CNG pre-2012: Challenges

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CNG pre-2012: Challenges. CNG vehicle conversion / purchase dependent on market demand Market demand dependent on available fueling infrastructure. CNG = L ow Prices & Price Stability. The price of natural gas is projected to remain steady, while diesel costs continue to rise. - PowerPoint PPT Presentation

Transcript of CNG pre-2012: Challenges

Page 1: CNG  pre-2012:  Challenges
Page 2: CNG  pre-2012:  Challenges

CNG pre-2012: Challenges

CNG Vehicle Conversion /

Purchase

CNG Fleet Integration

Increase Fuel Demand

InfrastructureBuild-Out

Market Development

• CNG vehicle conversion / purchase dependent on market demand• Market demand dependent on available fueling infrastructure

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CNG = Low Prices & Price Stability

EIA projection between 2010 and 2025 (EIA 2010c), 2010.

The price of natural gas is projected to remain steady, while diesel costs continue to rise.

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Our Products & Services

• Light – Heavy Duty Vehicle Conversions• High capacity refueling products, manufactured in the USA• Temporary and Portable CNG stations

CNG Equipment

• CNG station design, construction, operations & maintenance• Transaction management services • NFPA and local Fire Code facility upgrades

Compressed Gas Services

• Full suite of commodity instruments – fixed pricing, cost collars, forward hedge instruments, etc.

Commodity Products and Services

• Financing – CNG Stations and Vehicle Conversions• CNG Station Leasing

Capital Financing & Equipment Leasing

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CNG Conversions for MoreLight- and Heavy-Duty Vehicles

1. Remove OEM Fuel System1. Gas Tank2. Lines3. Injectors4. Pump

2. Install CNG System1. CNG Tank – (Crash Tested, Tested up to

7200 PSI)2. High Pressure Plumbing3. CNG Regulator (Incoming pressure

3000 or 3600 PSI)4. CNG Injectors5. Re-flash Vehicle’s Computer System

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Temporary & Portable Fueling solutions

Compact

Self-Contained

High Capacity Fill Rates Extremely

Reliable

Expandable

Re-Locatable

Cost-Effective

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CNG Vehicle PaybackProject Economics

Compressed Natural Gas Vehicle(s) Return Calculator YEAR 0 1 2 3 4 5 6 7 8 9 10 CASH FLOW DIFFERENTIAL ($25,000) $7,725 $7,957 $8,195 $8,441 $8,695 $8,955 $9,224 $9,501 $9,786 $10,079

CUMULATIVE CF DIFFERENTIAL ($25,000) ($17,275) ($9,318) ($1,123) $7,319 $16,013 $24,968 $34,193 $43,693 $53,479 $63,558 *This calculator assumes no financing and no financial grants / tax credits. **Our ability to finance the conversion costs will improve CF differentials immediately.

ASSUMPTIONS Conversion Cost $25,000 Annual Fuel Consumption / Vehicle (gallons) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Diesel / Gallon ($) $4.00 $4.12 $4.24 $4.37 $4.50 $4.64 $4.78 $4.92 $5.07 $5.22 $5.38 CNG / GGE $2.50 $2.58 $2.65 $2.73 $2.81 $2.90 $2.99 $3.07 $3.17 $3.26 $3.36 Annual % Change in Gasoline Prices 3.0% Annual % Change in CNG Prices 3.0%

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CNG Vehicle PaybackProject Economics

Compressed Natural Gas Vehicle(s) Return Calculator YEAR 0 1 2 3 4 5 6 7 8 9 10 CASH FLOW DIFFERENTIAL ($50,000) $7,725 $7,957 $8,195 $8,441 $8,695 $8,955 $9,224 $9,501 $9,786 $10,079

CUMULATIVE CF DIFFERENTIAL ($50,000) ($42,275) ($34,318) ($26,123) ($17,681) ($8,987) ($32) $9,193 $18,693 $28,479 $38,558 *This calculator assumes no financing and no financial grants / tax credits. **Our ability to finance the conversion costs will improve CF differentials immediately.

ASSUMPTIONS Conversion Cost $50,000 Annual Fuel Consumption / Vehicle (gallons) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Diesel / Gallon ($) $4.00 $4.12 $4.24 $4.37 $4.50 $4.64 $4.78 $4.92 $5.07 $5.22 $5.38 CNG / GGE $2.50 $2.58 $2.65 $2.73 $2.81 $2.90 $2.99 $3.07 $3.17 $3.26 $3.36 Annual % Change in Gasoline Prices 3.0% Annual % Change in CNG Prices 3.0%

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Availability of Many New CNG Vehicle Types from CVS

International DT 466 EngineFord/GM SUV’s & Other Light VehiclesCummins ISL G Engine

Ford F 550 or 650 Chassis

Chevrolet C5500 Chassis Ford E350, 450 or 650 Chassis

Chevrolet C5500 Chassis Ford E350, 450 , 550 and 650 Chassis

Chevrolet C5500 Chassis Ford E350, 450 or 650 Chassis

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Growing Acceptance by Customers

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Integrated Customer Solutions

CVS PROVIDES CONVERSION SYSTEMS FOR EVERY AVAILABLE

CNG VEHICLE

CVS PROVIDES TURNKEY CNG STATION DESIGN, BUILD, OPERATIONS AND MAINTENANCE

SERVICES

CVS WILL FINANCE YOUR CNG VEHICLE CONVERSIONS AND REFUELING STATION

FULLY INTEGRATED CNG SOLUTIONS COMPANY

CLEAN VEHICLE SOLUTIONS ADDRESS ALL FACETS OF YOUR CNG PROJECT

Vehicles, Fueling Infrastructure, Project Financing

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Dean Sloane | Managing Partner | Clean Vehicle Solutions, LLCwww.cleanvehiclesolutions.com |[email protected]

203-454-9992 Direct | 203-856-9401 Cell