Natural Gas Alt-Fuel Primer: Going Green and Improving Your Bottom Line

Transcription

1 Natural Gas Alt-Fuel Primer: Going Green and Improving Your Bottom Line May 21,

2 About Clean Energy Corporate Profile Founded in 1997 as Pickens Fuel Corp Became Clean Energy in 2002 Over 125 employees Global headquarters in Seal Beach, CA Comprehensive Services Design, build & operate NG fueling stations LNG production & delivery for HDVs Grant writing services Vehicle financing Industry Leading Statistics 170+ fueling stations across North America Over 14,000 customer vehicles fueled daily Publicly-traded as CLNE on NASDAQ 2

3 Clean Energy Leading Market Position 230+ Leading Provider 14,000+ of Natural Gas 173 Fleet As a Transportation Natural Gas Fuel Natural Gas Customers Vehicles Fueling Stations Compressed Natural Gas (CNG) Liquefied Natural Gas (LNG) Taxis Airport Transit Government Vehicles Regional Trucking Refuse Hauling Public Transit 3

4 Agenda Where We Stand Natural Gas Benefits Natural Gas 101 Fleet Vehicle Applications Financial Incentives for Natural Gas Vehicles 4

5 We ve Peaked on Oil th Qtr. OIL DEMAND 88 Million bbl/day grows annually in a healthy world economy 2020 Projections: 115 mmbpd Supply cannot meet demand PRICES INCREASE SHORTAGES DEVELOP PRODUCTION reaches a maximum & then declines (2020: 70 mmbpd) 85 Million bbl/day 5

6 The Real Cost of Crude Tax and Program Subsidies: $ B/Yr Oil Defense: $ B/Yr (peacetime) Environmental, Health and Social: $ B/Yr $1.35 billion dollars leaves the US EVERYDAY to pay for foreign oil TOTAL: $325B -1,154 Trillion/Yr -The Real Cost of Oil, August

7 The Real Cost of Crude Record high oil prices are significantly impacting operating budgets & increasing prices $ /barrel AZ diesel priced at $4.50+/gallon AZ gasoline priced at $3.55+/gallon Increased food prices Air quality concerns Numerous regions out of attainment with federal and state air quality standards 4% of all deaths in Arizona are attributed to air pollution, costing the state $10 billion per year 70% of all airborne cancer risk comes from diesel exhaust 7

8 Natural Gas for Transportation: America s Best Kept Secret Cheaper Cleaner Domestically Available 8

9 9 Natural Gas Fuel Savings Price per Gallon Mar-08 Feb-08 Jan-08 Dec-07 Nov-07 Oct-07 Sep-07 Aug-07 Jul-07 Jun-07 May-07 Apr-07 Mar-07 Feb-07 Jan-07 Dec-06 Nov-06 Oct-06 Month/Year Crude Oil Gasoline Diesel Natural Gas Price per Barrel

10 Significant Fuel Savings per Vehicle Estimated Annual Fuel Cost Savings $20,850 $16,680 $13,900 $14,016 $11,120 $6,000 $7,500 $8,340 Taxi (CNG) Shuttle Van (CNG) Refuse Truck (LNG) Municipal Transit Bus (LNG) Refuse Truck (CNG) Municipal Transit Bus (CNG) Class 6/7 Trucks (CNG/LNG) Class 8 Trucks (LNG) Incremental Cost* $12,000 $16,000 $8,000 $8,000 $13,000 $8,000 $18,000 $51,000 Annual Fuel Usage (Gallons) 6,000 7,500 11,120 16,680 13,900 20,850 8,340 16,680 Comparison Fuel Gas Gas Diesel Diesel Diesel Diesel Diesel Diesel * Includes Vehicle Tax Credit 10

11 Cleaner 11

12 Natural Gas Advantage: Cleanest Technology N0x Reduction: Less Smog Greenhouse Gases 85% Natural Gas 0-25% 10-15% NOx Treatment for Diesel Engines 2-6% 0-3% Minimal Diesel Emulsions Ethanol Blends Oxidations Catalysts for Diesel Engines Low Sulfer Diesel -5-0% Biodiesel (B20) Up to 23% GHG reduction compared to diesel fuel Up to 30% GHG reduction compared to gasoline fuel PM Reduction: Less Soot 90% w/cat >85% 50-65% O C O 35-40% ~20% ~20% 15-20% Natural Gas PM Traps for Diesel Engines Diesel Emulsions Biodiesel (B20) Oxidations Catalysts for Diesel Engines Source: South Coast Air Quality Management District 2007 Air Quality Management Plan Summit Panel Low Sulfer Diesel Ethanol Blends Source: California Energy Commission s Full Fuel Cycle Assessment: Well-to-Wheels Report Energy Inputs, Emissions, and Water Impacts 12

13 Tighter Diesel Standards in 2007 & On-Road Heavy Duty Engine Certifications Based on Federal Standards PM (g/bhp-hr) Stds 2010 Stds 2007 Avg. Stds Diesel Engines NG Engines NGVs in Nitrogen Oxides and Non-Methane Hydrocarbons Likely Increase in Acquisition Costs for Diesel Vehicles of $10K to $20K per Vehicle for 2007 Source: South Coast Air Quality Management District Study,

14 Domestically Available 14

15 Large, Domestically Available Supply of NG Natural Gas 98% Supplied From US and Canada Imported 77 Years of Domestic Reserves (30-40 Years Longer Than Oil) * 1% of Existing Supply will fuel 11 Million autos World NG Reserves Estimated at 3x that of Oil Reduces Dependence on Foreign Oil 20% of Today s use is for Power Generation Could fuel 55 Million autos *Based on Current Rate of Consumption Sources: EIA 2006, Clean Energy 15

16 Natural Gas

17 Natural Gas Fundamentals Fossil fuel found in underground wells Primary component - Methane (85%-98%) Can be generated from landfill gas (200% GHG reduction) Transported through an extensive pipeline Conventional uses of natural gas Residential, industrial, power generation Fuel Types Compressed Natural Gas (CNG) Compressed into vehicles at 3,600 psi 1 gallon = 5.66 pounds 125,000 British Thermal Units Liquefied Natural Gas (LNG) -260 degrees (liquid fuel) 1 gallon = 3.49 pounds 82,000 British Thermal Units Underground gas pocket 17

18 Natural Gas Fueling Infrastructure and Stations 18

19 Time-Fill Stations Station components Small compressor skid with dryer One storage vessel for limited fast-fill capabilities Time-fill posts; dual hose or single hose installed on k-rail or wall mounted Need space adjacent to parking stalls Need a sufficient fueling window Best applications Refuse Street Sweepers School Buses Deliver Small to Mid-Size Transit Transit Time-Fill Station Refuse Time-Fill Station School Bus Time-Fill Station 19

20 Fast-Fill/Public Access Stations Station components Large compressor skid with dryer Three storage vessels Capable of fueling several vehicles in rapid succession Dispense a minimum of 500 gallons/hr CNG Compressor Skid and Dryer Best applications Large Transit Airports taxis, shuttle vans, shuttle buses Delivery Trucking Station contract setup Apron carve out Public agency land lease Royalties and preferential fueling rate Storage Vessels CNG Dispenser 20

21 LNG Stations Types of stations 6,000 gallon LNG system 15,000 gallon LNG system 20,000 gallon LNG system L/CNG Station Fuels both LNG and CNG vehicles Clean Energy LNG fueling services Complete fuel provider Design, build, operate LNG stations Maintain a fleet of over 60 trailers Deliver over 160,000 gallons/day Clean Energy Boron plant Building a $75 million liquefaction plant in CA Capable of producing 240,000 gallons/day 1.5 million gallons of storage L/CNG Station at City of Tempe Transit Facility CE LNG Station in Carson 21

22 Natural Gas Fleet Applications 22

23 Light Duty Vehicles Taxicabs Cargo/Shuttle Vans Grand Marquis Town Cars Honda Civic GX 23

24 Medium Duty Vehicles Cutaway shuttles Refuse trucks Street Sweepers Transit buses Delivery vehicles 24

25 Heavy Duty Vehicles Port drayage Regional trucking Inter/intra state trucking Transfer hauling 25

26 Consumer Options Honda Civic GX Cleanest Internal Combustion car on the planet 28/39 mpg; city/highway 8 gallon tank, mile range 3 year 36,000 mile warranty $25,000 eligible for a $4,000 tax credit HOV lane access/free meter parking CE promo - $1.99 per gallon for 18 months Phil by Fuel Maker Connects to existing gas line $5,500 unit/install cost, $2,000 AQMD grant, $1,000 tax credit Fill at home for around $1.50 per gallon 26

27 Financial Incentives 27

28 Multiple Federal Natural Gas Credits Encourage Usage Fuel Credits VETC (Volumetric Excise Tax Credit) for alternative fuels $0.50 per gallon (10/06 to 9/09) Vehicle Credits Equipment Credits For new NG fueled vehicles and existing vehicle conversions Credit for 50% to 80% of incremental Cost Based on vehicle weight and emissions reduction Range from $2,500 to $32,000 Up to $30,000 Applies to any equipment, other than structural components 28

29 Clean Energy Grant Services CE has a fulltime grant team dedicated to assisting customers needs Free of charge to the customer Will administer the grant and provide quarterly reporting on behalf of customer Work with local, state and federal funding agencies to develop alt fuel incentive programs Submitted over 400 grant applications worldwide Awarded over $95 million in nine years 29

30 Questions Rhett Crowninshield Clean Energy 1555 West University Drive, suite 105 Tempe, AZ