Agenda Introduction Objective of Meeting Fact Sheet on Efficiency Matrix... On highway vs Rail vs Marine Savings Action plan... Customer Evaluation
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1 Agenda Introduction Objective of Meeting Fact Sheet on Efficiency Matrix... On highway vs Rail vs Marine Savings Action plan... Customer Evaluation Submission of Grant application... Confirmation that funds are available Expand beyond Illinois DCEO timeline Summary
2 Introduction Consultant Group Mike Bima Project Management 40 yr Paul Dicke Technical, Cooling System 35 yr Donald Haar Technical, Engine 39 yr Jim Peugh CPA, Strategic Planning 40 yrs Unique Qualification Access to Cat Technology and Partner with Cat Dealers Haar Consulting - Home
3 Objective Work with Government Agencies to develop a winning Strategy to Utilize Federal Stimulus Funds and other grants to facilitate Upgraded Emissions and Fuel Economy of Inland water towboats Discuss how to apply unique Technical, Business and Project Management Skills Assist the small operator by consolidating resources and providing affordable Value added solutions
4 Fact Sheet on Efficiency Matrix... (source Inland Waterways webpage) On Highway vs. Rail vs. Marine Compare the miles that one gallon of fuel can transport one ton of cargo On Highway Truck Rail Barge 59 mi 202 mi 514 mi Program promotes the Logistic initiatives of the region Program will make clients even more competitive Multiplier affect utilization of Federal Grants on local economy
5 Savings Program addresses all the ARRA effectiveness factors Fuel Economy 3-5% annual savings Job Creation / Retention Multiplier affect with external funds 3 to 5 X Customer Life Cycle improved long term competitive advantage Opportunity to win new business for Cat Cat Dealer Service GHG technical improvement over standard particulate filter measured per KW hr will result in several tons of reduced pollution. CO2 3-5% improvement NOx 63% improvement (not realized with just PM filter) Particulate Matter (PM) - 44% improvement Environmental Impact 1 Vessel: Twin 3508C T rpm; 90% load factor; 5000 hrs/yr Fuel saved 19,360 gal/yr; $38,000 /yr operating cost NOx reduction 23.7 tons/yr PM reduction 6.9 tons/yr
6 Action plan... Meet Client and submit ARRA application (Consultant Group) Need some indication from Government that grants could be available Customer Evaluation Fleet Analysis Engine Rating and Year produced Engine Certification Hours to Overhaul Hours per year of operation Vessel Fuel consumption Vessel yearly maintenance costs Fleet Analysis Completed Develop technical and economic solution Develop Statement of Work Develop project timeline Develop project budget Develop features and benefits of solution
7 Action plan... Customer Evaluation (continued ) Cost Analysis ($ ,000 per vessel) Cost of Overhaul or Upgrade Cost of Repower including cooling system Project cost for Fleet Analysis Determination of ROI for costs Fuel consumption improvement Maintenance cost reduction Vessel performance improvement Consider Economic conditions and sustainability of customer jobs Document Fuel Consumption improvements Document emission reduction including PM, NOx and COx. Calculate each relative to grant dollar awarded. (ARRA)
8 Action plan... Confirmation of Available Government Funding (EDC /DCEO) (Example from Illinois initiative) Develop understanding of Funding process Confirm 1 st round closed with $7M of $17 M Possibility of 2 nd round Possibility to re-allocate based on criteria Work with EDC to explore other funding: EPA DERA DSIRE DOT Etc Develop a workable timeline for DCEO (Department of Commerce and Economic Opportunity)
9 Action plan... Expand Beyond Illinois (Consultant Group / Gov Agencies) Working with other states Total $ Impact $100s M oom Boat Operation efficiency Increased Jobs at Cat, their Dealers, Suppliers, and Communities Number of US flagged vessels 2573
10 Summary Clean Energy is Key to Economic Success in US Program Meets All Criteria Jobs GHG (Green House Gas) Reduction up to 63% Fuel Economy 5% ($50,000 and 21,000 gal diesel per year per vessel) Program offers unique solution not easily attained by others. EPA comment When people breathe this polluted air (marine diesel emissions), their health is adversely affected leading to lost productivity due to increased illnesses, hospitalization and even premature deaths. EPA believes that diesel exhaust is likely to be carcinogenic to humans by inhalation Reducing emissions from these large marine engines will lead to significant health benefits We need Government (Economic Development) Help and Support Grant Funding is the Key Selling Point to Drive this Initiative!
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