cng & lng forheavy duty trucking
TRANSCRIPT
CNG & LNG forHeavy Duty Trucking
November 20, 2014
About Clean Energy
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Largest AlternativeTransportationFuel Provider
800+
FLEETCUSTOMERS
30,000+
FUELED DAILYNGVS
500+NATURAL GAS
FUELING
STATIONS
9,000+TRANSACTIONS
PER DAY
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Fueling ServicesDesign, Construct, and Operate
CNG Time Fill
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Fueling ServicesDesign, Construct, and Operate
CNG Fast Fill
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Fueling ServicesDesign, Construct, and Operate
LNG
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America’s Natural Gas Highway
The Infrastructure Reality
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America’s Natural Gas Highway
The Infrastructure Vision
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Hope Hull, AL Latta, SC
Oklahoma City, OK Pearl, MS
America’s Natural Gas Highway
The Infrastructure Reality
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America’s Natural Gas Highway
Dallas CNG & LNG
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HEAVY DUTYTRUCKING
REFUSEFLEETS
Shippers Look to Natural Gas
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NatGas Vehicles Have A Lower Carbon Footprint
CO2
CO
GASOLINE
DIESEL
GREENHOUSE GAS EMISSIONS
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CO2
CO2
CO2
CO2
28%LOWER
23%LOWER
LNG
CNG
84%LOWER
LANDFILL GAS
88%LOWER
LANDFILL GAS
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Private & For-Hire Carriers Deploy Natural Gas Trucks
HEAVY DUTYTRUCKING
REFUSEFLEETS
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Assumptions
1. Should cost less to operate
2. Shouldn’t impact operations
3. Make money for the carrier
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Lower total cost of operation
• Spec only the needed daily fuel capacity• Payback: 18 to 30 months @ $1/gallon- Depends on truck’s incremental cost, fuel
consumption and fuel spread
Lower total cost of fuel
• Energy equivalency (GGE to DGE)- $2.20/GGE is really $2.45/DGE
• Consider impacts of time, weight and cost
Maintenance costs wash
• Increase cost of spark plugs• Oil intervals the same• Loss of DPF and DEF
Incremental Cost
$60,000 $45,000 $30,000
Range (miles) 700+ 550+ 400+
Fuel Spread $1.00 $1.00 $1.00
Fuel Consumption
20,000 20,000 20,000
Payback36
Months27 Months 18 Months
Costs Less
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US Natural Gas Shale Plays
As reported by the American Petroleum Institute in 2014
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Fueling time impacts HOSLNG same as diesel
CNG is half as fast at its best
Fueling infrastructurePublic access CNG & LNG networks expanding
Private backlot station solutions exist - Fast-fill CNG, Time-fill CNG and LNG
NGVs as differentiators in recruitingDrivers love NGVs
- Quieter, cleaner, and no diesel smell
Shippers diversifying fuel spend
Private fleets realizing bottom line savings- Budweiser, FedEx, Frito Lay, Kroger, MillerCoors, Pepsi, SuperValu, UPS and
US Foods
Operations Improving
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Use NGVs as competitive advantageCost savings per mile
Attract new customers and build revenue
Green House Gas (GHG) reductions 100,000 miles on diesel at 6.5 MPG is 200 MT GHG/year
Same miles on ISX12 G using conventional NG is 150MT GHG/year and <50 MT when using 100% Redeem
Defend existing business Insulate existing business (revenues and margins) from competitive threat
Make Money for the Carrier
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Several Economic Models
•Value Simulator (cents/mile)- Over 30 input variables (finance, operation, insurance, etc.)
•IRR
•Simple Payback (years)
•Weight, Time and Incremental Cost- Determines best fit, CNG or LNG, for the application
•Lease versus Purchase- FMV through GE Capital
•CNG & LNG Tank packages
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Fleets Running NGVs
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“….the bitterness of poor quality remains long after the sweetness of low price
is forgotten.”
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