Propane Autogas - GTSEgtsummitexpo.socialenterprises.net/program/2018... · – Nearly 80% of the Nations 25 Largest School Districts Rely on Propane • 560,000 – The approximate

Confidential: Ferrellgas, LP

Propane Autogas Unparalleled Value


!  ~30% Employee Owned

!  Started in 1939 by A.C. Ferrell

!  Fortune 300 Propane Retailer

!  More than 5,000 employees

!  Over 600+ retail outlets

!  185,000,000 Gallons of Storage Across the USA

!  Fleet of more than 4,000 vehicles

!  Serving nearly 1 million Customers

!  Delivering nearly 1,000,000,000 (1 Billion) gallons per year

!  NYSE listed: FGP

Confidential © Ferrellgas, L.P


Procurement –! Ferrell NorthAmerica –! Comprehensive

Procurement Management

–! Risk Protection –! Supply Management –! Wholesale –! National Distribution –! 146 Transport

Tractors

Cylinder Exchange –! Blue Rhino –! Largest LPG tank

exchange company in the U.S.

–! Over 46,000 retail selling locations nationally

–! Acquired Mr. Bar-B-Q, a leading provider of high quality bbq tools

–! Builds Allocation

Sable Environmental –! Headquartered in TX –! Midstream Energy –! Saltwater Disposal

Facilities

–! Permitted Throughput of 150,000 bbl / day

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–

–

–

Cylinder Exchange


Bridger Logistics –! Headquartered in TX –! “2014 Midstream

Energy Co. of the Year” – O&G Awards

–! Services include trucking, terminaling, pipeline, rail, and maritime.

–! Inc. Magazine’s “Fastest Growing Energy Company” in 2013

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Midstream Operations Traditional Operations

Retail –! Ferrellgas –! Largest Division –! Retail / End User

Sales & Support

–! Residential, Ag, Industrial, Commercial, National Accounts, Autogas

–! Full Service Installer –! Full Service Supplier –! 1,600 Bobtails


Why Do Fleets Use Propane Autogas?


Clean. Domestic. Abundant. Safe. Inexpensive.


Clean Clean Burning

–! 24% reduction in Greenhouse Gas (GHG) emissions. –! 20% reduction in Nitrogen Oxide (NOx) emissions. –! 60% reduction in Carbon Monoxide (CO) emissions.


Clean Infrastructure –! Non-EPA Regulated –! Non-Carcinogenic –! Not a Groundwater Contaminate –! Zero Emission Fill Nozzle –! Zero Risk of Spillage


Domestic •  98% USA Produced

•  ~70% Sourced from Wet Natural Gas •  ~30% Sourced from Crude Oil



Abundant •! Net Exporter of Propane

–! Billions of gallons exported each year due to vast supply

•! Propane Inventory –! We have more gallons in storage than ANY nation in the world



Abundant & Growing Supply Increase in Natural Gas Liquids Production From U.S. and Canada Shale Gas (Million Gallons per year)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Propane

Ethane

Butane

Pentanes+

3.6 Billion Gallons of New Supply Expected between 2015 and 2020

1/HaynesvilleproducConincludesproducConfromothershalesinthevicinity,e.g.,theBossierShale

U.S. and Canada Shale Gas Production (Bcfd)

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

WesternCanada

AllOtherUS

EagleFord

Bakken

UCca

Marcellus

Haynesville/1

FayeReville

BarneR

Woodford

Source: ICF Consulting



Safe •  Tank Strength

–  20x More Puncture Resistant than Gas/Diesel Tanks

•  Low Operating Pressure –  120-300 psi –  Comparable to the pressure of brake lines

•  Narrow Flammability Range –  Ratios for air to fuel ignition (rich limit ÷ lean limit): –  Propane: 4.5:1 –  Diesel: 12.5:1 –  Gasoline: 5.5:1

•  Auto ignition Temp (in Farenheit): –  Propane: 850° –  Diesel: 600° –  Gasoline: 495°

Source: PERC



Minimal Investment / Maximum Savings



Historically Inexpensive


The current commodity market is unlike anything we’ve seen in years. With this environment, all commodity values are significantly depressed. Propane is currently around 47% less expensive than diesel and 40% less expensive than gasoline.

•! Average 60 Month Savings vs. Gasoline: 49% less expensive •! Average 60 Month Savings vs. Diesel: 56% less expensive


Stay in the Green

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50

Gas Comparison

Diesel Comparison Propane: $0.95

Propane$0.95

Diesel: $2.50

Gasoline: $2.20


Savings vs. Gasoline $27,000+ per Vehicle


Savings vs. Diesel $37,000+ per Vehicle


Additional Considerations



Implementation Matrix Task Responsibility Estimated Timeframe

Select Tank & Dispenser Location FGP & Customer 1 Day

Finalize Supply & Equipment Agreement FGP & Customer 1 Week for Review

Order Dispenser Equipment & Tanks FGP 4 Week lead Time

Submit Blueprints &/or Obtain site permits FGP & Customer 4-8 Weeks

Contract with and manage subs for crash bollards and electric FGP 1 Day

Install pad Subcontractor 1 Week

Install bollards Subcontractor 1 Week

Install autogas dispenser & Tank FGP 1 - 2 Weeks

Obtain electric permits Electric subcontractor 2 – 4 Weeks

Complete electric hookups Electric subcontractor 1 Week

Train on safety and system operations. FGP 1-2 Days

Total Estimated Timing 16 – 22 Weeks


Setback Requirements


Container Size Distance Requirement

501-2,000 gallons At least 25 feet from Important Buildings, or property lines that can be built upon.

More than 2,000 gallons At least 50 feet from important buildings, or property lines that can be built upon.

Condition Action to Take Combustible Materials (ex: woodpiles, dry grass / tall weeds, brush or chaparral) Maintain at least 10’ clearance around container

Exterior Sources of Ignition (ex: opening into direct vent appliances, mechanical ventilation air intakes, etc)

Maintain at least 10’ clearance around container

Overhead electric Lines more than 600 volts -typical electric wires from poles to buildings are 230 volts

Maintain 6’ Horizontal clearance from container. (imagine dropping a plumb bob straight down to the ground, now measure 6’ away from this point. The container must be at least this far back. )


Dispensing Station Footprint


Site Prep •! Fleet Responsibility

•! Concrete Pad •! Electrical: 3 Phase •! Crash Bollards

•! Supplier Responsibility •! Permitting •! Maximize Space •! Optimal Tank Sizing •! Delivery Schedule

Average Large Transit Bus: 40’7” L x 8’6” W

Average ParaTransit (PT) Bus: 23’L x 8’W

Dispensing Station Footprint


Comparing to CNG "! Serviceability:! Shop Enhancements / Certification "! Added Weight: Average 300-900 additional lbs. "! Track Record: 13M Worldwide / 145k in US "! Cost of Conversion: 1.5x More "! Operating Pressure: 3,600 psi "! Station Downtime: Contingency Plan / Availability "! Fueling Station Cost: $500k - $1.5M+

LPG: 46 Usable Gallons CNG: 20 GGE



Scalability Scalability

One (1) 1,000 Gal Tank One (1) 2,000 Gal Tank

One (1) 2,700 Gal Tank One (1) 30,000 Gal Tank


Contingency Planning

•! You’ll Be Prepared For: –! Natural Disasters –! Power Outages –! Emergency Evacuations –! Fuel Supply Shortages


•  19 out of 25 –  Nearly 80% of the Nations 25 Largest School Districts Rely on Propane

•  560,000 –  The approximate number of students riding propane buses every day in 2015

•  24,000,000 (24 Million)

–  LP Gallons estimated to be Consumed by Schools for Transportation each year

•  $28,800,000 (28.8 Million)

–  Dollars Saved in 2015 by Schools running Propane Buses

Industry Estimates: #  PERC Estimates 8,000 LPG Buses in US #  Average 70 passenger capacity #  Average 3,000 gallons per bus, per year #  Average savings $1.20 per gallon

Proven Technology – Fact Check



Robert C. Little Autogas Sales Manager

469-571-4970 [email protected]


Decisive Value in Propane Autogas

Documents

Propane Autogas - GTSEgtsummitexpo.socialenterprises.net/program/2018... · – Nearly 80% of the Nations 25 Largest School Districts Rely on Propane • 560,000 – The approximate