Nestlé Waters North
America
Alternative Fuel Vehicles
(Propane Autogas)
Jeff Bush
May 5, 2015
• Nestlé Waters Fleet Profile
• Why Propane ?
• Propane Facts
• Propane Vehicles
• Performance
• Summary
Discussion Topics
• Fleet Profile (3800 total)
- 1800 class 5-7 Beverage Delivery - 150 class 2-4 Utility Van
- 140 class 8 Tractor
- 400 class 8 Trailer and Tanker - 800 Material Handling - forklift
- 300 Misc – MHE and Manufacturing support
• Alternative Fuel Vehicles (48)
- 34 class 7 Diesel Electric Hybrid (DEH) – Beverage Delivery - 5 class 5 Propane Autogas – Beverage Delivery
- 3 class 4 DEH Utility Van - 3 class 4 CNG Utility Van - 3 class 8 CNG Tractor
---
- 210 Electric Forklift - 15 Hydrogen Forklift
NWNA Fleet Profile
2.3% of Fleet AFV
(Gasoline or Diesel Power Units)
Alternative Fuel Vehicles
Diesel Electric Hybrid class 7 (2008-10)
CNG class 8 (2015) Propane class 5 (2014)
“Our company’s growth and evolution have been guided by the tenets of
our corporate citizenship, which is exemplified by our commitment to
Creating Shared Value for the company and society. We are committed to
taking responsibility for our operations and working to help create social
and environmental benefits outside our facility walls.”
- Tim Brown, CEO
Kim Jeffery, Chairman
Internal And External Influences
By January 1, 2023, all vehicles must meet 2010 model year engine
standards.
World Health Organization Says Diesel Exhaust Causes Cancer
Fuel
Type Vehicle
Cost
OEM Class 7 Availability
(NWNA optimum)
Class 5OEM Availability
Fuel CPG Infrastructure PM & NOx
Diesel
Electric
Hybrid
CNG
Propane
Alternative Fuels - Best Fit For NWNA “Direct”
Although class 7 CNG and DEH are available – not optimum for our “Direct” business
• Domestically Produced – Over 90%
• Abundant and Available
• Reduction in Carbon Footprint
• Low Entry Cost; Truck Technology, Storage/Maintenance, and Refueling
• Product Compatibility
– 14,500lb – 33,000lb GVWR
• Fuel Rate – Near Equal to Gasoline and Diesel
• Low Maintenance Costs
– No Diesel After Treatments
• Minimal Impact to Fleet; Functionality; Operation, and Maintenance –
Serviceable with Existing Equipment – no CNG shop safety upgrades
– 45-50 usable gallons without impacting the truck or payload
– Serviceable by one of the nation’s largest service network – Ford Motor Co.
• Reduction in Fuel Cost – 40-50%
Why Propane Autogas?
Wholesale Fuel Costs
The perfect storm: Dec’13 – Jan’14
1. Wet fall causing farmers in the mid-west to use more LP with agriculture to dry crops (totally unexpected volume)
2.Cochin Pipeline in MN went down at the worse time and couldn’t get fixed during these couple of months
3. Winter storm i.e. road closures, snow drifts etc. made it very difficult for transporting tankers to get through
** AmeriGas has taken measures to prevent that event repeating itself
Propane Fueling Infrastructure
Propane stations generally cost as little as $50,000 and much less
with existing MHE infrastructure and LPG provider agreements
Propane stations can be installed within weeks
Permits can be approved over the counter
Infrastructure
Vehicle Cost
Existing Propane Fleet
• Current Fleet
– (5) Ford F-550 Beverage Delivery Trucks – Ford Gasoline V10 Engine
– 50 Usable Gal of LPG Capacity – 250 mile operating range
– 19,500lb GVWR Chassis non-CDL (class 5) – 6 Bay Beverage Body (non-drop frame)
• Deployment Details
– Los Angeles, CA – Onsite Refueling – 500 Gallon Tank
• Usage Term – 11/6/2014 – 4/5/2015
– Miles Driven = 25,245
– Fuel Usage = 4,965
– Average Fuel Economy = 5.1 MPG (4.8 to 5.3)
• Contributing Factors
– Duty Cycle
• Idle Time – 17min low to a high of 40min per day
• Number of Stops – 15-25 per day
• Averaging 51 miles/day
• Harsh Accelerations and Excessive Speeds
Vehicle Performance
• 10 Year Life Cycle
– ROI @ $1.00 Delta = 3.6 Years
– ROI @ $1.25 Delta = 2.0 Years
– ROI @ $1.50 Delta = 1.4 Years
– ROI @ $1.75 Delta = 1.1 Years
– ROI @ $2.00 Delta = 0.9 Years
Note:
*Delta is based on Propane versus Diesel
*ROIs are calculated assuming delta remains the same throughout the ten (10)
year term
*ROI being considered without any Federal/State Incentives or Maintenance
Savings, Only Fuel….
Return On Investment (ROI)
• Propane Powered Ford F-650
– 45 Usable Gallons of Capacity (twin saddle) – 26,000lb GVWR Chassis
– Class 6 (non CDL) – 250 Product Units
– 8 Bay Drop Frame Side Load Beverage Body – Less Than 100lb Impact to Payload
• Deployment Details
– Northern CA and MD
– Onsite Refueling
Additional Trucks
1. Lower Procurement Costs
– 45% to 50% less than equiv CNG conversion
– Quick chassis and engine production pipeline
2. Fuel Cost Savings and Emission Reductions
– Reduction in Fuel Cost – 40-50%
– Significant reductions in Carbon Footprint over diesel
3. Propane Autogas Infrastructure
– Ready today
– Onsite refueling prolific – partners with factory MHE
– Abundant natural resource – multiple production and distribution
sourcing in USA = less dependence on foreign oil
Summary – decision points for Nestlé Waters
18
