Presented by:
Edward D. Agostinelli Sr.
Seraph Energy LLC
Why Seraph Energy Was Formed
1. The State of Pennsylvania is sitting one of the largest Natural Gas
Reserves in the World
2. The cost of Diesel Fuel is soaring
3. Trucking Fleets are looking for alternatives
4. Diesel-to-Natural Gas Engine Conversion Technology is available
and has been used all over the world but can not easily be used in
the United States due to the EPA’s “Anti Tampering Provisions”.
5. Fleets are reluctant to convert to Natural Gas
- limited number of fueling stations
1. Gas suppliers are slow to set up CNG filling stations
- not enough vehicles to support the facility
Seraph Energy LLC
1.
“Catch 22”
Fleets will not consider converting
> no fueling stations
Fuel suppliers will not invest in stations > no NG vehicles
2.
The only logical approach was to form affiliations
3.
Technology Provider - Omnitek Engineering
4.
LNG & CNG Fuel Suppliers - LNG Energy Solutions
5.
This enables Seraph to approach any customer and
offer a turnkey solution - Conversions plus Fuel
Initial Objectives
1.
Develop EPA approved conversion kits – first for the Navistar DT466
2.
This engine has already been successfully converted by Omnitek in
other Countries
3.
Pa. DOT runs a large fleet of Dump Trucks, many are DT466
4.
A large number of Bus Fleets are powered by the DT466
5.
Pennsylvania alone has in excess of 20,000 School Buses
- School Districts are burdened by high fuel costs
- Diesel engine emissions prohibits idling on school property
5.
DT466 traditionally not a “Long Haul” vehicle. This is advantageous
until the fueling infrastructure is significantly expanded
Steps To Be Taken
1.
Secure distribution rights to technology, which is already
developed and proven
2.
Apply to EPA for a waiver / pre-conversion emissions test / convert
Diesel DT466 / post-conversion emissions test / submit to EPA
3.
EPA listing permits use to convert “Outside Useful Life Engines”
4.
Next step is to test the engine at an EPA recognized emissions
testing laboratory. This certification includes “Intermediate Age
Vehicles” (Certificate of Conformity)
5.
Apply to IRS to make conversion kit eligible for “Conversion
Credits”, should Congress reenact the law that expired in 2011.
- This significantly reduces the cost to consumers -
Facts
Economics of (increased) Supply and (low) Demand has
pushed natural gas prices to historic lows!
T. Boone Pickens, “We must get away from foreign oil and natural gas is the
best alternative to diesel fuel.”
Sergio Marchionne, CEO of Fiat, “Natural gas is the only real immediate
alternative to petrol.”
Infrastructure: July 11, 2011(Reuters) – Chesapeake
Energy Corp plans to spend as much as $1 billion
over the next decade investing in companies and
technologies to replace gasoline and diesel with
fuels derived from abundant natural gas.
How do we create demand for U.S. natural gas?
Demand
Pent-up demand for NG in form of 8,000,000
heavy-duty trucks

A Class 6 Natural Gas-powered truck driving 60,000 miles per year
replaces 10,000 to 15,000 gallons of Diesel with domestically
produced natural gas and saves $20,000 to $30,000 per year

A Class 8 Natural Gas-powered truck saves even more

Market Drivers: - High price of diesel
- Natural gas price at historic low
- Reducing dependence on foreign energy
- Climate change

Natural gas:
- Made in America
- NG up to 60% lower cost
- NG 30% lower CO2 emissions
- Infrastructure is rapidly developing
Options
How to put millions of natural gas trucks on U.S. roads?
The Alternative
• New Natural Gas Trucks
- Very high cost
- Engine manufacturers no capacity
- 150,000 new HD vehicles annually only
6,000 are NG
The Solution
Any diesel engine can be converted to
natural gas, at a fraction of the cost of
a new natural gas engine.
Proven technology assures optimal
performance and lowest emissions.
Conversion Options
• Given their long service life of up to 20 years,
diesel engines are routinely overhauled - and
every year a few hundred thousand engines are
overhauled
• Infrastructure, knowledge-base and capacity exists
• Engine conversion, not unlike an engine overhaul
• Using Diesel-to-Natural Gas conversion kits,
engines are “overhauled” into natural gas
engines
• The difference in cost to “overhaul” or
“convert” is minimal
Proven Technology
Omnitek’s patented technology guaranties optimal performance
and lowest emissions.
Conversion/Overhaul Steps
‐ Disassemble engine.
‐ Install special NG pistons.
‐ Install NG valves and seats.
‐ Modify cylinder head for spark plugs.
‐ Install engine management system.
‐ Install NG fuel storage tanks.
Conversion of Class 6 Truck
Engine Conversion $18,000
CNG Tanks
$10,000
Total Cost
$28,000
Saving $2,000 per month in
fuel costs gives a Rate of
Return of 14 month.
Omnitek has validated the Diesel-to-Natural Gas Engine Conversion
Technology with over 5,000 engine conversions worldwide!
To Summarize
• Growing domestic supply such as the Marcellus Shale Gas Field
has led to oversupply
• Low demand for natural gas has reduced the cost
• Pent-up demand for natural gas in form of 8 million heavy-duty
trucks
- 150,000 new trucks are sold every year
- only 6,000 are natural gas trucks
• 200,000 diesel engines are overhauled every year
- Viable option: “overhaul” engines into natural gas engines
• Engine conversions make economic sense and is a viable option to
new NG Vehicles
• Diesel-to-natural gas engine conversions will increase the NG vehicle
population in the shortest amount of time
- Creates Demand for Natural Gas -
CONTACT:
Edward D. Agostinelli Sr., President
Seraph Energy LLC
www.seraphenergy.com
888.869.7556
ed@seraphenergy.com