Natural Gas for Americas Fleets cleanenergyfuels.com 1 Whats the - - PowerPoint PPT Presentation

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Natural Gas for America’s Fleets

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What’s the Problem? In 1970, we imported 24% of our oil.

Today it is nearly 60%

Increased Dependence on OPEC OIL …………

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Worldwide Marketplace

U.S.A .S.A. 4%

China = 19% India = 16%

Worldwide Increasing Demand For an Ever Decreasing Supply of Oil

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Source Countries for Oil & Natural Gas

US 28% Canada 13% Mexico 8% OPEC 32% Others 19%

Crude Oil & Refined Product Sources for US Consumption

US 80.0% Canada 16.4% Mexico 0.2% Others 3.3%

Natural Gas Sources for US Consumption

Source: EIA - http://tonto.eia.doe.gov

1/3 OPEC 80% USA

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American & Abundant

Boone Pickens: USA is the Saudi Arabia of Natural Gas

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The Natural Gas Solution

 Cleaner

– Too many regions have unhealthy air…. – Fleets are under pressure to reduce carbon footprint

 American

– 98% domestically produced

 Cheaper

– Costs average between $1.00- $2.00 less per gallon than gasoline or diesel – Oil is unpredictable and getting scarce

Natural Gas for Transportation

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Petroleum Fuels Natural Gas Fuels

Reduces Green House Gases

Carbon Intensity

gCO2 e/Mile

23%

GHG Reduction

88%

GHG Reduction

Source: CARB Fuel Pathways Analysis

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Natural Gas Is a Domestic & Plentiful

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150 + years of Domestic Reserves

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Landfill Gas (Biomethane)

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Digester Gas (Sewer Treatment)

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Dairy Farms Non-Renewable Sources (4,000 TCF) Renewable Sources (1,750 landfills)

98% Supplied from the U.S. and Canada

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Cost of Natural Gas versus Crude Oil

$95.28

WTI Price as of 02.14.13

$3.26 x 5.8 = $18.91

Natural Gas Equals $18.91 per Barrel of Oil (energy equivalent )

Commodities Market February 20, 2013

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Natural Gas: Cheaper Fuel for Fleets

http://online.wsj.com/article_email/SB10001424052702304707604577422192910235090-lMyQjAxMTAyMDIwMzEyNDMyWj.html?mod=wsj_share_email

LNG $2.859/DGE Diesel $4.089/DGE

2006 2007 2008 2009 2010 2011 2012 2013

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The Diesel vs. Natural Gas Opportunity

Long-term Forecasts for Diesel to Increase Above $4/gal The Expected Differential Between Natural Gas and Diesel will Average Between $1.25 to $2.00 per DGE Over the Next 3 to 5 Years High Mileage Applications will See a Rapid Payback on the Incremental Investment

Source: U.S. Energy Information Administration - Annual Energy Outlook 2011

Nat Gas / Diesel Fuel Price Differential

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

2005 2010 2015 2020 2025 2030

$ per DGE

Diesel Nat Gas Differential

Current average diesel price $4.08/gal

The Opportunity

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Natural Gas Has an Economic Advantage

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Payback in 2 years or less should be universally acceptable (green shading)

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Payback in 4 years or less (yellow) should be acceptable to fleets that hold assets for 6 to 7 years combined with other factors

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Payback of 4 years or more is driven by non-economic factors

– (2010 emissions, sustainability, foreign oil, US jobs)

Fuel Savings City Beverage Distribution Regional Corridoor Annual Fuel Useage 5,000 10,000 15,000 20,000 Savings per Gallon $1.50 $1.50 $1.50 $1.50 Annual Savings $7,500 $15,000 $22,500 $30,000 Incremental Cost Simple Payback (years) $20,000 2.7 1.3 0.9 0.7 $30,000 4.0 2.0 1.3 1.0 $40,000 5.3 2.7 1.8 1.3 $50,000 6.7 3.3 2.2 1.7 $60,000 8.0 4.0 2.7 2.0

Incremental Cost must include additional 12% FET

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Compressed Natural Gas (CNG)

Taxis Airport Shuttles Transit Buses

Leading Provider of Natural Gas As a Transportation Fuel

About Clean Energy (NASDAQ: CLNE)

Liquefied Natural Gas (LNG)

Port Trucking LNG Stations LNG Tanker Fleet

Largest Natural Gas Fuel Provider in North America

700+

Fleet Customers

28,000+

Natural Gas Vehicles per Day

400+

Natural Gas Fueling Stations

195 Million

Gallons of NG last year

Regional Trucking Refuse Vehicles

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Clean Energy - Core Markets

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Clean Energy - Supply Chain

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Natural Gas Heavy Duty Truck Market

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Expanding Choices for Natural Gas Engines

 Currently Available

– 8.9 liter Cummins-Westport SI (CWI) – 15 liter Westport HPDI (Paccar)

 Planned and Announced

– CWI 12 liter SI engine

• Field testing underway with OEMs
• Commercial release in February 2013

– Volvo 13 HPDI liter engine

• Planned introduction in 2014

– CWI 6.8 liter SI engine

• Planned introduction in 2015

– Cummins 15 liter SI engine

• Planned introduction in 2015

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Every Major OEM Offers Natural Gas Trucks

 Freightliner – CWI 8.9 liter today and 12 liter by Q2 2013  Kenworth – CWI 8.9 &15 liter HPDI available today, 12 liter by Q2 2013  Peterbilt – 8.9 CWI & 15 liter HPDI available today, 12 liter by Q2 2013  Volvo – 8.9 CWI liter today and 12 liter by Q2 2013  International – Committed to deploy full natural gas truck product line – 8.9 Q2 2013 – 12 liter CWI by 2014

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Natural Gas Fundamentals

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NG is extremely safe

– Lighter than air = dissipates when released – High ignition temperature = 1,000f to 1,100f – Small air/fuel combustion ratio = 5% to 15% – Colorless, odorless, non-toxic substance – Doesn’t pool or leak into groundwater

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Types of NG fuel for vehicles

– Compressed Natural Gas (CNG)

• Compressed into vehicles at 3,600 psi
• 1 gallon = 5.66 pounds
• 139,000 (DGE) British Thermal Units

– Liquefied Natural Gas (LNG)

• -260 degrees (liquid fuel)
• 1 gallon = 3.49 pounds
• 82,000 British Thermal Units

Butane Pentane Hexane Ethane Propane Other

Methane

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Compressed Natural Gas (CNG) Basics

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Light, medium, and heavy duty vehicles

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NG delivered by LDC pipeline to fueling station

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Dried, compressed & stored at 4,500 psi and dispensed at 3,600 psi

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Dispensed at similar speed (gpm) to gasoline

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Stored in several cylinders onboard the vehicle

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CNG Fast-Fill Stations

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CNG Fueling Station – Tampa, FL

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CNG Private Station –

Saddle Creek Transportation Lakeland, FL

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CNG – Time-Fill

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K line post pic

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CNG Fuel Tanks

CNG Common Tanks

Configuration Nominal Size Effective Size Dry Weight Wet Weight (DGE) (DGE) (lbs) (lbs) 4 Tanks BOC 60 45 1,150 1,450 5 Tanks BOC 75 55 1,650 2,025 2 Tanks Side Rail 82 60 1,200 1,650

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CNG Tank Package

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Heavy-duty vehicles

– >50 DGE/truck/day

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Pipeline gas cooled to -260 F

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Store 2x (energy)/volume as CNG

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Produced at LNG plants & delivered to LNG station & stored in cryogenic trailers

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Dispensed at 15+ DGE/minute

Liquid Natural Gas (LNG) Basics

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LNG Fuel Tanks

LNG Common Tanks

LNG Tank Nominal Size Effective Size Effective Size Dry Weight Wet Weight (Gal) (Gal) (DGE) (lbs) (lbs) 119 102 60 495 870 150 128 75 620 1,093 Westport GX 119 94 58 785 1,155

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LNG Fueling

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LNG Transport Fuel Reservoirs Pump Dispensers Containment

LNG Station Components

Vaporizer

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Port of Long Beach LNG Station

 6 Lanes of LNG and CNG  1200 trucks fuel - Dispensing over 15,000 DGE /day

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America’s Natural Gas Highway

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America’s Natural Gas Highway

Coast-to-Coast & Border-to-Border on LNG

 Clean Energy has the exclusive right to build LNG stations

with Pilot Flying J

 Over 150 stations by the end of 2013, along every major

interstate corridor

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2012 ANGH Deployment

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ANGH LNG Stations

Hope Hull, AL Latta, SC Oklahoma City, OK Pearl, MS

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ANGH LCNG Station – Dallas, TX

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Clean Energy’s Dallas LNG/CNG Station

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What’s in it for You?

 Affordable, Cost Effective, Stable Fuel Supply  Put Dollars back in the Budget  Reduce Fleet Carbon Footprint - Lowers GHG Emissions  Recognition and Improved Green Image  American Vehicles Running on American Fuel  Eliminate Vehicle Dependence on Foreign Oil

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American Cleaner & Low Carbon Cheaper

Dave Mizerowski

Regional Manager, National Accounts (770) 823-2854 dmizerowski@cleanenergyfuels.com