Why Natural Gas Refuse Trucks? Mike Cecere, Business Development Manager Solid Waste, Northeast Region 1 Clean Energy Largest provider of vehicular natural gas (CNG & LNG) in North America – Over 140 million gallons sold in 2010 Comprehensive Services – Design, build & operate CNG/LNG fueling stations – LNG production & Delivery for HDVs – Grant Writing (Awarded over $200 Million) – Vehicle Financing Background – Founded in 1997 by T. Boone Pickens • Became Clean Energy in 2002 – Based in Seal Beach, California – Publicly-Traded as CLNE on NASDAQ Industry Leader – Over 220 CNG/LNG Fueling Stations Across N. America – Fuel Over 20,000 Customer Vehicles Daily – Serve Over 4,000 Fleets Daily – Fuel Over 3,000 Refuse Trucks Daily – Located in 20 U.S. States and at 21 Airports 2 Clean Energy Fast-Fill Stations City of College Park, Atlanta Hartsfield Airport Phoenix Sky Harbor (Eastside Station) Brookhaven, NY Smithtown, NY 3 Clean Energy Time-Fill Stations 4 Natural Gas Refuse Trucks Orders are Increasing Annually Currently, there are over 3,500 natural gas refuse trucks running daily in the U.S. – 50% of Autocar’s refuse truck orders are CNG – Natural gas refuse trucks require no particulate traps, filters, or SCR (Urea) CE fuels over 3,000 refuse trucks daily including: – Waste Management, Republic Services, Burrtec Waste, Central Jersey Waste, Metro Paper, ACUA, NYC Sanitation, etc. More municipalities across the U.S. are mandating natural gas refuse trucks for residential collection services including: – Boise, ID; Smithtown, NY; Brookhaven, NY; Hamilton, NJ; Huntington, NY; San Antonio, TX; Seattle, WA; College Park, GA; Montgomery County, MD; 5 Natural Gas Refuse Trucks 6 Cummins Westport ISL-G: Proven Technology The ISL-G met 2010 emissions standards in 2007 and already meets 2013 standards Diesel-like performance - 320 hp (239 kW) @ 2,000 rpm - 1,000 lb-ft (1,356 N•m) Improved Fuel Economy Maintenance Free Exhaust System NO Particulate Traps, Filters, or SCR (Urea) Required Engine Available in Multiple Chassis – Front, Side, Rear Loaders, Recycling Trucks, and RollOffs Refuse Truck Manufacturers Offering the ISL-G 7 Natural Gas for Transportation Cleaner – Cleanest burning fuel available for HDV’s – Reduces GHG emissions by 23% compared to diesel – Replacing one diesel garbage truck with one that operates on natural gas has the same emissions benefits as taking 325 cars off the road per year – Significant noise reductions – 90% quieter Cheaper – Natural Gas is the only alternative fuel that is significantly less expensive than diesel on a per gallon basis – Today you can save $0.75-$1.00 per gallon compared to diesel Domestic – 98% Domestically Produced – Displace imported oil on a gallon for gallon basis – 120+ Years of Domestic Reserves Works - Proven Technology – The Cummins Westport ISL-G is a dedicated fourth generation natural gas engine 8 Natural Gas is Cleaner: Less Smog, Soot, and GHG’s NOx Reductions: Less Smog ≥ 85% Green House Gas Reduction 0-25% 10-15% N at ur al Gas N Ox D iesel T r eat ment Emulsio ns f o r D iesel Eng ines 2-6% 0-3% Minimal -5-0% Et hano l B lend s Oxid at io ns Lo w Sulf er B io d iesel C at alyst s D iesel (B20) f o r D iesel Eng ines California Energy Commission Report Estimates NGV Well to Wheels Green House Gas Emission Reductions Are: – 30% for Light Duty Vehicles (Passenger Cars) – 23% for Medium and Heavy-Duty Vehicles Hydrogen Blending and Biomethane PM Reduction: Less Soot ≥ 90% w/Cat >85% 50-65% 35-40% ~20% ~20% N at ur al Gas PM T r ap s D iesel f o r D iesel Emulsio ns Eng ines B io d iesel Oxid at io ns Lo w Sulf er (B20) C at alyst s D iesel f o r D iesel Eng ines 15-20% Et hano l B lend s Sources: South Coast Air Quality Management District 2007 Air Quality Management Plan Summit Panel 9 Natural Gas is Significantly Cheaper $6.00 $5.00 $4.00 $3.00 Diesel $2.00 CNG $1.00 2030 2028 2026 2024 2022 2020 2018 2016 2014 2012 2010 2008 2006 $0.00 According to the US Energy Information Administration the spread between natural gas and petroleum is forecasted to increase in the coming years; fleets using natural gas will have a competitive advantage over those using diesel. cleanenergyfuels.com Pricing is based on diesel gallon equivalent of CNG (inclusive of commodity and compression fee) 10 CNG Refuse Trucks and Fuel Economics – No Grant Money The average incremental cost difference between a new 2011 CNG refuse truck and a new 2011 diesel is around $40,000 A typical refuse truck burns around 10,000 gallons of fuel annually. 35 - 40 gallons a day, 5 days a week Our current fuel savings here in the Northeast is around $0.75 - $1.00 per gallon. $2.199 per gallon If you ran a new CNG refuse truck for 7 years your return on investment would be 18%, without any grant funding $1.00 per gallon savings = $10,000 per year or $833 per month fuel savings. 4 year payback and $30,000 fuel savings over the next 3 years Per Truck $0.75 per gallon savings = $7,500 per year or $625 per month fuel savings. 64 month payback and $12,500 fuel savings over the next 20 months Per Truck cleanenergyfuels.com 11 Natural Gas Is Domestic & Plentiful 98% Supplied from the U.S. and Canada Non-Renewable Sources (2,074 TCF) 22 Shale Basins in 20 States 120+ Years of Domestic Reserves 35% increase in Reserves last 2 years Renewable Sources (1,750 landfills) Landfill Gas (Biomethane) Dairy Farms Digester Gas (Sewer Treatment) 12 What’s in it for Refuse Fleets? COMPETITIVE ADVANTAGE Affordable, Cost Effective, Stable Fuel Supply Put Dollars back to Bottom Line 2010 EPA Certified Chassis Today without Particulate Filters, Traps, or SCR (Urea) Required Avoid Uncertainty from Cost Increases from Diesel Units and Fuel Recognition and Improved Green Image MARKETING DIFFERENTIATION OPPORTUNITIES Public policy is driving further interest in natural gas for low carbon and domestic energy security reasons Significantly Reduce Fleet Greenhouse Gas Emissions Cleaner, Quieter, Healthier Solution Eliminate Trucks Dependence on Foreign Oil American Trucks Running on American Fuel Ability to Offer a Superior Alternative to your Customers & Prospects New Municipal Contracts / Existing Contract Extensions 13 Mike Cecere (917) 583-4087 mcecere@cleanenergyfuels.com www.cleanenergyfuels.com 14