Hydrogen

(2005). Estimating Hydrogen Demand Distribution Using Geographic Information Systems (GIS). Institute of Transportation Studies.

41.

Ogden

Nicholas

(2011). “Analysis of a ‘cluster’ strategy for introducing hydrogen vehicles in Southern California.” Energy Policy 39: 1923-1938. https://doi.org/10.1016/j.enpol.2011.01.005.

42.

Ogden

J.M.

Steinbugler

M.M.

Kreutz

T.G.

(1999). “A comparison of hydrogen, methanol and gasoline as fuels for fuel cell vehicles: implications for vehicle design and infrastructure development.” Journal of Power Sources 79:143-168. https://doi.org/10.1016/S0378-7753(99)00057-9.

43.

Parker

Y. Fan

Ogden

(2010). “From waste to hydrogen: An optimal design of energy production and distribution network.” Transportation Research, Part E Logistics Transportation Review 46: 534-545. https://doi.org/10.1016/j.tre.2009.04.002.

44.

Parker

N.C.

Ogden

J.M.

Fan

(2008). “The role of biomass in California’s hydrogen economy.” Energy Policy 36: 3925-3939. https://doi.org/10.1016/j.enpol.2008.06.037.

45.

Rosenberg

Fidje

Aamodt

Stiller

Mari

Møller-holst

(2010). “Market penetration analysis of hydrogen vehicles in Norwegian passenger transport towards 2050.” International Journal of Hydrogen Energy 35: 7267-7279. https://doi.org/10.1016/j.ijhydene.2010.04.153.

46.

Sevtsuk

Mekonnen

(2012). Urban Network Analysis. SimAUD ‘12 Proceedings of the 2012 Symposium on Simulation for Architecture and Urban Design. Article No. 18.

47.

Sharpe

B.R.

(2013). Examining the costs and benefits of technology pathways for reducing fuel use and emissions from on-road heavy-duty vehicles in California. University of California, Davis. Research Report UCD-ITS-RR-13-17.

48.

Simchi-Levi

Kaminsky

Simchi-Levi

(2003). Managing the Supply Chain: The Definitive Guide for the Business Professional. McGraw Hill Professional.

49.

Strachan

Balta-ozkan

Joffe

Mcgeevor

Hughes

(2009). “Soft-linking energy systems and GIS models to investigate spatial hydrogen infrastructure development in a low-carbon UK energy system.” International Journal of Hydrogen Energy 34: 642-657. https://doi.org/10.1016/j.ijhydene.2008.10.083.

50.

Straight

(2014). Alt fuels: Beyond natural gas | Running Green content from Fleet Owner [WWW Document]. FleetOwner. URL http://fleetowner.com/running-green/alt-fuels-beyond-natural-gas (accessed 2.11.17).

51.

TIAX for America’s Natural Gas Alliance (2010). Liquefied Natural Gas Infrastructure [WWW Document]. Am. Gas Assoc. Tech. Rep. URL https://www.aga.org/tiax-natural-gas-vehicle-market-analysis (accessed 2.13.17).

52.

Tita

(2014). “Slow Going for Natural-Gas Powered Trucks” [WWW Document]. Wall Street. Journal. URL https://www.wsj.com/articles/natural-gas-trucks-struggle-to-gain-traction-1408995745 (accessed 2.13.17).

53.

Toregas

Constantine

Swain

ReVelle

Bergman

(1970). “The Location of Emergency Service Facilities.” Operations Research 19(6): 1363-1373. https://doi.org/10.1287/opre.19.6.1363.

54.

Wang

Y.-W.

Lin

C.-C.

(2009). “Locating road-vehicle refueling stations.” Transportation Research, Part E Logist. Transportation Review 45: 821-829. https://doi.org/10.1016/j.tre.2009.03.002.

55.

Werpy

M.R.

Santini

Burnham

Mintz

(2010). Natural gas vehicles: Status, barriers, and opportunities. Argonne National Laboratory. ANLZESD/10-4 Energy Systems Division.

56.

Zeng

Castillo

Hodgson

M.J.

(2010). “Aggregating Data for the Flow-Intercepting Location Model: A Geographic Information System, Optimization, and Heuristic Framework.” Geographical Analysis 42: 301-322. https://doi.org/10.1111/j.1538-4632.2010.00795.x.

Supplementary Material

Please find the following supplemental material available below.

For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.

For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.

0.00 MB

0.08 MB