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Vision Industries Corp. April 21, 2009. Presentation Outline. The problem The Ports Program Vision Industries Solution Vehicle Solutions Vision Industries Fueling Strategy Future Applications Appendix . The problem.
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Vision Industries Corp. • April 21, 2009
Presentation Outline • The problem • The Ports Program • Vision Industries Solution • Vehicle Solutions • Vision Industries Fueling Strategy • Future Applications • Appendix
The problem • up to 2,800 premature deaths per year attributed to diesel particulate emissions emanating from the Ports. • Intense political pressure to clean up the Ports’ emissions. • Expansion and growth of the Ports are blocked until methods to reduce emissions are implemented.
The Port Solution • PORT OF LOS ANGELES HARBOR COMMISSIONERS FOLLOW LONG BEACH COMMISSION VOTE AND APPROVE CLEAN TRUCKS FEE • The Los Angeles Harbor Commission has approved a measure that will place a $35 charge on every loaded twenty foot equivalent (TEU) cargo container entering or leaving the Port of Los Angeles cargo terminals by short-haul (or “drayage”) trucks beginning June 1, 2008. The nation’s two largest container ports will use the proceeds to fund a $2 billion Clean Trucks Program -- $1.6 billion generated by the Clean Trucks Fee and an additional $400 million in anticipated grant funding from the state of California -- initiative that will replace or retrofit the existing fleet of trucks that serve the San Pedro Bay Ports over the next five years – reducing port related truck emissions 80 percent. • All funds collected by the two ports would be used for the replacement of about 16,800 trucks by2012 with clean diesel trucks, or trucks fueled by liquefied natural gas (LNG) or other approved technologies that can achieve the 2007 standard adopted in the ports’ Clean Air Action Plan. • Up to 80% of the new truck purchase price will be paid by the fund
Vision Industries Solution • 2009 Freightliner Tyrano • Plug-in electric heavy duty class 8 truck with Hydrogen fuel cells for on board electricity generation • Regenerative breaking • Zero emission • 5 miles/lbs consumption • Purchase price $250,000 ./. CARB $ 50,000 ./. port program up to $150,000 ./. Federal tax credit $ 40,000 NET COST $ 10,000
Vision Industries Fueling Solution • The 16,800 trucks operate within what is locally known as the “Golden Horseshoe”. This refers to the geographic area within 50 miles of the Ports of Long Beach and LA. The trucks return to the Ports several times per day so the optimal fueling location is at 3 strategic locations within the ports. • Vision Industries is in the process of securing what we believe to be the premier fueling locations. • Pricing ..... • Hydrogen is produced by Air Products right in the Ports!
Attractiveness of transaction to Ports: • Benefits of Hydrogen as a Zero Emissions Fuel - If the entire short haul fleet converts from 2007 Clean Diesel standards to Hydrogen, annual: - Particulate emissions would be reduced by 415,000 pounds! - Hydrocarbon emissions would be reduced by 5,800,000 pounds! - Nox emissions would be reduced by almost 50,000,000 pounds! - CO2 emissions would be reduced by a minimum of 3,500,000 tons! - The entire fleet can be refueled from 3 stations within the Port. • Ports would be the first to implement “zero emission” transportation solution. • Ports can set the worldwide standard for an environmentally friendly port operation.
Why hydrogen? • Offers several benefits over Diesel and Natural Gas • Cheaper per mile • ZERO greenhouse gas emissions • No noise pollution • Increase of Torque • Domestic and secure energy source • Renewable and non-depleting • Can be made from a wide variety of resources • OEM adoption • All major OEMs will offer hydrogen powered vehicles by 2010 • State and federal support available
‘Vision 2010’ for California • “I am going to encourage the building of a Hydrogen Highway to take us to the environmental future… I intend to show the world that economic growth and environment can coexist, and if you want to see it, then come to California.” • Governor Arnold Schwarzenegger • State of the State Address, January 6, 2004 • ‘Vision 2010’ • Ensure that by the end of the decade, every Californian has access to hydrogen fuel along the state’s major highways. • A significant and increasing percentage of that hydrogen is to be produced from clean renewable sources. • Requires 170 hydrogen refueling stations by 2010 and 2,000 by 2015.
Vision Motor Components • Hydrogen Companies • Air Products • Fuel Cell Companies • Hydrogenics, Ballard & Nuvera • Electric Motors • Siemens & Cal Motors • Truck Companies • Freightliner & Autocar • Others • Lincoln Composites, Swagelok, HyPower....
Performance goes green • 2009 Tyrano Freightliner
Garbage Collection goes green • Vision Industries Zero Emission Refuse Truck
Performance goes green • Vision Industries’ 2009 Cheetah • 0-60 in 3.3 sec., ZERO emissions!
Appendix • The following are related informational slides
Hydrogen is more cost effective than Diesel • – As a result of technological breakthroughs, we have passed and inflection point at which hydrogen is cheaper per mile than diesel as a transportation fuel • – Fuel cell technology promises 100% efficiency gain over • diesel-based combustion engines • • Each Pound of hydrogen gets you as far as 1 gallon of diesel. • – Hydrogen costs are expected to stabilize at $1.50 to $2.75 per lb (they currently range from $0.90 lb in Santa Monica to $4.09 lb in Palm Springs)
Hydrogen is more cost-effective than diesel • As a result of technological breakthroughs, we are at an inflection point where hydrogen is now cheaper per mile than diesel as a transportation fuel. • One pound of hydrogen gets you as far as one gallon of diesel.
Attractiveness of transaction to truck owners and operators: • Purchasing Hydrogen Powered Trucks - Ports Commission pays up to 80% of cost, - Federal tax credit of $40,000 - Zero down, 100% financing available • Operating Hydrogen Powered Trucks - $0.32 of fuel per mile versus $0.48 diesel and $0.68 in LNG - Double the power and performance of diesel or LNG truck - No exhaust - Very quiet operation - Regenerative braking allows use of “Jake Brake” within city limits - No oil changes
Vision Industries – current status • Vision Industries has perfected its proprietary Hydrogen drive system. The 1st generation has been installed in a Hummer H2 and is available for test drives. • The 2nd generation Hydrogen drive system is installed in the 2009 Freightliner Tyrano.
biographies of senior management • Martin Schuermann, President & CEO • Employment History: • Chairman & CEO IM-Internationalmedia AG Group (Producer of Terminator 3, Alexander, Hunting Party, One Missed Call, etc.) • Member of the Supervisory Board of Intermedia AG, IM-Internationalmedia AG and Future Media, Inc. • Managing Director, Bertelsmann’s TV and Film arm CLT-UFA (US) • Executive Vice President, Don Johnson Company • Managing Partner, Euro Capital Advisors LLC
biographies of senior management • Michael Kadie - Director of Technology • Masters in Artificial Intelligence (Software) • Holds three world records for fastest electric powered street legal vehicle. • Designed and built the world’s fastest electric street vehicle from the ground up. • Research, development and consulting for new and traditional electric vehicle technologies. • Technical diagnostics and systems analysis.
Hydrogen power products • What is a Fuel Cell? • An electrochemical engine that converts hydrogen fuel and oxygen into electrical energy. • A battery that runs on hydrogen fuel. • Twice as efficient as gasoline internal combustion engine. • No emissions (exhaust = H2O) • Endgame for transportation industry
Hydrocarbon feedstock progression • Hydrogen is the natural progression of hydrocarbon fuel from complex hydrocarbon chains to simple ones Reducing Complexity
Hydrogen timeline 1839 - First Hydrogen Fuel Cell 1959 - NASA uses Hydrogen Fuel cell for all Space Missions • 2002 - OEM’ release next gen H2 vehicles 1973 - BMW develops first Hydrogen ICE 1981 - Ballard Power develops next gen. fuel cells 2000 - first H2 station in CA 2000 - GM , Ford, Chrysler, VW release FCV prototypes 2002 - Ballard Neccar completes cross USA run 2003 - Pres. Bush announces $1.2 Billion in funding 2004 - BMW wins Hydrogen land speed event 185 m/hr 2006 – ICE Conversions opens its doors 2006 – ICE Conversions develops H2 Hummer retrofit 2007 – ICE Conversions offers retro fit package 2007 - BMW releases BMW hydrogen 7 series 100 units 2009 – Vision Motors opens first public H2 fueling
Why is hydrogen a clean fuel? • Octane (gasoline molecule) • Bi-products of gasoline combustion include: • Hydrocarbons • Carbon Dioxide • Carbon Monoxide • NOX Hydrogen • Bi-products of hydrogen combustion include: • Water (steam)
Vision Industries Corp. • Contact: Martin Schuermann, CEO • 310.454.5658 • Martin@Visionindustriescorp.com α.2