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Renewable Natural Gas from Production to Pumps – An Important Biogas Primer Your Speaker: Nicholas Lumpkin Director, Business Development Clean Energy Renewable Fuels Your Host: David Orton Senior Vice President, Global Business Development & Marketing IMW Industries Technical Team: Stephen Smith, PE, SVP Operations, CERF John Cowhey, Eng Project Developer, CERF

IMW Webinar - Nick Lumpkin 7-23-14

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Biogas Primer 101

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Page 1: IMW Webinar - Nick Lumpkin 7-23-14

Renewable Natural Gas from Production to Pumps – An Important Biogas Primer

Your Speaker: Nicholas LumpkinDirector, Business Development Clean Energy Renewable Fuels

Your Host:

David Orton

Senior Vice President, Global Business Development & Marketing

IMW Industries

Technical Team:

Stephen Smith, PE,

SVP Operations, CERF

John Cowhey, Eng

Project Developer, CERF

Page 2: IMW Webinar - Nick Lumpkin 7-23-14

About IMW

IMW has been manufacturing industrial machinery since 1912, and has evolved to be a leading manufacturer of natural gas compression systems, serving all major markets Globally. Equipment is currently operating mid-east to North of the Arctic Circle.

• Quality Products & Leader in CNG Compression• Non-Lubricated Compression for Clean CNG

A variety of configurations for all applications

Page 3: IMW Webinar - Nick Lumpkin 7-23-14

A Clean Energy Company

IMW operates as a wholly owned subsidiary of Clean Energy Fuels Corp. (NASDAQ: CLNE). Clean Energy is the largest provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle market.

Clean Energy has operations in CNG and LNG vehicle fueling, construction and operation of CNG and LNG fueling stations, biomethane production, and compressor technology.

Page 4: IMW Webinar - Nick Lumpkin 7-23-14

Continuing Education Credit

1 hr Technical Informal

More CPD Info or Board Room Attendance:

• Name • Job title• Company• Email

[email protected]

Page 5: IMW Webinar - Nick Lumpkin 7-23-14

Join the Discussion!

Page 6: IMW Webinar - Nick Lumpkin 7-23-14

Your Speaker

Nicholas LumpkinDirector of Business DevelopmentClean Energy Renewable Fuels

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Largest AlternativeTransportationFuel Provider

Largest AlternativeTransportationFuel Provider

700+700+FLEETFLEETCUSTOMERSCUSTOMERS

30000+30000+

FUELED DAILYFUELED DAILYNGVSNGVS

500+500+NATURAL GASNATURAL GAS

FUELINGFUELINGSTATIONSSTATIONS

9000+9000+TRANSACTIONSTRANSACTIONS

PER DAYPER DAY

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More Than Just Fuel

Turnkey Solutions

FUELINGSERVICES

ENGINEERING& CONSTRUCTION

COMPRESSORS& EQUIPMENT

FACILITIESMODIFICATION

LNG TECHNOLOGY& CONSTRUCTION

GRANTS& FINANCING

SERVICE& SUPPORT

RENEWABLE FUELS

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OUR ROLEOUR ROLEPRODUCEMARKET &DISTRIBUTE

RENEWABLENATURAL GAS

PRODUCEMARKET &DISTRIBUTE

RENEWABLENATURAL GAS

Page 12: IMW Webinar - Nick Lumpkin 7-23-14

BIOMETHANE SUPPLY CHAIN

Methane is derived fromvarious organic wastesources such as landfillsand farms.

CAPTURE& EXTRACT1

After it is processed toRequired standards ofPurity, methane becomes a Renewable substitute forNatural gas.

PROCESS& PURIFY2

Once compressed or lique-fied, methane gas is sentinto the interstate fuelpipeline system.

ENTERSINTERSTATEFUEL PIPELINE

The methane gas is routedto designated Clean Energystations which fuel an arrayof commercial vehicles.

MADE AVAILABLE ATFUELING STATIONS

3

4

Page 13: IMW Webinar - Nick Lumpkin 7-23-14

McCOMMAS BLUFFMcCOMMAS BLUFF

60K60K

DALLAS-OWNED &OPERATEDLANDFILL

PSA CLEAN UPSYSTEM

DALLAS-OWNED &OPERATEDLANDFILL

PSA CLEAN UPSYSTEM

15.515.5MMCFDCAPACITYMMCFDCAPACITY

GGEsPER DAYGGEsPER DAY

Page 14: IMW Webinar - Nick Lumpkin 7-23-14

SAUK TRAIL HILLSSAUK TRAIL HILLS

20K20K

LANDFILL OWNEDAND OPERATED BYREPUBLIC SERVICES

WATER WASH CLEAN UP SYSTEM

LIQUEFIED AT THE

BORON LNG PLANT

LANDFILL OWNEDAND OPERATED BYREPUBLIC SERVICES

WATER WASH CLEAN UP SYSTEM

LIQUEFIED AT THE

BORON LNG PLANT

4.64.6MMCFDCAPACITYMMCFDCAPACITY

GGEsPER DAYGGEsPER DAY

Page 15: IMW Webinar - Nick Lumpkin 7-23-14

NORTH SHELBYNORTH SHELBY

14K14K

LANDFILL OWNEDAND OPERATED BYREPUBLIC SERVICES

PSA CLEAN UP SYSTEM

LANDFILL OWNEDAND OPERATED BYREPUBLIC SERVICES

PSA CLEAN UP SYSTEM

4.04.0MMCFDCAPACITYMMCFDCAPACITY

GGEsPER DAYGGEsPER DAY

Page 16: IMW Webinar - Nick Lumpkin 7-23-14

BIOMETHANE SUPPLY CHAIN

Methane is derived fromvarious organic wastesources such as landfillsand farms.

CAPTURE& EXTRACT1

After it is processed toRequired standards ofPurity, methane becomes a Renewable substitute forNatural gas.

PROCESS& PURIFY2

Once compressed or lique-fied, methane gas is sentinto the interstate fuelpipeline system.

ENTERSINTERSTATEFUEL PIPELINE

The methane gas is routedto designated Clean Energystations which fuel an arrayof commercial vehicles.

MADE AVAILABLE ATFUELING STATIONS

3

4

Page 17: IMW Webinar - Nick Lumpkin 7-23-14

Best and Highest Use for BiomethaneBest and Highest Use for Biomethane

BIOMETHANEBIOMETHANE

RENEWABLERENEWABLE EXISTINGDISTRIBUTIONEXISTINGDISTRIBUTION

REDUCESGHG EMISSIONSREDUCESGHG EMISSIONS

SUITABLE FOR ALL

VEHICLESSUITABLE FOR ALL

VEHICLES

Page 18: IMW Webinar - Nick Lumpkin 7-23-14

Pricing and Economics5-Year Natural Gas Spot Pricing Vs. RNG Production Cost

$

RNG High ProductionCost Estimate

RNG Low ProductionCost Estimate

Dec-0

7

Apr-0

8

Aug-0

8

Dec-0

8

Apr-0

9

Aug-0

9

Dec-0

9

Apr-1

0

Aug-1

0

Dec-1

0

Apr-1

1

Aug-1

1

Dec-1

1

Apr-1

2

Aug-1

2

Dec-1

2

Apr-1

3

Aug-1

3

Dec-1

3

Apr-1

40

2

4

6

8

10

12

14

Page 19: IMW Webinar - Nick Lumpkin 7-23-14

Renewable Fuel StandardRFS Volumes (RFS 2)

Year

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Advanced Biofuel : Unspecified

Advanced Biofuel : Biomass-Based Direct

Advanced Biofuel : Cellulosic Biofuel

Conventional Biofuel

RFS 1 – 7.5 bg in 2012RFS 1 – 7.5 bg in 2012

Page 20: IMW Webinar - Nick Lumpkin 7-23-14

Low Carbon Fuel Standard (LCFS)GHG Emissions Calculations

$10MMCA LCFSCreditsSold toDate

$10MMCA LCFSCreditsSold toDate

COCO22

95GULTRA LOWSULFUR

CNGCNG CNGCNG

68GCOMPRESSEDNAT GAS

13GFROM

LANDFILL

-15GFROM

DRY AD

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Low Carbon Fuel StandardMarket Functionality

Volatility in Q1 2014 LCFS Credit pricing due to uncertainty and lack of stabilization in the program

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Biomethane Availability

• Growing demand for biomethane as renewable CNG, LNG and electricity

• Demand for biomethane will exceed availability in the short term

• Success of RFS2 and LCFS programs in California and beyond will drive new projects

• Growing demand for biomethane as renewable CNG, LNG and electricity

• Demand for biomethane will exceed availability in the short term

• Success of RFS2 and LCFS programs in California and beyond will drive new projects

2014 Potential US Biomethane Production

177 Million EthanolGallons

Page 23: IMW Webinar - Nick Lumpkin 7-23-14

BIOMETHANE SUPPLY CHAIN

Methane is derived fromvarious organic wastesources such as landfillsand farms.

CAPTURE& EXTRACT1

After it is processed toRequired standards ofPurity, methane becomes a Renewable substitute forNatural gas.

PROCESS& PURIFY2

Once compressed or lique-fied, methane gas is sentinto the interstate fuelpipeline system.

ENTERSINTERSTATEFUEL PIPELINE

The methane gas is routedto designated Clean Energystations which fuel an arrayof commercial vehicles.

MADE AVAILABLE ATFUELING STATIONS

3

4

Page 24: IMW Webinar - Nick Lumpkin 7-23-14

Most Robust Network NationwideMost Robust Network Nationwide

33

1010

22

120+120+

3737

4343 STATESSTATES

AIRPORTSAIRPORTS

AMERICA’SNATURAL GASHIGHWAYSTATIONS

AMERICA’SNATURAL GASHIGHWAYSTATIONS

LNGPLANTSLNGPLANTS

LNGSOURCESLNGSOURCES

RENEWABLENATURAL GAS(BIOMETHANE)

RENEWABLENATURAL GAS(BIOMETHANE)

Page 25: IMW Webinar - Nick Lumpkin 7-23-14

SUSTAINABILITY

GOALS

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CorporateSustainabilityCorporateSustainability

Fleets ExploringNatural Gas FuelingFleets ExploringNatural Gas Fueling

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WHY REDEEM

CLEANER COST EFFICIENT RENEWABLE DOMESTIC

The cleanest fuelavailable – up to 90%cleaner than diesel

and gasoline

Substaintially lessexpensive than diesel

and gasoline

Made from organicwaste from sources

like landfills and farms

Moving the countrytowards energyindependence

Page 29: IMW Webinar - Nick Lumpkin 7-23-14

MEETS

100%OF VEHICLEFUELING

REQUIREMENTS

MEETS

100%OF VEHICLEFUELING

REQUIREMENTS

70%+REDUCTION INGHG EMISSIONS

70%+REDUCTION INGHG EMISSIONS

COMMERCIALQUANTITIES

CHEAPERTHAN PETROLEUM

FUEL

COMMERCIALQUANTITIES

CHEAPERTHAN PETROLEUM

FUEL

LARGESTPRODUCER,MARKETER &

DISTRIBUTOR OFBIOMETHANE

LARGESTPRODUCER,MARKETER &

DISTRIBUTOR OFBIOMETHANE

Page 30: IMW Webinar - Nick Lumpkin 7-23-14

Upcoming Webinars

www.imw.ca/cng-webinars/

• Free Monthly Webinars• Documented CPD Credits

Sept 19Why Go Natural Gas? The Business Case for Natural Gas in CanadaAlecia Milner, President, CNGVA

Global Webinars ProgramMore time zones & languages coming in September… stay tuned for dates!

Page 31: IMW Webinar - Nick Lumpkin 7-23-14

Questions?

Page 32: IMW Webinar - Nick Lumpkin 7-23-14

Contact Us!

IMW Industries

43676 Progress Way

Chilliwack, BC,

Canada V2R 0C3

+1 604-795-9491

www.imw.ca

Questions?

[email protected]

[email protected]

[email protected]