Virtual Pipeline Applications & Feasibility - Power Generation, IPPs & Mining Operations total conversions and peak capacity augmentation - Industrial Heat & Burners - Pipeline Turbine Power Includes: - Overview of virtual pipeline technology - full-fill and maximum offload for improved ROI - Transportation and tanking options - Offload, pressure reduction and storage or direct use - Preliminary ROI & Feasibility Calculations – Several Illustrations Included

1. Virtual Pipelines 201: Applications, Cases & Feasibility
Applications for CNG Beyond the Pipeline
Your Speaker:
David VanLaar
Manager of Product Solutions
IMW Industries
Your Host:
Sam Goldenberg
Director of Sales, MEA, APAC
IMW Industries

2. About IMW
IMW has been manufacturing industrial machinery since 1912, and has evolved to be a leading
manufacturer of natural gas compression systems, serving all major markets Globally. Equipment
is currently operating mid-east to North of the Arctic Circle.
• Quality Products & Leader in CNG Compression
• Non-Lubricated Compression for Clean CNG
A variety of configurations for all applications

3. A Clean Energy Company
IMW operates as a wholly owned subsidiary of Clean Energy Fuels Corp. (NASDAQ: CLNE).
Clean Energy is the largest provider of natural gas fuel for transportation in North America and a
global leader in the expanding natural gas vehicle market.
Clean Energy offers CNG and LNG vehicle fueling as well as providing turnkey station
construction and operation for fleets. Clean Energy also is majority owner of NG Advantage, an
American retailer of bulk industrial gas.

4. Continuing Education Credit
1 hr Technical Informal
More CPD Info or Board Room Attendance:
 Name
 Job title
 Company
 Email
webinars@imw.ca

5. Your Speaker
David VanLaar, P. Eng
Manager, Product Solutions Group
IMW Industries

7. NGVs and Conventional CNG Demand

8. Why?
 Use local, domestic energy
 Save 20 – 30% of energy costs
 Clean energy solution – lower emissions
Virtual Pipelines for Remote Energy Systems

9. Mother Station

10. Daughter Station

11. Factors for
Successful Virtual
Pipelines

12. Seek a high inlet gas pressure for mother stations to
reduce energy consumption and operating costs.
‘Mother’ Station Pipeline Pressure
Example: 1000 SCFM (1600 Sm3/h) compressed to 4500 psig (310 barg)
At 0.12 USD per kWh and 5000 run hours a year, electricity cost
savings of $115,000 USD per year can be expected!
Maintenance costs are also substantially reduced because less
equipment is operating.
Scenario 2: transmission pipeline
Inlet pressure of 1000 psi (70 barg)
150 hp (110 kW) required
Scenario 1: distribution pipeline
Inlet pressure of 100 psi (7 barg)
400 hp (300 kW) required

13. Pipeline Compression Transport Decompression End Use
300
200
100
0
bar
200
150
100
0 C
-50
Temperature Management
• Virtual Pipeline operates by changing the gas volume (CNG)
• Gas pressure and temperature are functions of gas volume and
therefore need to be managed

14. Temperature Handling

15. Temperature Handling

16. ‘Mother’ Station Gas Composition
Methane
Ethane
Propane
Butane
•80%
•10%
•5%
•5%
• Attention needs to be paid to gas composition due to temperature
fluctuations
• Water content
• Gas dryers should be used if water content is higher than 2 lb /
MMSCF (32 mg/m^3)
• Methane content
• Natural gas mixtures with less than 90% methane need to be
evaluated to ensure heavy hydrocarbons don’t drop out as liquids

17. Problems with oil:
• Compressor discharge gas is typically
10C above ambient
• Even good coalescing filters don’t
remove oil well at warm temperatures
– oil stays as a vapor
• When temperatures reduce oil vapor
turns to oil liquid
• Trailers collect oil and lose capacity
• PRS systems also collect oil where
ever gas velocities or gas
temperatures decrease
• Oil buildup increase maintenance
costs and downtimes
‘Mother’ Station Compressor Lubrication
Non-lubricated
compressors
ensure that oil
doesn’t enter
the gas stream!

18.  Transportation is most significant cost driver of industrial gas
products
 Trailers are made up of small or large cylinders in 4 types:
 Type 1 – 100% steel (heaviest, smallest payload, $)
 Type 2 – hoop wrapped steel
 Type 3 – hoop wrapped aluminum
 Type 4 – fully composite (lightest, largest payload, $$$)
 Some vendors:
Transportation

19. FullFill Technology ensures that every
bulk gas shipment is completed quickly
and filled as completely as possible.
IMW systems ensure that transport
modules are filled at the optimum
temperature and gas density through:
 Proper prediction of trailer filling
temperature rise
 Proper sizing of cooling equipment
 Integration of proprietary compression
technology and comprehensive
dispensing algorithms
 PLC controlled continuous thermal
management
Compression – ‘Mother’ Station

20. Maximum Offload Capacity
ensures that only a minimal
amount of gas is left on the trailer
before it is disconnected. This is
achieved by:
 Using two line unloading
methodologies where possible
 Designing systems for minimal
pressure drop
 Employing scavenging
compression where necessary
to remove remaining gas
Decompression – ‘Daughter’ Station

21. End Users often have critical applications – consider:
1. Redundant compressors – can daily trailer
requirement be filled at the lowest pipeline pressure with
one compressor down for maintenance?
2. Trailers – is logistics modelling conservative? What
happens if a trailer blows a tire?
3. PRS units – can PRS units handle peak loads even if one
unit is offline?
4. Storage at daughter side – install ground storage and
booster compressor if transportation link between mother
and daughter can be interrupted
Redundancy

22. End User Types

23. Independent Power Producers
Mine
Power Station
Daughter
Station
125 MW with GE LM6000PF gas turbines and Solar Titan 130 turbines

24. IPP – Gas Turbines
Gas Turbines typically require:
1. High inlet pressures – 25 to 50 barg
2. Warm gas well above dew point
3. Wide range of flow rates
4. Less than 1 second shut down times
Gas Turbines typically are:
1. Sensitive to pressure pulsations in
certain frequencies
2. Sensitive to even small amounts of
oil carryover
3. Sensitive to heavy hydrocarbons
and any liquids
GE LM6000

25. Peaking Power Plants
• Power plants
sized to turn on
for peak loads
only.
• Often don’t
have a gas
pipeline nearby
or don’t have a
properly sized
gas pipeline
nearby

26. CNG for Peak Hours
IMW CNG
Compressors
Gas Compression during “Base
Load (NON Peak hours)” &
Storage
CNG Storage
Decompression of
Gas During
Peak
Hours
PRMS
Gas
Gas from Pipeline or
Virtual Pipeline
Power Station

27. Asphalt Plants
• 4000 asphalt mixing facilities in the US
alone
• Plants consume between 200,000 to
600,000 gallons of fuel oil per year.
• Facilities are located close to the paving
projects they work on and therefore they
cannot always be built near a natural gas
pipeline
• Cost savings over #2, #6 or bunker oil is
20 – 40%
• CO2 and particulate emissions reduction
• Burner conversion costs range from $100K
to $300K
• Payback of about 1 year
Courtesy of NG Advantage

28. Asphalt Plants

29. Drill Rigs
Where suitable natural gas isn’t
available, drilling rigs are run on
diesel.
Incorporating CNG into drilling
rigs typically:
• requires a $200,000 investment
for conversion kits
• Provides the same power
output as diesel
• Provides cost savings of about
$1000 per day
• Reduces CO2 and particulate
emissions

30. Stranded Distribution Networks
Remote towns with no
access to natural gas can be
served by virtual pipelines.
Daughter station is built in a
central location and
distribution pipelines are built
to nearby factories or housing
complexes.
Uptime is critical so typically
dedicated ground storage is
utilized to provide backup gas
if the trailer traffic is
interrupted.

31. Stranded Distribution Networks

32. Project Feasibility
and ROI

33. Inputs Required
Technical Inputs:
1. Current or Predicted Fuel Type Consumption – per year
a. Peak load and minimum load if available
2. Regional location of mother and daughter site
3. Natural gas supply pressure at mother station
4. Natural gas delivery pressure at daughter station
5. Gas composition at mother station (water content, methane content)
6. Fuel end use uptime required and necessary redundancy
7. Trailer type (if known)
8. Distance between mother and daughter station and average travel speed
Commercial Inputs:
1. Cost of natural gas from pipeline or cost of CNG from provider
2. Cost of current fuel
3. Transport operating costs for local region (if available)
4. Electricity cost

34. IMW Industrial Gas ROI Model
COMMERCIAL SUMMARY
CAPTIAL COSTS
ASSETS
Description Qty Unit Price Extended Price
1. Compression Site "Mother"
1.1 Gas Drying Equipment
Twin Tower Auto Regen, 30 barg inlet, 2067 Sm3/hr 1 175,000.00$ 175,000.00$
1.2 CleanCNG Compressors
IMW50 Single Compression Unit, 30 barg inlet, 300 HP
2067 Sm3/hr Electric Motor drive. Oil free gas delivery.
2 398,800.00$ 797,600.00$
1.3 Gas cooling System
Heat Exchanger Unit, 5 Shell and Tube HX per unit 0 40,000.00$ -$
Chilling Unit, including pump skid, 25 Ton Capacity 0 50,000.00$ -$
1.4 Fill Posts
Metered Filling Posts, 2 filling lanes, 1 Fill Posts per
lane. Includes redundancy. Dual inlet for both high
and low pressure filling
2 40,000.00$ 80,000.00$
1.5 Master Control
Remote mountable electrical panel with Master PLC
system. Includes system programming.
1 58,500.00$ 58,500.00$
2. Transport
2.1 Trailers
Type 1 (100% Steel) Pressure Vessels configured in
Number of trailers per Prime Mover 1
Minimum number of trailer groups 2
Additional redundant trailer group 1
Total number of trailers required 3 350,000.00$ 1,050,000.00$
40' Bare Trailers, triple axle, locally sourced 3 80,000.00$ 240,000.00$
System Pricing Notes:
These prices are indicative, provided for budgetary purposes only and therefore subject to change.
3. Decanting Site "Daughter"
3.1 Decant Posts
Decant Posts, 2 filling lanes, 1 Fill Posts per lane.
Includes redundancy. Multiple lanes for continuous
decanting.
2 15,000.00$ 30,000.00$
3.2 Pressure Reducing Station
2000 Sm3/hr, no enclosure, high pressure inlet. 2 136,000.00$ 272,000.00$
3.3 Scavenging System
Not Selected
Not selected 398,800.00$
3.4 Master Control
Remote mountable electrical panel with Master PLC
system. Includes system programming.
1 77,500.00$ 77,500.00$
SERVICES
4. System Engineering
System Front End Engineering Design 15% 10,500.00$
System engineering incorporates IMW FullFill
Technology and maximum Offload Capability.
85% 70,000.00$
80,500.00$
5. Freight
Estimated ocean freight for all modules and trailers 8 6,000.00$ 48,000.00$
6. Installation and Commissioning
Estimated Installation, Commissioning and Training
per module
5 16,000.00$ 80,000.00$
Spares per module 5 8,000.00$ 40,000.00$
TOTAL CAPITAL COST
3,029,100.00$
3,424,900.00$For Reference Only: Total Capital Cost in $CAD
Total Capital Cost in $USD

35. IMW Industrial Gas ROI Model
INTERNAL PROJECT FINANCIAL ANALYSIS (ESTIMATED COSTS)
ADDIONAL CAPTIAL COSTS (ESTIMATES)
Gas Installation Services
Gas Pipeline Connection "Hot Tap" from Service Pipeline 1 100,000.00$ 100,000.00$
Gas Pipeline Connection "Hot Tap" to Powerplant 1 -$
Design and Construction
Locallised civil engineering, construction management and
overall project management. Includes obtainment of
relevant regulatory approvals. Pricing based on 25% of
total site works element of project
180,625.00$
Interconnecting pipework, electrical , mechanical,
installation labour, civil works, system control and
monitoring and regulatory approvals, priced per module.
5 104,500.00$ 522,500.00$
System power generation, site offices, security fencing
and roadway for truck turnaround, priced per site.
2 100,000.00$ 200,000.00$
ESTIMATED COMPLETE CAPITAL COSTS
Total Capital Cost in $USD 4,032,225.00$
For Reference Only: Total Capital Cost in $CAD 4,838,670.00$
OPERATIONAL COSTS (ESTIMATES)
OPERATIONS COST PER ANNUM IN $CAD
Extended Cost
1. Energy
Electricity
1236220 kW-hr consumed, at a cost of $0.11 per kW-hr. 135,984.20$
Gas
166440 Sm3 of gas consumed, at a cost of $7 per GJ. 44,270.00$
2. Plant Operation and Maintenance
Mother Station Operation and Maintenance
Based on cost of $0.01 per Sm3 of throughput. 80,160.00$
Daughter Station Operation and Maintenance
Based on cost of $0.01 per Sm3 of throughput. 80,160.00$
3. Transport Operation and Maintenance
CNG Transport Truck Operation and Maintenance
Based on labour rate of $50 per hour lease fees of $1 per
km, maintenance cost of $0.2 per km and fuel cost of $1 per
km. Assuming 129801 km/year and 6570 driving and
operation hours /year.
614,060.00$
Total cost per km $4.73
TOTAL OPERATIONS COST
Total Operations Cost per Annum in $CAD 954,634.20$
For Reference: Total Operations Cost per Annum in $USD 795,500.00$

36. IMW Industrial Gas ROI Model
INTERNAL PROJECT FINANCIAL ANALYSIS (ESTIMATED)
ALL COSTS AND CALCULATIONS IN $CAD
SCENARIO 2 0 1 2 3 4
BENEFITS Year 0 Year 1 Year 2 Year 3 Year 4
Total Cost of Gas $0 $2,132 $2,132 $2,132 $2,132
Total Equivelent Fuel Cost (Fuel Oil) $0 $5,840 $5,840 $5,840 $5,840
Fuel Savings: Natural Gas vs Fuel Oil $0 $3,708 $3,708 $3,708 $3,708
COSTS Year 0 Year 1 Year 2 Year 3 Year 4
Capital $4,839 $0 $0 $0 $0
Operations $0 $955 $955 $955 $955
Total $4,839 $955 $955 $955 $955
CASH FLOW Year 0 Year 1 Year 2 Year 3 Year 4
Annual Cash Flow ($4,839) $2,753 $2,753 $2,753 $2,753
Cumulative Cash Flow ($4,839) ($2,086) $667 $3,420 $6,173
DISCOUNTED CASH FLOW Year 0 Year 1 Year 2 Year 3 Year 4
Discounted Benefits $0 $3,433 $3,179 $2,943 $2,725
Discounted Costs $4,839 $955 $955 $955 $955
Discounted Cash Flow ($4,839) $2,478 $2,224 $1,989 $1,771
Discounted Cumulative Cash Flow ($4,839) ($2,360) ($136) $1,852 $3,623
FINANCIAL DECISION PARAMETERS
Discount Rate 8%
Internal Rate Of Return 0.43
Net Present Value $4,279.62
Return On Investment $0.59 $0.98 $1.24 $1.42
Payback (Years) 2.07

37. 43676 Progress Way • Chilliwack, BC • Canada V2R 0C3 p +1 604.795.9491 f +1 604.792.3806 e info@imw.ca
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David Orton
t: 604.795.9491
e: sales@imw.ca

38. Upcoming Webinars
www.imw.ca/cng-webinars/
• Free Monthly Webinars
• Documented CPD Credits
Upcoming Topics for Spring 2015 – Dates TBA
• Cold Weather Fueling – Clean Energy
• Trailers & Cylinders - Xperion
• Clean Energy’s Natural Gas Highway
• Transit
& More

39. Don’t Get Left Out – Say Yes!
Please stay connected with IMW.
Please Choose Yes!

40. Questions?

41. Contact Us!
IMW Industries
43676 Progress Way
Chilliwack, BC,
Canada V2R 0C3
+1 604-795-9491
www.imw.ca
Questions?
sales@imw.ca
webinars@imw.ca