I am pretty sure they divided the workload from their existing station and new station. From what I could estimate the "old" station was 75% of capacity to new one so around 7.5 gge. New one is at 10M gge. Combined its about 17.5 M gge. Their average customers is around 400,000 to 500,000 gge/annual. So I would think once they have 35 customers, they would need a new station. They have 22 customers from what I can estimate from their web site.
This customer spent $250-$300k to fit its burners and is saving $400k annual on bills. The ROI seems good to me. I believe they have two hospitals now and probably more of these types of businesses in the future. My numbers are approximate, but if you want exact numbers, see article on their web site.
This suggests that NG use is growing faster than what we would think from CLNE revenue numbers. Is CLNE going to see an explosion in revenue soon?
Have not read your input lately. What is your out look for drys and orig? I know you used to post in detail few years back.
NG advantage will accept customers at $750,000/ annual basis. So that means any one with fleet of 20 trucks can fill their trucks with one of these trailers delivered to their warehouse. The way I see it is to open NG advantage like stations and then have satellite locations with free standing trailers within 100/150 miles. Not sure if this concept would work.
This is one of the customers of NG Advantage. Almost equal to what 22 trucks consume with one customer.
Imagine how many business there are like this where there is no NG pipeline. I would think there would be another station like this before year is out. The other thing I learned is that these trailers could be used to fill vehicles and trailers have 8000 GGE so they can fill daily 40 trucks or for a smaller fleet, it could last a week if there is only 3 trucks. This approach would reduce investment in stations and still make money for CLNE.
"Jim Greenough, the Director of Support Services, says that
the Medical Center burns 400,000 to 450,000 gallons of #2
fuel oil a year. The Medical Center’s current boiler plant was
built 11 years ago with three Johnston 509 - 400hp boilers
with Model AR burners. One of these boilers is running
Gr8. Thanks for recheck. I just did a quick math.
I was off. Thanks for help. I was looking at each tank, but trailer is more than one tank it seems. Each trailer is 2800 GGE.
They are 355000 cub. ft. so it comes to 2800 gge for each trailer. & trailers is equal to 20000 gge*7*52= 7,100,000 gallons a year. So they are almost at 70 % to 80% capacity for new station. Here is a you tube.
At least that would help management get some credibility. They are somewhat dubious when they say they know fleets, the know GGE, but they do not know how many trucks?
This is all I could come up with from NG Advantage. They say that some of customers use 7 trailer loads in a single day. So I guess, this new station has gotten a real good start at 1.5 million gge based on seven trailers. Now, I do not know if each trailer has one of these tanks on it or several. Noahthebuilder has more visibility on this then rest of us.
GGE at 3,600 psi (25 MPa) is 0.51 cubic foot (14.4 Liter) so it each of NG Advantage trailer is 582 GGE
8384/14.4= 582. So 7 trainers on daily basis is 582*7*7*52= 1,482,936 GGE on an annual basis.
This is what I could come up with Noah would know better. This is what I could come up with. Others pls. review to see if my math is correct.
The new station in Pembroke is central to that virtual pipeline. NG Advantage has invested in a fleet of over-the-road trailers that are specially equipped with massive 8,384-liter Hexagon Lincoln CNG cylinders.
I was thinking may be two upgrades as compared to 10 last qtr. I do not think they will complete md not open any more. They stopped that planned completion. Many of these 45/48 may be for third party like transit, airport etc.
Here are few reasons that come to mind.
1. Hangover from building and betting on ANGH stations. Still a lot of dead investments of $90 million. Costing around $7 million in cost of capital.
2. They can pull trigger on new LNG plants due to optimism of CEO which may costs 100 million.
3. Dynamic market, as CNG success takes hold oil may get less expensive or as rail adopts LNG the cost of NG may shoot up.
4. Un proven truck engine repair costs. Look at WPRT warranty reserve for 8.9 liter engine.
5. Selling costs too high for a concentrated end market. 1800 fleets do not need 80 sales and support staff, but it guess they have that much.
6. What if electric technology takes over with some breakthrough.?
7. What if one truck accident happens with LNG ?
8. What if adoption is slow and they need to raise more cash as interest rates are going up?
I can go on for 10 more but you get an idea.
This is for 12 month increase 48 million. Six month is 24 million annualized. Real numbers could be close to 20 million.
One easy way I think about this is that they will open 47 more stations for next six months according to CC. That means 8 stations per month. If each station is 500,000 gge to start per their CC, they have 4,000,000 gge increase each month. That is a fantastic rate of 48 million gge / annual. Easy math, will see if this works out in real life as they disclose next quarters.