Greening our Fleet Waste Management s Natural Gas Fleet Evolution

Transcription

1 Greening our Fleet Waste Management s Natural Gas Fleet Evolution SWANA Oregon Winter Forum Eugene, Oregon Susan Robinson January 2013

2 Leading provider of environmental solutions WM s 2011 Financial Stats $13.38B IN REVENUE $1.2B FREE CASH FLOW $1.2B RETURNED TO SHAREHOLDERS $1.32B CAPITAL EXPENDITURE WM Sustainability Facts WM s 2011 Operations Stats Creates enough energy to power more than 1.1M homes every year Manages more than 10 million tons of recyclable commodities Dedicates 26,000 protected acres to wildlife habitats 2013 Waste Management Page 2

3 WM s Overall Strategy is to extract value from the materials we manage WM will optimize our existing business and implement post-collection recycling and conversion technologies. WM will develop superior sorting, recycling, and conversion capabilities to capitalize on changes in the business environment Waste Management 3

4 WM s Vehicle Inventory WM has 32,000 vehicles Over 18,000 are Class 8 collection trucks. 12,000 support vehicles include large, off-road equipment used at landfills yellow iron, delivery vans and supervisor trucks. Several of these use hybrid technology.

5 2008 fleet dilemma Changing diesel engine regulations created uncertainty Impact of new regulations Heavier trucks = less payload = need for more trucks = increase emissions Uncertain maintenance costs associated with new diesel trucks City of Seattle contract required us to buy 106 new trucks. Poor NGV service history in CA Excellent warranty by Cummins Westport in 2008 We had a difficult decision to make what type of trucks to purchase?

6 WM s Fleet Goal: Reduce emissions and increase fuel efficiency by 15% by 2020 WM will replace 80% of its new class 8 vehicles with natural gas trucks. We will build 25 natural gas fueling stations each year We are investing in public fueling stations at most sites

7 Emissions Reduction The Benefits: Smog-producing NOx emissions are reduced up to 50% compared to 2010 diesel engines and even more compared to the older diesel engines we are replacing; Greenhouse gas emissions (GHG) are reduced up to 25 percent over standard diesel engines; and When we can use LNG or CNG derived from landfill gas versus standard pipeline gas GHG can be reduced by over 90%.

8 Status of WMs Green Fleet Transition 2,000 natural gas trucks on the road today - the largest fleet of heavy duty natural gas trucks in N. America In 2012 we achieved our 2020 emissions and fuel efficiency goals -- saving 350 million gallons of fuel and reducing 3.5 million metric tons of carbon dioxide We are investing in new natural gas fueling stations to support our fleet: 40 stations were operational by year end new CNG fueling stations opened In more are under construction 15 stations have public access & another 7 have public access for pre-approved customers Transitioning in large districts with over 75 trucks first Developing capabilities for fueling at smaller sites

9 WM s Oregon Fleet WM has 120 trucks in Oregon 22 CNG vehicles will be on site in Oregon in Q The CNG fleet is currently made up of 20 automated side loaders and two commercial vehicles. We expect to add 20+ NG trucks to the fleet in 2013 Our Portland CNG fueling facility is operational 2013 Waste Management Page 9

10 CNG Facility Deployment Year End 2012 Fast Facts 40 fueling stations will be on line in 22 states and 2 Canadian provinces by the end of Bio/LNG Facilities 5 LCNG Facilities Purchasing 700-1,000 NGV each year Building 25 stations per year and public fueling Over 2,000 trucks in our fleet by year end 2012 Altamont Bio-LNG Facility - 13,000 Gal/day of Bio- LNG AZ: Mesa, Phoenix; BC: Coquitlam; CA: Carlsbad, Castroville, Chino, Grass Valley, Livermore, Oceanside, Santa Maria CO: Henderson; FL: Fort Walton Beach, Pompano Beach, Venice; GA: Atlanta; IA: Des Moines; IL: Cicero, Wheeling; KY: Louisville MD: Curtis Bay; MI: Detroit; MN: Blaine; MO: St. Louis; MS: Jackson; NJ: Camden, Trenton; NY: West Seneca; OH: Columbus; ON: Ottawa; OR: Portland; PA: Bristol, Washington; RI: Cranston; TN: Knoxville/Nashville; TX: Conroe, Pasadena; UT: West Jordan VA: Chesapeake; WA: Auburn, I Spokane, Woodinville; WI: Franklin; WV: Charleston 2012 Waste Management Page 10

11 Landfill Gas to Fuel A joint venture with Linde North America resulted in the world s largest plant to convert landfill gas to ultra lowcarbon liquefied natural gas. Carbon emissions are 97% lower than diesel. The facility produces up to 13,000 gallons of LNG a day and powers over 300 WM natural gas trucks in California. Exploring use of landfill gas to fuel fleet around the country.

12 Future Plans Natural gas engines are flexible and can be powered by other renewable fuels such as bio-methane WM will continue to experiment with Class 6 & 7 electric vehicles and hybrids as the technology becomes economically viable. Transitioning off-road, heavy equipment to alternative fuels. Testing four diesel-electric hybrid bulldozers that have a dramatically different life cycle than our traditional power train tractors as well as improved fuel efficiency. WM considers natural gas trucks to be a bridge to future technologies. We are striving to move towards a true zero emissions vehicle (ZEV)

13 The link between new technologies and our fleet Feedstock WM manages over 100 million tons of materials annually million tons of the material that we manage are organic in nature (excluding recycled paper, OCC, etc) for biogas generation Processing The organics we manage can be converted to biogas WM is investing in technologies to convert waste materials into electricity, fuel and green chemicals Off-Take Our facilities and drive cycles are well-suited for alternative fuels generation and use 2012 Waste Management Page 13