The Power of Electric Tractors by Steve Heckeroth

Forth
SOLECTRAC
ELECTRIC
TRACTORS
The Power of Electric Tractors May 2022
NASDAQ: IDEX
Steve Heckeroth, Founder and Chief Innovation Officer
©
Solectrac
2021
|
Confidential
&
Proprietary
SOLECTRAC
ELECTRIC
TRACTORS
©
Solectrac
2021
|
Confidential
&
Proprietary
2
WHO WE ARE
Based in Northern California, Solectrac offers
100% battery-powered, electric tractors for
agriculture and utility applications.
Electric tractors provide operators
independence from pollution, infrastructure,
and price volatility associated with fossil fuels,
our world, a clean and healthier place to live.
Solectrac was incorporated as a California
Benefit Corp. in 2019 with the goal to do
“Business for Good.”
SOLECTRAC
ELECTRIC
TRACTORS
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2021
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3
 Battery Weight is an Asset
 Energy Efficient
 Quiet Operation
 Improved Health and Safety
 Lower Operating Cost
 Less Maintenance
 Instant Torque
 No Idling
 Exchangeable Battery Packs
 Regenerative Braking
WHY
ELECTRIC
TRACTORS?
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SOLECTRAC
ELECTRIC
TRACTORS
Battery Weight is an Asset
Tractors need traction to move heavy
implements and traditionally
implements are balanced by heavy
steel weights on the front bumper. In
an electric tractor, the weight of an
exchangeable battery pack* becomes
its energy source and can be placed on
the front or rear hitch to customize
weight distribution.
4
*Exchangeable battery packs are only offered for the
e70N at this time.
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SOLECTRAC
ELECTRIC
TRACTORS
5
DIESEL
TRACTOR
ELECTRIC
TRACTOR
GAIN
LOSS
GAIN
LOSS
10% WORK
10% IDLING
8% DRIVE TRAIN
62% COMBUSTION
15% REGEN
94% WORK
4% MECHANICAL
2% DRIVE TRAIN
Energy Efficient
VS
ADDITIONAL
10% MECHANICAL
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2021
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2021
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SOLECTRAC
ELECTRIC
TRACTORS
6
0 dB 20 dB 40 dB 60 dB 80 dB 100 dB 120 dB
SOFT
MUSIC
AVG
HOME
HEAVY
TRAFFIC
DIESEL
TRACTORS
95-105 dB
SPORTS
CROWD
SOLECTRAC
TRACTORS
65 dB
Sound levels under 85 dBA are generally thought of as “safe,”
although there is some risk of hearing loss for prolonged
exposures to 80 dBA*
Safe exposure to 105 dB is 4
minutes.*
* NATIONAL AG SAFETY DATABASE
Quiet Operations
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2021
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Confidential
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Proprietary
SOLECTRAC
ELECTRIC
TRACTORS
2022
©
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2021
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Confidential
&
Proprietary
7
 AIR POLLUTION AND GHG
EMISSIONS
 EXPOSURE TO TOXIC DIESEL
EXHAUST
 DIESEL PARTICULATES ON CROPS
AND SOIL
Electric Tractors Reduce:
Improved Worker &
Environmental Health
SOLECTRAC
ELECTRIC
TRACTORS
8
SOLAR GRID
90
TONS
>1 TON
CO2 Emissions from a 30 HP electric tractor vs 30 HP diesel
tractor with average use over 15 years
9
TONS
Reduced Carbon Footprint
DIESEL
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2021
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©
Solectrac
2021
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Confidential
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SOLECTRAC
ELECTRIC
TRACTORS
9
DIESEL TRACTOR ELECTRIC TRACTOR
Fuel cost = .044 x 30 HP = 1.32 gal/hr. at $4/gal = $5.28
Does not include lubrication cost = 15% of fuel cost*
*Iowa State University
$5.28/hour $0.74/hour
Fuel cost: 20 cents/kWh
Battery pack 22 kWh last ~ 6 hrs.
3.7 kWh/hr. used x 20 cents = $.74
Lower Operating Cost
VS
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SOLECTRAC
ELECTRIC
TRACTORS
10
30 HP Diesel 30 HP Electric
Tractor Type
7920 gals 0
Purchase Price
88.9 tons 1.06 tons solar* / 9.2 tons grid
Liquid Fuel Used
322.3 MWh 20 MWh
Total CO2 / 15 Years
$5.28 $0.74
Energy Used / 15 Years
$2,112 $296
Fuel Cost / Hour
$31,680 $4,440
Fuel Cost / Year
$105,972** $7,000***
Fuel Cost / 15 Years
$20,000 $25,000
Maintenance Cost / 15 Years
$157,652 $36,440
Total Operating Cost/ 15 Yrs
Less Maintenance
(400 hrs./yr. for 15 yrs.)
*CO2 emissions over lifespan of solar panels,
**https://www.extension.iastate.edu/agdm/crops/html/a3-29.htm
***Cost of battery replacement
Assumptions average next 15 yrs: diesel use 1.32gal/hr at $4.00/gal; 40.7kWh/gal, 22.46 lbs CO2/gal
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2021
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SOLECTRAC
ELECTRIC
TRACTORS
Instant Torque
Electric motors have maximum
torque at 0 RPMs. This
allows increased pulling power
at the slow speeds
where tractors
normally operate. Diesel tractors
do not reach maximum torque
until 2000-3000 RPM, so they
take time to come up to
maximum torque under heavy
loads.
11
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Solectrac
2021
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Confidential
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SOLECTRAC
ELECTRIC
TRACTORS
No Idling
The motor in an electric tractor only
runs when you hit the throttle. When
the tractor is stopped, like during
harvesting, it is silent with no exhaust
and no energy being used.
The engine in a diesel tractor idles all
day long and can waste energy, disrupt
surroundings and spew exhaust even
when no work is being done.
12
©
Solectrac
2021
|
Confidential
&
Proprietary
SOLECTRAC
ELECTRIC
TRACTORS
Exchangeable Battery Packs
Just like the extra battery that can be
purchased for a portable drill, electric
tractors can come with an exchangeable
battery pack. They serve the dual
purpose of weight for traction and
extending runtime. With exchangeable
battery packs*, you can run the electric
tractor continuously with a flip of a
switch.
13
*Exchangeable battery packs are only offered for the
e70N at this time.
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Solectrac
2021
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Confidential
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SOLECTRAC
ELECTRIC
TRACTORS
Regenerative Braking
An electric tractor can return energy to the
battery that would otherwise be lost when
braking. When you let the foot of the
throttle, go downhill or brake, the motor
turns into a generator and recharges the
battery, allowing for extended runtime.
14
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2021
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Confidential
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Proprietary
SOLECTRAC
ELECTRIC
TRACTORS
©
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2021
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Confidential
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Proprietary
15
SOLECTRAC ELECTRIC TRACTORS
Solectrac e25
The 25 HP Category
e25 is a versatile, 4WD compact
tractor great for hobby farms, golf
courses, sport fields, equestrian
centers, and municipalities.
Solectrac e70N
The 70 HP Category
e70N is a powerful, narrow electric
tractor, perfectly suited for
vineyards and orchards.
SOLECTRAC
ELECTRIC
TRACTORS
How Solectrac Is Making An Impact Today
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2021
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16
SOLECTRAC
ELECTRIC
TRACTORS
2022
©
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2021
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Confidential
&
Proprietary
17
LA Compost
The e25 helps
customers like Michael
move greater amounts
of material with time
and ease compared to
shovels and pitch
forks.
Winfield Farm
The e25 has helped
make his life easier and
more efficient while
contributing to his goal
of running an all-solar
farm with zero fossil
fuel use.
Kokua Hawai’i
Foundation
KHF is focused on
teaching young
farmers about local
food production. The
tractor is put to work in
all phases of land
management and
during the teaching
process.
Michael Martinez, Founder of LA Compost
Bruce Steele, Owner of Winfield Farm
Kim and world-renowned musician Jack
Johnson, co-founders
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2021
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Confidential
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SOLECTRAC
ELECTRIC
TRACTORS
2022
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2021
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Confidential
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Proprietary
18
“I’m amazed at how quiet and clean
the e70N is. It’s perfect for creating a
healthy and safe working environment
for commercial operations like mine.”
Michelle Riddle
VP Vineyard Management
©
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2021
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SOLECTRAC
ELECTRIC
TRACTORS
2022
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2022
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19
The California Air Resources Board (CARB) offers two main incentive programs, The Carl
Moyer program and the FARMER program, which are both administered through
California’s local county air districts.
1. The Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer
Program) provides grant funding for cleaner-than-required engines, equipment, and
other sources of air pollution. The Carl Moyer Program is implemented as a
partnership between CARB and California’s 35 local air districts.
2. The Funding Agricultural Replacement Measures for Emission Reductions
(FARMER) Program provides funding through local air districts for agricultural
harvesting equipment, tractors, heavy-duty trucks, agricultural pump engines, and
other equipment used in agricultural operations. The FARMER program offers a scrap
and replace incentive which would pay up to 80% of the cost of an electric tractor.
• Demonstration Project category
• Zero-Emission Agricultural Equipment category that will be approved on a
case-by-case basis
Incentives
©
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2022
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Confidential
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Proprietary
SOLECTRAC
ELECTRIC
TRACTORS
2022
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2021
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20
Steve Heckeroth
Founder & Chief Innovation Officer
Thank You
1 of 20

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The Power of Electric Tractors by Steve Heckeroth

  • 1. SOLECTRAC ELECTRIC TRACTORS The Power of Electric Tractors May 2022 NASDAQ: IDEX Steve Heckeroth, Founder and Chief Innovation Officer © Solectrac 2021 | Confidential & Proprietary
  • 2. SOLECTRAC ELECTRIC TRACTORS © Solectrac 2021 | Confidential & Proprietary 2 WHO WE ARE Based in Northern California, Solectrac offers 100% battery-powered, electric tractors for agriculture and utility applications. Electric tractors provide operators independence from pollution, infrastructure, and price volatility associated with fossil fuels, our world, a clean and healthier place to live. Solectrac was incorporated as a California Benefit Corp. in 2019 with the goal to do “Business for Good.”
  • 3. SOLECTRAC ELECTRIC TRACTORS © Solectrac 2021 | Confidential & Proprietary 3  Battery Weight is an Asset  Energy Efficient  Quiet Operation  Improved Health and Safety  Lower Operating Cost  Less Maintenance  Instant Torque  No Idling  Exchangeable Battery Packs  Regenerative Braking WHY ELECTRIC TRACTORS? © Solectrac 2021 | Confidential & Proprietary
  • 4. SOLECTRAC ELECTRIC TRACTORS Battery Weight is an Asset Tractors need traction to move heavy implements and traditionally implements are balanced by heavy steel weights on the front bumper. In an electric tractor, the weight of an exchangeable battery pack* becomes its energy source and can be placed on the front or rear hitch to customize weight distribution. 4 *Exchangeable battery packs are only offered for the e70N at this time. © Solectrac 2021 | Confidential & Proprietary
  • 5. SOLECTRAC ELECTRIC TRACTORS 5 DIESEL TRACTOR ELECTRIC TRACTOR GAIN LOSS GAIN LOSS 10% WORK 10% IDLING 8% DRIVE TRAIN 62% COMBUSTION 15% REGEN 94% WORK 4% MECHANICAL 2% DRIVE TRAIN Energy Efficient VS ADDITIONAL 10% MECHANICAL © Solectrac 2021 | Confidential & Proprietary © Solectrac 2021 | Confidential & Proprietary
  • 6. SOLECTRAC ELECTRIC TRACTORS 6 0 dB 20 dB 40 dB 60 dB 80 dB 100 dB 120 dB SOFT MUSIC AVG HOME HEAVY TRAFFIC DIESEL TRACTORS 95-105 dB SPORTS CROWD SOLECTRAC TRACTORS 65 dB Sound levels under 85 dBA are generally thought of as “safe,” although there is some risk of hearing loss for prolonged exposures to 80 dBA* Safe exposure to 105 dB is 4 minutes.* * NATIONAL AG SAFETY DATABASE Quiet Operations © Solectrac 2021 | Confidential & Proprietary
  • 7. SOLECTRAC ELECTRIC TRACTORS 2022 © Solectrac 2021 | Confidential & Proprietary 7  AIR POLLUTION AND GHG EMISSIONS  EXPOSURE TO TOXIC DIESEL EXHAUST  DIESEL PARTICULATES ON CROPS AND SOIL Electric Tractors Reduce: Improved Worker & Environmental Health
  • 8. SOLECTRAC ELECTRIC TRACTORS 8 SOLAR GRID 90 TONS >1 TON CO2 Emissions from a 30 HP electric tractor vs 30 HP diesel tractor with average use over 15 years 9 TONS Reduced Carbon Footprint DIESEL © Solectrac 2021 | Confidential & Proprietary © Solectrac 2021 | Confidential & Proprietary
  • 9. SOLECTRAC ELECTRIC TRACTORS 9 DIESEL TRACTOR ELECTRIC TRACTOR Fuel cost = .044 x 30 HP = 1.32 gal/hr. at $4/gal = $5.28 Does not include lubrication cost = 15% of fuel cost* *Iowa State University $5.28/hour $0.74/hour Fuel cost: 20 cents/kWh Battery pack 22 kWh last ~ 6 hrs. 3.7 kWh/hr. used x 20 cents = $.74 Lower Operating Cost VS © Solectrac 2021 | Confidential & Proprietary
  • 10. SOLECTRAC ELECTRIC TRACTORS 10 30 HP Diesel 30 HP Electric Tractor Type 7920 gals 0 Purchase Price 88.9 tons 1.06 tons solar* / 9.2 tons grid Liquid Fuel Used 322.3 MWh 20 MWh Total CO2 / 15 Years $5.28 $0.74 Energy Used / 15 Years $2,112 $296 Fuel Cost / Hour $31,680 $4,440 Fuel Cost / Year $105,972** $7,000*** Fuel Cost / 15 Years $20,000 $25,000 Maintenance Cost / 15 Years $157,652 $36,440 Total Operating Cost/ 15 Yrs Less Maintenance (400 hrs./yr. for 15 yrs.) *CO2 emissions over lifespan of solar panels, **https://www.extension.iastate.edu/agdm/crops/html/a3-29.htm ***Cost of battery replacement Assumptions average next 15 yrs: diesel use 1.32gal/hr at $4.00/gal; 40.7kWh/gal, 22.46 lbs CO2/gal © Solectrac 2021 | Confidential & Proprietary
  • 11. SOLECTRAC ELECTRIC TRACTORS Instant Torque Electric motors have maximum torque at 0 RPMs. This allows increased pulling power at the slow speeds where tractors normally operate. Diesel tractors do not reach maximum torque until 2000-3000 RPM, so they take time to come up to maximum torque under heavy loads. 11 © Solectrac 2021 | Confidential & Proprietary
  • 12. SOLECTRAC ELECTRIC TRACTORS No Idling The motor in an electric tractor only runs when you hit the throttle. When the tractor is stopped, like during harvesting, it is silent with no exhaust and no energy being used. The engine in a diesel tractor idles all day long and can waste energy, disrupt surroundings and spew exhaust even when no work is being done. 12 © Solectrac 2021 | Confidential & Proprietary
  • 13. SOLECTRAC ELECTRIC TRACTORS Exchangeable Battery Packs Just like the extra battery that can be purchased for a portable drill, electric tractors can come with an exchangeable battery pack. They serve the dual purpose of weight for traction and extending runtime. With exchangeable battery packs*, you can run the electric tractor continuously with a flip of a switch. 13 *Exchangeable battery packs are only offered for the e70N at this time. © Solectrac 2021 | Confidential & Proprietary
  • 14. SOLECTRAC ELECTRIC TRACTORS Regenerative Braking An electric tractor can return energy to the battery that would otherwise be lost when braking. When you let the foot of the throttle, go downhill or brake, the motor turns into a generator and recharges the battery, allowing for extended runtime. 14 © Solectrac 2021 | Confidential & Proprietary
  • 15. SOLECTRAC ELECTRIC TRACTORS © Solectrac 2021 | Confidential & Proprietary 15 SOLECTRAC ELECTRIC TRACTORS Solectrac e25 The 25 HP Category e25 is a versatile, 4WD compact tractor great for hobby farms, golf courses, sport fields, equestrian centers, and municipalities. Solectrac e70N The 70 HP Category e70N is a powerful, narrow electric tractor, perfectly suited for vineyards and orchards.
  • 16. SOLECTRAC ELECTRIC TRACTORS How Solectrac Is Making An Impact Today © Solectrac 2021 | Confidential & Proprietary 16
  • 17. SOLECTRAC ELECTRIC TRACTORS 2022 © Solectrac 2021 | Confidential & Proprietary 17 LA Compost The e25 helps customers like Michael move greater amounts of material with time and ease compared to shovels and pitch forks. Winfield Farm The e25 has helped make his life easier and more efficient while contributing to his goal of running an all-solar farm with zero fossil fuel use. Kokua Hawai’i Foundation KHF is focused on teaching young farmers about local food production. The tractor is put to work in all phases of land management and during the teaching process. Michael Martinez, Founder of LA Compost Bruce Steele, Owner of Winfield Farm Kim and world-renowned musician Jack Johnson, co-founders © Solectrac 2021 | Confidential & Proprietary
  • 18. SOLECTRAC ELECTRIC TRACTORS 2022 © Solectrac 2021 | Confidential & Proprietary 18 “I’m amazed at how quiet and clean the e70N is. It’s perfect for creating a healthy and safe working environment for commercial operations like mine.” Michelle Riddle VP Vineyard Management © Solectrac 2021 | Confidential & Proprietary
  • 19. SOLECTRAC ELECTRIC TRACTORS 2022 © Solectrac 2022 | Confidential & Proprietary 19 The California Air Resources Board (CARB) offers two main incentive programs, The Carl Moyer program and the FARMER program, which are both administered through California’s local county air districts. 1. The Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program) provides grant funding for cleaner-than-required engines, equipment, and other sources of air pollution. The Carl Moyer Program is implemented as a partnership between CARB and California’s 35 local air districts. 2. The Funding Agricultural Replacement Measures for Emission Reductions (FARMER) Program provides funding through local air districts for agricultural harvesting equipment, tractors, heavy-duty trucks, agricultural pump engines, and other equipment used in agricultural operations. The FARMER program offers a scrap and replace incentive which would pay up to 80% of the cost of an electric tractor. • Demonstration Project category • Zero-Emission Agricultural Equipment category that will be approved on a case-by-case basis Incentives © Solectrac 2022 | Confidential & Proprietary

Editor's Notes

  1. For most electric vehicles, battery weight is a problem, but for electric tractors, battery weight is an asset and can be used to balance the weight of implements.
  2. The drive train of a diesel tractor is a complicated machine with over 300 parts. The electric motor in an electric tractor has only one moving part which accounts for most of its energy being converted into power directly without losses due to the heat of combustion. 
  3. Many farmers experience hearing loss from long exposure to the 95 - 100 decibels from diesel tractors used in their daily activities. Electric tractors can significantly reduce that harmful exposure. Electric tractors operate in the safe exposure zone below 80 decibels at around 65 db.
  4. CO2 Emissions from a 30 HP diesel tractor with average use over 15 years  ~ 90 Tons CO2 Emission from a 30 HP electric tractor charged from grid  over 15 years ~ 9 Tons CO2 Emissions from a 30 HP electric tractor charged from solar  over 15 years ~ 1 ton
  5. Farmers are subjected to volatile fuel costs. Charging an electric tractor from the California grid at about 20 cents per kWh reduces fuel cost by about 70%.
  6. According to Iowa State University's Estimates, maintenance cost of a 30 HP tractor's 15-year life cycle is over $100,000. An electric tractors maintenance cost over the same time period is $7,000, which is a fraction of the cost of diesel.
  7. Electric motors have maximum torque at zero RPM and all the way through the slow operating speeds of tractors. Diesel tractors do not reach maximum torque until 2000-3000 RPM, so they take time to come up to maximum torque under heavy loads.
  8. The motor in an electric tractor only runs when you hit the throttle. When the tractor is stopped, like during harvesting, it is silent with no exhaust and no energy is used. The engine in a diesel tractor idles all day long wasting energy making noise and spuing exhaust even when no work is being done.
  9. Just like the extra battery that can be purchased for a weed whacker, electric tractors can come with an exchangeable battery pack. They serve the dual purpose of weight for traction and extending runtime. With exchangeable battery packs,  you can run the electric tractor continuously.
  10. An electric tractor can return energy to the battery that would otherwise be lost. When you let the foot of the throttle, go downhill or brake, the motor turns into a generator and recharges the battery.