1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO.
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1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO Slide 2 2 Who is Clean Energy? North Americas largest supplier of natural gas transportation fuel Sell compressed and liquefied natural gas (CNG and LNG) Nearly 80 million gallons sold in 2008 185+ fueling station in N. America Over 50 station currently under construction or development 15,000 vehicles fueled daily Fuel over 5,100 buses - 1,500 refuse trucks and 500 heavy-duty trucks daily Partnership Clean Energy del Peru Founded in 1996 by T. Boone Pickens & Andrew J. Littlefair Publically traded as CLNE on NASDAQ Slide 3 3 Clean Energys Role Evaluate Does NG make economic sense for your business? Provide information on all new products: engines, trucks etc. Services TURN-KEY Provide station engineering/design services Proposal writing support Write grants for NG trucks & stations (Awarded over $150 million for NG projects) Vehicle & station financing available NGV maintenance & certification training Station partnerships Provide 100% of capital for fueling station Long-term bundled fuel rate below diesel Slide 4 4 Leadership in California Ports & Regional Trucking Clean Energy built Californias first LNG plant Uses North American natural gas Producing 180,000 gallons/day Expanding to 240,000 gallons/day soon Largest LNG truck station in world Supports clean alternative fuel truck goals in the Port of Los Angeles and Long Beach Slide 5 5 Key Drivers for Heavy-Duty Applications Fuel cost savings Abundance of natural gas gas shale and how to extract gas Rising cost of petroleum fuel declining oil reserves coupled with rising world demand Government push for displacing petroleum Proposed extending fuel tax credits Proposed doubling of vehicle tax credits Emissions Particulate emissions reductions reduce cancer risks Greenhouse gases and global warming Slide 6 6 An Ocean of Natural Gas in U.S. 22 major gas shale basins in the U.S. Only a few have been significantly explored Experiencing major growth from gas shale Production 0.3 Tcf/year in 1998 Production 1.2 Tcf/year in 2007 Barnett Shale in Texas now producing 6% of nations gas Growth in gas shale has created major investment in pipeline infrastructure to bring this gas to the market U.S. Reserves now 2240 TCF = 118 years How much Natural Gas is available in US? Slide 7 7 U.S. Oil vs. Natural Gas Fuel Price Savings Average ratio of crude oil to natural gas futures prices stands at 9.38 since 1990 Peaked at 25:1 ratio on August 21, 2009 Equates to fuel cost savings of $1+ per gallon Slide 8 8 Greenhouse Gas Emissions (in grams CO2e/MJ) Greenhouse Gas Emissions (in grams CO2e/MJ) Greenhouse Gas Emissions of Fuels Slide 9 9 Renewable Natural Gas Clean Energys Landfill Gas Processing Plant Thermo OxidizerThermo Swing Adsorption Units Compressor Engine Building Sulfa Treat Producing ~ 35,000 Gallons/day Slide 10 10 U.S. Natural Gas vs. Diesel Fuel Savings Refuse Truck Example Refuse truck using 10,000 gallons diesel per year Operates 260 days per year 38 gallons/day Fuel savings $1+ per gallon CNG fuel savings = $10,000 per vehicle per year With tax incentives less than one year payback Slide 11 11 Clean Energy supports Heavy Duty Class 5-8 Trucks Sterling, Kenworth, Peterbilt, Freightliner offer HD trucks Volvo/Mack will bring NG refuse product to market in 2009/2010 Volvo/Mack developing 13L engine for Class 8 trucks Discussions with International on natural gas product All refuse truck manufacturers offer natural gas All transit bus manufacturers offer natural gas Slide 12 12 Impact of Market Pull All major refuse truck manufacturers in U.S. now offer CNG Slide 13 13 Clean Energy Fast-fill Stations Slide 14 14 Clean Energy Time-fill Stations Slide 15 15 Natural Gas Application in other Markets Truck and Bus markets candidates for natural gas World truck/bus manufacturers with NG experience include: Volvo/Renault/Nissan Diesel/MACK Mercedes/Sterling/Freightliner/DDC PACCAR/DAF/Kenworth/Peterbilt IVECO Scania MAN All fleets with high fuel consumption a candidate Market demand will encourage vehicle production Slide 16 16 Conclusions Heavy-duty natural gas engines and vehicles are available from world class manufacturers for many applications Market pull will expand product offerings from manufacturers Significant fuel savings to customers Clean Energys business Designing, building, owning, operating stations AND selling fuel to customers at a price that allows customers to achieve significant fuel cost savings Slide 17 17 For information on natural gas for any of your trucking or fleet needs, please contact: Clean Energy del Peru SRL Jose Antonio Rios Montagne 511-434-6270 email@example.com