Converting Biogas to CNG for Vehicle Fuel. September 30, 2013 Chris Voell, Eastern Sales Manager

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1 Converting Biogas to CNG for Vehicle Fuel September 30, 2013 Chris Voell, Eastern Sales Manager

2 BioCNG, LLC BioCNG system Developed by Cornerstone Environmental to economically produce biogas-based CNG at small scale (200-1,000 GGEs day). Allow public and private entities to produce their own vehicle fuel at a fraction of the cost of gasoline or diesel. Fabricated by Unison Solutions.

$fuel at a fraction of the cost of gasoline or diesel.$

3 Initial Q&A Who has CNG vehicles? Types, new or retrofits, experience CNG stations? Time fill, fast fill, public, own Plans for CNG? Looked at landfill gas/biogas as source? How many are just here to get PE credits?

4 Why is biogas-cng a relevant topic of discussion? Fuel is a large part of operating budgets either direct or indirect. Renewable energy markets in flux with low natural gas prices. Growing interest in energy independence and security.

5 BioCNG - Renewable Natural Gas - Biomethane ** Same infrastructure for RNG as for fossil fuel-cng

6 Biogas-CNG Benefits Builds out alternate fueling infrastructure Distributed cleaner, greener infrastructure Major greenhouse gas reductions % GHG reductions v. gasoline/diesel Using otherwise wasted resource Benefits stay at home Fuel savings (and credits) accrue to local public and private entities Infrastructure primarily from local sources - GC, electric, construction, permitting, fueling station Significant savings over gasoline and diesel 50-75% savings over current gas/diesel cost Control and distributed source Fuel cost locked in for years

gasoline/diesel Using otherwise wasted resource Benefits stay at home Fuel savings (and credits) accrue to local public and private entities

7 U.S. RNG Market Sources Current Nationwide Biogas Sources 600 operating LFG energy projects (excess biogas) electric contracts expiring ~ additional landfills flaring gas 195 manure/organics-based digesters At least 8,000 opportunities (new source of biogas) 1,200 WWTP digesters (unused biogas) Unused biogas and excess digester capacity Hundreds of billions of cubic feet of biogas wasted every year. Huge upside potential with food waste/organic AD systems.

opportunities (new source of biogas) 1,200 WWTP digesters (unused biogas) Unused biogas and excess digester capacity

8 Successful Projects

9 Primary Targets for CNG Vehicles Trash, recycling, cement and other vocational work trucks Transit buses/shuttle buses/school buses Major metro fleet management and public works departments Heavy-duty freight trucks Medium-duty delivery and commercial service trucks Taxis and light-duty service vehicles The more fuel used the quicker the payback High fuel use vehicles with return-to-base operations or repetitive route or pre-set geographic operating areas. Regional freight truck 16-20K GGE Transit buses K GGE Refuse trucks K GGE Municipal sweeper 5-6K GGE Airport shuttle service K GGE Taxi K GGE School Bus 2-3K GGE

the quicker the payback High fuel use vehicles with return-to-base operations or repetitive route or pre-set geographic operating areas.

10 Trucks & Buses Shifting To CNG: Cleaner, Quieter & Cheaper Fuel Fleets, Communities & Drivers Love Them

11 More NGV Pictures

13 Current RNG Projects RENEWABLE NATURAL GAS (RNG): The Solution to a Major Transportation Challenge, Energy Vision, New York, September 2012 Additional Projects City of Riverview, Michigan; Sacramento Bio- Digester; Texas Landfill; Tennessee Landfill; Hilarides Dairy; Geerlings/Scenic View Farms

Additional Projects City of Riverview, Michigan; Sacramento Bio-

14 Projects Dane County Landfill (WI) Operational March 2011 Replaced BioCNG 25 with BioCNG 50 Fuel service vehicles and pick ups; plans to fuel packers and transfer trailers City of Janesville WWTP (WI) Operational February 2011 Hybrid BioCNG 50 St. Landry Parish Landfill (LA) Operational March 2012 Budgeting to add BioCNG 200 to existing BioCNG 50 Fueling Sheriff s fleet and SWM vehicles Clean World Sacramento Biodigester (CA) Operational May 2013 BioCNG 100 (plans to add BioCNG 200 by end of 2013) Fueling Atlas Disposal collection fleet City of Riverview Landfill (MI) Operational May 2013 BioCNG 100 Fleet fuel as well as plans for RNG delivered to Chicago-based company

Landry Parish Landfill (LA) Operational March 2012 Budgeting to add BioCNG 200 to existing BioCNG 50 Fueling Sheriff s fleet and SWM vehicles Clean World Sacramento

17 Biogas/Vehicle Fuel System Information System Size Biogas Inlet Flow (scfm) Fuel Production (GGE/day) Fleet Size Per Unit Light duty Heavy duty BioCNG BioCNG BioCNG

Unit Light duty Heavy duty BioCNG 50 50 200-275 20-27 2-4

19 Dane County, Wisconsin Landfill (50 cfm LFG = 175 DGEs/day)

20 St. Landry Parish, Louisiana Landfill (50 cfm LFG = 175 DGEs/day)

21 City of Riverview, Michigan Landfill (100 cfm LFG = 400 DGEs/day)

22 Clean World Sacramento Biodigester and Atlas Disposal (300 cfm digester biogas = 1,500 DGEs/day)

23 Anaerobic Digestion 1. Multitude of technology providers 2. Why organics & AD 3. System categories 4. Differentiating system parameters 5. Selection Criteria

24 Multitude of System Providers

25 Why Organics & AD?

26 System Categories Wet System o Pumpable, relatively homogenous o Low solids (LS): <5% to 20% TS (co-digestion with sewage sludge) o High solids (HS): 20% to 40% TS Single stage or Multistage Mesophilic or Thermophilic Dry System o Stackable, less well mixed substrate o High solids (HS): > 40% TS Many variations operating (or available) today

27 AD System Parameters Moisture Content (wet or dry) Retention Time Temperature (mesophilic or thermophilic) Loading Rate (batch or continuous) Stages (single or multistage)

28 Zero Waste Energy (CA) - Eggersmann Tech (Germany) o Kompoferm/SmartFerm : Dry HS (Batch)

29 CleanWorld (CA) o High-Rate Digestion (HRD) : Wet HS/LS (Multistage)

30 System Selection Criteria Overall Project Goals Feedstock Existing Infrastructure End markets for digestate & biogas Capital & operating costs

38 CleanWorld/Atlas Video

39 South San Francisco Transfer Station

40 POTW/WWTP Opportunity

41 City of Janesville, WI WWTP Digester (50 cfm = 200 DGEs/day)

42 Project Structures Produce CNG for on-site dispensing: o Cost efficiency for biogas owner vehicle fuel demand cut your own fuel costs o Revenue source - sell fuel to site users (waste haulers) or other local fleets o Open public station Produce Upgraded Biogas: o Fuel off-site CNG station ( mother-daughter station ) o Pipeline Injection o Fuel for engine, boiler, or CHP applications

200 cfm of Landfill Gas/Biogas 50-75 TPD food waste 3,000

landfill; small landfill stand-alone project 20 MGD WWTP

43 200 cfm of Landfill Gas/Biogas TPD food waste 3,000 milking cows or < w/co-digestion Excess gas at large landfill; small landfill stand-alone project 20 MGD WWTP or < w/co-digestion 40,000 finishing hogs or < w/co-digestion

44 Biogas-CNG v. CNG Cost CNG current national average price $2.07 at the pump At today s historically low NG prices Landfill Gas/Biogas-CNG 200 cfm, 55% methane, 10 years, 4%, $.07 kwh Estimated DGE Production Cost w/no Incentives $1.18 DGE (O&M: $.62, Finance:$0.56) With combo fast fill and time fill fueling station add $0.60-$0.80 DGE With federal (add $0.245) and state excise taxes (varies)

45 Bio-CNG 200: Sample Project 200 cfm of landfill gas at 55% methane Fuel Production 240,000 Diesel Gallon Equivalents (DGEs) per year 790 DGEs/day - enough fuel for ~25 HDVs (or ~40-50 light duty vehicles) Fuel Savings $480,000 in annual fuel savings Assuming savings of $2 gallon on diesel costs during financing greater savings later Federal Renewable Fuel Credits (RINs) $177,000 per year ($0.74 per DGE) $480,000 per year ($2.00 per DGE) Not a tax credit payment to RIN dispenser Additional Costs New vehicle premium or conversion Maintenance facility upgrade Staff training Additional Benefits Trucks 10x quieter than diesel PR-community relations Air pollutant reductions Competitive advantage Driver satisfaction

46 Federal Renewable Fuel Standard Credits Renewable Identification Numbers (RINs) Means to track, register and monetize environmental attributes of alternative vehicle fuels Available through 2022 Direct payment not a tax credit 2013 $1.40 currently for D5 RINs; equates to >~$2.00 GGE for biogas-based $2, equates to ~$14.80 per decatherm (mmbtu) of biogas High demand for RINs Current EPA proposal to recognize co-digestion; LFG as cellulosic RIN 46

47 Case Study scfm Landfill Gas at 55% CH4 Financial Model - Natural Gas vs. BioCNG Upgrade System Natural Gas - CNG Biogas - RNG Diesel Raw fuel per DGE 1.08 (@ $8/mmbtu NG delivered) O & M of System ,000 gallons@$3.68/gallon = Federal Excise Tax 0.25 Amortization years at 4% $901, NYS Excise Tax 0 Federal Excise tax NYS Excise Tax Federal NGV Credit Total Cost Per DGE $ 0.83 $ ,000 DGEs/year $ 202,125 July 2013 RIN Total Cost per DGE $ (1.16) $ (0.57) $ (0.07) $ mmbtu = 7.4 DGEs of CNG 245,000 DGEs/year $ (282,975) $(139,650.00) $ (17,150.00) $ 227, Net economic impact $ 485,100 $ 341,775 $ 219,275 $ (227,850)

48 Payloads and Ranges New ISX12 G Engine by Cummins Westport allow for 60-80K Payloads Ranges Growing: Freightliner and Saddle Creek miles

49 NYS Financial Incentives New York Truck Voucher Incentive Program $19.5 M, up to $25 K per vehicle NYSERDA PON CNG Fueling Infrastructure (upcoming) < up to $500K, $4 M NYS Cleaner, Greener Community Initiative $90 M over GHG reductions Renewable energy generation

50 Biogas-CNG Summary Low cost fuel and fixed long term Potential to pay back investment 2-3 years w/rins Compatible with all CNG infrastructure Greenest fuel Feasible at small scale

Chris Voell Chris.voell@biocng.us 845-695-0240 www.biocng.us Prentiss Shaw prentiss.

51 Chris Voell Prentiss Shaw

Biogas to CNG The Future is Now! November 19, 2013 Chris Voell, BioCNG, LLC

Biogas to CNG The Future is Now! November 19, 2013 Chris Voell, BioCNG, LLC Why is bio-cng a relevant topic of discussion? Billions of cubic feet of biogas wasted annually (non-performing asset). Fuel