Natural Gas Opportunities with Heavy Duty Vehicles

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Natural GasOpportunities with Heavy Duty
Vehicles
Andrew J. Littlefair, CEO
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Who is Clean Energy?

• North Americas largest supplier of natural gas
  transportation fuel
• Sell compressed and liquefied natural gas (CNG
  and LNG)
• Nearly 80 million gallons sold in 2008
• 185 fueling station in N. America
• Over 50 station currently under construction or
  development
• 15,000 vehicles fueled daily
• Fuel over 5,100 buses - 1,500 refuse trucks and
  500 heavy-duty trucks daily
• Partnership Clean Energy del Peru
• Founded in 1996 by T. Boone Pickens Andrew J.
  Littlefair
• Publically traded as CLNE on NASDAQ

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Clean Energys Role

• Evaluate
• Does NG make economic sense for your business?
• Provide information on all new products
  engines, trucks etc.
• Services TURN-KEY
• Provide station engineering/design services
• Proposal writing support
• Write grants for NG trucks stations (Awarded
  over 150 million for NG projects)
• Vehicle station financing available
• NGV maintenance certification training
• Station partnerships
• Provide 100 of capital for fueling station
• Long-term bundled fuel rate below diesel

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Leadership in California Ports Regional Trucking

• Clean Energy built Californias first LNG plant
• Uses North American natural gas
• Producing 180,000 gallons/day
• Expanding to 240,000 gallons/day soon
• Largest LNG truck station in world
• Supports clean alternative fuel truck goals in
  the Port of Los Angeles and Long Beach

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Key Drivers for Heavy-Duty Applications

• Fuel cost savings
• Abundance of natural gas gas shale and how to
  extract gas
• Rising cost of petroleum fuel declining oil
  reserves coupled with rising world demand
• Government push for displacing petroleum
• Proposed extending fuel tax credits
• Proposed doubling of vehicle tax credits
• Emissions
• Particulate emissions reductions reduce cancer
  risks
• Greenhouse gases and global warming

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An Ocean of Natural Gas in U.S.
How much Natural Gas is available in US?

• 22 major gas shale basins in the U.S.
• Only a few have been significantly explored
• Experiencing major growth from gas shale
• Production 0.3 Tcf/year in 1998
• Production 1.2 Tcf/year in 2007
• Barnett Shale in Texas now producing 6 of
  nations gas
• Growth in gas shale has created major investment
  in pipeline infrastructure to bring this gas to
  the market
• U.S. Reserves now 2240 TCF 118 years

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U.S. Oil vs. Natural Gas Fuel Price Savings

• Average ratio of crude oil to natural gas futures
  prices stands at 9.38 since 1990
• Peaked at 251 ratio on August 21, 2009
• Equates to fuel cost savings of 1 per gallon

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Greenhouse Gas Emissions of Fuels
Greenhouse Gas Emissions (in grams CO2e/MJ)
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Renewable Natural GasClean Energys Landfill Gas
Processing Plant
Producing 35,000 Gallons/day
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U.S. Natural Gas vs. Diesel Fuel Savings

• Refuse Truck Example
• Refuse truck using 10,000 gallons diesel per year
• Operates 260 days per year
• 38 gallons/day
• Fuel savings 1 per gallon
• CNG fuel savings 10,000 per vehicle per year
• With tax incentives less than one year payback

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Clean Energy supports Heavy Duty Class 5-8 Trucks

• Sterling, Kenworth, Peterbilt, Freightliner offer
  HD trucks
• Volvo/Mack will bring NG refuse product to market
  in 2009/2010
• Volvo/Mack developing 13L engine for Class 8
  trucks
• Discussions with International on natural gas
  product
• All refuse truck manufacturers offer natural gas
• All transit bus manufacturers offer natural gas

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Impact of Market Pull
All major refuse truck manufacturers in U.S. now
offer CNG
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Clean Energy Fast-fill Stations
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Clean Energy Time-fill Stations
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Natural Gas Application in other Markets

• Truck and Bus markets candidates for natural gas
• World truck/bus manufacturers with NG experience
  include
• Volvo/Renault/Nissan Diesel/MACK
• Mercedes/Sterling/Freightliner/DDC
• PACCAR/DAF/Kenworth/Peterbilt
• IVECO
• Scania
• MAN
• All fleets with high fuel consumption a candidate
• Market demand will encourage vehicle production

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Conclusions

• Heavy-duty natural gas engines and vehicles are
  available from world class manufacturers for many
  applications
• Market pull will expand product offerings from
  manufacturers
• Significant fuel savings to customers
• Clean Energys business
• Designing, building, owning, operating stations
• AND selling fuel to customers at a price that
  allows customers to achieve significant fuel cost
  savings

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• For information on natural gas for any of your
  trucking or fleet needs, please contact
• Clean Energy del Peru SRL
• Jose Antonio Rios Montagne
• 511-434-6270
• jrios_at_energyperu.com