Frost & Sullivan

Frost & Sullivan Commends Heckmann Corporation for its Strategic Decision to Invest in Alternative Fuel Vehicles


Source: Frost & Sullivan

Substantial deployment of natural gas vehicles offers cost advantages to the company and sets an example for other private fleets

MOUNTAIN VIEW, Calif., April 3,2012 /PR Newswire/ -- Based on its recent analysis of the private commercial fleet market, Frost & Sullivan recognizes Heckmann Corporation (NYSE: HEK) with the 2011 North American Frost & Sullivan Award for Green Excellence.  The company, through its Heckmann Water Resources, or 'HWR', segment, has ordered 200 liquefied natural gas ('LNG') tractor units for its fleet.  To date, no other private fleet has come close to an order of this magnitude.  The next-largest recent purchase by a private North American fleet was for 50 units.

While natural gas vehicles have generated a lot of press in recent years, the lack of sufficient LNG fueling infrastructure to support major commercial fleet deployment has been the greatest hindrance to the wider adoption of these vehicles.  Heckmann has overcome this restriction by working directly with a leading LNG supplier to provide fueling in lockstep with its vehicle acquisition schedule.  In so doing, Heckmann has set an example for other fleets and fueling station providers.

'The natural gas vehicle market is still in its early stages; as such, any fleets that take an early adopter stance by placing large orders serve to support vehicle manufacturers and the related systems and components supplies in deriving sufficient sales to start regular production runs,' said Frost & Sullivan Commercial Vehicle Research Global Director Sandeep Kar.  'When this tipping point occurs, economies of scale can be realized and total product costs can be reduced, thus stimulating further market demand.'

As a result of Heckmann's order for 200 LNG commercial vehicles, the company expects to replace demand for 5 million gallons of diesel fuel annually.  According to the EPA, each gallon of diesel releases 22.2 pounds of CO2, while the estimated CO2 release from an equivalent amount of natural gas ('DGE') is 20-25 percent lower.  This means Heckmann will reduce its carbon emissions by more than 20 million pounds per year.

The short delivery schedule--30 deliveries in 2011, with the remainder by the end of 2012--leads to larger production volumes, which support cost savings.  When Heckmann takes final delivery of these vehicles, the company will be operating the largest private fleet of LNG commercial vehicles to date, and it will be doing so with a greener image.  Also, by utilizing a fuel that will be locally sourced, the company will support some of its own customers and further reduce transportation-related costs and emissions resulting from transporting fuel to the retail source.

Overall, Heckmann deserves recognition for efforts to lead the way to a better, more stable future.  Besides the reduction in CO2 emissions from these vehicles versus their diesel counterparts, Heckmann has set an example for other fleets in terms of reducing operating costs.  The fuel cost advantage of these vehicles will lead to a sizable reduction in operating expenses.  In today's market, oil price volatility has resulted in significant uncertainty for fleets when it comes to fuel cost calculations.  As commercial vehicles consume a large percentage of the transportation fuel in North America, any efforts from commercial fleet operators to reduce gasoline or diesel demand is to be commended.

'In diversifying its fuel supply, Heckmann is driving the American push toward reduced dependence on foreign oil, and it may help lead to lower diesel prices and lower oil prices by displacing some of the current demand, which has been the cause of steady price increases,' concluded Kar.

Based on these factors, Frost & Sullivan is proud to present the 2011 Green Excellence Award in the North American Private Commercial Fleet Industry to Heckmann Corporation.  Each year, Frost & Sullivan presents this award to the company whose commercial fleet program has expanded considerably to include significant levels of alternative fuel and other fuel economy-enhancing powertrains that provide positive contributions to the 'greening' of associated industries and overall environmental sustainability.

The award recognizes the company's vision and dedication in promoting the ecological, social, and economic well-being of its industry and country, and its risk-taking and leadership traits will have a profound influence in creating a greener future.  The award recipient has distinguished itself from competitors by pursuing approaches that transform business practices to accelerate movement toward a more sustainable operating environment.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research to identify best practices in the industry.

About Heckmann Corporation

Heckmann Corporation (NYSE: HEK) is a services-based company focused on total water solutions for shale or 'unconventional' oil and gas exploration and, following the acquisition of TFI Holdings, Inc. (TFI), environmental services and waste recycling solutions. Heckmann's water solutions segment is called Heckmann Water Resources, or HWR, and includes water disposal, trucking, fluids handling, treatment and pipeline transport facilities, and water infrastructure services for oil and gas exploration and production companies. Through these operations, HWR offers an integrated and efficient full service water program for hydraulic fracturing operations. Following the acquisition of TFI, Heckmann's environmental services and waste recycling solutions segment will be called Heckmann Environmental Services, or HES, and will be a 'one-stop' shop of collection and recycling services for waste products, including used motor oil, wastewater, spent antifreeze, used oil filters and parts washers.  

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SOURCE Frost & Sullivan

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