Revolutionary LNG llc. Small Scale Liquefaction Unit LNG: Fueling the Future From PA David Kailbourne

Transcription

1 Revolutionary LNG llc Small Scale Liquefaction Unit LNG: Fueling the Future From PA David Kailbourne

2 WHO ARE WE? We are a Ulysses, PA based Full service Well to Wheel LNG fuel distributor One of the very first companies to use LNG in transportation fleet logistics REV LNG supplies Instant Infrastructure Private Fuel Islands business model Our sister company was first company in state of PA to transition diesel fleet to LNG founded by Preston Hoopes 2012 PA Governors Award winner. Own and Operate 20 LNG Class 8 Trucks with millions of safe, documented over the road LNG miles

3 LNG What is it? = Liquid Natural Gas (LNG) Natural Gas (methane) cooled to -260 degrees Fahrenheit, 0 LBS Pressure Once cooled it is stored at 1/623 original size, High BTU Energy concentration, extremely light weight. LNG is cost efficient to transport over medium and long distances LNG is a clear, colorless, safe, in its non toxic liquid form Used in the USA since late 1950 s, used in large scale deployment in other countries Creates USA Jobs and reduces dependence on imported foreign oil Made with USA gas, by USA workers, and used by USA citizens Safe, Abundant, Economical, Local and Environmentally Friendly

4 What We Do: REV LNG provides all the equipment for a private fuel island in your fleets yard, we own, service, insure, and maintain all the equipment. There is no CAP EX to customer, you pay a per gallon fee, fill it up and Go! Source Transport Dispense Transport Services Experienced, Insured, Credible, Bundle or Single Services Ops and Margin Advantages Service Model and Price Per Gallon Model, No CAP EX In Yard Storage & Dispenser Instant Infrastructure = Private Fuels Island

5 REV LNG Small Scale Liquefaction Source Transport Dispense Why Produce: Reliability, Efficiency, Control entire supply chain, larger margins, ability to build out multiple hub spoke markets for multiple verticals, increase our transport and dispensing business Small Scale Micro Liquefaction 20,000-50,000 gallon per day units Small, mobile modular Deploy directly on well pads in PA Significant cost saving in entire distribution model Agreements with 3 major Energy Companies to deploy on their pad sights PA DEP preliminary meetings approved 2 Different proven gas processing equipment manufacturers signed

6 Historical Large Scale Liquefaction Challenges Typically used for Utility Peak Shaving Storage applications LNG is Energy Dense, perfect application for storage, However: Historical High Cost of Liquefaction in large scale facilities Geographically Challenged locations for production Lack of Production (13 Merchant/Utility plants in USA that sell liquid) Must transport LNG in tanker trucks long distances = High $ Cost Interruptible Service and supply VIDEO: 9HE

7 Small/Micro Scale Plants Since 1999Small/Micro Scale Plants Since 1999 Where: Spain Norway Belgium Rotterdam France China UK Thailand Brazil Peru Australia USA

8 Why Small Scale? Site Specific Right Sized Solution Small Scale = ISO/Containerized storage and just in time production solutions Decreases massive expense of LNG storage tanks Cost Effective Dependable / Non Interruptible Supply 90% reduction in Truck Expense Incorporates Proven Large Scale technology in smaller size footprint ,000 Gallons Per Day Toll Pricing availability

9 REV LNG, llc Fully Integrated LNG logistics company Tailored made and designed Reliable and Innovative Solutions Pioneer in micro liquefaction Vertically Integrated Project -Design -Own -Operate Market leader and Innovator

10 500 Mile Radius Distribution

11 PA BIG 3 Markets PA is very large market for LNG Business and Citizens Benefit Together in Economics and the Environment 2012 Combined Market Size for Fuel Revenues $200,000,000,000+

12 National and Regional Industrial Users Increasing Natural Gas Utilization via LNG Union Pacific burned 1.09 Billion Gallons of Diesel fuel in 2012 Average price $3.22 SEC 10Q $3,500,000,000 Fuel Bill Drilling Rigs Pump Units Large Users of Fuel

13 Who are the CUSTOMERS: $100,000,000,000+ Diesel Sales million Class VIII 18 Wheelers 60% of market is RETURN TO BASE Instant Infrastructure perfect application - Saves time, money, and increases efficiency

14 South West PA Location REV LNG purchases gas from Energy Co Energy Co gives access to Pad Location Energy Co has good location and infrastructure combination: Gas Quality Gas Pressure Gas Quantity Location for distribution Land for expansion Electric nearby REV LNG manages property and project REV LNG does all site work REV LNG purchases the gas in either spot or contracted pricing REV LNG is only interface with energy CO REV LNG handles all logistics REV LNG willing to apply LNG sale discount to Energy Co for use for rigs or equipment REV LNG has customers in PA, WV, OH Multiple market customers

15 LNG is established, proven, safe, and growing alternative to Diesel Proven Economic and Environmental Benefits for the Markets REV LNG is a Well to Wheel Distributor of LNG Proven and established player in short period of time Handles all 3 parts of the Supply chain Can service on and off road applications Small Scale Production in SW PA is goal directly on E+P Co. Pad THANK YOU QUESTIONS? David Kailbourne EDK@REVLNG.com