motor fuel standard presentation 12.08

“Going Green”

Propane AutoGas Technology for

Gasoline and Diesel Vehicles

12:00 to 1:00 p.m.November 22, 2008

Asheville, NC

hosted by:

American Alternative Fuels &

Propane AutoGas Advantages

• Energy Independence – Domestic Production

• Economically Efficient – Reduce Operating Costs

• Environmentally Friendly – Superior Emissions

• Safe• Infrastructure Availability• Performance Characteristics – Range &

Power

• Worldwide Leader

Energy Independence

• 90% of Propane AutoGas is produced domestically in the United States.

Economically Efficient

• Operating Costs per Mile are reduced between 20% and 50% depending on fueling system and vehicle usage patterns.

• 50 Cents per Gallon tax credit is available for Propane AutoGas.

• AutoGas offers up to 92% efficiency on Mile per Gallon basis versus Gasoline.

• Maintenance Costs are Lowered.

Economically Efficient

Fuel Cost Comparison

Propane AutoGas Cost Gasoline Cost

$1.75 per Gallon $2.15 per Gallon$ .50 Federal Tax Credit $0.00 Federal Tax Credit $1.25* Net Cost $2.15* Net Cost

Savings: $.90 per Gallon

* AutoGas and Gasoline retail prices as of November, 2008 for Atlanta, Georgia which include all applicable State and Federal taxes.

Economically Efficient – Range per Gallon

Vehicle, Infrastructure, & Fuel Tax Credits

• Fleet operators who meet the qualifications, receive a 50 cent per gallon credit on the propane used to power over the road motor vehicles. 

• The 2005 Energy Bill provides the purchaser of an alternative fuel vehicle a credit on the incremental cost of an alternative fueled vehicle.

• Bill allows for a 30% credit (up to $30k) for the cost of installing infrastructure to refuel these vehicles.

Emissions Reductions

• Propane AutoGas is an approved fuel listed in the Clean Air Act of 1990 and the National Energy Policy Act of 1992 and 1995

• Compared to Gasoline and Diesel, AutoGas yields less smog producing hydrocarbons, carbon dioxide and carbon monoxide.

• Propane AutoGas can play a role in mitigating Climate Change because it has the lowest life-cycle gas emissions of all commercially available fuels.

Emission Reductions

Shares of Energy-RelatedGreenhouse Gas Emissions (2005)

(Total: 5,751 million MT C02)

Safety

• Propane AutoGas has a much narrower range of flammability than Gasoline and much higher ignition temperature (920-1020 degrees versus 80-300 for gasoline)

• Propane tanks are tested and certified by ASME at 4 times the normal operating pressure.

• Propane tanks are 20 times more puncture resistant than gasoline tanks.

• Propane is non-toxic unlike gasoline, diesel and ethanol and since it dissipates upon release, there is no release of harmful contaminants to the atomosphere.

Infrastructure Availability

• Propane AutoGas refueling infrastructure is easily installed.

• Propane is a readily available and easily transportable fuel. More than 13 million vehicles worldwide use AutoGas as a vehicular fuel making it the #1 alternative fuel.

Infrastructure Availability

•Economical and Cost Efficient•Modern Fleet Management Systems•Portable (as fleets change)•Dispensers Placed at Customer Sites

Infrastructure Availability

• ProKee Fuel Management System provides control access to AutoGas supplies.

• Programmable, read/write memory• Rugged Construction• Composite “key” that is superior

to “Card Lock” system

Global Propane Vehicle Growth Worldwide

0

2000

4000

6000

8000

10000

12000

14000

1999 2000 2001 2002 2003 2004 2005 2006 2007

OEM with Propane

Propane Works

Propane Works.

Propane Works.

Bus Shuttle

Wil Fischer Distribution Propane Fleet

American Alternative FuelPRINS System

•What is it?

•Why is it so beneficial?

•How is it implemented?

•What is the cost & ROI?

American Alternative FuelPRINS System

•What is it?

•The PRINS VSI (vapor sequential injection) is a bi-fuel system. Therefore, a converted vehicle runs on either gasoline or Autogas.•The vehicle cranks on gasoline and immediately converts to Autogas until the engine is stopped.  •If the Autogas supply is depleted the engine runs solely on gasoline until the Autogas supply is replenished.

American Alternative FuelPRINS System

•Why is it so beneficial?

•AutoGas produces fewer vehicle emissions than gasoline. •Using the PRINS VSI Autogas conversion system, the CO2 tailpipe emissions are reduced by 30-50% when the vehicle operates on AutoGas, compared with the same vehicle operating on gasoline. •Autogas vehicles also produce fewer ozone-forming emissions than vehicles powered by reformulated gasoline.

American Alternative FuelPRINS System

•How is it implemented?

•An Auto Gas supply tank is installed and connected to the VSI conversion system consisting of a Reducer, Injector frame rails, Fuel filter units, Dash fuel selector switch and the Engine Control Module (ECM).  •The ECM controls the in line fuel solenoids to allow proper fuel supply and ignition sequence.

American Alternative FuelPRINS System

•What is the cost & ROI?

•The single unit cost for a V-8 VSI conversion system is $3501 and can be reduced through volume discounts to $2723.  •This does not include the cost of the tank which averages $600 depending on the vehicle.  The average ROI is 9-15 months.

PRINS Autogas Bi-Fuel System

PRINS

American Alternative FuelPropane Diesel Injection System

•What is it?

•Why is it so beneficial?

•How is it implemented?

•What is the cost & ROI?

American Alternative FuelPropane Diesel Injection System

•What is it?

A small vapor of propane injected into the air intake of a turbocharged diesel engine.

American Alternative FuelPropane Diesel Injection System

Why is it so beneficial?

It increases the combustion efficiency of the diesel burn producing more mpg and less emissions.

American Alternative FuelPropane Diesel Injection System

•How is it implemented?•An ASME propane motor fuel tank is attached to the vehicle with the PDI system. •Two lines are routed to the engine compartment; one to provide boost pressure to the PDI system, the other to provide propane vapor to the air intake just before the turbo charger. •A control switch is placed inside the cab.

American Alternative FuelPropane Diesel Injection System

What is the cost & ROI?

•The entire system (tank, brackets, PDI unit, and connection lines and fittings) cost averages $1600. •Fuel cost savings vary depending on type of vehicle and application. In most cases total fuel cost per mile reductions range from 4 to 12 cents per mile resulting in total fuel cost savings of 5 to 15%.

Propane Diesel Injection

Propane Diesel Injection

Propane Diesel Injection

Propane Diesel Injection

Propane Diesel Injection

Propane Diesel Injection

LTL Fleet

City Fleet

Rear loaders areusing 5 gallonsless diesel per day.

City Fleet

Contact Information:

Blossman Rep NameBlossman Gas Inc.RepName@blossmangas.com864.923.5000