April 24, 2013 IdleAir, LLC
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1 April 24, 2013 IdleAir, LLC
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4 Summary Network of truck stop electrification sites at travel centers nationwide Provides conditioned air, entertainment and connectivity to long-haul truck drivers at leading truck stops nationwide Patented service modules connect to truck cabs and affordably offer drivers the ability to shut off the engine(along with its noise, fumes and vibration) and stay warm or cool while having access to power, TV and internet (wired and wireless), within their truck cab Pennsylvania-based fleets have reduced their idle time by 16,000 hours in the past eight months There have been over 40,000 hours of reduced idle time in the state of Pennsylvania in the past eight months Through the use of this product, there have been over $2.2 billion dollars saved on the reduced use of diesel nationwide 3
5 The Problem DOT Federal Motor Carrier Safety Regulations currently require long-haul truckers to rest 10 or more consecutive hours after driving 11 hours.. To comply, drivers must STOP during the rest period, and IDLE while stopped. LONG-HAUL TRUCK IDLING: Costs drivers around $5.00 / hour, because it: Burns ~ 1 gallon of diesel per hour (from $3.89 to $4.69 / gallon) Causes 40% of engine wear (another $1.00 / hour based on EPA data) Produces 11mm tons of CO2 and other harmful emissions each year Is currently ILLEGAL in 17 states and many other counties and cities including PENNSYLVANIA LONG-HAUL TRUCK ANTI-IDLING: Is difficult to enforce because: There are few cost effective solutions Enforcement staffs are limited in power Climate control priorities have shifted Driver behaviors have not been appropriately addressed 4
6 The Solution IdleAir allows long-haul drivers to switch off their engines at truck stops, and provides them with: Heating & Air Conditioning with filtration Electricity (inside and outside of cab) Built-in Internet access (wireless & wireline) Entertainment suite including DirecTV, ESPN Color touch-screen interface with easy card swipe payment IdleAir offers many more services to drivers than idling can, at a significantly lower hourly cost - At $2.09/hour, IdleAir s offers a complete package internet, media suite (DirecTV, ESPN), heating & AC, and electricity Is at least 50% cheaper than idling (which costs $ / hour) and offers amenities that idling cannot 5
7 Why Would Drivers Use IdleAIR Comfort: Idling is uncomfortable and unhealthy Unpleasant fumes and vibrations make sleep uncomfortable Cost: Drivers budget for accommodations is ~ $20 Idling consumes 1 gallon per hour ( ~ $4.00/gal) Shortens engine life due to wear and tear (~ $1.00/hr) Motels are too expensive - at $2.09 / hour for 10 hours, driver s cost is about $21 Secure: IdleAir s sites open 24/7/365 and serviced locally Loads cannot be left Parking on exit ramps is unmonitored and illegal IdleAir sites have on-site staff and security cameras Legal: Idling creates air & noise pollution (11m tons CO2/yr) IdleAir s solution meets or exceeds legislative requirements ATRI study showed that in fleet company policies 6
8 Why Would Truckstop Owners Use IdleAIR Differentiated product offering: Large market of 1.2 mm long-haul trucks in the US Cheaper and preferable alternative to idling A new revenue stream: Provides operator with shared revenue stream and ability to deliver turn-key service Margins on IdleAir revenue are higher than fuel sales Drives traffic into their stores Convenience stores are higher-margin than fuel sales Enhances perception of Travel Center as a good citizen Provides healthy and secure alternative to idling Offers fleets a low-cost carbon reduction solution Travel Center Partner Truck Active Installed Stops w IA Spaces Spaces Pilot Flying J Love s TA Franchisees Sapp Brothers Conoco Fleet Terminals Other/Independent Total at July ,483 7
9 How is IdleAir Green? IDLEAIR S COST OF DISTRIBUTED ELECTRICITY IS $0.25/HR (vs. $5.00 TO IDLE). The United States power generation grid is ~55% efficient in its conversion of BTU s. The diesel engine of a long-haul truck is <3% efficient in its conversion of BTU s. By using IdleAir, DOMESTIC GAS & COAL-FIRED POWER BECOMES A CLEAN SOLUTION FOR FOREIGN IMPORTED OIL. We believe this is compelling for numerous agencies, energy, and power companies. 8
10 Alternatives to TSE Diesel Auxiliary Power Units (APU) Convenient and portable, unlimited time Uses 75% less fuel than idling Fewer than 10% of long-haul trucks have installed Fixed costs and marginal costs around $2.84 per hour Battery-powered APU Limited time must recharge every 4-8 hours Fixed costs and marginal costs around $1.80 per hour Heavier unit requires more diesel to move truck down the road Bunk Heaters Limited use for cold weather Relatively inexpensive fixed costs Use diesel and only provide heat, no electricity 9
11 Contact Information Cynthia Perthuis Director of Business Development T (212) C (214) cynthia.perthuis@idleair.com 10
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