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Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
Frito-Lay - Natural Gas Fleet
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Frito-Lay - Natural Gas Fleet

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Michael Birk, Frito-Lay, presents on the company's sustainability policies at the Wisconsin Natural Gas for Transportation Roundtable on January 29, 2013.

Michael Birk, Frito-Lay, presents on the company's sustainability policies at the Wisconsin Natural Gas for Transportation Roundtable on January 29, 2013.

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  • 1. Frito-Lay, Division of PepsiCo WI State Energy Office, Wisconsin Clean Cities Natural Gas for Transportation Roundtable January 29, 2013 PepsiCo Confidential
  • 2.  Company Sustainability Vision Projects and Results Fleet Operations CNG PepsiCo Confidential
  • 3. Our Sustainability Vision:To Become a Preeminent Green Company Goal Leave No Trace Sustainability Strategy Strategy 1 Bold Goal Conserve And Preserve The Earth’s Natural Assets 3 Targeted Natural Assets 3 Headline Objectives FL’s Eco-Footprint Water Energy Land Strategic Objectives • Perpetually reduce consumption of non-renewable natural assets • Step function change in consumer loyalty and customer intimacy • Embed sustainability within the cultural DNA of Frito-Lay PepsiCo Confidential PepsiCo Confidential 3
  • 4. Our Strategic Scope Includes Our Entire Operating Footprint,Extending to Every Partner to Whom We “Write a Check” 10 9 Make Move 8 7 6 5 4 3 2 1 16 17 18 19 20 11 12 13 14 Sell Support 15 Assets Practices External PepsiCo Confidential 4 PepsiCo Confidential
  • 5. SunChips… Powered by the Energy of the Sun Modesto Solar Field… April, 2008 Earth Day PepsiCo Confidential
  • 6. PC Stack Heat Recovery….Building Heat and Hot Water Production Beloit and FF in 2009 PepsiCo Confidential PepsiCo Confidential 6
  • 7. Net Zero and Conventional Technologies will be Implemented System-Wideas Rates, Inflation and Business Conditions Develop… Beloit Example Beloit Wind Turbine Power Purchase Agreement Low Pressure Biomass Boiler PepsiCo Confidential Energy… Efficiency and Recovery PepsiCo Confidential 7
  • 8. Ten Years of Continuous Improvement andSignificant Productivity Water Natural 100 100 Gas 90 45% 33% 90 80 BTU / Lb Gal / Lb 70 80 60 70 50 40 60 99 00 01 02 03 04 05 06 07 08 09 99 00 01 02 03 04 05 06 07 08 09 >$70MM Fuel Electricity 5% 76 100 25% 90 Gallons/Lbs Sold kwh / Lb 72 80 70 68 60 99 00 01 02 03 04 05 06 07 08 09 07 08 09 PepsiCo Confidential
  • 9. Oil is more expensive than we think… Military – Middle East Spills Refinery Fires Pollution/Smog/GHGs PepsiCo Confidential
  • 10. PepsiCo Confidential
  • 11. World Class Fleet Reliability Sustainability Capability Provide safe, dependable Preserve the environment and Build a powerful team ofvehicles for all our associates reduce green house gases while fleet professionals whoand the customers we share becoming one of the most fuel continue to provide the roads with everyday efficient fleets in America World Class Service
  • 12. We will be the most fuel-efficient fleet in Americathrough People, Process, & Technology… 2008 2010 2012 2020 14% 47.8 45.7 43.4 41.2 50% 39 37 35 33 31 29 27 25 23 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 PepsiCo Confidential
  • 13. PepsiCo Confidential
  • 14. 2012 added 83 New Tractors to our Fleet. Saved the companyabout 1,100,000 Gallons of Diesel Fuel Annually PepsiCoPepsiCo Confidential Confidential
  • 15. Why CNG ?North American Fuel Natural Gas Production NATURAL GAS AS A FUEL SOURCE •Natural gas is a readily available fuel, with over 98% coming from North America. •The energy availability from known sources provides more than 150 years of available Natural Gas Pipelines energy supply. •There are approximately 1.5 million miles of gas pipelines in the US with service to virtually every street and community.
  • 16. WHY CNG?
  • 17. WHY CNG?• Abundant & domestic fuel CNG vs Diesel• Fuel savings - ~ $2.20/gallon 1,800 1,600 1,695 23%• Clean, less CO2 and other emissions 1,400 1,200 1,302 1,000Future: 800 $500 47% 600• Opportunity to run biogas = Zero GHG 400 $500 200 $268• Potential future tax credits on fuel and 0 tractor g/mi CO2 Fuel $/1000mi Fully Capable Tractor for Us • 9L 320 hp 1000 lb-ft, automatic trans. • 75 – 169 gallon fuel • 300 – 700+ mi range • SA & TA • 4 OEs in production • 12L 420hp engine due in 2013 PepsiCo Confidential
  • 18. CNG Operation - Key ConsiderationsWhen Scoping CNG, We Must Solve For:• Tractors – Range & Load• Change Mgmt & Implementation• Garage/Maintenance• Training• FUEL!We currently face a classic “Chicken-And-Egg” challenge that we hope to breakthrough with an innovative partnership approach with fuel providers.The National Fuel RFP will offer up our base volume commitment for stationconstruction in exchange for aggressive pricing and preferred location. PepsiCo Confidential
  • 19. RFP Outline• Competitive Process based on “anchor tenant” arrangement• Prioritized Tier 1 and 2 sites based on scale & business need• Key components: – Base fuel volume commitment – Performance – Schedule – Specific startup PepsiCo Confidential
  • 20. Sites Considered for RFP Vancouver Modesto Killingly Topeka Kern Jonesboro Charlotte Pulaski/FV Dallas Perry Rosenberg Orlando PepsiCo Confidential
  • 21. Beloit, WisconsinFrito-Lay owned CNG station PepsiCo Confidential
  • 22. Garage Capability Must Invest in garage capability to maintain CNG assets - Building safety/NFPA - Training - Tools General NFPA & FMG Requirements•Methane detection•Indirect heating sources•Adequate ventilation•Dropped ceiling or no electrical <18” below ceilinglevel•Low-temperature lighting•No spark sources (motors, relays, etc) in airhandling equipment or near ceiling.•In some cases automatic door openers may berequired – tie into detection system. Exact Scope will be determined upon a detailed site review
  • 23. 2013-on Future CNG Site Approach•Target 100 CNG Units in 2013.•Add units at existing locations with “optimized” fuel.•Go to 4-5 new sites each year•Prioritize largest sites – SCALE - bigger bang for the buck, lower risk•Factor in business changes as needed•Garage Investment/External MX support•Annual Fuel Partner RFP will include prioritized site list •Non-optimized current sites •New Sites without fuel •Real Estate Purchase Option PepsiCo Confidential
  • 24. 2013 CNG Tractors will make up 20% of our Fleet CNG is quickly becoming a reality in our fleet! Thank You!!
  • 25. Appendix
  • 26. CNG VS Diesel Price Build CNG & Diesel Price Build $4.50 $4.00 $3.75 $3.94 $3.50 $3.00 Taxes $2.50 Station Op & Margin $2.19$/gallon Capital Refining & Delivery $2.00 Commodity $1.50 Oil Cost = $2.96/gal @ $90/barrel $1.00 Gas Cost = $0.42/ gal $0.50 @ $3.00 NYMEX $- CNG Bulk Diesel Retail Diesel
  • 27. Natural Gas Supply Chain EXTRACTION PIPELINE STORAGE TRANSPORT EXTRACTION PIPELINE Commercial Station Design -Public -Pricing -Pressure & Flow -Pavement -ProximityThe drilling and hydraulic fracturing industry is (An extensive network of piping already existsheavily regulated and best practices are used by to transport natural gas from the source to usedrillers minimize environmental impact on: points-Water usage-Fluid disposal and recycling-Drinking water contamination-Gas leakage CNG Energy Basics 1 gallon diesel = 139,000 BTU = X cubic ft NG (show visual) not under pressure = Y cubic feet (show visual) under pressure = 1 Diesel Gallon Equivalent (DGE)
  • 28. CNG Safety• Natural gas vehicles are a safe alternative with a proven track record.• CNG is about as flammable as diesel fuel. CNG gas poses a danger of ignition only when present in a 5% to 15% concentration.• CNG will not pool when spilled, which reduces the probability of a fire if the tank is breached.• Natural Gas presents an asphyxiation hazard at concentrations exceeding 21%. Methane Gas Detection – under hood and in cab
  • 29. CNG Tank Safety• Twenty-Year Tank Design - Design and Construction is Heavily Regulated• All CNG Vehicle Fuel Containers MUST meet the federal government’s FMVSS 304 (49 CFR 571.304), Compressed Natural Gas Fuel Container Integrity.Tank Testing Procedures:• Drop/Crash Testing• Bonfire Testing• Dynamite Testing• Gunfire Testing – Armor Piercing Rifle Bullets• Hydraulic Crush Tests• Acid/Corrosion Tests• Pressure Relief Valve is designed to safely vent tank in case of overpressurization, impact, or fire.• Google “CNG Tank Testing” – Numerous Web Sites and You Tube Videos• SUMMARY: NATURAL GAS IS AS SAFE, OR SAFER, THAN DIESEL AND GASOLINE

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