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Interactive Qualifying Project

By:

Peter Donaldson, Deborah Kalambayi, Ann Khakimova, Mark Polupudnov, Artyom Proskurin, Bryan Therrien, Max Usoltsev, Jeremy Wiles

Advisors:

Professor Svetlana Nikitina

Assistant Dean Tatiana Goroshnikova

Special Thanks to:

Alexander Ilyinskiy, Dean of International Finance

Планкин Алексей Анатольевич, Chief Mechanic at МПАС Car Care Centre

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TRANSFORMING TRANSPORTATION:

FEASIBILITY STUDY OF ALTERNATIVE FUELS IN MOSCOW

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OUR PROJECT

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GOALS

And Deliverables

1. ANALYZE

2. DETERMINE

3. ADVISE

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VEHICLE SELECTION

And Sales Prevalence

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HYUNDAI SOLARIS

NISSAN LEAF

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LCCA

  • Total Ownership Cost
  • Present Value (PV)
  • 6-year term length

LIFE CYCLE COST ANALYSIS

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IDENTIFY COSTS

DIRECT and INDIRECT

85%

15%

  • Initial Cost

  • Fuel Cost
  • Maintenance Cost
  • Insurance Costs
  • Transport Tax
  • Convenience Cost

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CONVENIENCE COSTS

How much is your time worth?

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FUEL COST PROJECTIONS

Estimating Future Prices

2008

2018

COST

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DATA COLLECTION:

INTERVIEWS

  • Mechanics
  • Car Dealerships
  • Industry Experts

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NPV RESULTS

  • Solaris
  • Solaris CNG
  • Nissan Leaf

2,131,000p.

1,262,000p.

1,565,000p.

NPV over a 6-year Interval

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ANNUAL FUEL COST

27,786p.

90,178p.

  • Solaris
  • Solaris CNG
  • Nissan Leaf

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CONVENIENCE

COST COMPARISON

77,769p.

10,086p.

4,865p.

Nissan Leaf

Solaris

Solaris CNG

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LCC DYNAMICS

2017

2018

2019

2020

2021

2022

2023

1,000,000

1,500,000

2,000,000

Nissan Leaf

Solaris

Solaris CNG

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ENVIRONMENTAL BENEFITS

-27%

-99%

-99%

-70%

CO2

NOx

Particulate Matter

SO2

Petrol

100%

CNG

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CNG VEHICLES

Convert and Save

  • Cost-effective
  • Environmentally Sensible
  • Infrastructure-Compatible
  • Resource-Reliant

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ESTABLISH

GOVERNMENT INCENTIVES

  • Rebates
  • Import Tax
  • Emission Tax
  • Fuel Tax

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ELECTRIC VEHICLES

  • Expand home charging options
  • Develop public charging infrastructure
  • Promote domestic production

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CONCLUSIONS

  • CNG Conversion is Feasible Today
  • Institute Incentives Program
  • Develop Electric Infrastructure
  • Initiate EV Domestic Production

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Autostat (2016). Infographics. Retrieved September 07, 2017, from http://eng.autostat.ru/news/25/

(Data on the Russian car market)

Benizin. (2017, September). Information about CNG. Retrieved September 09, 2017, from

https://www.benzin-price.ru/zapravka.php?azk_id=50&sc=7b677ac86358381c0901b2ac86174443

(History of CNG prices in Moscow)

Di Pascoli, Stefano, Femia, Aldo, and Luzzati, Tommaso. (2001). Natural gas, cars and the

environment. A (relatively) ‘Clean’ and cheap fuel looking for users. Ecological Economics, 38 (2), 4, para. 4. Retrieved April 1, 2017, from �http://www.sciencedirect.com/science/article/pii/S0921800901001744

(discusses the benefits of using natural gas as a fuel for vehicles)

Fluxys. (2017). Compressing Natural Gas. Retrieved October 3, 2017 from

http://www.fluxys.com/belgium/en/About%20natural%20gas/fuelfortransport/CNG/CNG

(Reduction in CNG emission vs petrol)

Ministry of Economic Development of the Russian Federation. (2016, November). Forecast of the

socio-economic development of the Russian Federation for 2017. Retrieved October 03, 2017, from

http://economy.gov.ru/minec/activity/sections/macro/2016241101

(Inflation rate forecast used in our LCC for fuel prices predictions)

Yandex News. (2017). Dynamics of retail prices for gasoline AI-95 (Russia, rubles) for Moscow.

Retrieved September 09, 2017, from https://news.yandex.ru/quotes/213/20002.html

(Gasoline prices in Moscow)

SELECTED REFERENCES

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Slide 1

https://www.wpi.edu/sites/default/files/inline-image/Offices/Marketing-Communications/WPI_Inst_Prim_FulClr_PREVIEW.png

http://olympins.com/upload/en_img/coorg.png

Slide 2

https://www.bmwusa.com/content/dam/bmwusa/BMWi/i8/Gallery/BMWi_i8_lightbox_01.jpg

Slide 3

https://blogs.voanews.com/russia-watch/files/2011/09/AP100305112276.jpg

Slide 4

http://www.lionsafrica.org/wp-content/uploads/2017/07/Venture-Finance.jpg

Slide 6

http://www.inguru.ru/img/cp_model_data/big/58dfeee544dc0.png

https://www.nissan-cdn.net/content/dam/Nissan/ireland/leaf/ze0/packshots/Leaf%20Range.png.ximg.l_full_m.smart.png

Slide 7

http://www.campus-informer.com/dashboard/img-uploads/freeimage-102313173.jpg

Slide 8

https://pixabay.com/p-2070977/?no_redirect

Slide 9

https://insideevs.com/wp-content/uploads/2015/08/258834.jpg

http://www.clker.com/cliparts/f/b/2/f/1238968076936815408scott_kirkwood_scales.svg.hi.png

Slide 11

http://www.pngall.com/wp-content/uploads/2016/07/Interview-Free-PNG-Image.png

Slide 17

http://asavtomotors.ru/catalog/cars/lada/lada-vesta-cng/

Slide 18

https://www.askideas.com/40-most-beautiful-moscow-kremlin-russia-pictures-and-images/

Slide 19

http://www.greencarreports.com/news/1101399_largest-non-tesla-fast-charging-site-in-u-s-at-ca-supermarket

PICTURE REFERENCES

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Thank You

Questions?

Find us at https://sites.google.com/view/transportationiqp