February 2017 G:\44400\17charts\LFG to RNG to CNG Feb 17 - FINAL.pptx
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Fortistar is a private company founded in 1974 and headquartered in White Plains, New York Fortistar owns a portfolio of companies in the power, transportation and industrial sectors focused on reducing the carbon footprint Fortistar seeks to develop and/or acquire additional companies or projects with similar objectives Fortistar s business model focuses on well structured, contractual arrangements which generate reliable and predictable cash flows with upside opportunities through operational and contractual enhancements The management team has a hands-on, operational focus to managing assets 3
TruStar One of the largest CNG infrastructure firms in the US with 20% plus market share Nationwide footprint, concentrations in California, Texas, Michigan, and Florida Marquee customer base including Chrysler, UPS, Waste Management, Waste Connections, Advanced Disposal, Argos Cement, and the Cities of Denver, Tacoma, St Petersburg and Muncie Construction: Offers turnkey CNG fuel stations for customers that want to own, maintain and operate their own stations. Built approximately 20% of the CNG infrastructure in 2016 Fuel Sales: Provides competitively priced CNG sales from TruStar owned stations Service: Offers service solutions throughout the United States to 3rd party owned CNG fuel stations 4
RNG to Renewable CNG Anaerobic Digester Landfill Gas Collection High Btu Project TruStar CNG Filling Station Interstate Gas Pipeline 5
Barriers to Growth 1: Demand for RNG Passenger vehicles are being addressed for carbon reduction Electric vehicles are expected longer-term solution Fuel efficiency standards are a bridge Heavy duty vehicles are only beginning to be addressed Electric vehicles are not practical for heavy duty applications at this time and for the foreseeable future State and Federal programs do not yet fully address this significant carbon source Renewable CNG addresses this short coming New NGVs fueled with RNG offer an emissions profile for all criteria pollutants and GHGs below electric vehicles today Heavy duty NGVs offer the only cost effective strategy to dramatically increase capture and reuse of fugitive methane Goal: Increase CNG and RNG demand by increasing conversion of heavy duty diesel vehicles to CNG 6
CNG and RNG Both Reduce Carbon CNG reduces carbon about 25% compared to diesel RNG reduces carbon about 85% compared to diesel Implement CNG conversion immediately and promote development of RNG Diesel Carbon Intensity CNG Renewable CNG Energy Vision 2013 7
Barriers to Growth 2: Supply of RNG Inadequate price certainty to attract the required capital to build out the supply sources Btu value of gas alone cannot cover the capital cost; requires RINs and LCFS Reliance on RINs and LCFS credits reinforces the need for developing demand side: NGV market 8
Renewable CNG Sources Anaerobic digester projects Waste water Biodiversion projects These projects have received most of the focus in California Anaerobic digesters are relatively more expensive requires more subsidy Landfill gas projects Still needs a focus in California Even with full implementation of biodiversion goals, significant amounts of landfill gas will continue to be generated for years to come This gas will be otherwise burned in a flare The RNG projects using landfill gas are much less capital intensive (the collection system is already in place) requires less subsidy 9
Relevant Statistics for RNG from Landfills 57 landfills in California of reasonable size 40 million mmbtu per year of landfill gas generated in California 290 million diesel gallon equivalent of fuel per year possible via RNG 10% of diesel sold in California 19 million metric tons of carbon reduction per year possible via RNG 12% of California s carbon from transportation 10
Barriers to Growth 3: Pipelines California gas utilities effectively are not accepting RNG into the interstate pipelines Rules promulgated to change this fact will be inadequate 11