1 natural gas opportunities with heavy duty vehicles andrew j. littlefair, ceo

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1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Page 1: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Natural GasOpportunities with Heavy Duty Vehicles

Andrew J. Littlefair, CEO

Page 2: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Who is Clean Energy?

North America’s 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

Page 3: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Clean Energy’s 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

Page 4: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Leadership in California Ports & Regional Trucking

Clean Energy built California’s 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

Page 5: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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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

Page 6: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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An Ocean of Natural Gas in U.S.

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

How much Natural Gas is available in US?

Page 7: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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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 25:1 ratio on August 21, 2009

Equates to fuel cost savings of $1+ per gallon

Page 8: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Greenhouse Gas Emissions Greenhouse Gas Emissions (in grams CO2e/MJ)(in grams CO2e/MJ)

Greenhouse Gas Emissions Greenhouse Gas Emissions (in grams CO2e/MJ)(in grams CO2e/MJ)

Greenhouse Gas Emissions of Fuels

Page 9: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Renewable Natural GasClean Energy’s Landfill Gas Processing Plant

Thermo Oxidizer Thermo Swing Adsorption Units

Compressor Engine Building

Sulfa Treat

Producing ~ 35,000 Gallons/day

Page 10: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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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

Page 11: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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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

Page 12: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Impact of Market Pull

All major refuse truck manufacturers in U.S. now offer CNG

Page 13: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Clean Energy “Fast-fill” Stations

Page 14: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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Clean Energy “Time-fill” Stations

Page 15: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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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

Page 16: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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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 Energy’s business – Designing, building, owning, operating stations– AND selling fuel to customers at a price that allows

customers to achieve significant fuel cost savings

Page 17: 1 Natural Gas Opportunities with Heavy Duty Vehicles Andrew J. Littlefair, CEO

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For information on natural gas for any of your trucking or fleet needs, please contact:

Clean Energy del Peru SRLJose Antonio Rios Montagne

511-434-6270

[email protected]