Natural Gas Fleet Vehicles 2013 Austin, Texas September 26, 2013 Technical Maintenance Service & Reliability Chris Milani Vice President Operations & Logistics
Schupan & Sons UBCR & CNG Risk / Reward Partner Leadership Equipment Spec CNG Stations Service Schedules Pioneering Challenges Cost Estimates Winning Factor Technical Maintenance Service & Reliability Agenda
Schupan & Sons Inc. Established 1969 CEO, Marc Schupan Visionary Entrepreneur Culture of Sustainability Community Stewardship Environmentally Centric 101 Best & Brightest Sustainable Companies Schupan Recycling Serves the Beverage Industry Plants in Wixom and Grand Rapids Non 3 rd Party Program
Schupan Recycling UBCR Overview Michigan s 3 rd Party Used Beverage Container Program Single Source Solution for Michigan Beverage Industry 98% Container Recycling Rate Schupan & TOMRA JV Wixom & Grand Rapids Processing Terminals Recover Containers @ 600 Retail Locations
UBCR & CNG A Good Fit Nesting Application Economical Environmentally Friendly Abundant Safe Acceptable Efficiencies Range Customer Expectations Partners Leadership Proven
UBCR & CNG A Good Fit Not the First Mouse to the Cheese Staples Golden Eagle Distributors Smithtown New York DSNY Fed Ex UPS Waste Management Dean Foods Paper Transport 13M + Natural Gas Vehicles > 112,000 CNG Vehicles in U.S > 1,000 Natural Gas Fueling Stations First Full Fleet Conversion to CNG
Risk - Reward Risk Federal Tax Credit Unknown Extension of Tax Credits for Tractor Replacement in 2017 Available Grants Road Tax Implementation Lease Subs are Not Natural Gas High Mileage Application for ISL G Reduced B50 Expectation vs. Diesel Unscheduled Downtime Partners Exit
Risk - Reward Reward Strategic Alignment with Clients Significant Emissions Reduction Abundant Supply of North American Sourced Estimated 100+ Year Supply Long Term Supply Contracts Contribution to American Energy Independence Cash Flow $534,000 - $616,000
Reward Emissions Reduction 10 Year Cumulative GHG & Criteria Pollutants Emission Reductions 1,352,860 Lbs 9
Reward Fuel CPM
Partner Leadership Ø Ryder Ø DTE Energy Ø Clean Energy Coalition Ø Cummins Westport Ø Cummins Bridgeway Ø Freightliner
Clean Energy Coalition DOE Grant Awarded $2.1M Petro Displacement 375,000 Diesel / Year Emission Reduction 1.35M Pounds DTE MichCon Fueling 2 Stations Wixom Grand Rapids $2.76M Capex Grant Allocation $1.0M Partner Leadership
Partner Leadership Ryder Leasing Freightliner M2 Equipment Ryder Full Service Lease 16 Tractors CEC $1.1M Grant (Incremental) Lease Rate < Diesel Spec 2008 January 2012 In Service Ryder Service $1.3M Capital Investment Livonia & Grand Rapids Methane Detection (Shop) Additional Ventilation Compliance & Safety Technician Certification Project Leadership
Equipment Specification Prior Spec & Operating Profile Prior Equipment 17 Day Cab Tandem Axle Freightliner (Penske Lease) Big Bore Cummins & Detroit Diesel Burn - 370,000 Gallons (6.0 MPG) Operating Profile Wixom & Grand Rapids GCW < 46K Service 600 Stores 152 Trailers - 53 Vans 37 Company Drivers 2.2 Million Miles
Freightliner M2 112 Day Cab Single Axle Westport ISL G 8.9L 320 HSP @ 2000 RPM / 1000 ft. lbs. @ 1300 RPM No SCR or Active DPF Fuel System 75 DGE Behind the Cab 40 DGE on the Rail Transit 5000 and NGV 1000 Methane Detection System 614 Mile Range (5.34 MPG) Equipment Specifications CNG Tractor
Allison 3000 RDS 6 Speed 2 OD Ratios ISL G Converter Excellent Startability Meritor Drive & Steer Axles RS 23-161 6.14 (4.89) MFS 12-143A 11R22.5 Tires Equipment Specification CNG Tractor Curb Weight Delta +266 Lbs. ISL 13,274 lbs. (150 Gal. Onboard) ISL G 13,540 lbs.
Equipment Specification Onboard Fuel System Freightliner/Agility M2 Fuel Cabinets 75 DGE (15 DGE x 5) 40 DGE Saddle Tanks Available NGV1 & 5000 Series Receptacles Fill Panels on Curb and Street 0.50 Onboard Fuel Lines 17
Equipment Specification Methane Detection Sensors Mounted in Cab & Engine Compartment Visually and Audibly Alerts Driver of Fuel Leaks Trace Amount (no concern) Significant Amount (potential hazard ) In overhead console