THE BUSINESS CASE: Determining Where and When the Integration of Alterative Fuels Makes the Most Sense OIL SHIFT WORKSHOP Washington, DC * June 9, 2013 Erik Neandross, CEO Gladstein, Neandross & Associates www.gladstein.org
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THE BUSINESS CASE: Determining Where and When the Integration of
Alterative Fuels Makes the Most Sense
OIL SHIFT WORKSHOP Washington, DC * June 9, 2013
Erik Neandross, CEO Gladstein, Neandross & Associates
www.gladstein.org
Terms of Use
The information contained in this presentation, including all narrative,
photos, graphics, examples, and other data is proprietary and property
of Gladstein, Neandross & Associates LLC. This presentation has been
specifically the below purpose. Replication, transfer, dissemination,
and/or use of any of the information contained herein, without
authorization and the express written consent of Gladstein, Neandross
& Associates is prohibited. For authorization or more information
please contact Erik Neandross at (310) 573-5553 or in writing at
PURPOSE: American Clean Skies Foundation; Oil Shift Workshop;
June 9, 2013
Presentation Overview
1. Background on GNA
2. Examples of Fore Hire AFV Transportation
Services
3. Case Study Example
GNA Overview
North Americas Leading Full
Service AFV Consulting Firm
Santa Monica & New York City
20 Years of AFV Industry
Experience and Expertise
Diverse Staff of 40+ Engineers,
Policy & Public Affairs Experts Technical Project Development
Procurement Assistance
Grant Funding & Incentives
Policy & Analysis
Project PR & Marketing
Conferences and Events
GNA: Heavy-Duty NGV Deployment
Albertsons Markets
American Honda Parts
Border Valley Trading
California Cartage Company
Core Mark International
Frito Lay
Golden State Foods
Harris Ranch
HayDay Farms
Hunter & Hunter Trucking
J.B. Hunt Transport, Inc.
Jack B. Kelley Trucking
Kroger
Monarch Beverage
Pepsi
Ralphs Groceries
Ryder Truck
Stater Bros. Markets
Sysco Food Services
TCI Inc.
Transystems
United Parcel Service
Vons Grocery / Safeway
GNA: Heavy-Duty NGV Deployment
Allied Waste
Burrtec Waste
City of Fresno
City of Los Angeles
City of Redlands
City of San Bernardino
City of Tulare
Consolidated Waste
CR&R
Republic Waste
Taormina Industries
Waste Management
GNA: Heavy-Duty NGV Deployment
City of Banning
City of Barstow
City of Commerce
City of Santa Rosa
City of Tulare
Fresno Area Express
Grand Canyon National Park
Long Beach Transit
Los Angeles DOT
Morongo Basin Transit Authority
Phoenix Transit
Santa Monica Big Blue Bus
GNA: Heavy-Duty NGV Deployment
GNA: NGV Infrastructure Development Border Valley Trading (2 LNG)
BNSF (2 LNG)
Carnival Cruise Lines
City of Banning (CNG)
City of Barstow (LNG/LCNG)
City of Commerce (LNG/LCNG)
City of Los Angeles (4 LNG/LCNG, 9 CNG, +)
City of Redlands (LNG/LCNG)
City of San Bernardino (LNG/LCNG)
City of Tulare (LNG/LCNG)
Downs Energy (LNG/LCNG)
Frito Lay (7 CNG, +)
Harris Ranch (LNG)
HayDay Farms (LNG/LCNG)
Long Beach Transit (CNG)
MBTA (2 CNG)
NPS, Grand Canyon (LNG/LCNG)
Riverside County WMD (LNG)
Ryder Trucks (2 LNG/LCNG, 2 CNG)
Sysco Food Services of LA (2 LNG)
United Parcel Service (LNG/LCNG)
USA Waste, Fresno (LNG)
Vons Groceries (LNG)
Waste Management (9 LNG, 40 CNG, +)
Mobile LNG Fueling Stations (multiple)
www.gladstein.org
Maintenance Shop Modifications
Strategic Business Analysis & Planning
Implementation & Procurement
Technical Expertise: Vehicle and Engine Selection & Specs
Fuel Station Development & Permitting
Fuel Supply & Contracting
Maintenance Shop Retrofit and Training
Personnel Training (Fleet & Emergency Responders)
Grant Writing & Resource Procurement (>$230MM; >93%)
and Funding Program Development & Implementation
Project Development, Planning, Implementation,
Permitting, Management and Oversight: Macro to Micro
Public Affairs, Marketing, Conferences & Events
Full Service AFV Project Consulting
Example Nat Gas For Hire
Transportation Services
1,800 NG trucks in national fleet
Over 40 NG fueling stations today (LNG & CNG)
Over a dozen more NG fueling stations under
development (mostly CNG)
2 Landfill Gas to LNG Plants
Altamont: 13,000 GPD
Simi Valley: 20,000 GPD
13
GNA Case Study: Waste Management
GNA Case Study: Waste Management
Photos courtesy of Waste Management
LNG/LCNG Fuel Station Locations
LNG Production Plant Locations
GNA Case Study: UPS I-15 Project
GNA Case Study: Border Valley
16
GNA Case Study: Border Valley
Graphic taken from Border Valley Trading presentation at ACT Expo 2011
Case Study: Paper Transport Paper Transport
35 CNG trucks (10%)
400 mile roundtrip
2 trips/day
5 days/week
180,000 miles/year
Savings $2.00/DGE
Saving $50,000 per truck per year (42%)
Freightliner M2 with 9L 350 HP CWI ISL G
CNG fuel system: 75 DGE tank package
CNG refueling stations at both ends
Now building own CNG stations as fleet expands
GNA Case Study: Cal Cartage
19
GNA Case Study: Cal Cartage
Case Study: Heckman Water Resources
Case Study: Saddle Creek Logistics
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
Barrel of oil
Decoupling of Energy Prices
Horizontal drilling and
multi-stage hydrofracing
(Barnett Shale, TX)
The Shale Gas Revolution
Todays Fuel Prices
All on diesel equivalent basis, including tax and no tax credits; as
of 06/09/2013 @ $3.75MMBTU
Diesel
CNG
LNG
$4.05
$1.22
$1.95
Todays Fuel Prices
Diesel
CNG
LNG
$4.05
$0.70
$1.10 All on diesel equivalent basis, including tax and $0.50/gal fed tax
credit; as of 06/09/2013 @ $3.75MMBTU
32% 14%
69%
17%
Crude Oil
Refining
55%
38%
8%
Natural Gas Commodity
LNG Production
Distribution & Marketing
Price as Function of Commodity
Distribution & Marketing
The Shale Gas Revolution
The Shale Gas Revolution
Washington, DC -- The Obama Administration's nominee for Secretary of
Energy, making informal comments on Capitol Hill in advance of his Senate
confirmation hearing, observed that the petroleum age is entering a "new
chapter" where increases in global oil supply are becoming substantially
more difficult and expensive to achieve and sustain. Ernest Moniz, a
distinguished professor of physics at the Massachusetts Institute of
Technology (MIT) and head of the MIT's Energy Initiative, indicated the
importance for leaders in both the private and public sector to recognize
that growth in relatively low-cost oil supplies, which the world economy
has enjoyed for more than 100 years, is slowing. President Obama
announced Moniz as his choice to lead the Department of Energy (DOE) on
March 4.
"We are not running out of oil, there is still an immense amount of oil in the
ground," emphasized Moniz, "but the economic and energy cost of
extracting and processing that oil is simply going up, not down."
Nat Gas / Diesel Fuel Price Differential
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.002
00
5
20
10
20
15
20
20
20
25
20
30
$ p
er
DG
E
Diesel Nat Gas Differential
Future Price Spreads
Source: U.S. Energy Information
Administration - Annual Energy Outlook 2010
Repetitive, Standardized Routes
Return to Base Operations
Point to Point Routes
Regional Operations
Existing Regional Infrastructure Helps, But Not Necessary
May Use Existing Infrastructure in the Beginning, but
Often Transition to Internal Dedicated Fueling Stations
High Mileage / High Fuel Consumption
Contracts of 3 Years or More
Motivated and Committed Parties on One or Both Sides
Win-Win Opportunity Fuel Cost & Emission Savings
Key Considerations for AFV Projects
Case Study Example
Mail Transportation Between
National Distribution Centers
Contracted Hauling
Dedicated Routes
Repetitive Routes
High Mileage Routes
As # of NDCs is Reduced from 21
to ~ 15, Mileage Will Increase
Existing and Developing NG Fueling
Infrastructure In These Metro Areas
and Along Cor
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