WI Natural Gas for Transportation Roundtable - Blu. Presentation

May 19th , 2014

Why Natural Gas?

Blu. LNG US Natural Gas Supply

Pent up demand

Cost of Natural Gas ?

Natural Gas Compared to Crude

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Jan

-200

1

Jun

-20

01

No

v-20

01

Ap

r-20

02

Sep

-200

2

Feb

-200

3

Jul-

2003

Dec

-20

03

May

-200

4

Oct

-200

4

Mar

-200

5

Au

g-20

05

Jan

-200

6

Jun

-20

06

No

v-20

06

Ap

r-20

07

Sep

-200

7

Feb

-200

8

Jul-

2008

Dec

-20

08

May

-200

9

Oct

-200

9

Mar

-201

0

Au

g-20

10

Jan

-201

1

Jun

-20

11

No

v-20

11

Ap

r-20

12

Sep

-201

2

Feb

-201

3

Natural Gas per DGE

Diesel

Crude Oil Adjusted

Gasoline

LNG DGE

Relative Price of Fuel

Compared to Crude

Correlation to Commodity

Breakdown of Diesel Pricing @ $3.95 Breakdown of Nat Gas Pricing @ $2.59

In its most recent annual energy outlook, the agency [EIA] expressed enough confidence in the durability of the U.S. natural gas boom that it anticipates LNG prices will sit 40 percent below diesel for the next 30 years. (See related: "Natural Gas Nation: EIA Sees U.S. Future Shaped By Natural Gas.")

http://news.nationalgeographic.com/news/energy/2013/03/130318-natural-gas-truck-stops/

Commodity Correlation

Where do I get the Fuel?

Blu. LNG

Network

/

Currently In Operation

Under Construction 2014

Planned

2014/2015

2013 2014

Co-Location Station Salt Lake City

Projected Station

Growth

54 stations

ORGANIC STATION

2015

17 stations

104 stations

BLU Organic Station

Diesel

LNGDEF

Blu Organic Station

Natural Gas Equipment

LNG TRUCKS LNG

Trucks

CNG TRUCKS CNG

Trucks

LNG (liquefied natural gas) is especially effective in long-

range and high-horsepower vehicle applications.

Did you know?

Converting one truck from

diesel to natural gas is the

equivalent of of taking as many

as 325 cars off the road in

terms of pollution reduction.

LNG

Trucks

Economics

NATURAL GAS-FUELED

TRUCKS ARE

Good for the bottom lineSave 20% - 40% on fuel expenses

Good for the environment

Less emissions

No DPF, SCR, DEF, or EGR

Considered the most environmentally friendly

fossil fuel

Good for truck drivers

No unhealthy diesel fumes to breathe, quiet

running

Good for community health

Significantly less asthma and cancer-causing

emissions

Good for America

Supports energy independence

The bottom line: Running vehicles on LNG or CNG can be significantly more cost-effective than diesel or gasoline.

Abundant natural resources, advancements in drilling technologies as well as volatile oil prices are making natural

gas the most cost effective fuel choice for our nation.

Why Natural

Gas?

Summary

• Economics– LNG costs 30 – 50% less than diesel– Fuel use reduces payback time– No DEF, SCR, DPF, EGR– Industry Partners Key to success ( Clarke Power /APG/BLU)

• Energy Policy– Abundant domestic supply of natural gas in North America– U.S. ranks in the top 2 for annual natural gas production– Reduced crude oil imports

• Environment– Reduced emissions– Reduced engine noise– Maintenance free exhaust treatment

Summary – The Three “E’s”