Opportunities in CNG. March, 2015

Transcription

1 Opportunities in CNG March, 2015

2 Where we started Where we re going What we ve learned How we help AMP began by building a renewable CNG plant to supply long-haul trucks with cheap and clean natural gas AMP is building a network of CNG stations across major US highway corridors AMP has millions of miles of experience operating CNG that we share with you AMP works with Fleets to save money using clean American fuel 2

3 Where we started AMP began by building a renewable CNG plant to supply long-haul trucks with cheap and clean natural gas 3

4 Running 20,000+ miles a day on CNG delivering milk through the Midwest Fleet of 42 long-range CNG trucks one of the largest CNG fleets in the US Built two CNG fueling stations for trucks fueling 200K+ DGE s a month On-farm anaerobic digester provides 1.5M DGE of gas a year to station. Project can source gas from local utility when renewable is not available. First agriculture-based CNG projects to be registered with the US EPA s Renewable Fuel Standard. 4

5 Renewable Dairy Fuels AMP s project at Fair Oaks Farm is Northern Indiana, one of the largest dairy farms nationwide, allows us to transform excess manure into methane, via an on-site anaerobic digester. Commercial Carrier Journal s Innovator of the Year 2012 Nominee for our farm waste to fuel project. RDF generates enough BioMethane to replace 1.5 million gallons of diesel each year 5

6 Built first stations to serve milk runs Fair Oaks Indianapolis Sellersburg Winchester Murfreesboro 6

7 Where we re going AMP builds CNG stations on key highway corridors across the United States 7

8 Strategy Focused on the Heavy Duty Segment of Market We Build Fast Fill Stations equivalent to diesel fill times With a Strong Financial Partner Financing, equipment, and O&M provided by Trillium, a subsidiary of Integrys (NYSE: TEG, $4.9 Billion market cap) Developing Significant Assets 25 stations open or under construction (25 more locations targeted) Proprietary compressor technology (lower operations and capital costs) To Create Clean Fuel Terminals & Corridors Current Focus is I-65 and I-75 corridors, Texas & Southwest corridors Developing other major North/South and East/West corridors. Bringing in large fleets 8

9 Value proposition What Our Clients Value Price Stability (fuel costs) Competitive Advantage (lower cost of bringing goods to market) American Energy Sustainability (the ability to reuse and recycle waste and create valuable by-products) CNG Education 9

10 Fuel is the #1 Cost for Commercial Carriers. Switching to CNG dramatically reduces fuel costs (for many fleets by as much as 20 cents per mile). Reducing fuel costs allows for dramatic reductions to the cost of logistics (20 cents per mile represents up to a 15% reduction in total cost). 10

11 Price comparisons $3.05* $2.50 $2.00 DIESEL LNG CNG *Based on avg of EIA 2015 ($2.85) and 2016 ($3.25) projections 11

12 Our Network Legend! Open! Under Construction/In Development 2015! Target Stations Concentrated in Southeast and Texas but Expanding Nationally 12

13 What have we learned? With 27 million miles running a 42-truck CNG fleet since Sept 2011 CNG is not just for pioneers anymore! 13

14 How does CNG work?

15 How does CNG work? Cylinder packages Modern CNG tank configurations: Multiple Tanks (BOC & Rail) High Pressure (3,600 psi) Fully Protected Extended Range 15

16 How does CNG work? Fast-fill station 16

17 How does CNG work? Engine Cummins Westport ISX12G ENGINE 4 cycle, spark ignited, in-line 6 cylinder, turbocharged, CAC Displacement 11.9 liter (726.2 cu in) Peak rating: 400 HP, 1450 lb-ft of torque EPA/CARB certified at or below EPA10 emission levels Dedicated natural gas engine Will operate on CNG or LNG Capable of using up to 100% Biomethane Three Way Catalyst after-treatment Engine braking Manual/Automatic Transmission capable 17

18 Fair Oaks Farm Dairy Fleet - one of the leading CNG fleets with 27M miles 2011: fleet 8.9L ISL G 14M miles 2.6M DGE 5.4 mile/dge 2013: 11.9L ISX G 13M miles 2.1M DGE 6.2 miles/dge Outcomes: Learned to run CNG Learned to maintain CNG Developed close industry partnerships OEMs demonstrated excellent support Proved viability of infrastructure Proved Concept 18

19 CNG trucking has come a long way in 3.5 years From 2011 prior generation ISL G 8.9L engine: Engine not suited to load Incorrect rear end ratio Steep learning curve Learning to drive CNG trucks (psi vs. full/empty, fueling safety) Maintaining CNG Trucks High maintenance costs Negative perceptions To the newest generation ISX G 11.9L engine Engine well suited to max loads Maintenance costs better than diesel Significantly improved MPG vs. prior generation (6.2 mpg) Excellent reliability Positive perceptions We tried CNG, but it just didn t work for us - Fleet manager When will I get my CNG rig back?! - Driver with CNG tractor in the shop 19

20 Maintenance Cost Comparison Updated January 2015 Maintenance cost for diesel and CNG tractor fleets cents per mile 12.2 Diesel Fleet runs 200,000+ mi/yr tankers RDF CNG Fleet, 9.0L Engines, 350,000 total miles per unit RDF CNG Fleet, 11.9L Engines, 271,000 avg. miles per unit Diesel fleet 9L CNG fleet ( ) 12L CNG (2013-) 20

21 How we help AMP CNG works with Fleets to save money using clean American fuel

22 Our experience with economics: CNG vs. Diesel Fleet Cost at RDF Fleet Fuel and Maintenance Cost Comparison Diesel CNG Annual Miles 160, ,000 MPG* Fuel Gallons 24,615 25,806 Price/Gallon $3.05** $2.00 Annual Fuel Cost $75,077 $51,613 Fuel Cost Per Mile $0.47 $0.32 Annual Fuel Savings $0 $23,464 Annual Maintenance Savings** $0 $3,200 Net Annual Savings $0 $26,664 Updated January 2015 *MPG diesel to CNG is projected to be 5% less than that of the reference diesel fleets. **Based on avg of EIA 2015 ($2.85) and 2016 ($3.25) projections 22

23 Investment in CNG pays back fast for high mileage trucks CNG investment payback for three CNG vs. diesel price discounts Years CNG discount to diesel: 10 $ $1.05 $ Truck annual mileage 000 miles/year 3yrs Trucks >110,000 mi/yr payback in less than 3 years High mileage trucks payback <3years even if diesel declines further Source: RDF Fleet data, ampcng analysis 23

24 Major fuel partners 24

25 Contact Information Steve Josephs, P.E. Co-Founder, Director of Engineering Grant Zimmerman SVP, Business Development