CNG & LNG forHeavy Duty Trucking

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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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Jim HargerChief Marketing Officer

jharger@cleanenergfuels.com(949) 439-1350

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