Monday, September 12, 2011

Natural Gas Could Become an Economically Viable Alternative to Diesel for Commercial Fleets

Due to limitations in infrastructure and high premiums for natural gas engines, the idea of integrating natural gas vehicles (NGVs) into commercial truck fleets was originally met with skepticism by many. In today’s economic climate, however, it seems that the skyrocketing demand for cheaper fuel sources is pushing the development of viable alternatives to diesel vehicles, and economically advantageous NGVs are appearing in the marketplace, particularly for regional and refuse applications.

In the past, resistance to NGVs in commercial fleets has been the result of high costs for natural gas engine production and a lack of filling stations that are equipped to supply the fuel to run those engines. With the premiums for spark-ignited compressed natural gas (CNG) and liquefied natural gas (LNG) technology diminishing—and the price gap between natural gas and diesel widening—many NGVs are now financially viable for a number of fleets.

Because one of the major drawbacks to compressed natural gas is its relatively low energy density (approximately 25% that of diesel fuel), attempts to integrate CNS vehicles into long haul operations is not feasible; however, for regional fleets with trucks that return to a single location daily, the cost savings associated with using natural gas as fuel can more than make up for an NGV’s inefficiency. For refuse operations that convert landfill gas into fuel, cost savings can be dramatically increased.

While liquefied natural gas has a greater energy density than CNG (approximately 40% that of diesel), the lack of filling stations that dispense LNG still make the fuel an unacceptable alterative to diesel for long hauls. However, efforts are underway to develop LNG infrastructure; Shell is currently working to boost LNG production and distribution in North America.

To learn more, read FleetOwner’s article “Economics Driving Natural Gas Truck Market” at http://fleetowner.com/green/archive/economics-natural-gas-truck-market-0908/.

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