Historically Low NatGas Prices Spurring The Development Of CNG And LNG Powered Transportation Fleets According To Industry Experts

• On 5:00 pm EDT, Monday September 21, 2009

67 WALL STREET, New York - September 21, 2009 - The Wall Street Transcript has just published its Alternative Energy/Clean Energy/Power Generation/Utilities Report report offering a timely review of the sector to serious investors and industry executives. This 83 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Long Term Perspective on Alternative Energy Industry -- Leading Indicators for Alternative Energy Components Companies -- Mergers and Acquisitions in the Alternative Energy Industry -- Break Even Business Fundamentals for Carbon Free Energy Providers -- Development of Carbon Free Energy Production Infrastructure -- NAT GAS Act -- New Players in the Alternative Energy Industry -- Solar Power Cell Manufacturers Market Strategy -- Demand Response for Raw Materials for Solar Cell Production -- Alternative Energy Investment Opportunities -- Multiple Stock Winners in Carbon Free Production Industry -- Government Funding of Alternative Energy Power Providers -- Chinese Solar Energy Companies -- Alternative Energy Hedge Fund Investors -- Commodity Cycles -- Determinants of Market Valuations in the Alternative Energy Production Industry -- Carbon Emissions Statistics -- Energy Efficiency Statistics -- Innovations in Solar and Wind Power Generation -- Business Economics for Methane Based Power Generation -- Electric Vehicles Projections and Statistics-- Cap and Trade Projections and Statistics -- Development of Battery Technology -- Regulatory Environment Developments for Solar, Wind, and Alternative Energy -- Hybrid Vehicles Development and Sales Projections

Companies include: Tanfield (TAN.L); Smith Electric Vehicles U.S.; Valence (VLNC); Spire (SPIR); Newport (NEWP); MYR Group (MYRG); Primoris (PRIM); Tetra Tech (TTEK); EnerNOC (ENOC); Comverge (COMV); EnergyConnect (ECNG.OB); Calgon Carbon (CCC); and Ener1 (HEV); Westport Innovations (WPRT); Clean Energy Fuels (CLNE); Fuel Systems Solutions (FSYS); FuelCell Energy (FCEL); FEI Company (FEIC); Veeco (VECO); AT&T (ATT); Landi Renzo (LR.MI); Teleflex (TFX); Royal Dutch Shell (RDS.A); Wal-Mart (WMT); Pepsico (PEP); FuelMaker; Chevrolet; GM; Honda (HMC); Itron (ITRI); Siemens (SI); American Superconductor (AMSC); GE (GE); and ABB (ABB);

In the following brief excerpt from just one of the 23 interviews the 83 page report, two equity analysts discuss the outlook for the CNG, LNG and other alternative fuels sector and pick stock winners for investors.

Eric Stine is a Senior Research Analyst with Northland Securities, where he focuses on investment opportunities within clean technology and alternative energy. Mr. Stine has been in the securities industry since 1994. He joined Northland Securities in 2007 and his current coverage list includes companies focused on alternative fuels and vehicles, distributed generation, energy-efficient products and water efficiency. Prior to joining Northland, Mr. Stine was a Senior Equity Trader with Miller, Johnson, Steichen, Kinnard and R.J. Steichen. He holds a B.S. in finance from Miami University in Oxford, Ohio.

Robert Brown is a Senior Research Analyst in the equity research department at Craig-Hallum Capital Group LLC, where he covers alternative energy and cleantech companies. Mr. Brown holds a B.S. in aerospace engineering from the University of Minnesota and an MBA from the University of Minnesota Carlson School of Management. He is a CFA charterholder.

TWST: Which large fleet operators do you think could be close to a deal with one of the alternative transportation companies?

Mr. Brown: You're starting to see the large fleet operators move from a test mode of one or two vehicles to an either full- or large-scale implementations. AT&T (ATT) was certainly the biggest announcement in 2009. AT&T is working on rolling out a total of 8,000 vehicles and that's starting this year. They're converting a large portion of their fleets to run on natural gas due to the economic payback, emission reduction benefits and reduction in foreign oil use. I think these benefits apply to most fleet operators, and there are several other fleets close to doing what AT&T had announced. For example, J.B. Hunt, which is a large trucking fleet operator, was recently awarded funding for 262 trucks as part of the economic stimulus program. I think it really applies to lots of fleets, and many fleets including Wal-Mart are testing it. I know Target has got some contracts with trucking companies that use green vehicles. I would imagine there are several other large national fleets that would adopt this as well.

TWST: Eric, what is the cost difference between regular and alternative transportation for a large fleet operator like AT&T?

Mr. Stine: First, I should say that AT&T has stated that they are involved with natural gas service providers in support of their plan. It's likely that Clean Energy is involved with AT&T, although that form has yet to be determined. So it's going to depend on the market and how something is structured. But certainly natural gas does provide a pretty meaningful discount at the pump to gasoline or diesel just based on the economics. Right now the commodity cost spread, which would be the ratio of oil to natural gas, is at about 25-to-1. That's at a historically high level, and so basically fueling your vehicle with natural gas provides a significant discount and payback for a fleet operator.

TWST: Eric, of the alternative fuel companies you cover, which is best positioned to benefit from some of the positive changes we are seeing in the macro environment and why?

Mr. Stine: Well, of these companies, it's pretty tough to choose, although I will. I think that they all will benefit. Number one, they really work hand in hand, and they all address different issues. Clean Energy, I think, is in a great spot. With the increased use of CNG and LNG, you are going to need the infrastructure, and you are going to need the supply of fuel. They currently are addressing this with 180-plus stations right now and continue to build that out. So certainly they are going to be a big part of that. Fuel Systems (FSYS), on the light-duty side, has got a dominant market position in Italy and other international markets. I think that they will be a big part of this market as it develops. But if had to pick, I'd say Westport because they are the dominant provider of medium- and heavy-duty natural gas engines. Natural gas is well established in transit applications; it's growing in refuse. But I think it's the heavy-duty truck side that is an enormous opportunity, which really is at the very beginning stages. I think that if you believe that natural gas is part of a solution, even if it's mid-single0digit percentage penetration of the overall heavy-duty truck market, it would be very meaningful for Westport.

TWST: And what's your view, Rob?

Mr. Brown: I agree with what Eric says. I think they all benefit in their own way from this market developing, and I think Westport's unique position gives them a leg up, especially as I think the market will develop from the heavy-duty side in the U.S. What's interesting is Fuel Systems has been more of an international opportunity, it really addressed the international market development. And I think they are in a very strong position if the U.S. starts to develop, given the small penetration rates here.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 83 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

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