Clean Air Power Ltd John Pettitt, Chief Executive Pete Rowse, - - PowerPoint PPT Presentation

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Clean Air Power Ltd John Pettitt, Chief Executive Pete Rowse, - - PowerPoint PPT Presentation

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


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Clean Air Power Ltd

John Pettitt, Chief Executive Pete Rowse, Finance Director August 2013

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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

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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

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Leyland UK:

Group Operations Volvo & European Genesis supply UK Genesis installations Vehicle & Engine development Group Finance

Poway USA:

Engine Development & System design Engineering R&D Component production, incl. emissions Components distribution

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In the Production Phase

1995 2000 2005 2010 2012 2013 2014 2015 2016

Volvo Production Admission to AIM Production Validation Invention Development Caterpillar production Genesis Sales New Executive Management First Patents Filed

Volvo Demo

Navistar

Volvo Development

Listed on AIM February 2006

US Genesis Development

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*H1 – 2013 headlines

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*Unaudited

2011 2012 2013 First half 33 116 172 Second half 37 184 178 Total 70 300 350 50 100 150 200 250 300 350

System Sales

O R D E R S

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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

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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

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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 Sales & Installations early 2014 Investor Presentation April 2013

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US Genesis Development

ACT Expo

Washington DC June 2013

Prototype drove 2,720 miles from San Diego to Washington

  • perating 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

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Truck Route

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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

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US Natural Gas Infrastructure

Major players: Clean Energy

Flying J & Pilot truck stops

Shell

TravelCenters of America truck stops

ENN China

Blu LNG

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US Natural Gas Infrastructure

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Opened Stations Developing/Planned Stations

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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

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SHELL LNG entering market

15 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.

Shell and TravelCenters of America Develop LNG Fueling Network

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  • Blu. LNG entering market

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  • Blu. LNG station

Beaver, Utah

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NPC – Reference ACT Research Frost & Sullivan

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 Natural gas trucks could reach 10 – 20% market 25 – 50,000 trucks pa.

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Source: Westport - NPC/ACT/Frost & Sullivan

Natural gas penetration of North American Heavy Duty trucks

Source: *Volvo press releases

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USA Installation targets

Los Angeles Dallas Phoenix Denver Atlanta Pittsburgh

Investor Presentation April 2013

Seattle Portland Wilsonville Eugene Medford Oakland San Francisco Stockton Reno Las Vegas La Mirada Sylmar Fontana

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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

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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

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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™

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Manufacturers Heavy Duty vehicle sales in Russia in 2012 (‘000’s)

Kaluga

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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

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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

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Disclaimer

The information contained in this confidential document (“Presentation”) has been prepared by Clean Air Power Limited (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or are high net worth companies within the meaning set out in Article 49(2) of the

  • Order. It is a condition of you receiving this presentation that you fall within and, and that you represent and warrant to the company that

you are a person who falls within the above description of persons entitled to receive the Presentation. This Presentation is not to be disclosed to any other person or used for any other purpose. While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors,

  • fficers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied)

as to, or in relation to, the accuracy, reliability or completeness of the information in the Presentation to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers shall be liable to any person for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors,

  • fficers, agents, employees or advisers. In particular, this Presentation does not constitute an offer or invitation to subscribe for or

purchase any securities and neither this Presentation nor anything contained herein shall form the basis of any contract or commitment

  • whatsoever. Each party to whom this Presentation is made available must make its own independent assessment of the Company after

making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters. Neither this Presentation, or any copy of it, may be taken or transmitted within the United States, Canada or Australia or into any jurisdiction where it would be unlawful to do so. Failure to comply with this restriction may constitute a violation of relevant securities laws.