Archive for June, 2010
Make Your CNG Fleet Pay for Itself
Clean Vehicle Solutions provides comprehensive services for all phases of Compressed Natural Gas (CNG) fleet conversions and on-going service. CNG is clean, inexpensive and is a domestic resource that is encouraged by federal and state incentives. Currently over 9 million CNG vehicles are operating in the U.S, which is creating a nationwide network of refueling stations that grows daily. Many metropolitan areas — especially in California — that have switched their municipal fleets to CNG are reporting excellent results, not only in financial rewards, but increased consumer confidence in their services.
Smart fleet managers are discovering that a CNG fleet conversion will practically pay for itself in no time and start piling up unexpected benefits. First and foremost, the 50 percent cost savings over fossil fuels can quickly offset the cost of installation. Taking advantage of incentives from local and state agencies — as well as federal tax credits — further defrays the cost of fleet conversion to CNG.
As fossil fuel markets continue to experience unpredictable price fluctuations, it is difficult for fleet budget planners to accurately forecast expenditures. Since the CNG market has a stable price structure, fuel cost projections are reliable and realistic budgets can be extrapolated. Further savings can be realized by investing in a private refueling station — they are less expensive that you might think and also quickly pay for themselves in volume discounts and convenience.
Corporate Fleets
Managers of private fleets for corporations find themselves under increasing pressure from their boards to develop strategies to implement sustainable resource practices. The experts at Clean Vehicle Solutions can modify ground transportation vehicles, delivery trucks and cargo vans to run on CNG so you can meet — or exceed — the sustainable standards for your department.
When purchasing new corporate fleet vehicles, look into the models that are designed for CNG conversion — like the new GMC Savana cutaway vans or the Ford F-450 series — that simplify the job because the engineers have included room for CNG tanks in the design, so modifications are not necessary. When the licensed technicians at Clean Vehicle Solutions satisfies the installation guidelines set down by the manufacturer of these vehicles, the original engine warranty is still considered valid.
Municipal Fleets
The variety of vehicles used for circular routes in large municipal fleets — from transit buses to refuse collection vehicles to pick-up trucks — can quickly realize a profit when CNG conversion is coupled with city-run refueling stations. Fleet managers that are currently running diesel vehicles will soon have to respond to new federal mandates on mid-to-heavy duty vehicle emissions. Since CNG burns 30 percent cleaner — and quieter — than diesel, conversion cost can amount to less expenditures than having to modify existing vehicle emissions.
The National Renewable Energy Laboratory’s studies show that large fleets on set schedules are ideal for CNG conversion. The report also concluded that since CNG conversion does not significantly affect maintenance costs, switching fleets from diesel does affect the day-to-day expenses of vehicle operations. Their research showed that fleets under 30 vehicles took about 7 years to realize a return on investment and realize a profit, but larger fleets experienced much shorter payback periods.
University Fleets
State run universities can apply for federal stimulus grants aimed at reducing petroleum consumption and improving air quality. CNG conversions are considered viable alternatives to fossil fuels for these programs, and institutions like the Univeristy of Texas have received grants for fleet modifications. Some campuses are installing CNG refueling stations that are also open to the public and can generate additional revenue for the department.
Case Study: CNG Paratransit Vehicles
The Taxicab, Limousine & Paratransit Association (TLPA) determined in their 2009 report that “widespread use of alternative fuels is no longer the dream of the future but a reality that already works for some today and that may soon be ready to work for all in the taxicab industry.” With the implementation of new commercial fleet emission standards issued by President Obama in 2009 to take effect in 2012, automobile manufacturers will be under pressure to develop fleet vehicles that can withstand commercial demands and run efficiently on alternative fuels. Ideally, this trend will hasten the development of a reliable refueling alternative fuel network.
There are 120,000 compressed natural gas (CNG) vehicles operating in the US, and most are privately owned fleet vehicles that have been converted. According to the International Association for Natural Gas Vehicles, CNG vehicles usage has grown 20.8 percent each year since 2000, and they have consistently exceeded the projected sales for each year, showing that this alternative to gasoline is gaining popularity at an exponential rate.
To meet the guidelines set for by the 1990 Americans with Disabilities Act (ADA), CNG paratransit vehicles are beginning to hit the market, and companies like the Vehicle Production Group (VPG) of Florida are now manufacturing safe, comfortable taxis and fleet vehicles with 3 CNG tanks seamlessly integrated into the design. Called the MV-1, they will be available in October of 2010. VPG has received $160 million through Perseus LLC, including a $10 million investment from Clean Energy Corp, co-founded by T. Boone Pickens. Andrew Littlefair, the president and CEO of Clean Energy, said the strategic investment was sound because the “demand for natural gas vehicles is surging, particularly with the high cost of petroleum fuel and the savings to be gained by using natural gas fuel.”
The new line of Ford Transit Connect Taxis have integrated extra room so fleet vehicle owners can easily convert the paratransit vehicles to CNG tanks. In fact, Ford will provide factory calibration guidelines that — if followed correctly — allow CNG systems to be installed without voiding the original engine warranty. Ford also offers E-series vans with CNG prepped engines, and will release a similar option on the F-Series Super Duty trucks to be introduced in late 2010.
In May, Chevrolet announced it will offer CNG versions of their full-sized GMC Savana cutaway vans that will be released early in 2011. According to Brian Small, GM’s fleet and commercial operations manager, the “commitment to expand the CNG and LPG infrastructure in key fleet markets” is the result of requests from fleet customers and dealers who want paratransit vehicles that run on CNG. Groups like the California Natural Gas Vehicle Partnership (CNGVP) are pressuring legislators to institute state regulations for low-emission fleet vehicles. The EPA is planning to amend current regulations regarding CNG fuel conversions, which have not been updated since 1994. These new regulations will be aimed at streamlining fleet conversion procedures that should accelerate the availability of paratransit vehicles.
How to Fill a Natural Gas Vehicle…
How to Avoid the Summertime Gas Price Hikes
As summer peaks gas prices, this is a great video about converting vehicles to natural gas…
Why Compressed Natural Gas is the best Alternative Fuel for Corporate Fleets
Federal mandates for low-pollution vehicles like the pending NAT GAS Act (S. 1408) are encouraging company fleets to switch from fossil fuels to cleaner, domestically produced fuel sources. There is special emphasis on compressed natural gas (CNG ) for short-range mid-sized vehicles. Corporate fleets that convert their mid-sized cars, SUVs and limousines to CNG quickly will be able to reap a host of tax benefits and credits from the anticipated federal policies, making CNG the obvious choice over other alternative fuels that will not receive such healthy perks. In addition, many state and local agencies are offering programs to help offset the initial costs for CNG conversion. By combining federal tax incentives and rebates with local programs, corporate fleets that select CNG conversion over other ‘green’ fuel sources will see the most return on their investment.
Growing CNG Maintenance and Support
The California Natural Gas Vehicle Coalition issued a report showing that trucks and buses powered by natural gas cost no more to operate and maintain than their diesel and gasoline powered counterpart, especially because spark plugs are not fouled since CNG does not contain lead or benzene. The savings on fueling and maintaining CNG vehicles will continue to rise since new legislation anticipates up to 600,000 new jobs will be created to support the surge in natural gas demand for fleet vehicles. This means a flood of resources will hit the market in the coming years to support CNG technology as it becomes readily available nationwide. Companies like P.C. McKenzie already offer complete conversion kits that include on-site re-fueling stations.
Price of CNG
Natural gas has historically been priced lower than fossil fuels, and in 2010 the cost of U.S. commercial grade CNG averaged roughly 30 to 60 percent than gas or diesel. Also, federal motor fuel taxes do not currently apply to natural gas, although this may change as the market expands. Fuel efficiency for CNG vehicles show the bigger models like corporate fleet vehicles benefit the most from the conversion process because they can easily handle the weight that CNG tanks add to the vehicle. Typically, it takes 150 pounds of CNG to equal 5 gallons of gasoline, meaning a 15 mile range would add up to 500 pounds to the car and consume a lot of trunk space unless it is specifically designed to be a CNG vehicle. Consequently, the efficiency rating is only 5 to 15 percent over fossil fuel powered vehicles.
American Resources for CNG
The Center for American Progress (CAP) has released a report titled “Developing Natural Gas for Heavy Vehicles” that supports the economic premise of the NAT GAS Act, especially in light of the recent advances in horizontal drilling technology that can extract natural gas from shale. It is reported that the U.S. has a 200 year supply of natural gas that can lessen dependence on foreign oil.
EPA Considerations
The EPA is also supportive of the NAT GAS Act because CNG powered vehicles emit up to 25-30 percent less carbon that either diesel or gasoline powered engines. This factor will make CNG appealing to corporations that have mandates to reduce their carbon footprint. CNG is also considered effective in reducing nationwide air pollution, especially in urban areas that still exceed the EPA regulations established by the Clean Air Act. In addition, the American Clean Skies Foundation will support EPA programs encouraging rapid CNG conversion in major metropolitan centers — where most corporate fleet services operate — in anticipation of future federal, state and local mandates.
Safety Factors
Even though CNG tanks hold up to 3,600 pounds per square inch, it is a much safer fuel to deal with than gasoline or diesel, mainly because the ignition temperature is so high for CNG. It is also lighter than air, which means it will not ‘puddle’ like gasoline or leak into the ground. The storage systems used for CNG are much stronger than standard gasoline tanks found on current cars and trucks and much less likely to explode on impact.
Nationwide Availability
It is anticipated that federal incentives will be focused on creating a ‘natural gas corridor’ along major transportation routes. The American Trucking Association is promoting LNG for long range heavy duty vehicles because requires fewer fill-ups, but there would need to be a refueling network set up to support it nationwide, and such stations would also offer CNG pumps. Another aspect of this pending legislation is the manufacture of natural gas/electricity hybrids, and the American Public Gas Association (APGA), NGVAmerica, and Hybrid Kinetic Motors Corporation (HK Motors) have formed a business alliance to promote the mass production of natural gas powered electric hybrid cars to meet the expected deadlines. These vehicles can be used for long-range travel into areas where there are limited CNG stations.
Anticipated Federal Mandates
To achieve the goals set forth under the current and pending regulations, the CAP study has outlined the following procedures to institute CNG onto the market to meet the 10 year goad set by the pending NAT GAS legislation. Their projections were based on the DOE publication titled “Annual Energy Outlook 2010.”
1. Any new mid-range vehicles entering a fleet should be mandated to run on natural gas.
2. All classes of vehicles (heavy trucks, medium trucks, transit buses and school buses) will have independent natural gas conversion criteria and matching incentives.
3. New vehicle sales of mid range natural gas powered fleet vehicles should be at least one-third of the total production.
4. Approximately .5% of the existing gasoline and diesel powered fleet vehicles should be converted to natural gas.
In conclusion, corporate fleet owners who act quickly to institute CNG powered vehicles will reap the most benefits from the anticipated surge towards clean, economical natural gas. Support from federal, state and local agencies will be enhanced by a growing network of suppliers, technicians and mechanics. The price of CNG should also remain much more constant that petroleum based fuels in the future ‘green’ energy environment.
