america’s fleets · cng – time-fill k line post pic . 26 cleanenergyfuels.com cng fuel tanks...

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cleanenergyfuels.com

Natural Gas

for

America’s Fleets

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What’s the Problem?

In 1970, we imported 24% of our oil.

Today it is nearly 60%

Increased Dependence on OPEC OIL …………

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Worldwide Marketplace

U.S.A.

4% China = 19%

India = 16%

Worldwide Increasing Demand

For an Ever Decreasing

Supply of Oil

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Source Countries for Oil & Natural Gas

US28%

Canada13%

Mexico8%

OPEC32%

Others19%

Crude Oil & Refined Product

Sources for US Consumption

US80.0%

Canada16.4%

Mexico0.2%

Others3.3%

Natural Gas Sources

for US Consumption

Source: EIA - http://tonto.eia.doe.gov

1/3 OPEC 80% USA

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American & Abundant Boone Pickens: USA is the Saudi Arabia of Natural Gas

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The Natural Gas Solution

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

Natural Gas for Transportation

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Petroleum Fuels Natural Gas Fuels

Reduces Green House Gases

Carbon Intensity

gCO2 e/Mile

23% GHG

Reduction

88% GHG

Reduction

Source: CARB Fuel Pathways Analysis

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Natural Gas Is a Domestic & Plentiful

150 + years of Domestic Reserves

Landfill Gas (Biomethane)

Digester Gas (Sewer Treatment)

Dairy Farms

Non-Renewable Sources

(4,000 TCF) Renewable Sources

(1,750 landfills)

98% Supplied from the U.S. and Canada

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Cost of Natural Gas versus Crude Oil

$95.28 WTI Price as of

02.14.13

$3.26 x 5.8 = $18.91

Natural Gas Equals $18.91 per Barrel of Oil

(energy equivalent )

Commodities Market February 20, 2013

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Natural Gas: Cheaper Fuel for Fleets

http://online.wsj.com/article_email/SB10001424052702304707604577422192910235090-lMyQjAxMTAyMDIwMzEyNDMyWj.html?mod=wsj_share_email

LNG

$2.859/DGE

Diesel

$4.089/DGE

2006 2007 2008 2009 2010 2011 2012 2013





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The Diesel vs. Natural Gas Opportunity

Long-term Forecasts for

Diesel to Increase Above

$4/gal

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

High Mileage Applications

will See a Rapid Payback on

the Incremental Investment

Source: U.S. Energy Information Administration -

Annual Energy Outlook 2011

Nat Gas / Diesel Fuel Price Differential

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.002

00

5

20

10

20

15

20

20

20

25

20

30

$ p

er

DG

E

Diesel Nat Gas Differential

Current average diesel price $4.08/gal

The

Opportunity

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Natural Gas Has an Economic Advantage

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)

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

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Compressed Natural Gas (CNG)

Taxis

Airport Shuttles

Transit Buses

Leading Provider of Natural Gas

As a Transportation Fuel

About Clean Energy (NASDAQ: CLNE)

Liquefied Natural Gas (LNG)

Port Trucking

LNG Stations

LNG Tanker Fleet

Largest Natural Gas Fuel Provider in North America

700+ Fleet

Customers

28,000+ Natural Gas

Vehicles per Day

400+ Natural Gas

Fueling Stations

195 Million Gallons of

NG last year

Regional Trucking Refuse Vehicles

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Clean Energy - Core Markets

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Clean Energy - Supply Chain

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Natural Gas Heavy Duty Truck Market

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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


– Cummins 15 liter SI engine


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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

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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

Butane

Pentane

Hexane

Ethane

Propane

Other

Methane

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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

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CNG Fast-Fill Stations

http://www.google.com/url?sa=i&rct=j&q=CNG+truck+fueling&source=images&cd=&cad=rja&docid=swby7J6C76QxzM&tbnid=DBvIbAguiY1E1M:&ved=0CAUQjRw&url=http://www.fleetsandfuels.com/fuels/cng/2012/04/frito-lay-adding-natural-gas-trucks-4/attachment/frito-lay-adding-natural-gas-trucks-4/&ei=iLgCUeDSO8bo0gGWlYFQ&bvm=bv.41524429,d.dmQ&psig=AFQjCNGOSFi3OwJmwAp3CGh_NdeQzGbB9Q&ust=1359219209669371

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CNG Fueling Station – Tampa, FL

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CNG Private Station – Saddle Creek Transportation Lakeland, FL

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CNG – Time-Fill

K line post pic

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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

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CNG Tank Package

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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

Liquid Natural Gas (LNG) Basics

http://www.fleetsandfuels.com/fuels/lng/2012/11/ges-microlng-for-clean-energy/

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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

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LNG Fueling

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LNG Transport

Fuel Reservoirs

Pump

Dispensers

Containment

LNG Station Components

Vaporizer

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Port of Long Beach LNG Station

6 Lanes of LNG and CNG

1200 trucks fuel - Dispensing over 15,000 DGE /day

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America’s Natural Gas Highway

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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

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2012 ANGH Deployment

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ANGH LNG Stations

Hope Hull, AL Latta, SC

Oklahoma City, OK Pearl, MS

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ANGH LCNG Station – Dallas, TX

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Clean Energy’s Dallas LNG/CNG Station

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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

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American Cleaner &

Low Carbon

Cheaper

Dave Mizerowski

Regional Manager, National Accounts

(770) 823-2854

[email protected]

america’s fleets · cng – time-fill k line post pic . 26 cleanenergyfuels.com cng fuel tanks...

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