LNG for heavy trucks

Nick Power Sales Manager LNG

The Linde Group
Global presence >100 countries, +62k people & EUR
15.2 bn (2012)

The Linde Group

Linde Gas Linde Engineering

Introduction to BOC

UK market leader in production and distribution of industrial gases

1bn turnover business

300,000+ customers including 4000 cryogenic liquid customers
Supply and distribute product direct to end user point
Provision of gas storage and distribution infrastructure

Page 3
Why BOC for LNG?

Strong competence overlap with core portfolio and LNG

130 years of handling cryogenic liquid
Strong engineering capabilities
Substantial small scale experience on customer sites
In the UK over 4000 cryogenic installations
Ability to invest, scale and grow from our core business
Global experience and networks to leverage

WE KNOW CRYOGENICS
Compressed v Liquid (storage)

CNG Natural gas compressed LNG Natural gas liquefied by

to 250 bar cooling down to -162C

Spark ignition engines such as
passenger cars, light duty vehicles
Short to medium driving distances
Payback more challenging, less mileage
means less savings, strong reliance on
public infrastructure
Heavy trucks, dual fuel, ignition by diesel
injection. LNG only option for 6 x 2
2.5 x more energy in the same space as CNG
Preferred for medium to long distance trucking
Payback more achievable, greater ability to
invest in back to base infrastructure, so no
operational inefficiencies from public refuelling

CNG & LNG are both natural gas.

The market says LNG is the right choice for heavy trucks
 Why use LNG as an alternative vehicle fuel?

Fuel costs- a significant element of operators costs

Gas is cheaper than oil
Favourable price spread oil/diesel vs. gas
10 year fuel duty differential key blocker
removed
More LNG coming online
New Australian production facilities
US shale gas creates LNG export potential
Other developments, Africa
More import terminal/truck loading esp with
interest in Marine
Marine switch expected to impact diesel price

Most operators have exhausted initiatives to reduce cost.

LNG is the last significant opportunity
Our Global LNG Activities
UK Launch - 2012

Biogas Innovative refuelling solutions

B2B
development
Comprehensive industry safety standards (to end
Customer service model as per core business users)

LNG Customer Refueling

Distribution HGV fleets
Terminals Storage solutions
operators

BOOM
Back to Base
Production
operations or
/Terminals
public stations

Introducing solutions, standards and services to create the platform for operators to
invest
 Customer input and Linde observations
led to a global refueling solution

Early adopters highlighted poor experiences

using others technology:-

Gas venting
Slow refuelling
Poor driver experience
Inaccurate billing
= Damage to environmental performance
+ increase in cost

Truck operators want:-

Consistent operation for every truck fill

Simple, automatic and safe to use
Fast refuelling (no worse than diesel)
Scalable, modular
Our global refuelling solution

Fast and consistent Simple to use Safe by design

Fills in 60-90 seconds Push button start Gas detection

Nitrogen keeps the LNG at the Can use existing fuel mgt system Electronic shut down
right temperature for refuelling (ESD)
Consistent experience aids
No vent gas created, vent Onsite or remote
driver adoption diagnosis
recovery if needed
BOC UK Back to Base with some stations
available for 3rd party access

Asda Avonmouth, 50 trucks DHL Bawtry, 63 trucks

Portable demo skid

Stobart Appleton BOC Teesport, 12 trucks

Thorne, 20 trucks
BOC Learning's & Next Steps

Support our customers through planning permission and hazardous substances consent.
Not particularly challenging in our view, but variability from local authorities increases
time to gain consents

High throughput stations have tested out manufacturers equipment. Our learning's are
been applied in next generation technology

Offer our customers a range of pricing mechanisms with different risk/reward profiles

Proven track record and experience of engineering design, project execution and
ongoing management of Cryogenic systems

A global portfolio of involvement in LNG vehicle refueling projects including UK (Back to

Base), Sweden (LCNG, LNG, Public stations, Import terminal), Netherlands (Public
stations), US (Biomethane production and public stations/back to base) and Australia
(LNG Production, public stations)

Focus on Back to Base in the UK, we have the capability to meet future needs of the
market

Lower risk profile, increased security of supply, proven track record

and cryogenic expertise