Make Your CNG Fleet Pay for Itself

Posted on June 30, 2010

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.

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