Friday, September 13, 2013

7 Alternative Fueling Infrastructure Pitfalls and How Propane Can Help

It’s no secret that about the only thing you can count on in the fleet management business is that hard costs will continue to rise, and the price of conventional fuels has not been exempt. It’s one of the many reasons fleets across the country are transitioning to alternative fuels to reduce operating costs and capital expenses while stretching their budget dollars.

However, despite the per-gallon savings a fleet might enjoy with alternative fuel, a lot of fleet professionals know the real cost of alternative fuels goes well beyond that.

In order to plan and implement a successful alternative fuel program, fleet managers must evaluate their fuel options based on total cost of ownership. A mistake fleet managers make time and time again is failing to plan for the total infrastructure ownership costs — including installation time. Without proper planning and preparation, the following infrastructure pitfalls can make or break your program’s success.
Pitfall #1: Shy Away from Tough Questions

No matter the fuel, most salespeople will tell you the upfront infrastructure investment “pays for itself.” But payback can be defined broadly. It is critical that going in, you define the payback period that is acceptable for your company. Next, ask the tough questions about the true initial cost of the infrastructure and factor into your ROI calculations.

When you perform a true apples-to-apples comparison, propane autogas beats the competition on a regular basis. In fact, for the price of installing just one CNG station, you can install an average of 15 or more propane autogas refueling stations for the same investment. Read more here.

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