An analysis of where we were, where we may be going, and how we could get there

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A lot! US purchases of crude

oil are about $700B per year

Refining adds even more...This approaches a $1T per year market.

This leads us to believe that there is a specific need for alternative fuel infrastructure creation.

Source: EIA, 2011

1) There are many large, well-capitalized companies already going in that direction.

2) These companies (often affiliated with large natural gas producers) all seem to have a vested interested in finding new channels for the use of natural gas.

3) The payback periods for the infrastructure growth does not favor small start-ups

1) Companies were either a fan of CNG, a fan of EV, but not both. There seemed to always be a bias.

2) Given where oil prices are, companies are willing to explore the options and understand what is fact v fiction.

3) There was no 3rd party consulting to companies that have fleets of vehicles, that could deliver an unbiased analysis.

4) Here is where the opportunity lies – a consulting firm that can analyze EV or CNG optionality.

1) Diesel has been the fuel of choice because of the range it provides.

2) For CNG, it comes down to complete lack of infrastructure. No company wants to have a truck with an empty fuel tank and no nearby fueling station.

3) The costs to implement fueling equipment is significant. 4) Also, LNG systems are heavy, and that takes truck load

capacity down. Not good.5) Note even our government data presented in chart form

only has CNG or EV, never both!

Customer Segments: Companies that either own or operate fleets of vehicles! These can be:

a.Long Haul Carriers (greater than 100 miles per day)

b. Intra-city carriers (less than 100 miles per day, same point of origin and destination

c. Could be trucks (class 3-8), light trucks (i.e. delivery vans, or fleets of autos

Initial TriFuel Market States: Colorado and Ohio Possible Revenue per Year if 20% - 50% of realized

savings are retained by TriFuel Second Phase of Business Model: Possible lease

revenue, not included in projections below

Colorado Ohio Total

Revenue $1.5 Million $3 Million $4.5 Million

We interviewed several trucking companies, including a long haul trucking service, and a fleet management company that has both long-haul and local fleet management.

For the long-haul aspect, both firms were down on CNG. They need somebody else to build out the infrastructure, and that will take time (i.e. 10-15 years). Companies cannot take on the risks that are associated with CNG build out.

• The Value Proposition is that we can optimize the cost savings for a company that is considering fleet conversion to a less expensive fuel, such as EV, CNG, or even LNG.

• One fleet manager said fuel went from being the third most expensive cost to the first. Our proposition is that we will conduct a full and individualized analysis of a company to help determine how they can reduce fuel costs. Further, we will look at intangible variables, i.e. how green the company is trying to be.

Direct and constant interaction, investigation, and analysis.

Reaching out to the industry is critical. Trade shows, forums, networking, and traditional marketing will all be essential tools.

1) Establishing Credibility will be key in this segment

2) For the first several years, it is critical to have customers who allow us to go deep into the company’s business model, so as to unlock hidden costs (both real and opportunity) and allow for informed suggestions

3) This will allow TriFuel to learn from its growing customer base

Fuel Total Carbon Intensity (GCO2e/MJ)

% Change from Gasoline

Gasoline 95.85 0%

Diesel 94.71 -1%

LNG 83.13 -13%

CNG 68.00 -29%

Simply stated, we don’t make money until the customer saves money.

Our revenue is based on charging a company a percentage of the cost savings of the implementation of the plan. If we do a walk through and the company does not implement our recommendations, then a fee structure shall be charged.

We can also give the option to give a discount if the company is ever in a position to receive potential carbon emission reduction or other environmental credits.

Source: California Air Resources Board, 2009

People and Knowledge:1)Having experts that can unlock value in a

customized model is essential. 2)Computer models, possibly proprietary, will

be developed for implementation. They have the ability to be customized per client.

3)This consultancy will have a variable cost structure. Fixed overhead would be kept to a minimum.

1) Introduction to the target customer2) Initial screening of company’s existing fleet

energy usage.3) Evaluation of the daily operation of the

target customer. 4) Deep analysis of the cost structure,

including opportunity costs and potential revenues from switching.

5) Hiring ad hoc consulting on an as-needed basis.

1) Fleet management industry groups2) “First Wave” customers3) Pool of industry experts/consultants (all

with arms-length objectivity)4) Technology implementers5) Financial partner that can be our

leasing/long-term financing partner. 6) Automotive/Fleet management media

One word: Variable1)Fixed costs can be kept to a minimum with

the use of low-overhead implementation models

2)IT, office, travel, salary and healthcare would be the largest expenses upfront

3)Technical experts can be on a retainer-as-needed basis.