Clean Energy Fuels Corp. Q4 2008 Earnings Call Transcript

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2009-03-05 18:08:23.0

Tags: Fleet, Truck, Call Transcript, Earnings, Clean Energy Fuels Corp., Telecom & Utilities, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from the line of Rob Brown – Craig-Hallum.

Rob BrownCraig-Hallum Capital

I think you mentioned earlier a number of, I think 40,000 truck fleets that you're working with on the refuse side. Could you give us a sense of what share of that fleet you have now in natural gas at this point and what your thoughts are about adoption rates in that fleet?

Andrew Littlefair

Sure, Rob. As you know, we're just starting in all these markets and I guess now, of the 200,000, it's probably just a little less than that, because that number includes transferred trucks. But let's call it 179,000 collection trucks, more or less. There's probably now today about 4,000 or 5,000, 4,500 on natural gas.

So the way I look at it and some of the fleets we're dealing with, we're still only 1 or 2 or 3% of their fleet. It's probably a little higher than that if you figure we're fueling about 2,000 trash trucks and we're working with customers that own 40,000 – it's a couple. It's a little less, but we're just starting with all of these.

And the way, Rob I think as you may know, the way you start is a company may have 1,000 trucks and they start at one yard and there they have 150 trucks and year one they do 15 or 20 and the next years they replace 10% of their fleet to do the next 15 or so. And this is the way it builds. It's very steady, though, once it starts. And so it's been important for our effort to get out there and we're literally now seeing deals all across the country.

It's not just a California phenomenon. It's Florida and New Jersey and Long Island and Chicago and Vermont, so we're seeing it everywhere and so I think it's important to let you know that we're dealing with companies that own 40,000 trucks, we got a lot more work to do but we're starting.

Rob Brown – Craig-Hallum Capital

And then you mentioned the 2010 standards sort of coming down the road. Are there – I guess are customers in this economic environment paying attention to that or is that driving change now, or is that something you see even holding off and sort of waiting until that comes to fruition?

 

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