Natural Gas for America s Fleets 1
What s the Problem? In 1970, we imported 24% of our oil. Today it is nearly 60% Increased Dependence on OPEC OIL 2
Worldwide Marketplace Worldwide Increasing Demand For an Ever Decreasing Supply of Oil China = 19% India = 16% U.S.A. 4% 3
Source Countries for Oil & Natural Gas Crude Oil & Refined Product Sources for US Consumption Natural Gas Sources for US Consumption Others 19% US 28% Canada 16.4% Mexico 0.2% Others 3.3% 1/3 OPEC 80% USA OPEC 32% Mexico 8% Canada 13% US 80.0% Source: EIA - http://tonto.eia.doe.gov 4
American & Abundant Boone Pickens: USA is the Saudi Arabia of Natural Gas 5
The Natural Gas Solution Natural Gas for Transportation Cleaner Too many regions have unhealthy air. Fleets are under pressure to reduce carbon footprint American 98% domestically produced Cheaper Costs average between $1.00- $2.00 less per gallon than gasoline or diesel Oil is unpredictable and getting scarce 6
Reduces Green House Gases Carbon Intensity Petroleum Fuels Natural Gas Fuels gco 2 e/mile 23% GHG Reduction 88% GHG Reduction Source: CARB Fuel Pathways Analysis 7
Natural Gas Is a Domestic & Plentiful 98% Supplied from the U.S. and Canada Non-Renewable Sources (4,000 TCF) Renewable Sources (1,750 landfills) 150 + years of Domestic Reserves Landfill Gas (Biomethane) Digester Gas (Sewer Treatment) Dairy Farms 8
Cost of Natural Gas versus Crude Oil $3.26 x 5.8 = $18.91 Natural Gas Equals $18.91 per Barrel of Oil (energy equivalent ) Commodities Market February 20, 2013 $95.28 WTI Price as of 02.14.13 9
Natural Gas: Cheaper Fuel for Fleets Diesel $4.089/DGE LNG $2.859/DGE 2006 2007 2008 2009 2010 2011 2012 2013 http://online.wsj.com/article_email/sb10001424052702304707604577422192910235090-lmyqjaxmtaymdiwmzeyndmywj.html?mod=wsj_share_email 10
$ per DGE 2005 The Diesel vs. Natural Gas Opportunity 2010 2015 2020 2025 2030 Nat Gas / Diesel Fuel Price Differential $6.00 $5.00 Current average diesel price $4.08/gal Long-term Forecasts for Diesel to Increase Above $4/gal $4.00 $3.00 $2.00 The Opportunity The Expected Differential Between Natural Gas and Diesel will Average Between $1.25 to $2.00 per DGE Over the Next 3 to 5 Years $1.00 $0.00 High Mileage Applications will See a Rapid Payback on the Incremental Investment Diesel Nat Gas Differential Source: U.S. Energy Information Administration - Annual Energy Outlook 2011 11
Natural Gas Has an Economic Advantage Fuel Savings City Beverage Distribution Regional Corridoor Annual Fuel Useage 5,000 10,000 15,000 20,000 Savings per Gallon $1.50 $1.50 $1.50 $1.50 Annual Savings $7,500 $15,000 $22,500 $30,000 Incremental Cost Simple Payback (years) $20,000 2.7 1.3 0.9 0.7 $30,000 4.0 2.0 1.3 1.0 $40,000 5.3 2.7 1.8 1.3 $50,000 6.7 3.3 2.2 1.7 $60,000 8.0 4.0 2.7 2.0 Incremental Cost must include additional 12% FET Payback in 2 years or less should be universally acceptable (green shading) Payback in 4 years or less (yellow) should be acceptable to fleets that hold assets for 6 to 7 years combined with other factors Payback of 4 years or more is driven by non-economic factors (2010 emissions, sustainability, foreign oil, US jobs) 12
About Clean Energy (NASDAQ: CLNE) 700+ Fleet Customers Largest Natural Gas Fuel Provider in North America Leading Provider of Natural Gas As a Transportation Fuel 195 Million Gallons of NG last year 28,000+ Natural Gas Vehicles per Day 400+ Natural Gas Fueling Stations Compressed Natural Gas (CNG) Liquefied Natural Gas (LNG) Taxis Transit Buses Port Trucking LNG Tanker Fleet Airport Shuttles Refuse Vehicles Regional Trucking LNG Stations 13
Clean Energy - Core Markets 14
Clean Energy - Supply Chain 15
Natural Gas Heavy Duty Truck Market 16
Expanding Choices for Natural Gas Engines Currently Available 8.9 liter Cummins-Westport SI (CWI) 15 liter Westport HPDI (Paccar) Planned and Announced CWI 12 liter SI engine Field testing underway with OEMs Commercial release in February 2013 Volvo 13 HPDI liter engine Planned introduction in 2014 CWI 6.8 liter SI engine Planned introduction in 2015 Cummins 15 liter SI engine Planned introduction in 2015 17
Every Major OEM Offers Natural Gas Trucks Freightliner CWI 8.9 liter today and 12 liter by Q2 2013 Kenworth CWI 8.9 &15 liter HPDI available today, 12 liter by Q2 2013 Peterbilt 8.9 CWI & 15 liter HPDI available today, 12 liter by Q2 2013 Volvo 8.9 CWI liter today and 12 liter by Q2 2013 International Committed to deploy full natural gas truck product line 8.9 Q2 2013 12 liter CWI by 2014 18
Natural Gas Fundamentals NG is extremely safe Lighter than air = dissipates when released High ignition temperature = 1,000f to 1,100f Small air/fuel combustion ratio = 5% to 15% Colorless, odorless, non-toxic substance Doesn t pool or leak into groundwater Types of NG fuel for vehicles Compressed Natural Gas (CNG) Compressed into vehicles at 3,600 psi 1 gallon = 5.66 pounds 139,000 (DGE) British Thermal Units Liquefied Natural Gas (LNG) -260 degrees (liquid fuel) 1 gallon = 3.49 pounds 82,000 British Thermal Units Methane Ethane Propane Butane Pentane Hexane Other 19
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Compressed Natural Gas (CNG) Basics Light, medium, and heavy duty vehicles NG delivered by LDC pipeline to fueling station Dried, compressed & stored at 4,500 psi and dispensed at 3,600 psi Dispensed at similar speed (gpm) to gasoline Stored in several cylinders onboard the vehicle 21
CNG Fast-Fill Stations 22
CNG Fueling Station Tampa, FL 23
CNG Private Station Saddle Creek Transportation Lakeland, FL 24
CNG Time-Fill K line post pic 25
CNG Fuel Tanks CNG Common Tanks Configuration Nominal Size Effective Size Dry Weight Wet Weight (DGE) (DGE) (lbs) (lbs) 4 Tanks BOC 60 45 1,150 1,450 5 Tanks BOC 75 55 1,650 2,025 2 Tanks Side Rail 82 60 1,200 1,650 26
CNG Tank Package 27
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Liquid Natural Gas (LNG) Basics Heavy-duty vehicles >50 DGE/truck/day Pipeline gas cooled to -260 F Store 2x (energy)/volume as CNG Produced at LNG plants & delivered to LNG station & stored in cryogenic trailers Dispensed at 15+ DGE/minute 29
LNG Fuel Tanks LNG Common Tanks LNG Tank Nominal Size Effective Size Effective Size Dry Weight Wet Weight (Gal) (Gal) (DGE) (lbs) (lbs) 119 102 60 495 870 150 128 75 620 1,093 Westport GX 119 94 58 785 1,155 30
LNG Fueling 31
LNG Station Components LNG Transport Fuel Reservoirs Pump Dispensers Vaporizer Containment 32
Port of Long Beach LNG Station 6 Lanes of LNG and CNG 1200 trucks fuel - Dispensing over 15,000 DGE /day 33
America s Natural Gas Highway 34
America s Natural Gas Highway Coast-to-Coast & Border-to-Border on LNG Clean Energy has the exclusive right to build LNG stations with Pilot Flying J Over 150 stations by the end of 2013, along every major interstate corridor 35
2012 ANGH Deployment 36
ANGH LNG Stations Hope Hull, AL Latta, SC Oklahoma City, OK Pearl, MS 37
ANGH LCNG Station Dallas, TX 38
Clean Energy s Dallas LNG/CNG Station 39
What s in it for You? Affordable, Cost Effective, Stable Fuel Supply Put Dollars back in the Budget Reduce Fleet Carbon Footprint - Lowers GHG Emissions Recognition and Improved Green Image American Vehicles Running on American Fuel Eliminate Vehicle Dependence on Foreign Oil 40
Cheaper Cleaner & Low Carbon Dave Mizerowski Regional Manager, National Accounts (770) 823-2854 dmizerowski@ American 41