the benefits of fueling your fleet with compressed natural …

Proprietary and Confidential

The Benefits of Fueling Your Fleet With Compressed Natural Gas

February 9, 2017

Proprietary and Confidential 2

What is CNG?

CNG is an acronym for:

Compressed Natural Gas

Same gas that is used for heat in millions of households nationwide but

is compressed for storage.

Also can be refrigerated to -260°F (-162°C) to be stored as a liquid

(LNG).

Natural Gas has been used commercially as a fuel for cars, trucks, and

buses since the 1970’s.


Natural Gas - a simple hydrocarbon Has a ratio of 4 hydrogen atoms to 1 carbon atom. This makes CNG the lowest carbon fuel available.

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Diesel Chemical Composition There are 16 carbon and 34 hydrogen molecules.

The ratio of carbon to hydrogen is nearly double the ratio of carbon to hydrogen found in

methane (CNG).

Because of its complex structure, diesel fuel does not completely combust in an engine.

Carbon

Hydrogen

Diesel vs Natural Gas


Characteristics of Natural Gas

Natural gas is flammable and explosive.

Burns only when mixed with air in a 5 - 15% ratio. Cannot burn inside the

cylinder or tank - no oxygen.

Natural gas is odorless, tasteless, non-toxic.

MERCAPTAN is injected into pipeline gas for easy detection. But LNG has

no odor.

Natural gas is lighter than air and it will rise quickly and diffuse into the

atmosphere when released. Natural gas has a 120+ octane rating. CNG weighs 6.38 pounds per DGE 1000 degrees F ignition temperature


Department of Energy Energy Information Administration Forecast


U.S. is #1 Natural Gas Producer in the World


Fuel Cost Component Comparison


Value Proposition for Transportation Fuel

Historically ~8:1+ price advantage Btu basis

Long-term price stability $0.75 to $1 lower at the

pump than diesel No costly emissions

control systems

U.S. #1 natural gas producer in the world

100+ years of affordable reserves

Basins provide increased access to markets

Production can grow rapidly with demand

27% lower CO2 emissions than petroleum

13 – 17% lower GHG emissions well-to-wheels

Lower in-use NOx emissions than diesel vehicles

Lower PM compared to older diesel vehicles

Quieter engines


Natural Gas Engines Require Simpler After Treatment Systems

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Natural gas engines do not need expensive and complex exhaust after treatment components such as diesel particulate filters (DPF) and selective catalytic reduction (SCR) to meet emissions standards unlike diesel engines

Source: Cummins, Cummins Westport


Market Segments

Bus

Refuse

Truck


Behind the Cab Systems

Durable Track tested for 1 million mile tested

Compact Mounted up to 6” closer to the cab for improved aerodynamics and more available rail space

Lightweight Only 2,150 lbs for a 175 DGE system. Haul more freight for a given maximum gross vehicle weight.

Long Range

Possible to store up to 175 diesel gallon equivalents in four-cylinder system

Fast Fill Fills up to 13% faster than the competition


Behind the Cab Systems


Side Mount Systems

Safe Patented bumper bar for built-in crash protection

Durable Track-tested for 1 million miles

Compact 17-63 DGE per side, neck and strap-mount options available

Lightweight Haul more freight for a given maximum gross vehicle weight

Fast Fill Fills up to 13% faster than the competition

Easy To Install

“Drop & Go” brackets for ease of install


Side Mount Systems


Refuse Systems

Adaptable Fuel systems to suit any body type and use case

Lightweight Lightest high pressure storage solutions available

Safe & Reliable

Proven performance in the field with the longest track record of any Type 4 cylinder manufacturer or systems supplier

Durable FMM

Fuel management modules designed for tough duty


Diesel Gallon Equivalents: 34 to 100 Number of tanks: 2-5 Cylinders size: 16 X 80 to 16X120 inches

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Fuel Systems for Refuse Industry


Bus Systems

Dependable 25 years of experience providing cylinders and systems to the transit and coach bus market

Market Leading

Over 80% of CNG city buses in the United States and Europe are powered by Agility Fuel Solutions cylinders or systems

Lightweight AFS bus systems are the lightest high pressure storage solutions in the world

Adaptable Highly customizable to match any bus design

Easy to install

Modular systems supplied directly to bus OEMs around the globe.


Standard fuel capacity options of 126-200 DGE 8 to 10 cylinders Custom designs available

Fuel Systems for Transit Bus Industry


New Dedicated Natural Gas Engines Target Large, Unpenetrated Market

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North American average annual unit sales and current natural gas penetration % of commercial vehicles

Class 6 Class 7 Transit Bus Class 7 Refuse Trucks Rest of Class 7 Class 8

55,000

5,000 6,000

50,000

250,000

30% penetration 60% penetration

1.0% penetration

CWI 6.7L (2016) CWI 8.9L (2007) CWI 11.9L (2013) Natural Gas Engine Availability PSI 8.8L (2015)

<1% penetration


Our Customers

End Users

Transit/Bus

Refuse

Truck

http://www.freightlinertrucks.com/

http://www.google.com/url?sa=i&rct=j&q=&source=images&cd=&cad=rja&docid=GR9Aa20LxPrxhM&tbnid=ezPq9ZXNaiFvKM:&ved=0CAUQjRw&url=http://www.bovo-tighe.com/our-clients/&ei=ub7AUaX9HMaJrAGMjoDIDg&bvm=bv.47883778,d.aWc&psig=AFQjCNGX-8K1lreX-urY4A3hhKdbXjqFRQ&ust=1371672603399191


Sample Payback on Truck Premium

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HDT TruckingInfo – March 2016

“So conservatively, any time that one can fuel a commercial vehicle with CNG for at least 50 cents per DGE less than with diesel fuel, then one will have at least a 3-year or shorter payback by having equipped [trucks] for CNG instead of diesel.”


Heavy Duty Vehicle Market Update…


EPA Monitoring

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Near Zero Natural Gas Engines & RNG

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– Current EPA Emission NOx Certification Level 0.2 g/bhp/hr

– CWI Low NOx Engines 0.02 g/bhp-hr NOx (90% reduction from current EPA standard of 0.2

g/bhp-hr) Produce NOx emissions that are comparable to or lower than

similar electric drive vehicles in all 50 U.S. states when taking into account upstream NOx emissions from the average regional grid mix.

Now Q1 2018


Cummins Partnership

Joint Development

Aftermarket Collaboration

Investment

Engineering collaboration to advance technology: improved performance, reliability and customer experience.

Coordinate and integrate technical resources for more seamless natural gas aftermarket support

Cummins takes minority equity stake in Agility

Improved uptime Telematics based preventive &

predictive maintenance Improved cold weather and low

pressure performance Optimized usable DGE Improved remote diagnostics

Leverage Cummins aftermarket

for training, diagnostics, parts, warranty, technical support, etc.

Compliments OEMs dealer network

Two leading players in the industry with incentives aligned to execute on plan and broaden natural gas adoption

Improved NGV experience

Increased NGV adoption


Merger of Two Leaders


Evolving Footprint


Salisbury, North Carolina – Agility’s Newest Facility


Assembly – Side Mount

o Planned capacity is 14 per day/3600 per year (30% market volume)

o Planned Takt Time 32 min o Currently staffed for 30 systems per week/42 w/OT o Fully staffed 70 systems per week on a single shift


Assembly – Behind the Cab

o Planned capacity is 33 per day/8400 per year (70% market volume)

o Planned Takt Time 14 min o Currently staffed for 35 systems per week/50 w/OT o Fully staffed 165 systems per week on single shift


Customer Care

Agility’s in-field capabilities and expertise has made it the “Go-to” troubleshooting partner for OEMs and fleets with operating issues

Product Support Overview

Installations

Training

Warranty

Repairs

Service

Aftermarket Parts

Technical Publications

Marketing Support

On-site installation services Off-site installation available

Training for OEMs and end users Dealer training for maintenance and repair

1-3 years of standard coverage Extended warranties available

Growing network of service providers Service centers strategically placed for quick

and local service support

Emergency breakdown service where local dealer isn’t available

Field service engineering and technical support available to dealer network

OEM quality parts Common replacement parts held in stock

Factory parts, operations, and service manuals developed for dealers and user.

Dealer and end-user education Co-marketing and presentations at

conferences/expos/events Whitepapers


Agility Overview Origins dating to 1996 #1 market position, first mover

in rapidly expanding market Highly engineered solutions that

have become industry standard 250 employees, including 30

engineers 6 locations across the US and

Canada Over 35,000 vehicles on the

road today logging over 2 billion miles/year

Refuse trucks

Transit buses

Medium / heavy duty trucks

Stationary / mobile fueling

Leading provider of natural gas fuel systems

for commercial heavy-duty vehicles

Natural gas fuel storage and delivery systems


Thank you Steve Whaley Eastern U.S. Regional Sales Manager 704-794-7425 [email protected]

the benefits of fueling your fleet with compressed natural …

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