Heavy Duty infrastructures

Cristiano Musi – CEO Landi Renzo and CEO of SAFE-CEC

Landi Renzo Group - We bring the clean energy of the future

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Landi Renzo is a forward-thinking group that provides innovative solutions for alternative fuel mobility and transportation

By designing gas-mobility systems and components, we partner with our customers in developing highly innovative and reliable solutions

for gas and hydrogen mobility, focusing on a broad range of applications, from Heavy Duty to passenger cars

Main business segments served

• OEM Heavy Duty and Off Road

• OEM Passenger cars and LCV

• AM passenger cars, LCV, M&HD Dual Fuel

• Equipment for gas distribution and RNG production

through SAFE&CEC

11 Plants & Offices

in 9 Countries

25M€ Adj. EBITDA

in 2018

LR: 188M€

Revenues in 2018

SAFE&CEC:

65M€ exp 2019

Listed in the STAR

stock exchange since

2007

~ 500 Employees

worldwide Export share of

80%

• Landi Renzo owns 51% of SAFE&CEC, an

international leading player in the design and

manufacturing of advanced equipment for CNG and

RNG distribution, with plans to expand into H2

applications

• SAFE&CEC in 2018 had a turnover of 60M€, 65M€

exp 2019

• SAFE&CEC is not consolidated

Founded in 1954 Gas solutions for CNG,

RNG, LNG, LPG and H2

In a world that demands sustainable development, LRG and SAFE&CEC are at the forefront across the whole value chain with concrete solutions

for a cleaner environment

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EXPLORATION

&

TRANSPORTATION

CNG / RNG REFILLING STATIONS

INFRASTRUCTURE

BIOMASS

PLANTS

CNG AND LPG SYSTEMS AND COMPONENTS CNG, LNG AND H2 COMPONENTS

Gas & Energy Distribution Heavy Duty & Off-Road Passenger Cars & LCV

«From well to engine»

• Significant investment are ongoing worldwide to

spread CNG/biomethane energy infrastructures to

better support the growth in CNG/ biomethane

consumption, with H2 starting to be developed

• Safe&CEC provides equipment suitable for a wide

variety of applications, from gas recompression in

wells to underground storage, construction of

filling stations and realization of biogas plants

• Almost all OEMs have started to sell their gas-

powered Heavy Duty Vehicles as today Gas

represents a performing ready-to-use solution,

giving advantage in terms of TCO and emissions

reduction, with H2 as an emerging technology

• LRG has started to offer dedicated components for

CNG/LNG/H2 and is enlarging its solutions for a

key, double digit growth, strategic market

• Gas-mobility (CNG and LPG) is playing an

increasing role in the clean mobility scenario,

especially in South and East Europe, India,

Russia, Center America and Latam, with about

50M on-road vehicles

• LRG offering has significantly contributed to build

the market and is still at the forefront with

advanced, customized solutions

LRG designs, produces and distributes worldwide highly technological advanced integrated solutions for alternative fuel systems

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Automotive sector

Heavy Duty and Off Road Application Passenger Cars and LCV application

LPG: Liquid Petroleum Gas; CNG: Compressed Natural Gas; LNG: Liquid Natural Gas; RNG: Renewable Natural Gas

Fu

el

typ

e

Pro

du

ct

po

rtfo

lio

Tech. assistance and spare parts

CNG, LPG

Valves

Injectors

Monofuel (under development)

ECU

Pressure regulators

CNG LNG

Electronic

control

Kit conversion system

ECU

Injectors

rail

Pressure regulator

Valves

Tanks, Pipes,

Harnesses,

Brackets

Integrated manifold (H2)

Purge valve

(H2)

CNG, LNG, H2

SAFE&CEC offers a comprehensive portfolio of equipment and solutions for CNG and RNG distribution, ready to apply its technology to Hydrogen

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Infrastructures

NG and RNG distribution and compression

RNG production - Oil&Gas (Up/Downstream)

CNG: Compressed Natural Gas; LNG: Liquid Natural Gas; RNG: Renewable Natural Gas

Pro

du

ct

po

rtfo

lio

RNG applications Daughter All-in-one Mobile & Pipeline

SAFE&CEC supplies

a turn-key equipment

for trailer installations

that do not need

external power supply

Compression systems

able to work with all

different biogas

upgrading plants in

term of technologies

and performances

Heavy duty

compressors suitable

for 24/7 applications

Tailored solution for

high capacity.

All equipment is

installed inside the

enclosure: dryer,

filters, storage,

compressors,

dispensers, control

panel, etc.

Mechanical and

hydraulic compressors

are suitable for daughter

stations to meet the

customer needs

• Exploration & production,

unconventional gas processing

• Transportation, storage, marketing and

natural gas processing plants

• Refining, distribution, processing and

purifying CNG compressors

• Whole package system includes compressor, skid,

dispenser and all required accessories to process and

measure gas

• Aftersales include service, maintenance and spare parts

Oil & Gas

Natural gas, in its different forms, represents a natural, sustainable, low emission, easy-to-use form of energy. Hydrogen as a new frontier

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Environmental concern Product availability

• Different applications will boost the adoption of NG, RNG and LNG as energy and fuel source

o New development of CNG infrastructure, RNG production and RNG grid injection

o Investment on LNG infrastructure (small scale and distribution) and bio-LNG production (micro-

liquefaction plant)

o NG in transportation help to reduce emission by more than 20% and is ready-to-use and

convenient in terms of TCO

• We do foresee a growing future for Hydrogen on HD and train

o Technology for fuel cells constantly improving

o Starting investments on Hydrogen infrastructure and storage

• Global warming

concerns and CO2

emission reduction

targets require ready-

to-use solutions

• Increasing awareness

by general public is

pushing regulators

• Strong effort to reduce

methane emissions

along the value chain

• Stability of gas price is

a key driving factor of

gas adoption as an

alternative fuel

• Shale gas and LNG

extensive availability to

avoid increasing cost

or pick during the

season

• New technology to

scale down the cost of

hydrogen

Regulations & Policies for transportation

Penetration of NG and Hydrogen as a Energy and fuel source

• Governmental bodies setting growingly stringent targets for energy consumer and for car makers, for

both passenger cars and heavy duty vehicles:

o Euro VI, Bharat VI, China VI, CAFE (Clean Air for Europe)

• Directive on Alternative Fuels Infrastructure (2014/94/EU)

• LNG Blue Corridor project in Europe

• Increasing interest on Hydrogen by regulators (G20 Japan)

• Natural gas to become one of the leading source of energy in the next 30 years

• NG as sustainable solution in many part of the world

• LNG increasingly chosen as the alternative fuel solution for HD vehicles

• Infrastructure and vehicles adoption are strictly interlinked

• Lower gas prices can make TCO convenient for vehicle owners, fleet managers, transportation firms

In future transportation Gas-Mobility, Electrification and Hydrogen will play a key role, enabling a cleaner mobility worldwide

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• Different Technologies will coexist

• Gas-mobility and Hydrogen will play an increasing role in the clean energy transportation of the

future

City Range

0-50 km

Medium Range

100-200 km

Long Range

>200 km

PC /

LCV

H2 - Fuel Cell

CNG - RNG

(P)HEV (P)HEV - BEV

CNG – RNG –

LPG

Avg. Daily trip vs. ideal power technology

HD H2 - Fuel Cell

CNG – RNG –

LNG

CNG- RNG

CNG – RNG –

LNG

Diesel

(P)HEV - BEV

CNG – RNG –

LPG (1)

• Gas-mobility represents, for both Passenger Cars (LPG, RNG,

CNG) and Heavy Duty (CNG, RNG, LNG) segments, a viable and

ready-to-use solution, which will coexist in the future with other

alternative fuel technologies (Hybrids, BEVs, FCEVs, …)

• End users criteria for choosing Gas-Mobility for HD and PC are:

o Total Cost of Ownership

o Availability of refuelling infrastructure

o Vehicle range autonomy vs. refuelling / recharging time

• Distribution Infrastructure availability is a key enabler of Gas- and

Hydrogen-mobility affirmation both in Heavy Duty and Passenger Car

segments, with important evolution plans in most of worldwide regions

• Hydrogen Fuel cell vehicles represent the next evolution step,

joining the benefits from gas-mobility and electric powertrains

Diesel

(1) Mainly in emerging countries

Investments in gas infrastructure are expected in parallel with gas fuel vehicle uptake and fast development of Biomethane production

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CN

G

LN

G

• Several projects announced worldwide, to sustain the development of clean HD transportation:

• Development of “blue corridors” in Europe, (2000 LNG stations by 2030), Russia and Latam

• In India, expected further 1.500 LNG stations in the next decade

• US plans further expansion of the infrastructure to support HD transport

• India announced plans to build more than 5.000 new stations by 2030

• Russian Government investing € 2Bn to subsidize the market

• Several Oil & Gas companies investing in Europe to update and expand the current

infrastructure

• Widespread interest in biomethane as the zero-emission fuel to sustain adoption and

acceptance by consumers

(# stations, k)

(# stations)

2030

30,5

2025 2019

40,0 50,0

1.900

~ 4.000

2019 2025 2030

~ 6.000

H2

• Hydrogen infrastructure still in early phase, with a strong percentage of private fuelling

stations

• Ambitious plans to develop the network require consistent investments (estimated in €

8Bnby 2030)

• However, costs of stations and hydrogen production are expected to decrease

(# stations)

~1.500 370

2019 2025 2030

~ 3.700

Biomethane is growing in importance similarly to biofuels in terms of sustainability and reliability, especially in Europe

• Biogas can be upgraded to biomethane

and used directly as a transport fuel in

engines in Natural Gas Vehicles (NGV)

• Given the very low GHG emissions from

the use of biomethane in vehicles over the

whole supply chain, biomethane could

contribute to the renewable energy targets

in this sector (less than 50% CO2

emission compare to diesel)

• The largest market for the use of

biomethane as a transport fuel is the

European Union, with a combined 160

million m3 of biomethane

• Europe is the world's leading producer

of biomethane, with more than 500 plants

producing an estimated 1.3 billion m3

annually (vs.18 billion m3 biogas

production). Most biomethane production

plants are in Germany (185 plants), UK

(80 plants) and Sweden (61 plants)

• Next frontier from biomethane to bio-LNG

(through micro-liquefaction equipment)

Source: The European House-Ambrosetti elaboration on the European Commission scientific paper "Biogas: Developments and perspectives in Europe”, 2019

North America

• 2,100+ biogas plants in 2017

(livestock manure, landfills,

Waste Water Treatment

Plants, operating anaerobic

digesters producing biogas)

South America

• Bolivia has 1,000 domestic biogas plants

installed

• Large-scale biogas plants to use effluents

from palm oil mills and large farms in

Colombia, Honduras and Argentina

• Brazil had 127 biogas plants using

agricultural and industry residues,

biowaste, sewages ludge, and landfill gas,

producing about 584 billion m3

biogas/year

Africa

• Large volumes of underexploited waste

• “Biogas for Better Life” initiative aims to provide two

million household biogas digesters by 2020 to substitute

traditional cooking fuels reaching 10 million Africans

Europe

• More than 17,400 biogas plants of different types and sizes

• Biogas production has seen a significant growth in the last years,

mainly driven by the favorable support schemes in place in several

European Union Member States

Asia

• China has an estimated 100,000 modern biogas plants and 43million

residential-scale digesters

• The Medium-and-Long Term Development Plan for Renewable Energy

requires reaching by 2020 about 80 million household biogas plants

and 8,000 large-scale biogas

• In India there is a potential of 12 million biogas plant (~5 mio farm-

sized biogas plant)

• Nepal has one of the most successful biogas programs in the world,

with more than 330,000 household biogas plants installed

• Vietnam has 183.000 biogas plants

NG technologies in the Heavy Duty & Off-road sectors are the only reliable solution that helps reducing emissions and brings effective TCO reduction

10

CN

G /

LN

G

2019

1,0-1,2

2025 2030

1,7-1,8

0,3

19%

• Gas technologies (CNG and LNG) are the only effective and efficient alternatives to diesel in terms of

emissions and TCO reduction, with major OEMs already committed to gas-mobility products

• CNG/LNG distribution networks already widespread, with further development projects in many countries

• Push of Biomethane and bio-LNG to strengthen the use of gas to reduce emissions (CO2, NOx and GHC)

• The gas share is expected to grow to at least 25% of new sales in 2025 and 31% in 2030, with volumes up to

more that 5 times today

• All geographies will be impacted, with China already on the edge and many initiatives to sustain growth

worldwide

• An increasing number of Bus and Refuse Collector fleets worldwide will run on gas, with other public

transportation vehicles

• Package integration business model limited to North America and Latam markets

• Hydrogen focus has raised in the global political agenda thanks to most relevant automotive and gas

distribution Companies, with new international initiatives launched

• Hydrogen and fuel cells are increasingly appearing as a viable solution for on and off-road applications, as

long as electrification takes a more relevant diffusion

• First developments of hydrogen technologies on a full commercial scale are expected to start from 2025, with

highest initial rate in China and US, followed by Europe with a penetration of around 3-5% by 2030

• Hydrogen availability will be fostered by the deep transformation in the power sector driven by RES

technologies (wind, solar) diffusion

• Lower cost of Fuel Cell stacks and availability of re-fueling stations will be a key factor for H2 growth

Hyd

rog

en

30

150

2019 2030 2025

0

38%

Heavy Duty & Off-Road Sales

(# K)

Heavy Duty & Off-Road Sales

(# M)

Natural Gas is intrinsically clean compared to conventional

fuels as Diesel oil

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80%

0%

20%

100%

40%

60%

CO2 Ozone

promoters

Formaldehyde Aldehyde 1-3 Butadiene Aromatic

compounds

Reduction of pollutants

Green House effect Smog

Protochem Toxic Mutagenic

Cancerogenic

0,01

1,50

0,01

4,50

PM Nox

On-road emission testing

HD Diesel vs HD NG (g/km)

Ng buS – 3 Way Cat

Diesel Bus – DCF + SCr + urea

Source: TU Graz – Braunschweig cycle

-25 CO2 emission that reach – 50% with

biomethane

SAFE&CEC designs and produces different types of CNG stations

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Public and private stations

able to serve different CNG

vehicle.

Compact, Tailored solution for

high capacity. All equipment

installed inside the enclosure:

compressors, dryer, filters,

control panel, storage,

dispensers, etc.

Pipeline All-in-one RNG applications

Compression systems able

to work with all different

biogas upgrading plants in

term of technologies and

performances

Heavy duty compressors

suitable for 24/7

applications

• Up to 110kW power /

1.700 Sm3/h

PC & LCVs HD Upgrading

• Refueling time: 6-8 minutes (HD vehicle)

• Multiple compressors

(400kWh) and dispensers

to manage hundreds

vehicles / day

• Flow rate: up to 7.000 Sm3/

h / compressor

• 1 truck approx 140-200m3

of cng, station capacity up

to 1000m3/h

• Single compressor, max 2

dispensers

• Up to 400kW – 7.000

Sm3/h / compressors

• Refueling time: 5-6 (PC & LCVs)

Daughter

Mechanical and hydraulic

compressors are suitable for

daughter stations to meet the

customer needs.

SAFE supplies a turn-key

equipment for trailer

installations that doesn’t

need external power supply.

Mobile

• Single compressor, max 2

dispensers

• Multiple compressors and

dispensers

Gas infrastructure can be deployed according to different bsuiness models

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Public

refueling

station

Private

refueling

station

• Must be distributed along

main roads

• Target customers:

o Long-haul trucks

o Locally based fleets

(refuse collectors,

buses, …)

• Located on private

premises, servicing only

own vehicles:

o Municipalities

o Public transportations

o Commercial fleets

• Gas production companies

o Full vertical integration, from

extraction to the pump

• Gas wholesaling companies

o Re-sale of NG

• Company awns and runs the

station with own (eg.: RNG) or

purchased NG

• Station is run by a third part

service provider on a full service

basis

Highlights Business model

Gas supply

• Pipe

• Virtual

pipeline

SAFE&CEC international experience: pipeline stations

14 Turkey China

High flow rate CNG stations for trailers refilling, with 7.000 Sm3/h flowrate, enabling 1h refilling of a trailer,

SAFE&CEC designs heavy duty compressors for high flow at different inlet pressures (0-70 barg) for the highest

performances and efficiency, ensuring > 99% uptime

SAFE&CEC typical solution is based on “SW” compressors, characterized by

• High reliability

• Possibility to be driven by gas engine in remote locations, where the electric power supply is not available

MOTHER STATION

SAFE&CEC international experience: pipeline stations

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Few refueling buses at the same time

with shortest time refilling thanks to

high flow rate compressors and fast

filling dispenser

Slow filling buses where bus parking time

is transformed into useful gas filling time

with a sequential filling managed through

an automated system that receives the

information of bus arrivals by dispensers,

card readers or other sensors.

All buses are connected to the filling

points and refueled at the same time.

Dispensers without mass meter and

electronic head (“ESV”) are used for

this application.

FAST FILLING SEQUENTIAL FILLING SLOW FILLING

BUS STATION

SAFE designs three different bus stations to meet the best solution according to the performance, number of

buses, available room and available time for refueling.

Turkey Spain Italy

• Completely independent from external power sources

• The fastest way to implement a refueling network in a growing

market

• Light and heavy duty vehicles refueling

• Fully integrated mobile solutions for special applications (ground

storage refueling, industrial use)

• Compressor up to 110kW

• Discharge pressure: 300Barg

• Flow rate: up to 1650 Sm3/h

• Average stack volume: 5.000 m3

• High flexibility, low infrastructure need

• Suitable for fleet size up to 50 vehicles

SAFE&CEC international experience: mobile stations

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o THE FIRST CHOICE OF THE MAJOR GAS COMPANIES

ADVANCED TECHNOLOGY FOR MOBILE REFUELLING

Vehicles refueling

Bulk storage refueling

Waitrose: a successful case study

Waitrose & Partners supermarkets are progressively

converting their delivery trucks fleet

• 2013: Waitrose runs a fleet of 50 dual-fuel trucks

• 2015: move to more efficient dedicated CNG trucks

• 2027/2028: planned full conversion of the fleet to CNG

WINNERS

• Waitrose

o 40% cost savings

o 84% reduction of CO2 emissions

• CNG fuels, runs and services the CNG refueling

stations

• SAFE&CEC, provides the equipment for the mother

station, with following characteristics:

o Two 450kW compressors to ensure redundancy

o High throughput (7.000 Sm3/h), availability and

reliability

o Filling time of a trailer: 1h

and

• Entire citizenship that benefits from less pollution and

quieter vehicles circulating 17

United Kingdom

Clean Enery Fuels is the largest provider of CNG/LNG fueling services in North America

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Clean Energy Fuels Corp® (NASDAQ:CLNE) is North America’s largest provider of CNG and

LNG fueling services, including LNG transportation and turnkey CNG/ LNG fueling stations

with a sophisticated network of over 500 stations throughout North America

• 500+ CNG Stations – private and public

• 120+ LNG Station

• 1 Liquefaction Plant

• 24x7 Network Operation Center

• Full Remote Monitoring

• 140+ Technicians

• 5 Warehouses

• Workforce Automation

• Wireless Toughbooks

BUSINESS MODEL

• Designs and constructs the CNG/LNG

station

• Provides multiple options for station

operation from full service and maintenance

to on-call maintenance. Added services

include facility modifications as required

• Produces and sells CNG / LNG / RNG to be

used as a fuel in the managed stations

• Manages virtual pipeline to ensure off-grid

fuel supply

Customer example: managing a broad range of CNG stations to supply more than 6.000 vehicles

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139

178

13

26

Operational Construction In pipeline Total

Number of stations managed

Highlights

• > 6.000 CNG vehicles fleet,

• 25 stations open to public

• For every truck replaced with NG

o Avg reduction of usage of 30.000l of diesel / y

o Reduction of 14 metric tons of GHG

o Saving of 50% of fuel costs

• Starting to utilize RNG

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Thank you for your attention