Thank you, and good morning.
I'm Cameron Stewart. I'm the president of Maxquip. We're a supplier of LPG autogas and CNG conversion kits. We supply this technology throughout North America. These customized conversion kits are fitted to many different engine and vehicle models. Our kits enable users to realize fuel cost savings typically in the 40% to 50% range, by converting from their original gasoline engines to LPG—liquefied petroleum gas—or by adding LPG injection to diesel engines.
Some of the conversion technologies that we supply include vapour sequential injection systems, liquid injection systems, and diesel blending systems. Vapour sequential injection systems are dual-fuel systems that will allow a gasoline engine to also run on LPG. With these systems, the engine will typically start on gasoline and will automatically switch to run on LPG when the engine reaches an appropriate operating temperature. The engine will continue to run on LPG as long as there is a supply of LPG or until it's manually switched to run on gasoline.
These systems can also be configured as semi-dedicated systems. With a semi-dedicated system, the vehicle will start on gasoline and switch to LPG when the vehicle reaches an appropriate operating temperature, but it cannot be switched back to run on gasoline.
The LiquiMax system is a liquid injection system. With these systems the vehicle is set to run exclusively on LPG. With these systems, LPG is pumped in a liquid phase from the storage tank to the injectors, allowing the engine to run exclusively on LPG.
The DieselFlex and the Dieselblend systems allow users to convert diesel engines to operate on a blend of diesel and LPG fuels. Essentially, a portion of the diesel fuel is replaced by a cleaner-burning LPG fuel. The amount of diesel that is replaced will vary by engine usage conditions, but typical replacement factors are in the range of 30%. These systems have resulted in horsepower increments of about 20% to 25% and fuel savings in the range of 10% to 15%.
Why are these technologies important? LPG is by far the most widely used and accepted alternative fuel in use in the world today. Global consumption of autogas has been rising rapidly in recent years, reaching 22.9 million tonnes in 2010, an increase of about 60% over the year-2000 levels. There are now more than 17 million autogas vehicles in use around the world today.
Among the benefits, number one is in operating costs. While the price of autogas varies across Canada, the average price as of May 22 was about 73¢ per litre, according to the Natural Resources Canada website. This equates to a gasoline equivalent of about 84¢ per litre. The average price at the same time for gasoline was about $1.29, a difference of about 45¢ per litre. For a vehicle averaging 7,500 litres per year, this would equate to a savings of about $3,375 annually.
The second benefit is in performance. The performance and operating characteristics of autogas used in vehicles compare very favourably with those of other fuels. Autogas has a higher octane rating than gasoline, so converted gasoline-powered spark-ignition engines tend to run more smoothly. Acceleration and top speed using the latest generation of autogas fuel systems are comparable to those for gasoline or diesel.
The third benefit is on the environmental side. Autogas burns more cleanly than gasoline or diesel fuel. On a per unit energy-use basis, autogas produces fewer greenhouse gas emissions. It also contains fewer toxic pollutants, including sulphur oxides, which can contribute to acid rain and smog. It's a pressurized fuel that is contained within a sealed system, so it is not likely to escape into the soil or water through careless handling, spills, or evaporation.
Natural Resources Canada’s own model for life-cycle assessment of transportation fuels, GHGenius, shows that LPG autogas produces from 20% to 25% fewer greenhouse emissions than gasoline.
Among the barriers that I see in Canada facing LPG autogas, to which Steven alluded, is, first of all, the availability of qualified installation centres. Some markets in Canada have an abundance of qualified conversion centres, while in others they are scarcer. If there is a demand for conversions, then the maintenance facilities need to invest in the proper training required to become certified. In markets where there are limited conversion centres today, there needs to be an impetus to create the demand and supply before the market will become self-sustaining.
The Propane Training Institute, a division of the Canadian Propane Association, has developed a two-day training course to certify and train automotive mechanics in the safe handling of LPG and related components. Equipment suppliers such as Maxquip offer training to these certified installation centres on the equipment that we supply. This collaborative approach has been adopted by the British Columbia Safety Authority and is being adopted in other provinces as well.
The second barrier that I see is restrictions on underground parking. Some municipalities and insurance companies have placed restrictions on LPG vehicles from entering underground parking facilities. This restriction may be related to incidents in the past in which an LPG tank may have been overfilled. If an overfilled tank enters a warm parking facility, the LPG in the tank will expand and potentially cause the tank's relief valve to open and vent some LPG into the atmosphere.
Technology that has been in use since the mid-1990s includes an auto-stop valve on the tank's fill line. This valve prevents the tank from being filled to more than 80% capacity, essentially making it impossible to overfill a tank.
The restriction on LPG vehicles from entering underground parking facilities remains a deterrent to potential users today.
Thirdly, there is the inconvenience of limited refuelling infrastructure. There are approximately 2,000 refuelling stations across Canada today. The availability of the LPG fuelling stations will grow with demand, as long as provincial regulatory requirements are not prohibitive.
The convenience of LPG fuelling in Canada currently suffers from a requirement that a vehicle be refuelled by a trained attendant. This requirement places an additional burden on retailers, who must have qualified staff on site to dispense autogas. Once again, the Propane Training Institute offers a course on filling auto propane tanks. It is required that this course be administered by a PTI-certified trainer or examiner. The accessibility of this process is currently not the most convenient, and similar results might be achieved from an online examination process, similar to what one must complete to receive a Transport Canada pleasure craft operator card.
In many countries around the world that operate larger volumes of LPG vehicles, consumers can typically fill their own vehicles, making it much more convenient. Use of newer-technology dispensing nozzles that prohibit the release of product if the nozzle is not properly attached to the vehicle's filler valve could be incorporated to improve safety.
The fourth challenge that we have in the Canadian market pertains to some historical problems that we've had in the industry. LPG has been a fuel for vehicles in Canada for a long time. It has a blemished reputation with some people in Canada because of a combination of improper installations and poor technology that has been used in the past. Both of these areas have improved drastically. As long as vehicles are being converted with properly approved systems and by qualified and trained automotive technicians, LPG is a viable alternative, as demonstrated by many fleets and users across Canada, including the London police force, Air Canada, UPS, Canada Post, and the British Columbia Ministry of Transportation, to name a few.
The industry is still somewhat tarnished by some of the problems of the past, and those who have experienced some of the problems remember them well. It's incumbent on us to educate everyone on the benefits of LPG autogas and to train and regulate the industry to ensure that systems are used correctly.
Some of the recommendations that I have proposed to the committee include, first, recognizing that LPG autogas is a viable alternative fuel that can reduce operating costs and emissions today, and promoting its use across Canada.
Second is recognizing that LPG autogas could used in applications, where appropriate, within the federal government's own fleet of new and existing vehicles.
Third is perhaps to revisit the Transport Canada motor safety regulations concerning LPG fuel system integrity—that is, standard 301.1. This regulation requires that school buses that are converted to run on LPG go through a series of crash testing to approve the installation of such a system. There may be more practical means of ensuring the safety of LPG systems on school buses.
Fourth is investigating what can be done to remove restrictions placed on LPG-powered vehicles from parking in underground facilities.
Fifth is revisiting the training and certification requirements of the CSA B149 code on filling auto gas vehicles to determine if it can be done in a more convenient, practical manner without jeopardizing safety.
Sixth is to consider allowing alternative fuel vehicles with lower greenhouse gas emissions to operate in high-occupancy vehicle lanes with single passengers as an incentive to those who use such technology.
Seventh is to consider making funding available for training of conversion centre and installation personnel.
Thank you very much for your time.