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Rational Green Fleet Procurement
                 CrossChasm Technologies
Agenda
• 15 minute presentation
   –   Presenter Introduction
   –   Challenges and Study Objectives
   –   Study Participants
   –   Study Process
   –   Study Results
   –   Key Conclusions
   –   Future of Green Fleet Procurement (EV300)

• 15 minute expert panel discussion
   – Expert Panel Introduction
   – Open Discussion
Presenter: Matthew Stevens
•   CEO at CrossChasm Technologies
•   2010 Waterloo Top 40 Under 40
•   Ph.D. from the University of Waterloo: Hybrid Vehicle Design
•   Member of Electric Mobility Canada's Technology
    Development Committee

    Email: mstevens@crosschasm.com
    Phone: (519) 342-7385
Challenges and Objectives
• With new technologies, only the purchase price is known.
• Unknowns that add risk include:
   – Fuel Costs                               Barriers to purchase and
       • Price of fuel                          market penetration!
       • Real-world fuel consumption
   – Maintenance Costs
   – Ability to perform the desired tasks


 This case study investigates reducing or eliminating the risk of
  fuel consumption and ability to perform the desired tasks.
Study Participants
• City of Ottawa
   – Population >1.1 Million
   – Green procurement initiative in place
   – Hybrid vehicles in use
• City of Waterloo
   – Population >120,000
   – Informal green fleet initiative
   – Hybrid vehicles in use
• University of Waterloo
   – Informal vehicle procurement process
   – No green fleet initiative
Study Process


                                                  Final Report
                                       Custom
                                       Business
                         Fuel          Cases
                         Consumption
                         Assessments
               Data
               Logging

     Initial
     Survey
Study Process
   What is your current fuel consumption?


                                                    Final Report
                                         Custom
                                         Business
                           Fuel          Cases
                           Consumption
                           Assessments
                 Data
                 Logging

       Initial
       Survey
Study Results:
What is your current fuel consumption?

                              17
                                                                                               Conventional                              Hybrid
 Fuel Consumption (L/100km)




                              15
                                                                                                                                                                                                  Real-World
                                                                                                                                                                                                  Sticker
                              13

                                       +51%                 +5%
                              11                                               +48%
                                                                                                   +13%

                              9                                                                                        +43%



                              7
                                                                                                                                          +68%                +57%                +51%               +49%                +46%


                              5
                                       99km/h ↑           103km/h ↑          105km/h ↑            128km/h ↑           129km/h ↑          107km/h ↑           122km/h ↑          137km/h ↑           132km/h ↑           101km/h ↑
                                      16km/h ≈             37km/h ≈            16km/h ≈            24km/h ≈            24km/h ≈           23km/h ≈            24km/h ≈            25km/h ≈            30km/h ≈            27km/h ≈
                                       45% I                15% I               41% I               32% I               28% I              20% I               20% I               21% I               11% I               15% I
                              3
                                   Ford Escape Conv-   Ford Escape Conv-   Ford Escape Conv-   Pontiac Vibe Conv-   GM Cobalt Conv-   Ford Escape Hybrid- Ford Escape Hybrid- Ford Escape Hybrid- Ford Escape Hybrid- Ford Escape Hybrid-
                                       6cyl-3.0L           6cyl-3.0L           4cyl-2.3L            4cyl-2.4L          4cyl-2.2L           4cyl-2.5L           4cyl-2.5L           4cyl-2.3L           4cyl-2.5L           4cyl-2.5L
Study Process
What could your future fuel consumption be?


                                                      Final Report
                                           Custom
                                           Business
                             Fuel          Cases
                             Consumption
                             Assessments
                   Data
                   Logging

         Initial
         Survey
Study Results:
What could your future fuel consumption be?
                                             BEST Case Scenario!
                                     7,000                                                                        $1.20/L
                                                                                                                  $1.00/L
                                     6,000                                                                        $0.80/L
    Projected Annual Fuel Cost ($)




                                     5,000

                                                                                             $2,852 in annual fuel savings
                                     4,000
                                                                                             (Payback Period: 3.5 years)
                                     3,000


                                     2,000


                                     1,000


                                        0
                                                 Actual:          Simulated:          Simulated:            Simulated:
                                               Ford Escape   Hybrid Toyota Camry   Hybrid Ford Escape   Hybrid Toyota Prius
Study Results:
What could your future fuel consumption be?
                                             WORST Case Scenario!
                                     7,000                                                                         $1.20/L
                                                                                                                   $1.00/L
                                     6,000                                                                         $0.80/L
    Projected Annual Fuel Cost ($)




                                     5,000


                                     4,000


                                     3,000

                                                                                  $356 in annual fuel savings
                                     2,000
                                                                                  (Payback Period: 28 years!)
                                     1,000


                                        0
                                                Actual:          Simulated:            Simulated:            Simulated:
                                              Ford Escape   Hybrid Toyota Camry     Hybrid Ford Escape   Hybrid Toyota Prius
Key Conclusions
• Fuel consumption was highly dependent on usage patterns,
  ranging from 6% - 68% above the advertised “sticker” value
• Fuel consumption estimates were accurate to within 4%
  (much better than “sticker” estimates)
• Both positive and negative business cases for hybrid vehicle
  purchases were identified

  Current procurement practices that are based upon lowest
  purchase prices hinder the widespread adoption of hybrid,
                 electric and plug-in vehicles
Green Fleet Summary Report
• Report will be emailed to you at the end of this presentation
• Webinar video and report will be made available online at
  www.crosschasm.com
Future of Green Fleet Procurement
• Purchase decisions based upon lowest total cost of ownership
  can lower the operational cost of a fleet while achieving
  substantial emissions reductions.
• Accurate fuel consumption estimates can be calculated per
  vehicle, prior to purchase, given existing vehicle usage pattern

                          EV300 Initiative:
      300 electric vehicles on the road in the GTA by 2012,
  purchased by public and private fleets through a buyers’ club
   offering electric vehicle repair services, dedicated charging
           infrastructure and performance monitoring
Expert Panel Discussion
• Ben Marans, Manager, Grants & Special Projects, Toronto
  Atmospheric Fund

  Email: BMarans@tafund.org
  Phone: (416) 393-6367

• John Lyon, Fleet Challenge Ontario

  Email: jlyon@fleetchallenge.ca
  Phone: (905) 342-2137

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Thinking of Greening Your Fleet? (Webinar Presentation)

  • 1. Rational Green Fleet Procurement CrossChasm Technologies
  • 2. Agenda • 15 minute presentation – Presenter Introduction – Challenges and Study Objectives – Study Participants – Study Process – Study Results – Key Conclusions – Future of Green Fleet Procurement (EV300) • 15 minute expert panel discussion – Expert Panel Introduction – Open Discussion
  • 3. Presenter: Matthew Stevens • CEO at CrossChasm Technologies • 2010 Waterloo Top 40 Under 40 • Ph.D. from the University of Waterloo: Hybrid Vehicle Design • Member of Electric Mobility Canada's Technology Development Committee Email: mstevens@crosschasm.com Phone: (519) 342-7385
  • 4. Challenges and Objectives • With new technologies, only the purchase price is known. • Unknowns that add risk include: – Fuel Costs Barriers to purchase and • Price of fuel market penetration! • Real-world fuel consumption – Maintenance Costs – Ability to perform the desired tasks This case study investigates reducing or eliminating the risk of fuel consumption and ability to perform the desired tasks.
  • 5. Study Participants • City of Ottawa – Population >1.1 Million – Green procurement initiative in place – Hybrid vehicles in use • City of Waterloo – Population >120,000 – Informal green fleet initiative – Hybrid vehicles in use • University of Waterloo – Informal vehicle procurement process – No green fleet initiative
  • 6. Study Process Final Report Custom Business Fuel Cases Consumption Assessments Data Logging Initial Survey
  • 7. Study Process What is your current fuel consumption? Final Report Custom Business Fuel Cases Consumption Assessments Data Logging Initial Survey
  • 8. Study Results: What is your current fuel consumption? 17 Conventional Hybrid Fuel Consumption (L/100km) 15 Real-World Sticker 13 +51% +5% 11 +48% +13% 9 +43% 7 +68% +57% +51% +49% +46% 5 99km/h ↑ 103km/h ↑ 105km/h ↑ 128km/h ↑ 129km/h ↑ 107km/h ↑ 122km/h ↑ 137km/h ↑ 132km/h ↑ 101km/h ↑ 16km/h ≈ 37km/h ≈ 16km/h ≈ 24km/h ≈ 24km/h ≈ 23km/h ≈ 24km/h ≈ 25km/h ≈ 30km/h ≈ 27km/h ≈ 45% I 15% I 41% I 32% I 28% I 20% I 20% I 21% I 11% I 15% I 3 Ford Escape Conv- Ford Escape Conv- Ford Escape Conv- Pontiac Vibe Conv- GM Cobalt Conv- Ford Escape Hybrid- Ford Escape Hybrid- Ford Escape Hybrid- Ford Escape Hybrid- Ford Escape Hybrid- 6cyl-3.0L 6cyl-3.0L 4cyl-2.3L 4cyl-2.4L 4cyl-2.2L 4cyl-2.5L 4cyl-2.5L 4cyl-2.3L 4cyl-2.5L 4cyl-2.5L
  • 9. Study Process What could your future fuel consumption be? Final Report Custom Business Fuel Cases Consumption Assessments Data Logging Initial Survey
  • 10. Study Results: What could your future fuel consumption be? BEST Case Scenario! 7,000 $1.20/L $1.00/L 6,000 $0.80/L Projected Annual Fuel Cost ($) 5,000 $2,852 in annual fuel savings 4,000 (Payback Period: 3.5 years) 3,000 2,000 1,000 0 Actual: Simulated: Simulated: Simulated: Ford Escape Hybrid Toyota Camry Hybrid Ford Escape Hybrid Toyota Prius
  • 11. Study Results: What could your future fuel consumption be? WORST Case Scenario! 7,000 $1.20/L $1.00/L 6,000 $0.80/L Projected Annual Fuel Cost ($) 5,000 4,000 3,000 $356 in annual fuel savings 2,000 (Payback Period: 28 years!) 1,000 0 Actual: Simulated: Simulated: Simulated: Ford Escape Hybrid Toyota Camry Hybrid Ford Escape Hybrid Toyota Prius
  • 12. Key Conclusions • Fuel consumption was highly dependent on usage patterns, ranging from 6% - 68% above the advertised “sticker” value • Fuel consumption estimates were accurate to within 4% (much better than “sticker” estimates) • Both positive and negative business cases for hybrid vehicle purchases were identified Current procurement practices that are based upon lowest purchase prices hinder the widespread adoption of hybrid, electric and plug-in vehicles
  • 13. Green Fleet Summary Report • Report will be emailed to you at the end of this presentation • Webinar video and report will be made available online at www.crosschasm.com
  • 14. Future of Green Fleet Procurement • Purchase decisions based upon lowest total cost of ownership can lower the operational cost of a fleet while achieving substantial emissions reductions. • Accurate fuel consumption estimates can be calculated per vehicle, prior to purchase, given existing vehicle usage pattern EV300 Initiative: 300 electric vehicles on the road in the GTA by 2012, purchased by public and private fleets through a buyers’ club offering electric vehicle repair services, dedicated charging infrastructure and performance monitoring
  • 15. Expert Panel Discussion • Ben Marans, Manager, Grants & Special Projects, Toronto Atmospheric Fund Email: BMarans@tafund.org Phone: (416) 393-6367 • John Lyon, Fleet Challenge Ontario Email: jlyon@fleetchallenge.ca Phone: (905) 342-2137