Tuesday, November 12, 2013

The Propane Effect

Fleet sees return-on-investment in just a year’s time

 Among the considerations fleets must review before switching to an alternative fuel are vehicle miles driven in a day, total cost of ownership, infrastructure improvements, and fuel price. For some fleets, answering that quartet of questions opens a number of possibilities. For Lake Michigan Mailers, though, the answers led to a single conclusion.

“Not only did propane autogas fulfill all of our requirements, but a study showed it would give us the fastest return on our investment,” says David Rhoa, president. “When we saw the results, we were absolutely convinced that propane autogas was the most viable option for our needs.”

A typical Ford E-150 van in Lake Michigan’s 30-vehicle fleet runs more than 100 mi. a day, making electric vehicles an impractical option, Rhoa says. Compressed natural gas was rejected because of the costs associated with building a supporting infrastructure for a fleet the size of Lake Michigan. The E85 blend of gasoline was also not a viable solution because fewer Michigan gas stations support that fuel. But propane was the answer to each question asked. With the help of propane supplier AmeriGas, which has installed a 1,000 gal. propane autogas tank at Lake Michigan’s Kalamazoo, MI, facility, the company is on its way to a fleet conversion. Read more here.

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