The main markets for natural gas for transportation

Fueling at LAX At Los Angeles International Airport, we fuel a variety of airport-related fleets. We are operating at 18 major airports nationwide where emissions reductions enabled by natural gas vehicle fleets help the airports earn expansion rights from the federal government.

The adoption and deployment of natural gas vehicles has become widespread around the world. The emphasis has been on smaller consumer vehicles except in countries like China and India where major transit systems are being converted in a dramatic effort to reduce petroleum consumption and clean the environment. In the United States, the emphasis is on high-fuel-use fleets of medium- and heavy-duty vehicles where the most environmental and economic benefits can be gained.

For Clean Energy, the core fleet markets include transit buses, refuse trucks, port trucks, regional trucks, and taxis, limos, shuttles and vans in municipalities or serving airports.

World-Class Airport Car Rental Facility in Phoenix At Sky Harbor International Airport, Clean Energy fuels the fleet of CNG buses moving passengers between the terminals and the integrated rental car complex housing all rental companies, reducing pollution significantly and enabling airport growth.

Heavy-duty vehicles that go and return
The best way to make natural gas vehicle use efficient is to construct larger “homebase” stations fueling fleets that go and return each day, with most fueling accomplished at night during off-hours. Good examples are transit bus and refuse fleets and regional trucking fleets that operate largely during the day. Concentrating the fueling for these fleets at fewer stations benefits the fleet customers both in terms of operational efficiencies and in the lower fuel rates
that Clean Energy can provide. These fleet stations generally accommodate public access, facilitating use by consumers and other fleets as well.

Heavy-duty vehicles that travel continually, pollute heavily
Converting one refuse truck from diesel to natural gas is the equivalent of taking as many as 325 cars off the road in terms of pollution reduction. Therein lies the story for environmental and health benefits. The potential to effect major change for the better in the environment is greatest with heavy-duty vehicles using natural gas fuel. High-fuel-use vehicles that operate all day also offer the best payback to owners and operators in terms of the significant fuel cost reductions gained by using natural gas over diesel.

Clean Trucks Help Clean Communities New clean, quiet, efficient, economical refuse trucks work in residential neighborhoods on Long Island, New York, as part of the expanding rollout of natural gas vehicles nationwide.

Transit buses form a major market for natural gas fuel
The transit market was a key, early heavy-duty adopter of natural gas vehicles. More than 100 transit systems employ natural gas fleets and approximately 19% of all transit buses in the United States run on natural gas. While new diesel hybrid electric buses are being tested by transit systems, the higher costs make little economic sense in cases where the incremental gain in miles per gallon will not pay back the increased cost of the vehicle.

In Southern California, where heavy-duty natural gas vehicles for transportation took hold early as the South Coast Air Quality Management District worked to reduce tailpipe emissions in order to meet EPA clean air goals, 10 transit agencies currently use natural gas buses, both CNG and LNG.

The Los Angeles County Metropolitan Transportation Authority, which operates the largest clean air fleet in the country with more than 2,500 natural gas buses (over 90% of its fleet in early 2008), was named Outstanding Public Transportation System of 2006 by the American Public Transportation Association.

CNG refuse trucks are beginning to be deployed nationwide
Before 2006, most natural gas refuse trucks operated in California. Then the increasing price of diesel and the improved performance of natural gas trucks, coupled with federal purchase incentives to reduce the purchase price of natural gas trucks, began to affect how the refuse industry viewed natural gas vehicles nationwide. In 2006, Smithtown, on New York’s Long Island, became
the first municipality in the country outside California to require alternative
fuel vehicles when it put out bids for new multi-year contracts. That resulted
in contracts being awarded to several refuse companies to operate an all-CNG fleet for Smithtown.

Natural gas refuse trucks are also recognized as a partial solution to neighborhood noise pollution. Clean Energy is working with an increasing number of municipalities and private refuse companies from coast to coast to help fleets convert to natural gas.

Largest LNG Truck Deployment Begins at Ports Clean Energy’s new LNG truck fueling station was opened in late 2007 to support the plan by the Port of Los Angeles and Port of Long Beach to replace a significant portion of the 16,800 older diesel trucks within five years. As many as 50% of the trucks may be fueled by natural gas, helping the Ports’ goals of reducing diesel emissions by 80%.

Airport and municipal natural gas fleets and
related vehicles enable continued growth
Airports have become magnets for natural gas vehicle usage of all types: airport fleet vehicles, taxis, vans, shuttles, limos and other vehicles serving airport customers. Why? Because natural gas vehicles are so clean that their use can be claimed by the airports to help counter what would be added pollution caused by overall growth of air traffic. By requiring natural gas vehicle use, these offsets enable the airports to get permission from the FAA to grow their facilities and runways and to increase passenger and freight traffic. It’s yet another win-win-win situation (airports, passengers, the community) for natural gas.

Clean Energy is currently operating at 18 airports that are in various stages of implementation of natural gas vehicle programs.

Santa Fe Trails: Exclusive CNG Transit System Clean Energy’s highest altitude customer operates 32 CNG buses at upwards of 7,000 feet above sea level in the Sangre de Cristo Mountains. Snta Fe Trails was the first all-CNG metropolitan transit system in the country.

Newest and potentially large market: Ports using
natural gas trucks for goods movement
As globalization of trade spreads, container traffic for import and export through the nation’s major ports has grown exponentially, and is expected to continue to grow. But pollution from diesel exhaust from the vehicles and trucks that serve this trade has become a critical problem. Five of the 10 largest ports in the US are in areas of “non-attainment” status with the EPA (two others are on the edge), which means there needs to be a concerted, approved plan at each port for reducing pollution or the federal government will begin to pull back subsidies
and other financial programs.

In Southern California where pollution remains severe, much of the health and environmental problems have been traced to the San Pedro Bay Ports (Port of Los Angeles and Port of Long Beach), which account for 40% of all container traffic into the United States. Now the Ports are taking action by requiring the replacement of up to 16,800 dirty diesel trucks within five years.
As many as half or more may be replaced by LNG trucks.

These ports have grappled with the pollution problem early, but other ports are beginning to consider action to lessen health and environmental damage even as growth continues. A 2007 study by Energy Futures showed that all United States ports are affected by diesel emissions. The problems are beginning to be considered at the federal government level to help ensure that foreign trade continues to benefit the national economy while not destroying the environment.

Clean Energy is working vigorously to support the San Pedro Bay Ports’ efforts and is proposing similar LNG truck solutions to other ports. Natural gas as a domestic vehicle fuel provides important energy independence and price protection benefits for goods movement — the backbone of our economy — throughout the United States.

Making LNG to serve growing markets
Natural gas can be compressed into CNG for local delivery at any place along
the main gas pipelines that cover most of the country. LNG requires liquefaction at large plants and tanker delivery to user facilities. Clean Energy sources LNG
on the open market from plants in Colorado, Wyoming and Arizona. The
company also produces LNG at the Pickens LNG Plant outside Houston, Texas. In 2008, the new Clean Energy California LNG Plant in the desert northeast of Los Angeles is scheduled to begin commercial delivery of LNG to customers in California and Arizona. It will be the prime source of fuel for the new LNG trucks expected to be deployed at the Ports of Los Angeles and Long Beach over the coming five years.

Making LNG in Texas The Pickens LNG Plant in Willis, Texas produces up to 100,000 gallons of LNG per day for delivery to customers throughout Texas and the Southwest. A one-million-gallon storage tank onsite helps ensure inventory and timely delivery for critical fleet operations requiring reliable fuel supply.

Entering new international markets — Lima, Peru
Beyond the United States, with its vast potential for expanding the use of natural gas vehicles in coming years, many areas of the world are converting to natural gas as a clean, bountiful and cheap fuel for transportation. Clean Energy’s first operations outside North America focus on natural gas vehicle fueling in Lima, Peru. The size of the market there and the support by both the municipal and federal government indicate that Clean Energy will be building additional fueling stations to serve a burgeoning natural gas vehicle population.

Largest CNG Station in the World Clean Energy del Peru built the new station in Lima, Peru with the ability to fuel more than 32 natural gas vehicles simultaneously in support of the country’s goals to convert thousands of transit vehicles and taxis to natural gas.

Clean Energy is investigating other international market opportunities around the world.