BioCycle Conference Renewable Natural Gas. Presented by Nick Lumpkin

Transcription

1 BioCycle Conference Renewable Natural Gas Presented by Nick Lumpkin April

2 Natural Gas Awareness is Growing President Obama pledged support for natural gas fuel for transportation in front of one of our LNG tankers in Las Vegas in January

3 Natural Gas: Abundant 100+ Year Supply and Growing Mowry Bakken Gammon Source: EIA Baxter/Mancos Mancos Lewis Cody Barnett/Woodford Barnett Pierre Niobrara Mulky Fayetteville Haynesville New Albany Eagle Ford/Pearsall Antrim Natural gas producing state Non producing state Floyd-Neal Marcellus > 80% Supply from U.S. 98% Supply is from N. America U.S. natural gas deposits are far more widespread and larger than U.S. coal deposits 3

4 Clean Energy Fuels: Our Parent Company Founded in 1997 by Andrew J. Littlefair and T. Boone Pickens Based in Seal Beach, CA ~1100 Employees located around the globe Publicly traded on the NASDAQ. Ticker: CLNE Leading provider of natural gas as a vehicle fuel in the U.S.: fueling over 25,000 natural gas vehicles daily CNG, LNG, RNG, Compressors and Vehicle Conversions 4

5 About Clean Energy Largest Natural Gas Fuel Provider in North America Leading Provider of Natural Gas 300+ As a 660+ Transportation 25,000+ Fuel ~200 Natural Gas Fueling Stations Fleet Customers Natural Gas Vehicles Gallons (GGEs) of Natural Gas ~200 Million Compressed Natural Gas (CNG) Liquefied Natural Gas (LNG) Taxis Transit Buses Airport Vehicles Port Trucking LNG Tanker Trailer Regional Trucking LNG Station 5

6 Clean Energy Network 41 States and Growing 6

7 Refuse Market Rapidly Growing Market We have 80+ refuse customers We fuel 4,000+ NG trucks 200,000 truck addressable market 2 billion gallons/year market Model return-to-base fleet CE built the first time-fill station for WM in 1998 Provides lowest cost station Most efficient fueling (labor) solution WM and Republic are partners Incremental truck cost is less than $35,000 Accelerating adoption 7

8 Clean Energy Renewable Fuels: Who We Are Goal: Clean Energy Renewable Fuels is dedicated to developing biomethane production assets that generate the highest possible financial return and producing renewable natural gas at a cost that is below the price of conventional natural gas Expertise: Our national marketing and distribution for natural gas vehicle fuel, CNG and LNG fuel infrastructure expertise and knowledge of environmental commodity markets ensure that we will be able to sell biomethane at the highest price into the best markets Opportunity: CERF continues to expand our RNG portfolio by developing additional LFG projects and working with various third party developers 8

9 Dallas Clean Energy, LLC: McCommas Bluff City of Dallas owns & operates landfill Dallas Clean Energy, LLC ( DCE ) purchased biogas rights & processing plant Joint Venture w/ Cambrian Energy PSA clean-up system Current capacity 9.4MM CFD in & 4.7MM CFD out Anticipate 7.5MM CFD out by 2015 Equal to 60,000 gasoline gallon equivalents a day of vehicle fuel 9

10 Sauk Trail Hills Landfill owned and operated by Republic Services CERF has contributed to wellfield upgrades and been responsible for project development Water wash clean-up system 4.6 MM CFD of processing capacity (raw biogas) Fuel will be injected into DTE pipeline and nominated to CE s liquefaction plant in Boron, CA Equal to ~20,000 gasoline gallon equivalents a day of vehicle fuel 10

11 Biomethane Generation and Distribution Feedstock Methane Capture and Purification National Natural Gas Pipeline Infrastructure End Demand Landfills & Other Organic Waste Streams Gas Meter (IN) Anaerobic Digesters Combined Cycle Power Plant Waste Water Treatment Plants Natural Gas Pipelines Vehicle Fueling Biomethane Production Facility Gas Meter (OUT) Dairy Farms (Animal Waste) 11

12 Biomethane: Best & Highest Use If all government incentives for biomethane production & use were equal what would be the highest, best use? #1: Vehicle Fuel: No other readily available alternative fuel to gasoline & diesel that can achieve all of the following: 88% reduction in GHG emissions associated with transportation Renewable Easily distributed through existing infrastructure locally, regionally & nationally Suitable for all applications from light duty passenger to heavy duty trucking 12

13 Renewable Fuel Standard (RFS2) RPS for fuel: the big petro fuel sellers are obligated to buy and sell renewable fuel, or RINs (from renewable fuel producers) Renewable Identification Numbers (RINs) The average RIN value over the past 18 months has been > $9.50/MMBtu Note: This does not include the value of the fuel (CH4) 13

14 RIN Prices and Vehicle Fuel Revenue Opportunity Historical D5 RIN Prices (1) ($/RIN and $/MMBtu) $18.00 $1.40 $16.00 $1.20 $14.00 $12.00 $1.00 $10.00 $0.80 $8.00 $0.60 $6.00 $0.40 $4.00 $2.00 $0.20 $- $- Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 When selling to the vehicle fuel market, CERF sells biomethane for the prevailing price of natural gas and also receives the RIN value RIN values currently account for a greater revenue opportunity than the underlying gas sales (1) OPIS RIN prices through October

15 Markets CNG and LNG 15

16 Heavy Duty Trucking Market Largest opportunity, On-Highway 3,200,000+ on-road trucks 2,000+ NG trucks nationwide CE fuels 90+% 24 billion gallons/year market Ports of LA & Long Beach launched the market in 2007 CE helped shape the policy Built several LNG stations Built Boron, CA LNG plant $100+ million investment Port proved to regional trucking firms that NG can meet rigorous trucking duty cycles 16

17 Every Major OEM Offers Natural Gas Trucks Freightliner Currently offers CWI 8.9 liter and 11.9 liter expected in 2013 Navistar / International Committed to deploy full natural gas truck product line Currently offering 7.6 liter Navistar and CWI 8.9 liter 13 liter model expected mid-2013 Kenworth Currently offers CWI 8.9 liter and 15 liter, 11.9 liter expected by 2013 Peterbilt Currently offers CWI 8.9 liter and 15 liter, 11.9 liter expected by 2013 Volvo Currently offers CWI 8.9 liter, 13 liter expected by

18 ANGH s Rollout 18

19 Contact Information Clean Energy Renewable Fuels 3020 Old Ranch Parkway, Ste 400 Seal Beach, CA Nicholas Lumpkin Director of Business Development (562)