Article

Natural Gas: What Fleets Need to Know - Survey Shows Fuel Availability, Equipment Cost as Hurdles

August 2012, TruckingInfo.com - Feature

SHARING TOOLS        | Print Subscribe
More than half of large carriers say they are considering buying natural gas fueled trucks, but there are hurdles, according to a new study from Transport Capital Partners and ACT Research.


Slightly over half (51.4%) of the carriers surveyed are considering natural gas fueled trucks when new trucks are purchased.

"The survey confirms the growing interest in natural gas by carriers encouraged by the large difference in price, but also shows the complexities of choices in terms of type of fuel, fuel supply systems, payload impact, station availability and so forth," says Richard Mikes, TCP Partner and survey leader.

ADVERTISEMENT

The biggest concern was fuel availability, with 94% of respondents citing fuel station availability as an obstacle. Almost 90% are concerned about higher vehicle purchase prices. Additional concerns include needed product specs/performance and secondary market value.

While carriers are potentially interested in natural gas as a fuel alternative, three-fourths of carriers said they would need a payback in only one to two years to facilitate a purchase decision.

"The good news about natural gas as a source of energy for transportation is that the diesel gallon equivalent (DGE) compared to diesel is relatively insensitive to major swings in domestic natural gas spot prices," says Ken Vieth, senior partner and general manager of ACT Research. "Diesel, in contrast, is highly sensitive to crude oil prices globally with major price swings possible."

Half of the carriers surveyed reported that they would evaluate the new truck technology in this year and the next, with 28% saying that there will not be any new plans until 2013. A handful of the carriers stated that their decisions would depend on the success and performance of the technology as well as the results from other carriers implementing the change.

"The carrier's overall decision can best be viewed through a truck life cycle economic model," Mikes says. Such a model would consider initial costs of natural gas engines/systems, possible revenue reductions for payload impact, differential between diesel and natural prices over time, maintenance cost impacts in carrier shops and over the road, and estimated sale price of used equipment.

Almost half of the carriers surveyed would require a commercial natural gas fueling station to be within 100 miles of their operations.

Carriers vary in their knowledge of natural gas as a fuel alternative. Slightly over one-third of respondents reported little knowledge about the potential use of natural gas engines as part of their fleet. Almost half (45.8%) report their knowledge as "average" or "above average."

As for predictions about the future, 29% of carriers expect natural gas fuel will account for under 5% of their fleet five years from now, 27.8% believe it will account for 16-25%, and 19% predict it will account for 6-15% of their fleet.

Of the carriers surveyed, the majority (44.4%) had an approximate length of haul between 300-600 miles.

NATURAL GAS: WHAT FLEETS NEED TO KNOW, contents page

Comments

  1. 1. Dmitri [ November 18, 2013 @ 06:48PM ]

    CNGCenter.com assists with choosing the best CNG filling equipment for private and public CNG fueling station.

 

Comment On This Story

Name:  
Email:  
Comment: (Maximum 2000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

Newsletter

We offer e-newsletters that deliver targeted news and information for the entire fleet industry.



GotQuestions?

LUBRICANTS

The expert, Mark Betner from Citgo will answer your questions
Ask a question

Sponsored by

Magazine