CNG Corridor Grand Opening March 2013

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Reasons for CNG @ Fair Oaks Dairy Farms : 

Low Avoided Price for Electricity High Gas Output Location Close to I-65 Dedicated Routes Dedicated Fleets Renewable Credits (RIN’s) Tax Credits and Incentives Dairy Industry Commitment Reasons for CNG @ Fair Oaks Dairy Farms

What Makes This Work? : 

What Makes This Work? The disconnect between Natural Gas and Transportation Fuel Based on Petroleum 7.19 Gallons of Diesel = 1,000 Cubic Feet of Natural Gas Both = 1,000,000 BTU’s =

Slide 5: 

Project Overview The RDF fleet has run a total of 5,768,541 miles and offset the use of 980,761 gallons of diesel fuel during its first year of operation.

Slide 6: 

Biogas Cleaning Electrical Generation Clark County Fuel Station Digester Lease Fair Oaks Fuel Station

Slide 7: 

Biogas Upgrading


STRATEGY FOR STATIONS Focused on the Heavy Truck Segment of Market High Performance CNG Stations - industry leading compression technology Fast Fill - equivalent to liquid fuel fill times Fully Redundant - dual compressors with back-up generator Dedicated Lanes for private fleets along with public access Joint Venture “AMP-Trillium” (announced in July 2012) Best in Class Technology; Hydraulic Intensifier 40+ stations nationally (40 more in development) Proprietary compressor technology (lower operations and capital costs) $4.9B market cap and $400M in free cash flow, significantly more than other station providers Corridor Focused Initially developing I-65, I-75, I-10, and I-20 corridors Increase footprint in 2014 9

Green Corridors : 

Green Corridors 10


TEAM BASED BUSINESS STRATEGY AMP & TRILLIUM COMMITMENT 13 Stations in 2012 kicked off and 18+ stations in 2013 Invest $24M in 2012 / $36M+ in 2013 UNIQUE PARTNERSHIP WITH KEY “VERTICALS” Unique partnership with key players in the dairy industry Working to transition five (5) co-ops to run base routes along key corridors Underwriting large geographic footprint SOLVES THE “CHICKEN OR THE EGG” PROBLEM Already contracted base fleets to justify our investments EXPLORING ADDITIONAL STATIONS WITH SHIPPERS Adding stations in corridors with additional partnerships Increase Network Effect

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Multiple CNG Tank Configurations


RENEWABLE FUELS On-farm anaerobic digester provides 1.5M DGE of gas a year to our station Project can source gas from local utility when renewable is not available. Fleet of 42 long-range CNG trucks (the largest PacLease™ CNG fleet in the US) Built two CNG fueling stations for trucks—fueling 90K+ DGEs per month Renewable Dairy Fuels Running 20,000+ miles a day delivering milk throughout the Midwest




FLEET STRATEGY Base Miles: CNG (Compressed Natural Gas) “Base load” Trucks: Over 100,000 miles a year Focus: Long, Dedicated, Predictable Routes Variable Miles: Diesel “Peak” Trucks: Under 100,000 miles a year Focus: Short, Variable, Unpredictable Routes Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Miles Driven by Fleet


FLEET MANAGEMENT FLEET RECOMMENDATIONS Cummins ISX-12G engine with T4 composite tanks Two (2) rail mounted 55 gallon tanks gives 500+ miles of range Custom built software to manage fleet (using RFID cardless fueling technologies) More experience with fleets than all other station vendors WE ARE ASSISTING CARRIERS WITH FLEET ACQUISITION OR CONVERSION Equipment Leasing & Finance programs with PacLease / Palmer Leasing Working with third parties on conversion of late model power units Unique leasing structure pioneered with Ruan Working to source grants to cover incremental costs


LEASING PROGRAM OPTIONS Payment for Trucks: 25 trucks @ $160,000 $4,000,000 Delivery of Trucks Monthly Lease Payment $2,460/month for 60 months Fuel Purchases (500,000 DGE @ $2.75)1 Fuel Delivery Monthly Rebates $500/month per unit 1 Note that the fuel cost of $2.45 was increased by $0.30 per DGE in order to “subsidize” the lease payments $1,960/mo. Truck Dealer


NATURAL GAS & DIESEL Over the last decade the price of diesel vs. natural gas has continued to widen with diesel fuel projected by EIA to remain 5x to 7x more expensive on an energy basis for decades ($/MMBTU)


ENERGY RESERVES Technology improvements in horizontal drilling have lead to massive revisions in reserves resulting in natural gas that is cheap, abundant, and locally produced vs. oil that is expensive, scarcer, imported, and global priced.

Environmental Impacts : 

Environmental Impacts Environmental Impact Compressed Natural Gas (CNG) has approximately 25% less CO2 than oil, CO reduction of 90-97%, and NOx emissions by 35-60% With renewable gas, CO2 emissions reduced 80% AMP Renewable Gas Currently producing and sourcing BioMethane Developing additional biogas projects with dairy and food industry partners Ability to provide renewable blends to customers as needed

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Project Financing Sources

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