Natural Gas For Transportation: America

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Natural Gas For TransportationAmericas Best
Kept SecretMike Cecere, Account ManagerNew
Jersey, Pennsylvania, and Delaware September 17,
2008
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Clean Energy

• Comprehensive Services
• Design, build operate CNG/LNG fueling stations
• LNG production delivery for HDVs
• Grant writing services
• Vehicle financing
• Background
• Founded in 1997 as Pickens Fuel Corp
• Became Clean Energy in 2002
• Based in Seal Beach, California
• Publicly-traded as CLNE on NASDAQ
• Industry Leader
• 180 CNG/LNG fueling stations across N. America
• Over 14,000 customer vehicles fueled daily

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National International Presence
Clean Energy del Peru
WA
MA
NY
CO
CA
OK
AZ
NM
GA
TX
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What is Fueling Clean Energys Growth?

• Economic and Regulatory Drivers
• Cost of Conventional Fuels (Diesel and Gas prices
  at record highs)
• New Diesel Standards and Technology
• Greenhouse Gas and Energy Regulations
• Port of Los Angeles and Long Beach- Clean Air
  Action Plan
• Unique Suite of Services
• Grant Support- 100,000,000 SO FAR!!
• Clean Energy Finance
• Pay 100 Capital Expense for Qualifying
  Customers Infrastructure
• Aggressive and Targeted Marketing Effort
• Vehicle Demonstrations- Refuse, Airport Shuttles,
  Taxicabs
• Focus on Heavy-Duty- Refuse/Recycling, Transit,
  and Seaports

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Niche Markets Airports

• A hub for ground transportation
• Taxis, Limos, Door-to-Door Shuttles, Courtesy
  Shuttles
• CE operates at 18 of the US largest airports
  including
• Atlanta (coming soon), Dallas-Fort Worth, Denver,
  LAX, New York La Guardia, Phoenix, San Francisco,
  and Seattle
• Many airports around the US have implemented
  policies supporting the use of NGVs

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Niche Markets Transit

• 30 of all new transit buses in the US are
  natural gas
• Low cost operation, clean, and quiet
• CE provides daily fueling services for over 3,200
  transit buses including
• Boston MBTA, Dallas ART, Foothill Transit, MTA
  Long Island Bus, San Diego Transit, and Valley
  Metro (Phoenix, AZ)
• OEM built by El Dorado, NABI, New Flyer, Orion

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Niche Market Refuse and Recycling

• Currently, over 2,500 refuse trucks run on
  natural gas
• Autocar announced a 60 increase in natural gas
  truck sales vs. past year
• Natural gas refuse trucks are cleaner and quieter
• CE fuels over 1000 refuse trucks daily including
• Burrtec Industries Fresno, CA Smithtown, NY
  and Waste Management
• More municipalities across the US are selecting
  natural gas trucks for residential collection
  services in 2007/08 including
• Brookhaven, NY Hamilton, NJ New York City San
  Antonio, TX Seattle, WA Smithtown, NY

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Ports and Trucking

• Major seaports are essential for strong
  international trade, but
• They are major sources of pollution
• They are major sources of truck traffic
• The Ports of Los Angeles and Long Beach
  instituted landmark policies to reduce emissions
• Replacing 5,300 drayage trucks with natural gas
  trucks
• CE building 3 LNG stations
• Capacity, Kenworth, Ottawa and Sterling are
  producing OEM natural gas trucks for port
  operations

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Additional Key Niche Markets

• Delivery Fleets
• School Districts
• Government and Private Fleets

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Natural Gas for Transportation Americas Best
Kept Secret
Cheaper
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NGVs Produce Significantly Less Smog and Soot
Greenhouse Gases
CECs Well to Wheels Study

• 23 GHG reduction compared to diesel fuel
• 30 GHG reduction compared to gasoline fuel

O
C
O
Source South Coast Air Quality Management
District 2007 Air Quality Management Plan Summit
Panel
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Natural Gas vs. Gasoline Diesel
Natural Gas on a Gasoline Gallon Equivalent

• Natural Gas is dispensed on a Gasoline Gallon
  Equivalent (GGE)
• On average, CNG runs 0.75 to 1.25 per gallon
  below gasoline
• Burning 5,000 gallons/yr can Savings of between
  3,750-6,250
• Gasoline and Diesel Prices continue to rise in
  comparison to Natural Gas prices

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Consistently Cheaper Fuel Price History
Natural gas has been 25- 61 cheaper than Diesel
over last 10 years
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Federal Tax Credits
Presidents Energy Bill Tax Credits Effective
January 1, 2006

• Will cover a certain amount of the incremental
  cost for each dedicated natural gas vehicle based
  on vehicles GVWR
• (Gross Vehicle Weight Rating)

• GVWR lt 8,500 lbs 13,800 (4,000)
• Honda Civic, Ford Crown Victoria, Chevy Astro, GM
  SUVs
• GVWR 8,500-14,000 lbs 16,000 (8,000)
• Ford F-150, 250, 350 Sierra/Silverado pickup,
  Express/E350 van
• GVWR 14,000-26,000 lbs 18,000 (20,000)
• Ford E450 or GM 8.1L shuttle bus
• GVWR gt 26,000 lbs 40,000 (32,000)
• Dump Truck, Refuse Truck, Transit Bus, Street
  Sweeper

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Large, Secure, Domestically Available Supply of
NG
Natural Gas

• 80 Years of Domestic Reserves (30-40 Years
  Longer Than Oil)
• World NG Reserves Estimated at 3x that of Oil
• Reduces Dependence on Foreign Oil
• 4 of Existing Supply will fuel 11 Million autos
• 20 of todays use is for Power Generation
• Could fuel 55 Million autos
• Bio-Methane available from Landfills, Agriculture
  Wastewater

Based on Current Rate of Consumption Sources
EIA 2006, Clean Energy
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Whats in it for our fleet customers?

• Affordable, Cost Effective, Stable Fuel Supply
• Put Dollars back in the Budget
• 2010 EPA Certified Vehicles Today
• Avoid Additional Cost Increase from Diesel Units
  and Fuel
• Cleaner, Quieter, Healthier City
• Significantly Reduce Fleet Greenhouse Gas
  Emissions
• Eliminate Vehicles Dependence on Foreign Oil
• American Vehicles Running on American Fuel
• Notoriety and Improved Green Image
• Ability to Offer a Superior Alternative to your
  tax payers

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Conclusion/Next Steps

• Clean Energy is the premier supplier of natural
  gas vehicle fueling services in North America
  with operations expanding around the globe
• We target high fuel use, high visibility fleet
  operations
• Natural gas vehicles are cleaner, cheaper, and
  domestic
• Operators can save anywhere from .75 - 1.25 per
  gallon as compared to gasoline/diesel
• 98 of natural gas is domestically available
• A partnership with Clean Energy allow our fleet
  customers the advantage of a well qualified team
  to provide professional 1st class fueling service
  and other value-added services
• Next Steps
• Evaluate potential customers and strategic
  station locations
• Procurement Plan for Natural Gas Vehicles and
  estimated gas usage
• Create a station design and fuel proposal that
  fits the customers needs

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Mike Cecere [phone] mcecere_at_cleanenergyfu
els.com www.cleanenergyfuels.com