the gain clean fuel experience
DESCRIPTION
Presented by Bryan Nudelbacher, U.S. Venture, and Joe Veriha, Veriha Trucking, on October 18, 2012 at the Wisconsin Clean Cities Odyssey Day event hosted by GAIN Clean Fuel.TRANSCRIPT
The Journey to CNG
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AGENDA
• Introductions and Background
•CNG From the Eyes of a Fleet Owner
• CNG Economics from a Fleet Owner
• The Importance of Partnering with GAIN/U.S. Oil
• Next Steps for GAIN/U.S. Oil
Marinette, WI – Opened August, 2012
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Why Natural Gas?
Large American manufacturing companies are already pursuing
natural gas for their transportation needs…
Why?Secure Economic Benefit:30% - 60% fuel cost savings on a DGE basis
Achieve Sustainability Goals:Significant reductions in Greenhouse Gas Emissions and noise
levels
Take Advantage of North American Fuel:Plentiful domestic supply
Reduced price volatility
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CNG From the Eyes of a Fleet Owner
Current Landscape of the Trucking Industry
Why Veriha Trucking Pursued CNG?
Economics:
The Spread between ULSD & CNG
MPG is Crucial
High Utilization of Trucks is Key
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Cost of a Diesel Gallon Equivalent (DGE)
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CNGDIESEL
NYMEX Commodity $0.48 $3.19
Delivery/Refining $0.20 $0.21
Taxes – Fed & State $0.43 $0.57
Station – Cost & Margin $0.15 $0.15
Station – O&M $0.40 $0.00
Station – Capital $0.46 $0.00
TOTAL DGE PRICE $2.12 $4.12
% of Base Commodity 23% 77%
Financial Perspective
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CNG DIESEL
Cost of New Truck $150,000 $110,000
Annual Miles 120,000 120,000
Miles Per Gallon 5.0 6.5
Fuel Cost/Gallon $2.12 $4.12
Annual Fuel Expense $51,000 $76,000
NET FUEL SAVINGS $25,000
The Partnership: GAIN Clean Fuel & Veriha Trucking
Large Infrastructure ExpenseOver $1MM per site – The economics allow everyone to win, we
must make it happen.
The Change is Significant:Shippers & Haulers
Mechanics & Drivers
Accountants & Lawyers
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“People who work together will win, whether it be against complex football defenses, or the problems of modern society.”
– Vince Lombardi
The GAIN Advantage Program
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We will install turn-key CNG fueling sites, strategically located for your business, covering 100% of the expense, allowing you to save risk-free from day 1.
• 30% – 60% reduction in fuel expense
• Labor savings with strategic location of fueling
sites
• Domestic fuel source creates less volatility
• Pricing options – Fixed or Diesel-Minus
• Redundant design
• 24/7support
• Continuous support to ensure results
The GAIN Clean Fuel Network
Thank You!Bryan Nudelbacher
Business Development ManagerGAIN Clean Fuel [P] 920.243.5856
Joe VerihaOwner
Veriha Trucking, Inc.[P] 715.732.4431
Those who are onthe forefront will win!
The Transition is Easy; With the Right Partner
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