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CNG & LNG for Heavy Duty Trucking

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CNG & LNG for Heavy Duty Trucking

  1. 1. CNG & LNG for Heavy Duty Trucking November 20, 2014
  2. 2. About Clean Energy 2
  3. 3. Largest Alternative Transportation Fuel Provider 800+ FLEET CUSTOMERS 30,000+ FUELED DAILY NGVS 500+ NATURAL GAS FUELING STATIONS 9,000+ TRANSACTIONS PER DAY 3
  4. 4. Fueling Services Design, Construct, and Operate CNG Time Fill 4
  5. 5. Fueling Services Design, Construct, and Operate CNG Fast Fill 5
  6. 6. Fueling Services Design, Construct, and Operate LNG 6
  7. 7. America’s Natural Gas Highway The Infrastructure Reality 7
  8. 8. America’s Natural Gas Highway The Infrastructure Vision 8
  9. 9. Hope Hull, AL Latta, SC Oklahoma City, OK Pearl, MS America’s Natural Gas Highway The Infrastructure Reality 9
  10. 10. America’s Natural Gas Highway Dallas CNG & LNG 10
  11. 11. HEAVY DUTY TRUCKING REFUSE FLEETS Shippers Look to Natural Gas 11
  12. 12. NatGas Vehicles Have A Lower Carbon Footprint CO2 CO GASOLINE DIESEL GREENHOUSE GAS EMISSIONS 2 CO2 CO2 CO2 CO2 28% LOWER 23% LOWER LNG CNG 84% LOWER LANDFILL GAS 88% LOWER LANDFILL GAS 12
  13. 13. Private & For-Hire Carriers Deploy Natural Gas Trucks HEAVY DUTY TRUCKING REFUSE FLEETS 13
  14. 14. Assumptions 1. Should cost less to operate 2. Shouldn’t impact operations 3. Make money for the carrier 14
  15. 15. Lower total cost of operation • Spec only the needed daily fuel capacity • Payback: 18 to 30 months @ $1/gallon - Depends on truck’s incremental cost, fuel consumption and fuel spread Lower total cost of fuel • Energy equivalency (GGE to DGE) - $2.20/GGE is really $2.45/DGE • Consider impacts of time, weight and cost Maintenance costs wash • Increase cost of spark plugs • Oil intervals the same • Loss of DPF and DEF Incremental Cost $60,000 $45,000 $30,000 Range (miles) 700+ 550+ 400+ Fuel Spread $1.00 $1.00 $1.00 Fuel Consumption 20,000 20,000 20,000 Payback 36 Months 27 Months 18 Months Costs Less 15
  16. 16. US Natural Gas Shale Plays As reported by the American Petroleum Institute in 2014 16
  17. 17. 17
  18. 18. Fueling time impacts HOS • LNG same as diesel • CNG is half as fast at its best Fueling infrastructure • Public access CNG & LNG networks expanding • Private backlot station solutions exist - Fast-fill CNG, Time-fill CNG and LNG NGVs as differentiators in recruiting • Drivers love NGVs - Quieter, cleaner, and no diesel smell • Shippers diversifying fuel spend • Private fleets realizing bottom line savings - Budweiser, FedEx, Frito Lay, Kroger, MillerCoors, Pepsi, SuperValu, UPS and US Foods Operations Improving 18
  19. 19. Use NGVs as competitive advantage • Cost savings per mile • Attract new customers and build revenue Green House Gas (GHG) reductions • 100,000 miles on diesel at 6.5 MPG is 200 MT GHG/year • Same miles on ISX12 G using conventional NG is 150MT GHG/year and <50 MT when using 100% Redeem Defend existing business • Insulate existing business (revenues and margins) from competitive threat Make Money for the Carrier 19
  20. 20. Several Economic Models • Value Simulator (cents/mile) - Over 30 input variables (finance, operation, insurance, etc.) • IRR • Simple Payback (years) • Weight, Time and Incremental Cost - Determines best fit, CNG or LNG, for the application • Lease versus Purchase - FMV through GE Capital • CNG & LNG Tank packages 20
  21. 21. Fleets Running NGVs 21
  22. 22. “….the bitterness of poor quality remains long after the sweetness of low price is forgotten.” 22
  23. 23. Jim Harger Chief Marketing Officer jharger@cleanenergfuels.com (949) 439-1350 23

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