TAUD Utility Technology

Conference March 13-15, 2013

DUBAI ~ 1990

DUBAI ~ TODAYSAME STREET

DUBAI’S INDOOR SKI SLOPE

Where Our Energy Comes From

• 20% Nuclear Power to make electricity• 25% Natural Gas is burned to make electricity• 50% Coal is burned to make electricity• 5% is Hydro, Wind, and Solar

• By 2025 it is estimated that 45% of our electricity will be produced by burning natural gas.

WHY CHOOSE NATURAL GAS AS A TRANSPORTATION FUEL?

NATURAL GAS NATIONAL

AVERAGE PRICE: $ 2.14

GASOLINE NATIONALAVERAGE PRICE: $ 3.62

Clean Abundant Safe

Domestically Produced Economical

Natural Gas is Clean

•Natural Gas is composed of approximately 97% methane.

• It is considered to be the cleanest fossil fuel because it produces fewer emissions than other fuels.

•Compared to gasoline or diesel, Natural Gas has the least amount of carbon. Natural Gas is CH4, Diesel C14H30, and Gasoline C8H18.

Continued:

• CNG vehicles produce approximately 25% less CO2 than gasoline or diesel.

• They also produce approximately 80% less nitrogen oxide than gasoline or diesel and approximately 90% less particulates.

Natural Gas is Safe

• Natural Gas has a high ignition temperature of approximately 1200 F compared to Diesel which is 494 F and Gasoline which is 536 F.

• Natural Gas is lighter than air, will not lay on the ground, and it dissipates when released.

Natural Gas is Domestically Produced

• 98% of the Natural Gas we use comes from North America!

• Approximately 60% of the oil we use comes from foreign countries.

• Approximately $1 billion a day leaves this country due to oil imports.

• American Fuel = American Jobs!!

America’s Abundant Supply of Natural Gas

• With recent discoveries North America’s supply is estimated at 120 years.

• Landfill gas could produce the equivalent of 10 billion gallons of gasoline yearly.

Onshore Gas Reserves

Offshore Gas Reserves

U.S. Pipeline Map

Horizontal Drilling

Traditional Wells Horizontal Drilling

Groundwater aquifers

Depth from surface is typically more than a mile

Protective steel casing encased in cement extends to shale depth

Several layers of steel tubes encased in cement protect groundwater supplies

Shale Fractures

Multiple protective layers extend from surface to below aquifers.

Hydraulic Fracturing

Public well, about 1,000 feet deepPrivate water wells, about 500 feet deep

Safety At The Surface

Surface Casing Cement

Steel Surface Casing

Production Casing Cement

Steel Production Casing

Production Tubing

Aquifer

Multiple Layers of Groundwater Protection

250 Miles Wide350 Miles Long4,000 ft Thick!>15 Billion BOE..O & G!!!

Wolfcamp Shale Play

Gas Hydrates

Methane Ice in sedimentsSources = deep strata and bacteria

USGS estimates 2x Fossil Fuels!!

Future Energy ChoicesOPEC vs China

Imported OPEC Oil VS China owns 97% of the $ 1 Billion/Day Worlds Rare Earth Elements

ORDomestic Solutions With Natural Gas Vehicles

Rare Earth Elements

Rare Earth Elements Are Primarily Found In Radioactive Soil Thousands Of Chinese Miners Are Affected

~ 600 pound battery ~ ~ 80 mile range ~

~ Battery replacement cost $10,000 ~ ~ Starting price $36,050 ~

~ You will not have to stand in line to buy one. ~

Nissan Leaf Facts• In 2012 Nissan only sold 9,819 Leafs in the U.S.• Nissan plans on building a less expensive model called

the Leaf S.• Both projects were financed with 1.4 billion in U.S.

Dept. Of Energy loans designed to promote investment in fuel-efficient vehicles.

• The Leaf is eligible for a $7,500 federal tax credit.

• Natural Gas Vehicles do not receive any funding from the U.S. Dept Of Energy or any Federal Tax Credit!

OTHER NATIONS ARE REALIZING THE POTENTIAL OF NATURAL GAS

VEHICLES AND MOVING FORWARD.

North America120,000 NGVs

Africa122,000 NGVsSouth America

4,200,000 NGVs

Asia and MiddleEast6,300,000 NGVs

Europe1,300,000 NGVs

WHAT’S AVAILABLEBelow are just a few examples of the CNG vehicles on the road today!

CNGPRICES.COM EXISTING NGV STATIONS

AT&T Saves 2.5 Million Gallons Of Gasoline in 2011

• Alternative fuels continue to play an significant role in AT&T’s commitment to going green, according to the company’s recently released 2011 Sustainability Report.

• According to AT&T, the deployment of the CNG vehicles alone helped the company avoid the purchase of more than 2.5 million gallons of gasoline in 2011, and will continue the same progress each subsequent year.

• For 2012 AT&T goal is to replace retiring passenger vehicles with CNG vehicles. They plan on deploying up to 8,000 CNG service vehicles through 2014.

TGA NGV EXPO – April 2012

NGV EXPO ~ 2013

IF WE DON’T CHANGE THIS WILL BE HOW WE CAR POOL

AMERICANS NEVER GIVE UP!

“IN CASE OF DOUBT,

ATTACK!”

Links to More Information• Natural Gas Organizations:

- www.tngas.org- www.apga.org-www.middletncleanfuels.org-www.ETCleanfuels.org-www.cleanenergyfuels.com-www.ngvc.org-www.ngvamerica.com-www.tnngv.org

More Information

• Natural Gas Conversions:-www.phoenixenergycorp.net-www.alternatefuel.com-www.pbgenergy.com

• Vehicle OEM Manufacturers:-www.peterbilt.com-www.automobiles.honda.com-www.blue-bird.com

• Misc. Links:-www.cngprices.com

Primary Contacts:

• Tennessee Gas Association - Lynette DiMeola: 615-872-2412; ldimeola(at)tngas.org

• East TN Clean Fuels - Jonathan Overly: 865-803-7555; jgoverly(at)utk.edu

• Middle TN Clean Fuels - Atha Comiskey: 615-884-4908; mtcf(at)comcast.net

• West TN Clean Cities - Paul Rice: 731-298-6447; mrpfrice(at)aeneas.com