Small Scale Entrepreneur

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Permalink Reply by David Smith on July 9, 2008 at 11:30am

When setting up your alternative conversion shop, the
following recommendations can be used to equip the technician with the tools and
supplies that will be needed to perform conversions.
Necessary Tools for Conversion Work
150Watt Solder Iron
Heat Gun
Digital Volt/Ohm Meter
Tapping Bit 1/8NPT
Drill Set 3mm-12MM, or 1/8” – 5/8”
Crimping Tool (for non-insulated crimping)
Wire Cutter/Stripper
Razor Knife
Tubing Cutter
De-burring Tool
Power Drill
Test Leads, Wires with clips
Pressure Gauge Tool for checking Regulator Pressure setting. (Kit Available From ECO)
Oscilloscope/Labscope
OBDII/CANBUS Scan Tool
EDI-SC-USB PC Interface tool to connect to EDI
Supplies
Heat Shrink with meltable seal- 1/8”, 3/16”, ¼”
Electrical Tape
Butt Crimp connectors (Non Insulated)
Solder with rosin core
Dielectric grease –Echlin (non Petroleum Base)
Vacuum Tees
Water Tees
Spare Ferrules for Steel line & for Teflon tube fittings
Loom ¼” & ½”
Locktite or Pipe/Thread Sealant
Vacuum Hose
Manifold Gaskets (when required)
Brackets to Manufacture by Independent Conversion Shops
Regulator Mounting Bracket
Fuel Rail Mounting Brackets
EDI Mounting Bracket
Refueling Mounting Bracket
Coalescing Filter Mounting Bracket

Attachments:

• Necessary Tools for Conversion Centers.pdf, 90 KB

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Permalink Reply by David Smith on July 9, 2008 at 11:36am

Interested in Entering the Alt-Fuel Business?
Please find following, a list of general considerations:
1. A fully equipped automotive shop is recommend; this facility would require current tools and diagnostic equipment to ensure efficient conversion installation and servicing.
2. A qualified technician/mechanic is necessary. This person requires applicable safety certifications. Local state/province or federal regulations need to be followed for all conversions in North America. It is the company’s responsibility to make sure that they are in compliance with all aspects of safety and in their local jurisdiction. Unqualified technicians SHOULD NOT perform CNG conversions. CNG systems rely on high-pressure compressed natural gas for fuel, and high-pressure gases require specialized components and technical skills for installation. Conversions should be done according to the National Fire Protection Association’s Vehicular Fuel Systems Code (NFPA 52) in the USA, the CANB149.4-M91 Regulations in Canada, or other applicable country code requirements.
3. The US Environmental Protection Agency (EPA) has rules concerning the manufacture, sale and installation of alternative fuel engine conversion systems. The California Air Resources Board has similar and even more stringent emission rules for conversions in that state. Only EPA and/or CARB certified conversion systems are permitted to be installed on vehicles. While a variety of non-certified systems are sold on the Internet and/or offered by some automotive shops, EPA has taken the position that the installation of these systems is tampering with a federally approved emission control system, a federal violation punishable by a substantial financial penalty. Installation of non-certified systems can also cause a vehicle to fail emissions inspection. A specific permit may be required in the US for the installation of a non-certified alternative fuel system.

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Permalink Reply by David Smith on July 9, 2008 at 12:00pm

Here is an example of a simple payback calculator that an Entrepreneur could use as a sales incentive device.

Attachments:

• Savings2.xls, 89 KB

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Permalink Reply by David Smith on July 10, 2008 at 6:53am

Information from www.fueleconomy.gov supplies excellent information on all forms of alt fuels.
See attached

Attachments:

• FUEL ECONOMY NGV.pdf, 2.5 MB

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Permalink Reply by David Smith on July 10, 2008 at 7:48am

The APS Alternative Fuel Pilot Plant is a model alternative fuel refueling system supplying compressed natural gas (CNG), hydrogen, and a blend of CNG/hydrogen. Figure A-1 of Appendix A shows a plan of the plant. The hydrogen and natural gas systems are distinctly separate; the stationary filling station blends the two fuels. This section focuses on the natural gas portion of the plant. Section 2 discusses the hydrogen portion, which is similar in various ways.
In addition to hydrogen, the plant also compresses natural gas for use as a motor fuel. CNG vehicles typically require 3,600-psi storage tanks. However, to fill vehicle onboard tanks, storage pressures must be higher. The APS system compresses natural gas to pressures up to 5,000 psi using a three-stage cascade pressure arrangement.
The objectives of constructing and operating the natural gas system are to:
• Evaluate the cost and benefit ratio of operating a natural gas fueling system
• Evaluate the safety of a natural gas fueling system
• Provide a fuel source for APS-operated CNG and hydrogen enriched CNG (HCNG) vehicles.

http://avt.inl.gov/pdf/hydrogen/h2stationreport.pdf

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Permalink Reply by David Smith on July 10, 2008 at 11:01am

Here is a little budgeting and costion info for GNC.

Attachments:

• Time_Fill_Station_Selection.xls, 10.5 MB
• Station Sizing & Budgeting.ppt, 254 KB
• Station_Costing.xls, 33 KB

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Permalink Reply by David Smith on July 11, 2008 at 5:59am

Frequently Asked Questions About Converting Vehicles to Operate on Natural Gas.

This website explains some of the roadblocks EPA regulations have created for engine type certification.

http://www.ngvamerica.org/pdfs/FAQs_Converting_to_NGVs.pdf

Due to the technical difficulty and the expense, only a few SVMs have elected to go through the EPA- and/or CARB-certification process and, even then, only for a limited number of engine families and applicable vehicle models. Currently, there are only four SVMs offering EPA- certified systems (two have CARB certifications) for four GM and Ford light-duty engine families covering about twenty vehicle models. These include the GM 6.0L engine and the Ford 4.6L, 5.4L and 6.8L engines. Currently, there are no natural gas engine conversion systems available in the U.S. for any other light-duty vehicle brands -- although American Honda does manufacture the natural gas Civic GX at their East Liberty, Ohio plant. [Note: Additional medium- and heavy-duty engines are available]. An up-to-date list of ALL currently available EPA- and CARB-certified engine retrofit and repower systems – and the contact info for the SVMs - is available at the following link:

http://www.ngvamerica.org/pdfs/marketplace/MP.Analyses.NGVs-a.pdf .

As new certifications are granted, this list will be updated as will the SVM contact information.

Costs of Converting a Vehicle to Run on Natural Gas
The cost of converting a vehicle to run on natural gas includes the SVM’s retrofit system, fuel tanks and related tubing/brackets, and the installation. The amount of fuel capacity requested by the customer (and thus the number, type, dimensions and configuration of the fuel tanks) significantly impacts cost since CNG cylinders are expensive. For most people, an important consideration is whether the net costs associated with converting a vehicle to run on natural gas (after all costs, grants and/or tax credits are taken into account) will be recouped in fuel savings over the remaining life of the vehicle. Generally, it is not cost-effective to convert an older vehicle unless it has plenty of mileage left and will now be driven enough to recoup the investment in fuel savings. For this reason, SVMs generally do not carry over their previous model year certifications more than one or two years. For example, none of the light-duty SVMs currently offer EPA- or CARB-certified conversion systems for vehicles earlier than 2006. However, if a fleet operator requested the retrofit of 30 of their 2005 pick-up trucks, the SVM with the specific 2005 certification might be persuaded to incur the cost of re-filing with EPA or CARB. A more common occurrence is the retrofit of a new vehicle. Conversion of new vehicles provides the greatest opportunity to save fuel cost and, thereby, pay back the conversion cost and generate life-cycle savings. While NGVAmerica recommends that potential customers contact the appropriate SVMs directly about vehicle conversion costs, the following are general “ballpark” estimates of retail light-duty vehicle conversion costs provided by SVMs. Specific quotes will vary based on fuel capacity, number of vehicles, wheelbase, etc. Crown Vic/Lincoln Town

Car/Mercury Marquis with 13-gasoline gallon equivalent (GGE): $13,500
E350 Cargo/Passenger Van with 20 GGE fuel: $15,500
F150/250/350 Pick-up Truck with 20 GGE: $16,500; with 30 GGE: $18,500
E450 Cutaway Shuttle Van with 24-38 GGE: $18,500-22,500
Sierra/Silverado 1500/2500HD Pick-up Truck with 11GGE: $12,500; with 20GGE: $15,500
Savanna/Express G1500/2500 Cargo/Passenger Van 12-20GGE: $12,500-16,000

The regulations for certification must be reduced so it is acceptable to the general public. Even with incentives an older car would have difficulty with a reasonable payback period.

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Permalink Reply by David Smith on July 12, 2008 at 7:20am

Here is a site with some interesting station configurations.

http://safe-cng.com/plants.php

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Permalink Reply by David Smith on July 14, 2008 at 6:59am

Hi Edward,
Many regulations and incentive programs have to be better shaped to induce market expansion. In the coming weeks we can identify specific regulations and incentives that are needed to assist the market that will create explosive growth. I have attached a summary and study performed for the California CARB that addresses many of these problems.

As for wind and solar the same problems exist, the cost are prohibitively high making a payback period almost the same as the life of the product. That must change so the manufactures can enter a high volume arena allowing the unit price to decrease.

We must educate ourselves so we understand what is needed to develop a strong market for the alternatives. Government incentives can take the market just so far then it is up to Small Scale Entrepreneurs to expand the market through sales.

See Attachnebts for more details

Attachments:

• CEC-500-2008-044-D.pdf, 644 KB
• CARB.doc, 50 KB

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Permalink Reply by David Smith on July 15, 2008 at 2:45pm

Marketing is fundamental for building a solid foundation in a small business.

One way to look at marketing is to look at it as a cycle that includes different activities. These activities include the following:

• Research: all good marketing should begin with research. Research includes things such as determining information about the organization’s target markets--including customer demographics, psychographics, and competitive intelligence. From this research a SWOTT analysis can be developed.

• Strategy & Planning: equipped with data, marketers can then determine the appropriate strategy and the tactical plans to implement this strategy.

• Branding: building a “brand” involves marketers examining the positioning of the product (or firm) in the market place and establishing how they would like for the product (or firm) to be perceived by consumers.

• Product Development: some product development actually comes after research has been conducted; for example, research may reveal that there is an untapped opportunity in the market. Marketing can also drive this process through research of customer and/or market needs

• Sales and Sales Training: once the product or service has been established and before it “goes to market” the marketing team should always train their sales force--this training ensures that the sales team is more capable to answer questions, close sales, and implement sales orders.

• Point of Purchase (POP): these materials are those items that a sales force might need to help sell a product. Examples of POP materials include coupon holders on grocery store shelves, brochures next to cooking appliances, and sale signs on top of rounders in retail clothing stores.

• Public Relations (PR), media relations, and public affairs: the softer, more forgotten side of Marketing that involves communication to various target publics. Too many marketers forget about PR and miss opportunities to make the public aware of their products. Media relations specifically deal with the press. Public affairs, also known as governmental affairs, deal with the various government entities that impact the organization.

• Customer Service: marketers do care about the customer experience or at least, good marketers do. Good marketers want to know about the customer experience including complaints, and questions concerning the sales and post purchase process. All of these things are important, because if we can identify issues, then the cycle starts all over again. We do research on the issues that have arisen from the customers, find solutions, and then tweak our marketing efforts throughout the cycle.

The Marketing Mix
No introductory discussion of marketing is complete without discussing the marketing mix. The marketing mix is what most marketing people call “the 4 P’s”: Product, Price, Place, and Promotion. So what do these things mean?

• Product: A product is the need-satisfying offering of a firm including physical goods or services (e.g. a new car, a new soft drink, a sports team). The product also includes the features and benefits, quality level, accessories, installation, instructions, warranty, product line extensions, packaging, and branding of the product.

• Price: The price is the amount of money that is charged for “something” of value. In determining price a firm must consider things such as cost to produce the product, objectives, flexibility, competitive pressures, return on investment, market pressures level over product life, geographic terms, discounts, and allowances.

• Place: The place is the making of goods and services available in the right quantities at the right locations. It determining the place a firm must consider things such as objectives, channel type, middlemen, kinds/locations of stores, transportation, storage, and managing/coordinating channels.

• Promotion: Promotion is the communicating of information between seller and potential buyer or others. It involves considerations such as objectives, promotion blend, sales people, advertising, sales promotion, and publicity.

It is important to note that a change in one “P” may cause a change in another. For example, a can of soda might be $0.65 in a vending machine at a local business, but it may be $1.00 if that vending machine is at a college campus. As place changes, the price of the can of soda also changes.
The Marketing Plan
One of the most common things a marketing manager does is to create a marketing plan. A marketing plan is a road map… one that can be adjusted along the way as the economy changes, as new strengths are discovered, and as untapped markets uncovered. During the creation and implementation of a marketing plan unforeseeable opportunities can emerge and if a marketing manager has created a sound marketing plan he or she can logically deduce if the new opportunity is really more profitable/effective/time efficient than what has already been planned.
What’s in a Marketing Plan?
Many marketers and organizations have their own ways of creating marketing plans. However, here are some of the areas that a marketer should address when creating their marketing plans:
• Organizational overview
• Product or service description
• Stage of the product life cycle
• SWOTT (Strengths, Weaknesses Opportunities, Threats and Trends) analysis
• Marketing research
• Segmentation
• Differentiation and positioning
• Marketing mix
• Budget
• Control

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Permalink Reply by David Smith on July 16, 2008 at 7:30am

The problem at present is that the rules in place are designed for fleet operations where grants are available to local and state governments to help with the sky-high costs.
The OBDII (1996: The OBD-II specification is made mandatory for all cars sold in the United States) rule can be modified so a conversion system can use a separate emission alarm system. This would reduce the cost of each engine certification. A standardized system that can be used across all gasoline engines would allow millions of vehicles into the conversion stream.
Even CARB is seeking relief from this onerous rule so the state can certify autos for the private motorist at a reasonable cost.
Here is an excerpt from the NATURAL GAS VEHICLE RESEARCH ROADMAP undertaken for CARB in California.
There needs to be a national focus on after-market conversions—it would be nice for $ to go towards developing more conversions for more platforms.
Conversions are available domestically, however they must be certified for use by EPA and ARB in California—the latter, a reportedly challenging process that must be undertaken for each engine/vehicle model combination. In addition to uncertainty of market demand, different safety and emissions certification standards, along with different incentives and mandates, serve as barriers to foreign light-duty NGV models in the US.

http://www.eere.energy.gov/afdc/fuels/natural_gas_laws_federal.html

Aftermarket Alternative Fuel Vehicle (AFV) Conversions
Conventional original equipment manufacturer vehicles altered to operate on propane, natural gas, methane gas, ethanol, or electricity are classified as aftermarket AFV conversions. All vehicle conversions, except those that are completed for a vehicle to run on electricity, must meet current applicable U.S. Environmental Protection Agency standards. For more information about vehicle conversion certification requirements, see the Alternative Fuels & Advanced Vehicles Data Center's Conversions Web site. (Reference 40 CFR 85)


Search Database:
Code of Federal Regulations (current data)
For: "40CFR85"
http://frwebgate.access.gpo.gov/cgi-bin/multidb.cgi
SEE ATTACHED FOR ENTIRE TEXT
(c) Aftermarket conversion system means any combination of hardware, including but not limited to fuel storage and fuel metering hardware, which is installed on a light-duty vehicle, light-duty truck, heavy-duty vehicle, or heavy-duty engine with the effect of allowing the vehicle or engine to operate
on a fuel other than the fuel which the vehicle or engine was originally certified to use. Components which do not affect the emissions performance of the converted vehicle or engine, as determined by the Administrator, are not included for the purposes of this subpart.

§ 85.2207 On-board diagnostics test
standards.
(a) [Reserved]
(b) A vehicle shall fail the on-board diagnostics test if it is a 1996 or newer vehicle and the vehicle connector is missing, has been tampered with, or is otherwise inoperable.
(c) A vehicle shall fail the on-board diagnostics test if the malfunction indicator light is commanded to be illuminated and it is not visually illuminated according to visual inspection.
(d) A vehicle shall fail the on-board diagnostics test if the malfunction indicator light is commanded to be illuminated for one or more OBD diagnostic trouble codes (DTCs), as defined by SAE J2012. The procedure shall be done in accordance with SAE J2012 Diagnostic Trouble Code Definitions, (MAR92). This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies of SAE J2012 may be obtained from the Society of Automotive Engineers, Inc., 400 Commonwealth Drive, Warrendale, PA 15096–0001.

Also see - § 85.2222 On-board diagnostic test procedures.

The development of a stand alone On Board Diagnostic (OBD) that works across all engine types could eliminate the certification requirement on the conversion kit and place the emphasis on the diagnostic system. This would allow millions of vehicles to qualify for conversions overnight.

Attachments:

• 40CFR85.pdf, 541 KB
• EPAccd0516.pdf, 100 KB
• EPA tamper-memo1a.pdf, 586 KB

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