MARKETING

The market in the U.S. for clean, vehicle-grade LNG today revolves around Los Angeles, California. California has solidly adopted LNG as a vehicle fuel and has passed legislation and regulations supporting and promoting its use in the state. This market has been the focus of ALT’s efforts for more than a decade.

Los Angeles, (including urban portions of the city), Orange County, Riverside and San Bernardino counties collectively were designated the South Coast Air Quality Management District (SCAQMD). This area of 10,743 square miles is home to over 16 million people (the second most populated urban area in the United States) and has the most polluted air in the United States today. California encourages and provides millions of grant dollars to assist individual and fleet owners to acquire vehicles that are LNG powered.

ALT's primary customers in California are municipal fleets such as Orange County buses and garbage trucks, Orange County Transportation (city buses), as well as commercial vehicles like those belonging to United Parcel Service in the Los Angeles area, and garbage-disposal fleets up and down the California coast.

DISTRIBUTION

Special cryogenic tank trucks are used to transport ultra-cold liquefied natural gas from the manufacturer to small-scale storage for end users. ALT owns several of these specialty trailers, and through its close relationship with the Jack B. Kelley trucking company, has access to one of the nation's largest fleets of these trailers.

ALT has experience and expertise in obtaining and installing LNG fuel dispensing equipment, and understands federal government grants that facilitate conversion of vehicles to use LNG. The Company is therefore able to assist new customers to quickly begin using LNG fuel.

NEXT STEPS

ALT is set to move its product line to the next level in the current market place. With demand due to explode within the next few years, the Company is planning additional LNG production capacity.  Plans include exploring the use of methane gas from southern California landfills, new pipeline-fed LNG plant construction in the Southern California/Arizona region, and other landfill gas projects are in the initial planning stages with outside partners.

Our vision is to continue streamlining operations to reduce expenses thereby creating additional margins to fund expansion projects. With this additional supply, increased margins, and a commitment to quality customer service, ALT will continue to be the supplier of choice for vehicle-grade LNG well into the future.