The Pennsylvania Department of Transportation (PennDOT) Secretary, Leslie S. Richards has announced at a media event that the Trillium CNG team, which includes Larson Design Group of Williamsport, has been selected for the department's compressed natural gas (CNG) transit fuelling station public private partnership (P3) project.
Through the US$84.5 million project, Trillium will design, build, finance, operate and maintain CNG fuelling stations at 29 public transit agency sites through a 20 year P3 agreement. Stations will be constructed over the next five years and the firm will also make CNG related upgrades to existing transit maintenance facilities.
"The department is excited to partner on this project that will bring benefits for the state, our transit partners and the public for years to come," Richards said. "The project's aggressive schedule means that we'll realise cost, environmental and operational benefits quickly."
As part of Trillium's proposal, CNG fuelling will be accessible to the public at seven transit agency sites, with the option to add to additional sites in the future. PennDOT will receive a 15% royalty, excluding taxes, for each gallon of fuel sold to the public, which will be used to support the cost of the project. The team has guaranteed at least US$2.1 million in royalties over the term of the agreement.
PennDOT also expects transit agencies and the department to see significant savings due to the project. Based on current CNG, diesel and gasoline prices, as well as fuel usage, agencies can save a total of more than US$10 million annually. Due to these expected savings, transit agencies' sustainability is increased and dependency on state operational subsidies is reduced. After 10 years, the department estimates that the project will pay for itself with the estimated US$100 million in savings.
"With Pennsylvania's natural gas resources, this project will not only bring efficiencies for transit agencies and the state, but we're also helping establish a foothold for the CNG transportation market in areas that may not have seen this opportunity for some time," Richards said.
Using the P3 procurement mechanism allows PennDOT to install the fuelling stations faster than if a traditional procurement mechanism was used for each site, resulting in significant estimated capital cost savings of more than US$46 million.
"This is an exciting day for Pennsylvania as we connect vital citizen services with forward looking infrastructure," said Senator John Wozniak, Johnstown, who participated in the event. "I'm also pleased that this project will start in our backyard so this region can quickly reap this partnership's benefits."
When the project is completed, the fuelling stations will supply gas to more than 1600 CNG buses at transit agencies across the state."I'm happy to be working with the administration in fulfilling the natural gas promise in making Johnstown the first natural gas public-private partnership," said Representative Bryan Barbin, Johnstown, who also joined the event.
The event was held at the Cambria County Transportation Authority's Johnstown facility. Trillium CNG, headquartered in Salt Lake City, Utah, was recently acquired by Love's Travel Stops & Country Stores, Inc. of Oklahoma City, Oklahoma.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/29032016/penndot-selects-trilium-for-cng-fuelling-stations-team-2875/