Clean Air Power Ltd John Pettitt, Chief Executive Pete Rowse, Finance Director August 2013
Clean Air Power: Overview Tier 1 supplier, developer and installer of Dual- Fuel™ technology that allows diesel engines to use predominately natural gas as a fuel July 2010: 5 year supply agreement signed with Volvo Trucks Components used by Mercedes-Benz & Volvo Natural gas injectors, filter systems, 1st Dual- Fuel™ patent filed in 1995; 69 patents held or pending More than 200 man-years of Dual- Fuel™ know -how 2
Dual- Fuel™ Engine Management Software enables heavy duty trucks to operate on a combination of diesel and natural gas, with no change to the base engine Leyland UK: Poway USA: Group Operations Engine Development & System design Volvo & European Genesis supply Engineering R&D UK Genesis installations Component production, incl. emissions Vehicle & Engine development Components distribution Group Finance 3
In the Production Phase First Invention Patents Filed Caterpillar production Genesis Sales Validation New Executive Management Listed on AIM February 2006 Volvo Demo Admission to AIM Volvo Development Development US Genesis Development Navistar Production Volvo Production 1995 2000 2005 2010 2012 2013 2014 2015 2016 4
*H1 – 2013 headlines System Sales 350 300 250 200 150 O R D 100 E R 50 S 0 2011 2012 2013 First half 33 116 172 Second half 37 184 178 Total 70 300 350 *Unaudited 5
H1 – 2013 headlines Exhibited US Genesis truck at ACT Expo Washington DC Funding secured from California Energy Commission 2013 Sales to date + orders in hand now total 350 systems Awarded grant from the Niche Vehicle Network towards Euro 6 after-treatment system development 2-year funded research project with Brunel University Recruited Business Development Director for Russian market 6
European OEM & Genesis EDGE 2013 YTD OEM orders exceed 2012 deliveries Global logistics company order additional 40 systems Derogation enables new OEM product until March 2014 European Euro 5 trucks built in 2013 can be delivered through 2014 Positive indications of 2014 opportunities for Genesis product 7
US Genesis EDGE Engine choice evaluated Technical feasibility study completed Clean Air Power Board approved development Development program start mid October 2012 Base engine in test cell, ran in Dual-Fuel 7th Feb Program milestones Prototype truck at ACT Washington, June 2013 Trial vehicles operating Q4 2013 Investor Presentation April 2013 Sales & Installations early 2014 8
US Genesis Development ACT Expo Washington DC June 2013 Prototype drove 2,720 miles from San Diego to Washington operating at 40 tonne GVW More than 150 visitors to the stand Return trip over 3,000 miles via Colorado, 12,000ft and Death Valley, 46 ° Centigrade Demonstrated benefit of diesel fall- back as LNG was only available for 50% of the route 9
Truck Route 10
US Genesis Development US engine development making progress Issues with UK test cells have caused some delays Weekend & extended days to help recover Sales target remains Q1 2014 Key challenge is hydrocarbons Catalysts on trial from 3 suppliers Work started on cost down engineering Ricardo appointed to provide certification support UPS contracted to be first trial customer 10 trucks, each running approx. 10,000 miles per month 11
US Natural Gas Infrastructure Major players: Clean Energy Flying J & Pilot truck stops Shell TravelCenters of America truck stops ENN China Blu LNG 12
US Natural Gas Infrastructure Opened Stations Developing/Planned Stations 13
Clean Energy At the end of 2012, Clean Energy had completed 70 new LNG truck fuel stations along highways that link major U.S. metropolitan areas. Many of these stations are located at existing Pilot-Flying J truck stops Pilot is the nation's largest truck-stop operator with more than 550 retail properties in 47 states Clean Energy plans to build 70 to 80 additional LNG fuel stations adjacent to long-haul trucking routes and around major warehouse distribution centres in North America Major highway segments now completed include, among others, those linking the Southwest Corridor, Los Angeles to Atlanta, The Texas Triangle, Atlanta to Chicago to Texas, and major corridors in the Midwest and Northeast 14
SHELL LNG entering market Shell and TravelCenters of America Develop LNG Fueling Network Shell opened first LNG station in Calgary, March 2013 Shell’s first LNG refueling station in Canada now offers a new choice for heavy-duty fleet customers looking for a long-term, cost competitive fuel that could also help lower their greenhouse gas emissions (GHGs). Shell will produce LNG at the planned liquefaction plant, which will be located at the Jumping Pound natural gas facility, 30 km west of Calgary . 15
Blu. LNG entering market Blu. LNG station Beaver, Utah 16
US Market Opportunity *2012 US HD truck market 249,500 units *2012 Volvo sales in North America 26,222 trucks Genesis EDGE targeted initially at 2010 – 2012 product *2010-2012 Volvo sales in North America 70,090 trucks NPC – Reference Natural gas trucks could reach 10 – 20% market ACT Research 25 – 50,000 trucks pa . Frost & Sullivan Source: Westport - NPC/ACT/Frost & Sullivan Natural gas penetration of North American Source: *Volvo press releases Heavy Duty trucks 17
USA Installation targets Seattle Portland Wilsonville Eugene Medford Pittsburgh Reno Denver Oakland San Francisco Stockton Las Vegas La Mirada Sylmar Phoenix Fontana Atlanta Los Angeles Dallas Investor Presentation April 2013
Russian Market Opportunity MOSCOW: Tue May 14, 2013 1:35pm EDT President Vladimir Putin threw his weight behind a drive to fuel more Russian vehicles with cleaner-burning and cheaper natural gas, saying the economic and environmental benefits were clear A transition to using gas as a transportation fuel would reduce emissions in Russia - the world's fourth biggest emitter of greenhouse gases - by two to three times, Putin said This would also boost the fortunes of state energy giant Gazprom whose net profit fell 10% in 2012 due to weak gas prices and flagging demand from austerity-ravaged Europe "Gas is cheaper than gasoline or diesel fuel, besides it reduces emissions," Putin said at a meeting 19
Russian Natural Gas Infrastructure Over 200 existing CNG stations Gazprom / Rosneft commit $10 billion to develop 2,500 natural gas stations throughout Russia Shell seeking ways to grow their LNG business in Russia 20
Russian Market Opportunity Heavy truck sales approximately 90,000 units per p.a. Volvo sales 8,000 p.a. Volvo has Production plant in Kaluga Proven customer interest in Dual- Fuel™ Manufacturers Heavy Duty vehicle sales in Russia in 2012 (‘000’s ) Kaluga 21
OEM progress Discussions on-going with US, European & Japanese OEMs Funding is a challenge for some OEMs Seeking funding from third parties Potential cooperation agreement with a global engineering & technology consultancy Quoting Dual- Fuel™ industrial engine for global manufacturer 22
Summary Europe started slower than expected but improving 350 orders YTD compared with 300 in full year 2012 Euro 5 trucks built in 2013 can be delivered through 2014 Positive opportunities for the Legacy product in USA Positive response to ACT show & the Genesis product Considerable interest in Russia OEM discussions moving forward 23
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