Propane as the Alternate Fuel for Fleets

Propane as the Alternate Fuel for Fleets

Company Profile Located in Quincy, Illinois since 1848 Fifth Generation, Family Company Nation s largest manufacturer of service, platform and utility van bodies Extensive Nationwide Distribution Network www.knapheide.com

Products

A Number of Choices Outside of Gas / Diesel Fuels Alternative Fuels Biodiesel (B100, B20) Electricity Ethanol (E85) Hydrogen Methanol Natural gas Propane Blended Fuels Biodiesel/diesel blends (B2, B5) Ethanol/gasoline blends (E10) Hydrogen/natural gas blends (HCNG)

U.S. Energy Consumption Source: Annual Energy Outlook 2009. Energy Information Administration.

U.S. Petroleum Trends Source: Annual Energy Outlook 2009. Energy Information Administration.

History of Propane 1910 - Propane discovered - Dr. Walter Snelling 1913 - First Propane vehicle in USA 2004-200,000 Propane vehicles in USA Third most popular fuel behind gasoline and diesel Today Over 300,000 Propane vehicles in USA. Worldwide 14 million vehicles powered

Propane Advantages Low cost and 90% domestically produced alternative fuel Non-toxic, burns cleanly & is not a ground contaminant Not a Greenhouse Gas Abundant Supply in the U.S. 55% comes from natural gas & 45% from refining oil Similar MPG and fuel fill rate as gasoline; 105 Octane Rating Less cost per gallon than gasoline

Why Alternative Energy? Green less environmental impact Reduced foreign oil dependence Made in the USA Lower operating costs Fact customers are asking about it Fact look around the NTEA show March 11 Page 9

Popular Products Forklifts Ground Service Equipment Light Duty Trucks OEMs After Market Medium & Heavy Duty Trucks School Buses

Propane Advantages Propane has a clear environmental advantage Compared to gasoline: Propane yields 70% less smog-producing hydrocarbons Up to 50% less carbon monoxide 12% less carbon dioxide 20% less nitrous oxide 96% reduction of toxins and carcinogens Source: Southwest Research Institute, California Energy Commission, World LP Gas Association

Propane Infrastructure Over 3,000 Public Propane Fueling Stations in the USA 0 1-20 21-40 41-60 61-80 81-100 101-200 > 200

Propane Infrastructure Economical and Cost Efficient Industry Partnerships Modern Fleet Management Systems Portable (as fleets change) Dispensers Placed at Customer Sites

Propane Infrastructure System skids can be relocated Skid package reduces on-site construction cost and installation timing Small footprint: 12 X 6 (parking space) The big difference CNG-5000 psig LPG-200 psig 1000 Gallons Installed for under $20,000

LPI Fuel System The LPI (Liquid Petroleum Injection) fuel system is fully integrated into existing gasoline engines It is a direct replacement of the OEM gasoline fuel system The system consists of a propane fuel tank, pump, fuel line and rail assemblies The LPI system is engineered to work with the OEM engine computer maximizing performance and low emissions

Propane System Components GM 6.0L System

LPI Delivers Propane to the Intake Port as a Liquid Benefit: LPI Fuel System Vaporization occurs at the intake port, cooling the air/fuel charge and increasing air/fuel density providing power better than the gasoline engine equivalent. Vaporization creates a cooling effect reducing valve and upper cylinder temperatures and prolonging engine life. Provides excellent cold weather start and go.

Propane Storage Safety on a GM Cutaway Fuel tank is made of 1/6 thick carbon steel. Tanks are 20 times more puncture resistant than conventional gasoline tanks. Fuel flow is automatically shut-off in the event of a fuel line rupture. Critical valves are positioned to provide superior protection from damage. Propane has the most narrow flammability range of any fossil fuel. Propane requires an ignition source of 940 degrees F to ignite. In contrast,. gasoline will ignite with an ignition source of only 430 to 500 degrees F.

These Tax Credits Expired 12-31-2010 Contact your Congressman as they are considering reinstatement at 2X the allowable amount Vehicle Wt. Class (lbs) Max. Allowable Incremental Cost Maximum Allowable Credit (80%) < 8500 $5,000 $4,000 8500 < 14,000 $10,000 $8,000 14,001 < 26,000 $25,000 $20,000 > 26,000 $40,000 $32,000

Current LP Federal Incentives Fuel Tax Credit The 50-cent per gallon tax credit for liquid propane when used as a vehicle fuel. This tax credit, which expired at the end of 2009, is retroactive for 2010 and 2011. On-site Refueling Tax Credit The investment tax credit for alternative vehicle refueling property, including liquid propane stations. This covers 30 percent of the cost or $30,000, whichever is less. Check your state for related incentives.

GM Chassis Availability LPI Systems General Motors (Clean Fuel USA) G4500 Cutaway (6.0L) KUV153 enclosed utility van service bodies Available 4 th Qtr 2011 as a 2012 MY Available as a GM option code in the ordering guide

GM 4500 LPG Conversion Available 4th Qtr 2011 as a 2012 MY 49 gallon Rear Tank

GM 4500 LPG Conversion Available 4 th Qtr 2011 as a 2012 MY 75 Gallon Package Includes Rear Tank & Mid-ship Tank

Knapheide / GM Partnership GM selected Knapheide to install two LPG systems into the 159 cutaway van. Vans produced near St. Louis with the hardened 6.0L for gaseous fuels Knapheide installs the LPG system GM ships the van to the dealer or chosen upfitter for commercial, school bus, shuttle bus or RV GM OEM warranty applies Certified for all EPA and CARB emissions

What s available from Ford LPI Systems Ford (Roush) 5.4L F150 In-Bed System (MY07-08) Knap Kap bodies 5.4L F250/350 Wide Frame Only (56 CA Pickup box removal) (MY09-10) 96 Service Bodies 5.4L E350 Vans/Cutaway (MY09-12) Knapheide Utility Vans (KUV) 6.8L E450 Cutaway Release in process (KUV) F450/550 6.8L Chassis October 2011 as a 2012 F650/750 6.8L Chassis 3 rd Quarter 2011 Transit Connect 4 th Qtr 2012 as a 2013 model

Knapheide Roush Propane Install Locations - Ford Quincy, IL Kansas City, MO St. Louis, MO Flint, MI Charlotte, NC Orlando, FL Dallas, TX Atlanta, GA

Knapheide Clean Fuel Propane Installations GM 4500 Vans WENTZVILLE, MO

Chevrolet & GMC Ship-Thru FLINT, MI: SHIP-THRU Cab Chassis ONLY WENTZVILLE, MO Cutaways, Single Rear Wheel ONLY Ford Freight Re-Entry CLAYCOMO, MO (KANSAS CITY): $150 Handling Fee will be billed to distributor. Ford will add $150 to the selling dealer s invoice at the time of reassignment.

Pros & Cons of Propane Vehicle Power, Acceleration & Payload Comparable to Gasoline 105 Octane VS 87 Octane gasoline Burns Completely, Less Carbon build-up Less engine maintenance expense ROI, Convenience and Initial Expense

Other Considerations Carefully examine all ROI calculations miles per day miles per year fueling locations cost of conversion propane fuel prices vehicle service life

Weekly Propane Prices from Integrity Energy $3.718 Maine http://integrity energy.com/ propane-prices-html

Benefits of Propane Significant Cost Savings for Fleets Domestically Produced Environmentally Friendly Ever Increasing Vehicle Choices Similar MPG and fuel fill rate as gasoline Low-cost Infrastructure and vehicle conversions