The document discusses analyzing alternative fuel infrastructure needs and opportunities. It notes that over $1 trillion is spent annually on crude oil and refined products in the US, indicating a need for alternative fuels. Large natural gas producers are investing in infrastructure for natural gas vehicles. While startups face challenges, an opportunity exists for an unbiased consulting firm to analyze options for fleets considering electric or natural gas vehicles. The document outlines a business model for such a consulting firm called TriFuel to provide customized analyses and recommendations to help fleets lower fuel costs and capture savings or credits.

1. An analysis of where we were, where we may
be going, and how we could get there
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2.  A lot!
 US purchases of crude
oil are about $700B per
year
 Refining adds even
more...This approaches
a $1T per year market.
 This leads us to believe
that there is a specific
need for alternative
fuel infrastructure
creation.
Source: EIA, 2011

3. 1) There are many large, well-capitalized
companies already going in that direction.
2) These companies (often affiliated with large
natural gas producers) all seem to have a
vested interested in finding new channels for
the use of natural gas.
3) The payback periods for the infrastructure
growth does not favor small start-ups

4. 1) Companies were either a fan of CNG, a fan
of EV, but not both. There seemed to
always be a bias.
2) Given where oil prices are, companies are
willing to explore the options and
understand what is fact v fiction.
3) There was no 3rd party consulting to
companies that have fleets of vehicles, that
could deliver an unbiased analysis.
4) Here is where the opportunity lies – a
consulting firm that can analyze EV or CNG
optionality.

5. 1) Diesel has been the fuel of choice because of the range it
provides.
2) For CNG, it comes down to complete lack of infrastructure.
No company wants to have a truck with an empty fuel tank
and no nearby fueling station.
3) The costs to implement fueling equipment is significant.
4) Also, LNG systems are heavy, and that takes truck load
capacity down. Not good.
5) Note even our government data presented in chart form
only has CNG or EV, never both!

6.  Customer Segments: Companies that either
own or operate fleets of vehicles! These can
be:
b. Long Haul Carriers (greater than 100 miles
per day)
c. Intra-city carriers (less than 100 miles per
day, same point of origin and destination
d. Could be trucks (class 3-8), light trucks (i.e.
delivery vans, or fleets of autos

7.  Initial TriFuel Market States: Colorado and Ohio
 Possible Revenue per Year if 20% - 50% of
realized savings are retained by TriFuel
 Second Phase of Business Model: Possible lease
revenue, not included in projections below
Colorado Ohio Total
Revenue $1.5 Million $3 Million $4.5 Million

8.  We interviewed several trucking companies,
including a long haul trucking service, and a
fleet management company that has both
long-haul and local fleet management.
 For the long-haul aspect, both firms were
down on CNG. They need somebody else to
build out the infrastructure, and that will
take time (i.e. 10-15 years). Companies
cannot take on the risks that are associated
with CNG build out.

9. • The Value Proposition is that we can optimize the
cost savings for a company that is considering
fleet conversion to a less expensive fuel, such as
EV, CNG, or even LNG.
• One fleet manager said fuel went from being the
third most expensive cost to the first. Our
proposition is that we will conduct a full and
individualized analysis of a company to help
determine how they can reduce fuel costs.
Further, we will look at intangible variables, i.e.
how green the company is trying to be.

10.  Direct and constant interaction, investigation,
and analysis.
 Reaching out to the industry is critical. Trade
shows, forums, networking, and traditional
marketing will all be essential tools.

11. 1) Establishing Credibility will be key in this
segment
2) For the first several years, it is critical to
have customers who allow us to go deep into
the company’s business model, so as to
unlock hidden costs (both real and
opportunity) and allow for informed
suggestions
3) This will allow TriFuel to learn from its
growing customer base

12.  Simply stated, we don’t make money until the customer saves
money.
 Our revenue is based on charging a company a percentage of
the cost savings of the implementation of the plan. If we do a
walk through and the company does not implement our
recommendations, then a fee structure shall be charged.
 We can also give the option to give a discount if the company
is ever in a position to receive potential carbon emission
reduction or other environmental credits.
Fuel Total Carbon Intensity % Change from Gasoline
(GCO2e/MJ)
Gasoline 95.85 0%
Diesel 94.71 -1%
LNG 83.13 -13%
CNG 68.00 -29%
Source: California Air Resources Board, 2009

13. People and Knowledge:
2) Having experts that can unlock value in a
customized model is essential.
3) Computer models, possibly proprietary, will
be developed for implementation. They have
the ability to be customized per client.
4) This consultancy will have a variable cost
structure. Fixed overhead would be kept to a
minimum.

14. 1) Introduction to the target customer
2) Initial screening of company’s existing fleet
energy usage.
3) Evaluation of the daily operation of the
target customer.
4) Deep analysis of the cost structure,
including opportunity costs and potential
revenues from switching.
5) Hiring ad hoc consulting on an as-needed
basis.

15. 1) Fleet management industry groups
2) “First Wave” customers
3) Pool of industry experts/consultants (all with
arms-length objectivity)
4) Technology implementers
5) Financial partner that can be our
leasing/long-term financing partner.
6) Automotive/Fleet management media

16. One word: Variable
2) Fixed costs can be kept to a minimum with
the use of low-overhead implementation
models
3) IT, office, travel, salary and healthcare would
be the largest expenses upfront
4) Technical experts can be on a retainer-as-
needed basis.