Honda North America – North American Logistics

Marysville, OH CNG Project

Overview

November 19, 2015

Kevin Wade

Compressed Natural Gas project

• Honda has long heritage of environmental stewardship

• Company’s global commitment is to be an environmental leader–both in products and

in manufacturing facilities

• For production facilities, Honda has a “Green Factories” initiative •environmental management •energy and resource conservation •zero emission initiatives

• Minimizing CO2 emissions is top priority for Honda worldwide

• Proposed CNG project supports reduction of emissions related to parts deliveries

Origins of Project

Transportation Use of CNG

• Natural Gas network is growing, but not yet well established • Major companies are investing in station development

• Many have implemented their own fueling stations • Many own/operate their own truck fleets

•“Return to Base” model prevalent

• American Honda • Frito Lay • Smith Dairy • P&G • Subaru • Waste Management • Fed Ex / UPS • Coca-Cola • COTA • City of Dublin

Currently Using/ Investigating Compressed Natural Gas

National CNG Station Map

Ohio CNG Station Map

Regional CNG Projects

• City of Dublin adds 44 CNG vehicles to fleet

• Opened CNG station in June 2012

• "The City also is looking forward to alternative energy sources that reduce emissions, rely on domestic sources, and reduce energy costs to the City. With these 44 vehicles alone, the City anticipates saving at least $30,000 per year in fuel costs, as well as significant reductions in emissions."

• Central Ohio Transit Authority (COTA) adds CNG buses to fleet

• May 2013 Kick-off and CNG station implementation

• According to Brian Hoyt, of COTA, “Compressed natural gas burns cleaner. It’s a more efficient fuel, it has a cleaner exhaust, and costs less than diesel.”

Dublin, OH Central Ohio Transit

Authority

Kalmbach Feeds

Held ribbon cutting 11/20/13 for new CNG refueling station in Upper Sandusky – at US 23 and US 30.

Additional Sites Continue to Open

•"A major barrier to our carriers and suppliers adopting the use of CNG as a fuel is the lack of convenient fueling stations close to Honda facilities," said Jim Wehrman, HAM senior vice president. "By providing an accessible fueling option, we hope that our logistical partners will more closely consider the benefits of using CNG. Minimizing our environmental footprint is a vital part of Honda's business strategy and operating philosophy

HNA NAL 2014 Carrier Meeting

CNG Station Announcement

Honda To Install Compressed Natural Gas Fueling Station Near Marysville Auto Plant - 3/11/2014

CNG Partner Study HNA- NAL

Opt Own Operate Land/ Utilities

1 Honda Honda Honda

2 Honda 3rd Party Honda

3 3rd Party 3rd Party Honda

4 Carrier / 3rd Party

• Station must operate 24/7, with quick response to concerns

• Honda will provide gas/electric if on HAM property

• Station will cater primarily to trucks, but also be open to public

Core Requirements

Options

Opt Own Operate Land/ Utilities

3 3rd Party 3rd Party Honda

Trillium CNG selected

• Preliminary vendor reviews

• 20 companies

• Company background, capabilities, etc…

• Detailed vendor proposals

• 6 companies

• In depth proposal analysis, negotiations, etc…

Vendor Selection

CNG Station Overview

•Modify existing 3-way signal to 4-way signal •Change Honda Pkwy westbound lane to a left turn lane

HFCU

Dispensers

Compressor Compound, Restrooms

Enter/ Exit

Temporary Parking

Temporary Parking

•CNG use only •Open to public customers •Restrooms/ vending • No retail shop • Temporary truck parking

Traffic Flow

Intersection Changes

HNA- NAL

Enter

CNG Station Photos – July 27, 2015 HNA- NAL

CNG Station Opening Event – Aug 19, 2015 HNA- NAL

• Multiple Honda carriers have implemented CNG tractors

• More than 50 CNG units filling daily (M-F)

• Average > 4,000 GGE / day (M-F)

Environmental Impact HNA- NAL

• Environmental Impact Estimate

• Jul-Oct

• Total GGE sold > 275K

• Lbs of carbon emissions avoided > 1.3M

• Full Year Estimate

• Total GGE sold > 1M

• Lbs of carbon emissions avoided > 5M