TerraCair Diesel Exhaust Fluid Sales Presentation

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Rachel Morgan
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1 TerraCair Diesel Exhaust Fluid Sales Presentation 1

2 Government Mandates for Diesel Engine Exhaust Emissions As part of the Clean Air Act of 1970, the EPA has mandated that all on-road diesel vehicles manufactured January 1, 2010 or later must be equipped with technology to reduce NOx emissions. NOx stands for Oxides of Nitrogen. Selective Catalytic Reduction (SCR) is a new catalyst in the exhaust system. It s good for the vehicle - better fuel mileage AND good for the air we breathe less pollution. Who is affected? On-highway to include passenger cars in the 2011 model year Class 1-8 Light, Medium and heavy duty trucks as of Jan 1 st Off-highway, rail and marine manufacturers must comply beginning in 2013 If it s a diesel engine over 3 liters of displacement it s got to meet the standard. 2

Diesel Exhaust Fluid (DEF) 32.5% Urea 67.

Engine + Hot Exhaust @ 400⁰ F Diesel Exhaust Selective Catalyst Reduction (SCR)

Improved engine brake thermal efficiency enabled through optimal combustion

3 Diesel Exhaust Fluid (DEF) 32.5% Urea 67.5% High quality demineralized water Meets ISO3696 grade 3 or above NOx from Engine + Hot 400⁰ F Diesel Exhaust Selective Catalyst Reduction (SCR) Technology 5% Average MPG Benefit! WHY? Improved engine brake thermal efficiency enabled through optimal combustion process Reduced soot resulting in fewer active regenerations and less filter back pressure SCR Catalyst System Output Reduction of NOx to elemental nitrogen and water 3

Equipment Gauges and Lights What truckers will see FULL DEF Level Gauge Lamps DEF

green lights off 10% to 25% 1 green light off 5% to 10% 1 yellow light on solid 0%

55 MPH Vehicle Speed Limit Malfunction Indicator Lamp (MIL) Vehicle speed will be

4 Equipment Gauges and Lights What truckers will see FULL DEF Level Gauge Lamps DEF Lamp 75% to 100% 4 green lights off 50% to 75% 3 green lights off 25% to 50% 2 green lights off 10% to 25% 1 green light off 5% to 10% 1 yellow light on solid 0% to 5% 1 red light flashing on flashing EMPTY Check Engine Lamp 25% Engine Derate 55 MPH Vehicle Speed Limit Malfunction Indicator Lamp (MIL) Vehicle speed will be limited to 5 mph once the diesel fuel tank is refilled by more than 30% with no DEF added 4

DEF Math DEF Math DEF Dosing 3% of Diesel Consumption One gallon of DEF = 210 miles* (6 mpg) At 120,000 miles/year, you will require 571 gallons DEF On-board tanks = 15-30

30 mpg Assume 120,000 miles per year: Fuel consumption goes from 20,000 gal. to 19,048 gal. (Save 952 gallons/year) Assume $4 gal. diesel 952 gal.

5 DEF Math DEF Math DEF Dosing 3% of Diesel Consumption One gallon of DEF = 210 miles* (6 mpg) At 120,000 miles/year, you will require 571 gallons DEF On-board tanks = gallons (Range miles) Economics of DEF Assume Fuel economy increase of 5%: Truck getting 6 mpg improves to 6.30 mpg Assume 120,000 miles per year: Fuel consumption goes from 20,000 gal. to 19,048 gal. (Save 952 gallons/year) Assume $4 gal. diesel 952 gal. x $4 diesel = $3,808 diesel savings Assume $3 gal. DEF and 3% dose rate 19,048 gal diesel x (3%) = 571 gal. DEF usage 571 gal. x $3 = $1,714 DEF cost Hypothetical Fuel Savings: $3,808 - $1,714 = $2,094/year DEF Usage Calculator * Assumes fuel economy of 5% 5

6 All Diesel engine manufacturers in the U.S. must comply with EPA Mandates by 2016 Rail Marine On-Highway Off-Highway Source: EPA.Gov website 6

7 US Diesel Fuel Consumption Percentage by State 1-5 Diesel Consumption 6-10 Diesel Consumption Diesel Consumption Diesel Consumption Diesel Consumption 26 + Diesel Consumption 7

8 New SCR Systems in Heavy-Duty On-Highway vehicles will drive high demand for DEF over the next 5 years Projected United States DEF Consumption in million gallons Light Duty Cars Light Duty Trucks Medium Duty Trucks N/A Heavy Duty Trucks N/A Off-Highway Vehicles N/A N/A N/A N/A Total Projected DEF Consumption By Container Type in million gallons Bulk Drums/Totes Cans By 2015 over 76% of all DEF will be sold in BULK Source: 2011 Internal Data, May

Mack Freightliner On average the useful life of a Class 8 Truck is 7 years.

9 Heavy-Duty Class 8 Trucks will drive DEF volume Starting in 2010, 79.5% of all class 8 trucks produced moved to the SCR technology platform Kenworth Peterbilt Volvo Mack Freightliner On average the useful life of a Class 8 Truck is 7 years. Yearly turnover equates to 14.3% By December 2015 more than 72% of Class 8 trucks will require DEF. Source: Transport Topics, June 20, 2011 edition 9

Reducing Customer Risk with Our Reliable Delivery

Environmental Technologies offers complete delivery

distributors and end-user customers Dedicated

tank The TerraCair team certifies all network

full-line equipment suppliers who specialize in DEF

10 Reducing Customer Risk with Our Reliable Delivery Network Reliable Delivery Network Terra Environmental Technologies offers complete delivery solutions providing BEST IN INDUSTRY support for distributors and end-user customers Dedicated quality and engineering team ensure purity to the tank The TerraCair team certifies all network partners according to ISO22241 standards Access to full-line equipment suppliers who specialize in DEF who provide installation and on-going service Financing options available 10

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Agenda. DEF Presentation Turn-Key DEF Solutions. Q & A Wrap-up and Depart

Agenda. DEF Presentation Turn-Key DEF Solutions. Q & A Wrap-up and Depart WELCOME CUSTOMERS Agenda Introduction DEF Presentation Turn-Key DEF Solutions Meeting Your DEF Needs Q & A Wrap-up and Depart Hollon Oil TET LSI Hollon Oil 2 Supply Quality and Security Emissions Standards