Thursday, September 5, 2013
Denver Says 'No' To Natural Gas Buses: Why?
So, in February, RTD sent out a request for proposals for 52 60-foot, low-floor articulated buses. The agency was welcoming proposals for all technologies - not just diesel, but also hybrid-electric, all-electric and compressed natural gas (CNG) units.
The fuel savings that fleets can reap from switching to CNG are well-documented and often profound. This summer alone, a number of public transit fleets announced large deployments of CNG-powered buses, with Metropolitan Atlanta Rapid Transit Authority, the Utah Transit Authority and Miami-Dade Transit among them. And fleets such as L.A. Metro already have thousands of natural gas buses in service.
In Denver, proposals for CNG buses came from two OEMs - New Flyer Industries Inc. and NABI. The price disparity between diesel- and CNG-powered vehicles was not otherworldly: an 8.5% incremental cost over diesel for NABI's natural gas bus, and a 9.7% premium for New Flyer's CNG-powered unit.
Considering transit buses' high fuel consumption, and that most organizations that are running natural gas buses realize a fuel-cost savings of 50% or more over diesel, it would seem like CNG had a solid chance of being the next fuel of choice in Denver.
It was not to be.
In late August, RTD's board of directors voted unanimously to accept a proposal from New Flyer for 52 diesel-powered 60-footers.
With so many public transit agencies launching CNG initiatives lately, and with such upside in terms of fuel cost, why did RTD balk at natural gas?
First of all, it isn't always about fuel cost - it is often a matter of what level of resources must be expended to make fuel readily available. Clean Energy Fuels worked with RTD to arrive at estimates for how much it would cost to build adequate CNG refueling capacity and infrastructure at two RTD sites.
The initial figure was $3.54 million per location - certainly a sizable sum for most organizations in the public sector today. Read more here.