Challenges & Opportunities for Increased Production of

Renewable Natural Gas (RNG) September 26, 2017

Johannes D. Escudero Founder & CEO

Coalition for Renewable Natural Gas

PRESENTATION OVERVIEW

u RNG Coalition Intro: Members, Mission & Priority u RNG Overview: Product, Feedstock Sources u RNG Production: Past, Present & Future u Increased RNG Production: Impediments & Solutions

THE COALITION FOR

RENEWABLE NATURAL GAS

RNG COALITION - INTRO

u Policy Platform, Advocacy & Education Voice for RNG Industry in North America

u Non-Profit Organization u Each Industry Sector Represented u Members Produce 90%+ of RNG in North America u 98% of RFS-Qualified Cellulosic Biofuel u Industry Competitors Collaborating for Common Good

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RNG COALITION - LEADERSHIP

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RNG COALITION - GENERAL MEMBERS

Dallas-Fort Worth CLEAN CITIES

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RNG COALITION - NON PROFIT MEMBERS

MISSION

The RNG Coalition advocates for increased renewable natural gas development and deployment so that present and future

generations will have access to domestic, renewable, clean fuel and energy supply.

ADVOCACY & EDUCATION PHILOSOPHY

Advocacy & Education informs Public Policy. Public Policies influence Markets.

Markets drive Demand. Demand determines Value. Value impacts Revenue.

Revenue affects Sustainability.

PRIORITY

*Enable the RNG industry to develop & double the number of operating RNG projects

in North America by 2025.

*based on number of RNG projects operating in 2015

What is RNG?

RNG OVERVIEW

Renewable Natural Gas is a product gas derived from the

natural decomposition of organic materials

in renewable waste streams.

Renewable Natural Gas is commonly referred to as:

RNG or Biomethane or

Upgraded Biogas. (Definitions available for:

biogas, conditioned biogas, biomethane, RNG, R-CNG, R-LNG)

RNG is completely interchangeable with

Natural Gas.

RNG (Renewable) Natural Gas (Geologic)

What is RNG produced from?

POTENTIAL SOURCES OF ORGANICS USED TO PRODUCE RNG INCLUDE: ~ •

FOOD WASTE WASTEWATER 66.5 MILLION 17,000 TONS/ YEAR FACILITIES

AGRICULTURE WASTE

8,000 LARGE FARMS AND DAIRIES

LANDFILL GAS 1,750

LANDFILLS

RNG OVERVIEW – FEEDSTOCKS

u WWTP / MSW (100,000 residents); AD (500 head of cattle or as low as 150 when mixing with organics); Other sources include Forestry Biomass and Forest Product Residue, FOGS

RNG Production: Past, Present, Future

RNG PRODUCTION - PAST

Historically, state RPS programs have driven production of

RNG as a clean, renewable, electric power to displace coal and

complement geologic natural gas.

1982 1st RNG Project Developed (Still Operating):

Fresh Kills Landfill (NY)

1982-2011 RNG Coalition Founded in 2011: 31 RNG Projects Operating

(Nearly 100% Off-Site Electric Generation)

RNG PRODUCTION - PRESENT

Increasingly, federal, state/provincial programs (RFS, LCFS, CFP) are driving

production of RNG as ultra-low carbon fuel

for a new generation of medium- and heavy-duty Natural Gas Vehicles.

(Since 2014, RNG = 98% of RFS-qualified Cellulosic Biofuel

2011-2017 26 New RNG Projects Developed: 57+ RNG Projects Now Operating

2017 RNG COALITION MEMBERS

on track to produce =

375,382,434 EGE of RNG

375,382,434 (EGE): 81,000,000 = Off-Site Power Generation (24%)

294,382,434 = Transportation Fuel (76%)

RNG PRODUCTION – PRESENT / FUTURE

2017-2018 26 New RNG Projects being Developed; 16 Other RNG Projects being Expanded

RNG PROJECTS OPERATE OR ARE UNDER CONSTRUCTION IN

WA ,. MT OR MN

WI NY

NE PA

CA KS

OK AR

TX LA

RNG - NORTH AMERICA

27 U.S. STATES AND 2 CANADIAN PROVINCES INCLUDING:

2018 RNG COALITION MEMBERS

on track to develop 26+ new projects =

622,409,690+ EGE of RNG

622,409,690 (EGE): 81,000,000 = Off-Site Power Generation (13%)

*541,409,690 = Transportation Fuel (87%) *16x the RFS volume (2014)

RNG PRODUCTION FORTRANSPORTATION FUE ~ GREW BY sx 7 IS ON PACE TO TRIPLE IN VOLUME I BETWEEN2013AND2015 BY2018 25.9 M EGE - VS - 139.8 M EGE - - --VS --

541.4 M EGE PROJECTED

2018-2030 RNG POTENTIAL (CALIFORNIA):

200 Dairies + 100 WWTP + 50 Landfills = + 500 million – 2 billion DGEs of RNG Enough RNG to displace 15-60%+ of Diesel consumption (CA)

or power 2-3 million homes annually

IN-STATE OPERATING RNG-to-Transportation Fuel

Production Facilities (CALIFORNIA)

3 Altamont (Landfill); Sacramento BioDigester (AD);

Blue Line Biogenic CNG (AD)

Increased RNG Production: Impediments & Solutions

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+ RNG PRODUCTION - IMPEDIMENTS

. Production Costs (vs. Low NatGas Price)

. Market Uncertainty

. Access to Investment Capital

. Policy Incongruence

. Pipeline Access

. Vehicle Demand (vs. Diesel, EVs)

+ RNG PRODUCTION - SOLUTIONS

1. Advocate for Funding to Advance Technological Developments that Reduce RNG Production & Infrastructure Costs

+ RNG PRODUCTION - SOLUTIONS

2. Educate Stakeholders (General Public, Industry & Elected Officials) about the Economic & Environmental Benefits realized through increased Development & Deployment of Renewable Natural Gas

+ RNG PRODUCTION - SOLUTIONS

3. Advocate for greater certainty of Public Policies that shape RNG Markets, determine RNG demand & drive RNG production – this will unlock greater access to investment capital.

+ RNG PRODUCTION - SOLUTIONS

4. Advocate for Public Policies to recognize the economic value and global environmental benefits associated with increased RNG utilization, regardless of geographic origin of development

+ RNG PRODUCTION - SOLUTIONS

5. Advocate for monetary incentives and reasonable regulations that enable greater pipeline access for and transportation of RNG

+ RNG PRODUCTION - SOLUTIONS

6. Advocate for technology neutral funding that will also incentivize and or enable diesel owners to purchase new or otherwise convert their fleets to natural gas engines fueled by RNG

THE COALITION FOR

RENEWABLE NATURAL GAS

THANK YOU!

Johannes D. Escudero Founder & CEO

(o) 916.588.3033 ext. 1 (c) 916.520.4RNG (4764)

(e) Johannes@RNGCoalition.com (w) RNGCoalition.com

@CoalitionForRNG

http:RNGCoalition.commailto:Johannes@RNGCoalition.com

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