So really excited, really excited about the team that we’ve built,
not only the existing people, but the people that we’ve recruited
and hired over the last 3, 4, 5 years. And really think we’ve got
the best team in place to execute on our plan and also get some of
that go get business. I want to be mindful of the time, to make
sure that there’s enough questions. I’ll just stop briefly on page
So in the transportation fuel market that we’re targeting,
45.5 billion gallons of diesel fuel are consumed each year.
The industry, the R&G industry will probably produce four to
500 million gallons next year, plenty of headroom to grow our
product in heavy duty transportation. And the other side of page 12
talks about the regulatory market, where Congress enacted in 2005
and updated the program in 2007, the renewable fuel standard
program, and that obligates refiners to begin to transition over to
And refiners are the obligated parties that have to purchase the D3
RIN credit that we create by placing R&G into a vehicle fuel.
And Congress had mandated, and these are gasoline gallon
equivalent. Their program is actually an ethanol gallon. If you see
a little disparity, for those of you that are knowledgeable about
the program. So Congress wanted a mandated refiners purchase,
8.9 billion gallons of RIMs in 2021, grown to
10.6 billion gallons in 2022.
And again, we’re only at a fraction of that today, at producing
about 500 million gallons next year. So plenty of room to
continue to grow this as a transportation fuel, plenty of room in
the regulatory environment to continue to grow for the industry.
And last thing I should mention is, this is all proven technology.
There’s over 100 R&G facilities operating in the US today.
There is no special sauce, we don’t have to wait for any
It is motors, compressors, and pushing gas mechanically through
membranes to clean it up. And on the vehicle side, there’s 60 to
70,000 of these renewable natural gas engine trucks on the road
today, capable of using this fuel. And, and what’s interesting
about why we’re so excited about transportation fuel is, not only
the market to grow and displace diesel and the supportive
regulatory environment and all those corporate ESG tailwinds that
you see out there. But it’s really rare that we have a product for
these fleet customers, where not only can they achieve remarkable
sustainability benefits in their carbon footprint, but it costs
them less than diesel.
Our R&G, when we’re selling it to fleets, such as UPS and waste
management and GFL, and others in the industry, it costs 40 to 70%,
less per gallon than diesel. And they see incremental truck
paybacks when they purchase these trucks. In California, it’s
measured in months and the spread versus diesel and across the
country, it’s within three years. And I don’t know how many of you
read that Bill Gates book, How To Avoid a Climate Disaster, and it
talks about the green premium.
We have a green discount product for these fleets, and really think
it’s just a market awareness issue and really excited. Cummins just
announced a 15 liter engine, which we think maybe was keeping some
people on the sidelines for driver retention issues. The 12 liter
that’s out there now already works well enough, but think that 15
liter could really be interesting, in terms of spurring new
But I also want to mention, we are technologically agnostic, right?
We are at the forefront to participate, if hydrogen fuel cell
trucks begin to get adopted in our fleet customers. And by the way,
there’s not going to be one silver bullet technology for
transportation emissions, which is 30% of the greenhouse gas
emissions in the US. We think there’s terrific technologies for
different applications. Really excited that we’ve got a right now
solution to a right now problem, that’s working in the market.
And we’ve got our eye to the future, should some of those other
technologically technologies develop. And again, we could also take
our R&G and participate as renewable electricity.
Electrification fields, that can have some more challenges out
there, but we’ll be there. As I mentioned earlier, renewable
natural gas is a terrific renewable resource. And we’re going to
capture the most value of it.
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