Clean Energy Fuels Corp. · NASDAQ:CLNE
Clean Energy Fuels — Transport Topics Webinar (December 2008)
39 slides from Clean Energy Fuels's conference presentation, Dec 4, 2008
Slide 1: Preparing for the Next Fuel Crisis
Preparing for the Next Fuel Crisis With Cheaper, Lower Carbon, American Natural Gas Transport Topics Webinar December 4, 2008 cleanenergyfuels.com 1
Slide 2: Summary of Presentation
Summary of Presentation About About Clean Clean Energy Energy Energy Energy Market Market Update Update Low Low Carbon Carbon Diet Diet with with Natural Natural Gas Gas Tax Tax Incentives Incentives for for Natural Natural Gas Gas Vehicles Vehicles Natural Natural Gas Gas Fueling Fueling Infrastruc
Slide 3: About Clean Energy
About Clean Energy z Corporate Profile – Founded in 1997 as Pickens Fuel Corp • Became Clean Energy in 2002 – Over 135 employees nationwide + Peru – 170+ fueling stations – Headquarters in Seal Beach, CA z Comprehensive Services – Design, build & operate NG fueling stations – LNG production & delive
Slide 4: Clean Energy: Largest Alternative Transportation Fuel Provider
Clean Energy Largest Alternative Transportation Fuel Provider 250+Leading Provider 14,000+of Natural Gas 170+ Fleet As a Transportation Natural Gas Fuel Natural Gas Customers Vehicles Fueling Stations Compressed Natural Gas (CNG) Liquefied Natural Gas (LNG) Taxis Regional Government Trucking Vehicle
Slide 5: The Energy Market: Oil Is Cheap – Why Care Anymore?
The Energy Market Oil Is Cheap – Why Care Anymore? cleanenergyfuels.com 5
Slide 6: President-Elect Obama’s View
President-Elect Obama’s View z (CBS) Kroft: When the price of oil was at $147 a barrel, there were a lot of spirited and profitable discussions that were held on energy independence. Now you've got the price of oil under $60. Mr. Obama: Right. Kroft: Does doing something about energy is it less impo
Slide 7: T. Boone Pickens’ View
T. Boone Pickens’ View IT'S TIME TO STOP AMERICA'S ADDICTION TO FOREIGN OIL America is in a hole and it's getting deeper every day. We import 70% of our oil at a cost of $700 billion a year - four times the annual cost of the Iraq war. I've been an oil man all my life, but this is one emergency we c
Slide 8: Investor Business Daily’s View
Investor Business Daily’s View The case for buying oil stocks Investor Daily: Even with gas prices in free fall and the global economy sputtering, now may be the time to bulk up on oil shares (if you dare). By Brian O'Keefe, senior editor Last Updated: November 21, 2008: 7:26 AM ETNEW YORK (Fortune)
Slide 9: IEA World Energy Outlook 2008
IEA World Energy Outlook 2008 (11/12/08) “Current global trends in energy supply and consumption are patently unsustainable — environmentally, economically, socially.” “Global primary demand for oil (excluding biofuels) rises by 1% per year on average, from 85 million barrels per day in 2007 to 106
Slide 10: Global Oil Challenge
Global Oil Challenge 2007 4th Qtr. OIL DEMAND 88 Million bbl/day (mmbpd) grows annually in a healthy world economy 2030 Projections: ----- 120 104 mmbpd Supply • PRICES cannot meet INCREASE demand • SHORTAGES DEVELOP PRODUCTION reaches a maximum & then declines (2030: 28 mmbpd from current productio
Slide 11: The Oil Plateau Is Already Here
The Oil Plateau Is Already Here Global Oil Production 90,000 Has crude oil NGL's production 80,000 already Thousand barrels per day Crude Oil 70,000 reached the plateau? 60,000 50,000 40,000 Maturing basins in the OECD, limited access 30,000 elsewhere, constrained capacity, higher costs and 20,000 r
Slide 12: Why Natural Gas with Oil Prices at $54/barrel??
Why Natural Gas with Oil Prices at $54/barrel?? z World oil production at 85 million barrels per day z Demand growth forecasted World Energy Outlook 2008 – Nov. 12, 2008 cleanenergyfuels.com 12
Slide 13: The World is Nowhere Near Peak Demand!
The World is Nowhere Near Peak Demand! Per Capita Oil Consumption 35 USA China 30 India Japan South Korea 25 Barrels per year USA 20 15 Japan 10 South Korea India 5 China 0 19 0 05 10 19 5 20 19 5 30 35 40 45 50 19 5 60 65 19 0 75 19 0 85 90 95 00 05 0 1 2 5 7 8 19 19 19 19 19 19 19 19 19 19 19 19 1
Slide 14: Opportunity to Displace Foreign Oil – Think Big!
Opportunity to Displace Foreign Oil – Think Big! z ~70% of oil used by U.S. is imported z 175 billion gallons/yr of on-road transportation fuel – 135 billion gallons gasoline – 40 billion gallons diesel z What If – Use natural gas for transportation instead of power generation? – Use wind, solar, re
Slide 15: Potential for Renewable Power Generation
Potential for Renewable Power Generation WIND CORRIDOR SOLAR CORRIDOR cleanenergyfuels.com 15
Slide 16: Domestic Natural Gas Is Good for America
Domestic Natural Gas Is Good for America Natural Natural Gas Gas Supplied From 98% US and Canada Imported z Reserve Estimates Are as High as 120 Years z World NG Reserves Estimated at 3x that of Oil z Why Import Oil When We Have Our Own Energy? *Based on Current Rate of Consumption Sources: EIA 2006
Slide 17: An Ocean of Natural Gas Under Our Feet
An Ocean of Natural Gas Under Our Feet z Explosive growth in U.S. gas shales - Production increase from 0.3 Tcf/year in 1998 to 1.1 Tcf/year in 2007 z Only a few of the 22 top shale basins in the United States have been significantly explored z Since late 1990s, the largest producer of shale gas has
Slide 18: U.S. Natural Gas Production is Steadily Rising
U. S. Natural Gas Production is Steadily Rising Source: EIA, U.S. Natural Gas Summary 03/28/08, EIA Energy in Brief, June 11, 2008 cleanenergyfuels.com 18
Slide 19: Opportunity for Market Penetration
Opportunity for Market Penetration z What does 7 TCF displace – 40% of on-road diesel = 16 billion gallons of diesel = 1 million trucks – 28% of on-road gasoline = 38 billion gallons of gasoline = 30-50 million LD vehicles z Natural gas is only fuel that can achieve significant foreign oil displacem
Slide 20: Deployment Strategies - Infrastructure
Deployment Strategies - Infrastructure z Heavy Duty Trucks – 16 billion DGEs – Primarily LNG for Class 7/8 trucks – Network of 2,000 – 5,000 stations nationwide – (ref: 9,000 truck stops in U.S.) – $14-20 billion for station infrastructure – $20-30 billion for LNG production facilities z Light Duty
Slide 21: Low Carbon Diet with Natural Gas Fuel
Low Carbon Diet with Natural Gas Fuel cleanenergyfuels.com 21
Slide 22: California Greenhouse Gas Legislation for Fleets
California Greenhouse Gas Legislation for Fleets z AB 32 Global Warming Solutions Act of 2006 – Requires CA companies to reduce overall greenhouse gases (GHG) by: • 2000 levels in 2010, 1990 levels by 2020, and 80% by 2050 • Proposed cap and trade market to be limited to CA sources, to start by 2010
Slide 23: Low Carbon Renewable Natural Gas!
Low Carbon Renewable Natural Gas! z Acquisition of McCommas Landfill, TX z 3rd largest landfill in U.S. z Produces 3.6 million cubic feet of gas per day – >29,000 gallons of fuel per day z Provides a renewable portfolio for Clean Energy Greenhouse gas emissions can z GHG benefits of renewable natura
Slide 24: Tax Incentives for Natural Gas Vehicles
Tax Incentives for Natural Gas Vehicles cleanenergyfuels.com 24
Slide 25: Vehicle Purchase Tax Incentives
Vehicle Purchase Tax Incentives z Federal Tax Credits GVW Tax Credit (up to) 8,501 to 14,000 $8,500 14,001 to 26,000 $20,000 26,001 + $32,000 – Deduct directly from the federal taxes owed – Available to the vehicle purchaser • Fleet or vehicle buyer, or • Leasing company – Fine Print • Exact credit
Slide 26: Fuel Tax Incentives for Natural Gas Fuel
Fuel Tax Incentives for Natural Gas Fuel z Federal Volumetric Excise Tax Credit (VETC) – $0.85 per Diesel Gallon Equivalent (DGE) dispensed – Intended for infrastructure costs (production & dispensing) – Scheduled to expire Dec-09, efforts underway to extend beyond – Annual benefit = $0.85 x 20,000
Slide 27: Fueling Infrastructure
Fueling Infrastructure cleanenergyfuels.com 27
Slide 28: Compressed Natural Gas (CNG) Basics
Compressed Natural Gas (CNG) Basics z Light, medium, and medium-heavy duty vehicles z Gas delivered by pipeline to fueling station – Same gas that heats homes & used for cooking z Gas is compressed at the station to 3600 psi for dispensing z Dispensed similar to gasoline z Stored in 1 or more cylind
Slide 29: Liquid Natural Gas (LNG) Basics
Liquid Natural Gas (LNG) Basics z Heavy and medium duty vehicles z Pipeline gas cooled to -260F z Produced at LNG plants z Delivered in trailers to fuel stations z Two “Grades” of LNG – Cold LNG for Westport HPDI compression engine • Saturation pressure << 90 psi – Saturated LNG for spark-ignited en
Slide 30: LNG Production Plants Make the Fuel
LNG Production Plants Make the Fuel Clean Energy’s Newest LNG Plant in Boron, California 160,000 gal/day Expanding to 240,000 gal/day at end of 2009 1.5 Million Gallons Storage cleanenergyfuels.com 30
Slide 31: Typical LNG Station Configuration
Typical LNG Station Configuration cleanenergyfuels.com 31
Slide 32: Carson, CA Public Access LNG Truck Station
Carson, CA Public Access LNG Truck Station Carson Truck Station Grand Opening Dec-07 cleanenergyfuels.com 32
Slide 33: Anaheim & I Street Station
Anaheim & I Street Station Largest NG Truck Stop in the World z 10 Dispenser Lanes, 6 to Start z 100,000 Gallons of Fuel Storage z Groundbreaking Nov 2008 z Grand Opening Feb-Mar 2009 Station Site cleanenergyfuels.com 33
Slide 34: Heavy Duty Natural Gas Engines & Vehicles
Heavy Duty Natural Gas Engines & Vehicles cleanenergyfuels.com 34
Slide 35: Cummins ISX-G Engine from Westport
Cummins ISX-G Engine from Westport Same Performance as ISX Diesel! z 15 Liters z Compression Ignition z 400 HP, 1450 lb-ft torque @ 2,000 RPM z 450 HP, 1650 lb-ft torque @ 2,000 RPM z 80,000+ GVW z Manual Transmission z Fuel Type: LNG Cold Fuel z Emission Benefits over New Diesel Kenworth T800 – 33%
Slide 36: ISL-G Engine from Cummins-Westport
ISL-G Engine from Cummins-Westport 2010 Compliant Today – No DPF or SCR! z 8.9 Liters z Spark Ignited z 250 to 320 HP z 660 to 1000 lb-ft Torque z 66,000+ GVW Autocar z Automatic Transmission z Fuel Type: Saturated LNG or CNG z Emission Benefits Over New Diesel – 83% Lower NOx (0.2 grams vs. 1.2) –
Slide 37: Phoenix NG Engines from Emissions Solution Inc.
Phoenix NG Engines from Emissions Solution Inc. z Phoenix NG7.6 z Platforms Coming Soon: – DT-466 (Replacements) – MaxForce DT (New Builds) Phoenix NG 9.3 z 7.6 Liters Based on Navistar z Spark Ignited MaxForce 10 z 175 to 265 HP 9.3L, 350 HP, 1200 lb-ft z 460 to 820 lb-ft z 50,000 GVW z Fuel Type:
Slide 38: Baytech GM and Isuzu Trucks
Baytech GM and Isuzu Trucks cleanenergyfuels.com 38
Slide 39: Cheaper, Cleaner & Low Carbon – Thank You for Attending
Natural Gas for Transportation Cheaper Cleaner & Domestically Low Carbon Available Thank You for Attending Greg Roche (562) 493 – 2804 groche@cleanenergyfuels.com cleanenergyfuels.com 39
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