Cheaper, Cleaner, Domestic, Abundant, Renewable, Reliable NATURAL GAS FUEL The Logical Choice For Private & Public Fleets Mark R. Watkins Business Development Manager Northern California
Why Invest in Natural Gas Vehicles? Energy independence for America (Domestic) NG is available today & tomorrow (Abundant) NG significantly reduces air pollution (Cleaner) RNG can be produced from bio-waste (Renewable) Significantly reduces noise vs Diesel (Quieter) Price protection for the bottom line (Cheaper) $$$$$ 2
Natural Gas Is Pipelined Throughout the U.S. 3
Natural Gas is Domestic and Abundant 98% Supplied from the U.S.A. and Canada Non-Renewable Sources (2,074 TCF) Renewable Sources (1,750 landfills) Centuries of N. American reserves ~ 85% U.S. ~ 10% Canada ~ 2% Mexico Gas wells, Coalbed methane shale basins * Source: WGI Sep.2 09,p8 Landfill Gas (Bio-Methane) Digester Gas: Dairy Farms / Cattle Feedlots Sewage Treatment 4
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EPA s HD Engine Emissions & Fuel Requirements Diagram courtesy of Steve Yborra 09/2011 Cummins-Westport 9 Liter ISL-G @ 0.1 NOx & 0.005 PM since 2007 6
Fleets With NG Gain Economic Edge 4.50 4.00 3.50 3.00 2.50 2.00 1.50 Diesel Gasoline CNG US Energy Information Administration (EIA) says the savings by using natural gas vs. gasoline or Diesel as a transportation fuel is forecasted to increase in the coming years 1.00 0.50 0.00 Fleets that adopt NG earlier will have a significant competitive advantage over alternatives (fuel cost/mile) to those sticking with Diesel 7
Compressed Natural Gas (CNG) Stations Supplies light, medium, and heavy-duty vehicles NG (@ 5-300+ psi) delivered by pipeline to station NG dried to < 7 lbs/mcf moisture content NG compressed (in 3-4 stages) up to 4,500 psi Fast-fill station (fills in minutes) or Time-fill station (fills in hours) In either time- or fast-fill, CNG is dispensed through compression fitting 8
What is Liquid Natural Gas (LNG)? Why us LNG in Trucking & Shipping? Natural Gas Boils @ -259 deg F & Liquefies @ -260 deg F Fuel Tank Size: LNG has 2x the energy as same size CNG tank NG is liquefied, distilled, & stored in large cryogenic vessels Trucked, Shipped or Railed Regionally / Globally LNG Dispensing typically faster than CNG Video: LNG Properties: http://www.cumminswestport.com/fuels/lng.php 9
Clean Energy Fuels Corporation Founded in 1996 T. Boone Pickens & Andrew J. Littlefair Largest provider of vehicular natural gas (CNG & LNG) in North America > 122MM GGE sold in 2010 vs 101MM in 2009 & 73.5MM in 2008 Full Service & Integration Design, permit, build, monitor, maintain NG stations Purchased IMW (NG compressors, dispensers, etc) Purchased Northstar (LNG systems) Purchased BAF Technologies (light-duty & medium-duty) Own & operate landfill gas production Financing, grants and tax credit assistance Publicly-Traded as CLNE on NASDAQ Headquartered in Seal Beach, CA 10
Clean Energy N. America s Largest Natural Gas Fuel Provider > 600 Fleet Customers > 25,000 Natural Gas Vehicles > 275 Natural Gas Fueling Stations Compressed Natural Gas (CNG) Liquefied Natural Gas (LNG) Taxis Work Trucks City Buses Heavy-Duty Regional & Long-Haul Trucking / Ports Airport Shuttles Medium- and Heavy- Duty Regional Trucking LNG Tanker Trailer 11
BAF Technologies 2012 Products Dedicated CNG Products All 2012 EPA & CARB Certified Transit Connect Cargo Transit Connect Taxi E-250 or E-350 Van (Passenger or Cargo) F-250 or F-350 Truck F-450, F-550 or F-650 Truck E-450 or F-550 Cut-Away Shuttle 12
New Partnership Collins Bus Corp. and BAF Exclusive agreement CNG-powered Type A school buses Collins is Type A school buses market leader Will be a factory-produced CNG vehicle First product will launch in mid-2012 13
Class 8 Natural Gas Trucks Chassis Freightliner Kenworth Peterbilt Volvo International Engines Westport GX 14.9 Liter based on Cummins ISX Dual-fuel, compression-ignition Up to 475 HP, 1,750 lb-ft torque Cummins-Westport ISL-G 8.9 Liter Cummins ISL 100% natural gas, spark-ignited Up to 320 HP, 1,000 lb-ft torque 2013: Cummins-Westport 11.9 Liter Cummins ISL 100% natural gas, spark-ignited Up to 400HP, 1,450 lb-ft torque Kenworth T800 & T440 Freightliner M2 Volvo TM2 Peterbilt 384, 386 & 388 International Autocar Yard Tractor Capacity Yard Tractor 14
Fine but where am I going to fuel?!?! 15
Existing Clean Energy Stations in the U.S. As of April 1, 2012 16
California Private and Public-Access CNG & LNG Stations As of April 1, 2012 17
Public-Access Clean Energy + PG&E CNG Stations - NorCal Elk Grove SFO 18
Strategic Positioning: Pilot Partnership Provides Station Real Estate Pilot s acquisition of Flying J Creates dominant fueling stop for over-theroad long-haul trucking Over 500 locations Presence on all Interstate lanes Relationships with all major fleets Clean Energy has exclusive right to build LNG stations with Pilot Flying J 19
By December 2012: Major Corridors Open 20
$450MM Investment In Infrastructure Chesapeake Energy: Nation s 2 nd largest producer of Natural Gas Investing $150MM in Clean Energy Funds ~ 150 truck fueling stations Funds issued in 3 tranches July 2011 thru June 2013 Additional Infrastructure Investors: $150MM from Springleaf & Lionfish Investments $150MM from Greenwich Asset Holding Ltd Links U.S. metro areas Metro area infrastructure already in development Chesapeake investment expedites U.S. trucking: Coast-to-coast, east-to-west, north-to-south For years the argument has been: If I see stations I ll buy NGV Tell us where you need Fuel Clean Energy is building the fueling network!!! 21
Next Steps For Fleet Owners Identify Fleet Hubs, Lanes & Fueling Requirements Return-to-base hub locations or current OTR refueling locations Lanes (hubs to destinations or continuation OTR) Miles per day per tractor x number of tractors returning to each hub or on each lane MPG & daily DGE fuel requirements per truck, hub and/or OTR station Refueling window (time of day to refuel, maximum idle / dispensing time) Clean Energy Evaluation of Optimum Refueling Station Time-fill CNG or fast-fill LNG or CNG Dedicated private station, public access station, private station with public-access lane Inquire with Vehicle OEMs About LNG / CNG Options Procurement, operations & maintenance cost of CNG or LNG vehicle vs Diesel Purchase vs Full-Service Lease options Establish Roll-Out Plan All-in replacement for aged fleets, transition 20% of fleet annually over 5 years, etc. 22
Natural Gas for U.S.A. Truckers Lower Cost Low Carbon Low Particles Low NOx Domestically Abundant For further information please contact: Mark R. Watkins Business Development Manager, Northern California (925) 787-5169 mwatkins@ www. 23