Natural Gas to Fuel Fleets
Natural Gas for Commercial Transport - Innovation Going Mainstream
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
Westport at a Glance market focus
position
strategy
Transformation from petroleum-fueled to alternative-fueled engines.
The global leader in gaseous fuel engineering and technology.
Leverage IP to penetrate markets through relationships with marketleading OEMs.
4
Proprietary Technology Enables OEM NGVs Proprietary technology enables latest diesel and gasoline engines to operate on natural gas (or other gaseous fuels) Compatible with current and future engine technology; preserves and improves performance, efficiency, emissions
HPDI
CNG Direct Injection
Compressors Cryogenic Storage / Delivery
Invested over $250mm in R&D and commercialization since 1995 Global patent portfolio pivotal to Westport’s market leading position with OEM’s over 250 issued patents includes over 65 issued US patents
5
Leverage Technology Across Broad End-Market Applications Equivalent or Better Performance Without Need for Petroleum-based Fuels Differentiated Technology
High-Pressure Direct Injection (HPDI)
Compressed Natural Gas Direct Injection (CNG-DI)
Light-Duty Alternative Fuel Engines & Systems
Medium-Duty Alternative Fuel Engines
Heavy-Duty Westport GX Engines
Cryogenic Natural Gas Storage & Delivery
All classes of the vehicle market Light-Duty ( 1-5 litres)
Medium-Duty (5.6-9 litres)
Heavy-Duty ( 11-16 litres)
High-Horsepower ( >16 litres)
Class-leading emissions performance while maintaining equal horsepower, torque, and efficiency to a diesel-fueled engine 6
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
Natural Gas Vehicle Market at a Tipping Point* Global NGV Population (millions of natural gas vehicles)
U.S. Retail Fuel Prices (dollars per diesel gallon equivalent)
* In Economics, the point at which a dominant technology or player defines the standard for an industry —resulting in "winner-take-all" economies of scale and scope. sources: IANGV and Clean Cities Alternative Fuel Price Report
8
HD Diesel / Natural Gas Offerings
CWI & Westport NG Engine Progression Approximate Production Dates
1996
2001
2006:
2007
Cummins LBSI B5.9 Gas C8.3 Gas
CWI LBSI Plus series C8.3G Plus
WPT HPDI GX (15 l)
CWI Stoichiometric Combustion ISLG (8.9 l)
- Compression Ignition - retains same power, torque, efficiency
- use of Three Way Catalyst (TWC), meeting EPA 2010 emissions in 2007 - 5% increase in fuel efficiency, 30% torque increase over lean burn
- updated electronics and sensors, wider fuel acceptance
CWI: 30,000 engines delivered 10,000 ISL G’s produced in 4 Years
ISL G Natural Gas Engine
8.9 Litre (540 cu. In.) In line 6 cylinder Charge Air Cooled (CAC) Spark ignition / Stoichiometric Combustion Peak Rating: – HP-320 hp Torque -1000 lb-ft
First engine in North America Certified to 2010 EPA and CARB standards - 2007 Three Way Catalyst Aftertreatment Manufactured by Cummins in Cummins Engine Plant- Rocky Mount, North Carolina
LNG 12
HD
The Westport HD System Natural gas engines with diesel-equivalent performance and efficiency Proprietary High Pressure Direct Injection technology (HPDI) Fuel injectors only change to engine Complete LNG fuel solution including proprietary tanks/fuel pumps integrated with engine
13
MD
U.S. Transit & Refuse Markets U.S. natural gas transit bus population: 18.5% of in-service vehicles 22.1% of fuel consumption
Refuse “Trends” 2011 About 80% of the trucks Waste Management purchases this year will be natural-gas trucks. Including the addition of its new truck Tuesday, Waste Management operates 1,000 natural-gas trucks: 51% run on compressed natural gas, or CNG, 49% on LNG. —latimesblogs.latimes.com/greenspace/2011/07/waste-management-trash-trucks.html chart source: American Public Transit Association
14
Transit ISL G Availability OEM
New Flyer
NABI
Orion
ElDorado
Model
30/35/40 Low Floor
35/40 Low Floor
Orion V HF
EZ Rider II
60 BRT
Orion VII LF
Fuel
CNG
CNG
CNG
LNG/CNG
Engine
ISL G 280
ISL G 280
ISL G 280
ISL G 280
ISL G 320
Top North American CNG Transit Fleets over
7,000 engines in service
LAMTA, Los Angeles, CA
OCTA, Orange County, CA
Big Blue Bus, Santa Monica, CA
TransLink, Vancouver, BC
NY / Long Island Transit, NY
San Diego Transit, CA
Foothills Transit, San Gabriel Valley, CA
RTC Transit, Las Vegas, NV
HSR, Hamilton, ONT
Fort Worth, TX
Santa Clara, CA
Tacoma, WA
St. Louis, MO
Cab Over Refuse Truck Availability OEM
AutoCar
Mack
Peterbilt
American Lafrance
Crane Carrier
Model
Xpeditor
TerraPro LE
320
Condor
LET
Terra Pro CO Fuel
LNG/CNG
LNG/CNG
LNG/CNG
LNG/CNG
LNG/CNG
Engine
ISL G 320
ISL G 320
ISL G 320
ISL G 320
ISL G 320
North America Refuse Fleets
. over
3,500 engines in service
OR
City of Los Angeles, CA
Cit of Toronto
Miller Waste, Ont
Republic Service
City of Sacramento, CA
EMI, Que
Specialty Solid Waste
Long Island, NY
City of Surrey, BC
City of New York
Smithtown, NY
Denver, CO
Waste Management (MN, WA & BC)
LNG
HD
Opportunities abound Focus on heavy-duty return to base (RTB) and corridor operations: In addition to the over 350 HD trucks already on the road (including Port of Long Beach and Port of LA) Ryder (CA) – Over 200 LNG and CNG truck to be deployed in lease fleet Robert Transport (QC) – 180 LNG transport trucks to operate between Quebec City and Mississauga, ON Vedder Transportation (BC) – 50 LNG transport trucks to haul food and dairy products throughout the BC Lower Mainland UPS (Atlanta, GA) – 48 LNG transport trucks to run along dedicated Los Angeles, Las Vegas & Salt Lake City corridor Heckman (LA) – 200 LNG transport trucks hauling wastewater for the NG production industry CHK-CLNE Infrastructure Commitment
And many more . . .
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
HD
North American Market Segmentation Annual Mileage (thousands)
Class 8 “Fleet” trucks with >75,000 annual miles represent ~27% of the installed base of approximately 2.6 million source: 2002 Economic Census Vehicle Inventory and Use Survey, US Census Bureau 2002, and Westport analysis
19
HD
Lifecycle Cost Advantage diesel
As demonstrated by Immediate Payback Financing
Payment per month Maintenance cost per mile Annual mileage Fuel cost
$4,000
$2,400
0.115
0.085
100,000
100,000
$2.10*
$3.60
$3,500
$6,000
4,000
2,400
958
708
$8,458
$9,108
Per month: Fuel (@ 5 mpg) Lease charge Operating charge Total Savings
$650 * diesel gallon equivalent
example: Jan 2011 PAC Lease + Life of Truck Warranty
20
Location Analysis – LNG Current Status Current LNG fuelling infrastructure:
Existing stations Current developments Future developments – next 2 years
Source: U.S. Department of Energy Alternative Fuels and Advanced Vehicles Data Center
HD
Infrastructure Corridors Corridors ranked by diesel consumption #11
#7
#9 Salt Lake City
Los Angeles
#3
#5
Las Vegas
#6 #10
#12
#4
#1 Dallas #8
San Antonio
Houston #2
22
Existing US LNG Infrastructure Aligned with Goods Movement
HD
Infrastructure Corridors Alberta Corridor •Edmonton •Red Deer •Calgary
#7
Quebec Corridor •Quebec City •Boucherville •Mississauga
#9
#11
#3
#5
#6 #10 LA to Salt Lake Corridor •Los Angeles •Las Vegas •Salt Lake City
Pennsylvania Corridor •Pittsburg #12 #4 •Philidelphia
#1
#8
#2
Texas Triangle •Dallas / Fort Worth •San Antonio •Houston 24
Clean Energy Liquefaction plants in Boron, CA and Willis, TX Recent $300 million in investments from Chesapeake and others for deployment of LNG stations Have access to Pilot/Flying J stations
US Infrastructure Today
Source: Clean Energy Fuels Corporation
US Infrastructure Projected Dec 2012
Source: Clean Energy Fuels Corporation
Encana Actively influencing Supply Chain to use NG LNG access is currently limited; adding capacity Current Targets Haynesville (Heckmann) Northern Alberta
Source: Encana
Shell Shell is a Global LNG leader Established retail locations and brand leadership Westport and Shell announce comarketing agreement “Provide customers with better economics” “Consolidate key value chain components (fuel, customer support, maintenance) into single user friendly package” “deliver a superior integrated commercial solution to participating customer, initially in North America”
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
Future: Natural Gas Engines OEM Engines Availability Increase Designed specifically for NG CWI 11.9 litre launch in 2013 Navistar MaxxForce 13 with Clean Air Power Dual-Fuel™
Retrofit Availability Increase Increase in “dual fuel” retrofit offerings
EPA 2014 / 2017 Rules Well positioned to meet fuel efficiency requirements Well positioned for GHG requirements
Customer Feedback Increased fuel efficiency Increased reliability
Future: Natural Gas Vehicles Fuel Efficiency related technology improvements Recent EPA Smartway certification of Peterbilt 386 with Westport HD natural gas engine. Eaton Ultrashift Plus compatibility
Increase in OEM Offerings WPT HD available in Peterbilt model 388
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
Westport at a Glance market focus
position
strategy
Transformation from petroleum-fueled to alternative-fueled engines.
The global leader in gaseous fuel engineering and technology.
Leverage IP to penetrate markets through relationships with marketleading OEMs.
4
Proprietary Technology Enables OEM NGVs Proprietary technology enables latest diesel and gasoline engines to operate on natural gas (or other gaseous fuels) Compatible with current and future engine technology; preserves and improves performance, efficiency, emissions
HPDI
CNG Direct Injection
Compressors Cryogenic Storage / Delivery
Invested over $250mm in R&D and commercialization since 1995 Global patent portfolio pivotal to Westport’s market leading position with OEM’s over 250 issued patents includes over 65 issued US patents
5
Leverage Technology Across Broad End-Market Applications Equivalent or Better Performance Without Need for Petroleum-based Fuels Differentiated Technology
High-Pressure Direct Injection (HPDI)
Compressed Natural Gas Direct Injection (CNG-DI)
Light-Duty Alternative Fuel Engines & Systems
Medium-Duty Alternative Fuel Engines
Heavy-Duty Westport GX Engines
Cryogenic Natural Gas Storage & Delivery
All classes of the vehicle market Light-Duty ( 1-5 litres)
Medium-Duty (5.6-9 litres)
Heavy-Duty ( 11-16 litres)
High-Horsepower ( >16 litres)
Class-leading emissions performance while maintaining equal horsepower, torque, and efficiency to a diesel-fueled engine 6
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
Natural Gas Vehicle Market at a Tipping Point* Global NGV Population (millions of natural gas vehicles)
U.S. Retail Fuel Prices (dollars per diesel gallon equivalent)
* In Economics, the point at which a dominant technology or player defines the standard for an industry —resulting in "winner-take-all" economies of scale and scope. sources: IANGV and Clean Cities Alternative Fuel Price Report
8
HD Diesel / Natural Gas Offerings
CWI & Westport NG Engine Progression Approximate Production Dates
1996
2001
2006:
2007
Cummins LBSI B5.9 Gas C8.3 Gas
CWI LBSI Plus series C8.3G Plus
WPT HPDI GX (15 l)
CWI Stoichiometric Combustion ISLG (8.9 l)
- Compression Ignition - retains same power, torque, efficiency
- use of Three Way Catalyst (TWC), meeting EPA 2010 emissions in 2007 - 5% increase in fuel efficiency, 30% torque increase over lean burn
- updated electronics and sensors, wider fuel acceptance
CWI: 30,000 engines delivered 10,000 ISL G’s produced in 4 Years
ISL G Natural Gas Engine
8.9 Litre (540 cu. In.) In line 6 cylinder Charge Air Cooled (CAC) Spark ignition / Stoichiometric Combustion Peak Rating: – HP-320 hp Torque -1000 lb-ft
First engine in North America Certified to 2010 EPA and CARB standards - 2007 Three Way Catalyst Aftertreatment Manufactured by Cummins in Cummins Engine Plant- Rocky Mount, North Carolina
LNG 12
HD
The Westport HD System Natural gas engines with diesel-equivalent performance and efficiency Proprietary High Pressure Direct Injection technology (HPDI) Fuel injectors only change to engine Complete LNG fuel solution including proprietary tanks/fuel pumps integrated with engine
13
MD
U.S. Transit & Refuse Markets U.S. natural gas transit bus population: 18.5% of in-service vehicles 22.1% of fuel consumption
Refuse “Trends” 2011 About 80% of the trucks Waste Management purchases this year will be natural-gas trucks. Including the addition of its new truck Tuesday, Waste Management operates 1,000 natural-gas trucks: 51% run on compressed natural gas, or CNG, 49% on LNG. —latimesblogs.latimes.com/greenspace/2011/07/waste-management-trash-trucks.html chart source: American Public Transit Association
14
Transit ISL G Availability OEM
New Flyer
NABI
Orion
ElDorado
Model
30/35/40 Low Floor
35/40 Low Floor
Orion V HF
EZ Rider II
60 BRT
Orion VII LF
Fuel
CNG
CNG
CNG
LNG/CNG
Engine
ISL G 280
ISL G 280
ISL G 280
ISL G 280
ISL G 320
Top North American CNG Transit Fleets over
7,000 engines in service
LAMTA, Los Angeles, CA
OCTA, Orange County, CA
Big Blue Bus, Santa Monica, CA
TransLink, Vancouver, BC
NY / Long Island Transit, NY
San Diego Transit, CA
Foothills Transit, San Gabriel Valley, CA
RTC Transit, Las Vegas, NV
HSR, Hamilton, ONT
Fort Worth, TX
Santa Clara, CA
Tacoma, WA
St. Louis, MO
Cab Over Refuse Truck Availability OEM
AutoCar
Mack
Peterbilt
American Lafrance
Crane Carrier
Model
Xpeditor
TerraPro LE
320
Condor
LET
Terra Pro CO Fuel
LNG/CNG
LNG/CNG
LNG/CNG
LNG/CNG
LNG/CNG
Engine
ISL G 320
ISL G 320
ISL G 320
ISL G 320
ISL G 320
North America Refuse Fleets
. over
3,500 engines in service
OR
City of Los Angeles, CA
Cit of Toronto
Miller Waste, Ont
Republic Service
City of Sacramento, CA
EMI, Que
Specialty Solid Waste
Long Island, NY
City of Surrey, BC
City of New York
Smithtown, NY
Denver, CO
Waste Management (MN, WA & BC)
LNG
HD
Opportunities abound Focus on heavy-duty return to base (RTB) and corridor operations: In addition to the over 350 HD trucks already on the road (including Port of Long Beach and Port of LA) Ryder (CA) – Over 200 LNG and CNG truck to be deployed in lease fleet Robert Transport (QC) – 180 LNG transport trucks to operate between Quebec City and Mississauga, ON Vedder Transportation (BC) – 50 LNG transport trucks to haul food and dairy products throughout the BC Lower Mainland UPS (Atlanta, GA) – 48 LNG transport trucks to run along dedicated Los Angeles, Las Vegas & Salt Lake City corridor Heckman (LA) – 200 LNG transport trucks hauling wastewater for the NG production industry CHK-CLNE Infrastructure Commitment
And many more . . .
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
HD
North American Market Segmentation Annual Mileage (thousands)
Class 8 “Fleet” trucks with >75,000 annual miles represent ~27% of the installed base of approximately 2.6 million source: 2002 Economic Census Vehicle Inventory and Use Survey, US Census Bureau 2002, and Westport analysis
19
HD
Lifecycle Cost Advantage diesel
As demonstrated by Immediate Payback Financing
Payment per month Maintenance cost per mile Annual mileage Fuel cost
$4,000
$2,400
0.115
0.085
100,000
100,000
$2.10*
$3.60
$3,500
$6,000
4,000
2,400
958
708
$8,458
$9,108
Per month: Fuel (@ 5 mpg) Lease charge Operating charge Total Savings
$650 * diesel gallon equivalent
example: Jan 2011 PAC Lease + Life of Truck Warranty
20
Location Analysis – LNG Current Status Current LNG fuelling infrastructure:
Existing stations Current developments Future developments – next 2 years
Source: U.S. Department of Energy Alternative Fuels and Advanced Vehicles Data Center
HD
Infrastructure Corridors Corridors ranked by diesel consumption #11
#7
#9 Salt Lake City
Los Angeles
#3
#5
Las Vegas
#6 #10
#12
#4
#1 Dallas #8
San Antonio
Houston #2
22
Existing US LNG Infrastructure Aligned with Goods Movement
HD
Infrastructure Corridors Alberta Corridor •Edmonton •Red Deer •Calgary
#7
Quebec Corridor •Quebec City •Boucherville •Mississauga
#9
#11
#3
#5
#6 #10 LA to Salt Lake Corridor •Los Angeles •Las Vegas •Salt Lake City
Pennsylvania Corridor •Pittsburg #12 #4 •Philidelphia
#1
#8
#2
Texas Triangle •Dallas / Fort Worth •San Antonio •Houston 24
Clean Energy Liquefaction plants in Boron, CA and Willis, TX Recent $300 million in investments from Chesapeake and others for deployment of LNG stations Have access to Pilot/Flying J stations
US Infrastructure Today
Source: Clean Energy Fuels Corporation
US Infrastructure Projected Dec 2012
Source: Clean Energy Fuels Corporation
Encana Actively influencing Supply Chain to use NG LNG access is currently limited; adding capacity Current Targets Haynesville (Heckmann) Northern Alberta
Source: Encana
Shell Shell is a Global LNG leader Established retail locations and brand leadership Westport and Shell announce comarketing agreement “Provide customers with better economics” “Consolidate key value chain components (fuel, customer support, maintenance) into single user friendly package” “deliver a superior integrated commercial solution to participating customer, initially in North America”
Outline: Westport at a glance The progression of NGV technology to today The growth of infrastructure to support Heavy-Duty NGV deployment The future of heavy-duty natural gas vehicles
Future: Natural Gas Engines OEM Engines Availability Increase Designed specifically for NG CWI 11.9 litre launch in 2013 Navistar MaxxForce 13 with Clean Air Power Dual-Fuel™
Retrofit Availability Increase Increase in “dual fuel” retrofit offerings
EPA 2014 / 2017 Rules Well positioned to meet fuel efficiency requirements Well positioned for GHG requirements
Customer Feedback Increased fuel efficiency Increased reliability
Future: Natural Gas Vehicles Fuel Efficiency related technology improvements Recent EPA Smartway certification of Peterbilt 386 with Westport HD natural gas engine. Eaton Ultrashift Plus compatibility
Increase in OEM Offerings WPT HD available in Peterbilt model 388
