Natural gas is taking over the universe.
Not really, but it feels that way. In recent years, the movement to compressed natural gas (CNG) was advancing with the help of third-party CNG conversion manufacturers such as Westport, Landi Renzo and Venchurs. These companies are not only surviving, but they’re also expanding their offerings. But when the auto manufacturers initiate their own product offensives, you know that CNG has come into its own.
General Motor’s next generation HD pickups will have a bi-fuel CNG option for all cab styles, while dedicated CNG options continue to be available on GM vans. Chrysler’s CNG Ram 2500 went on sale this year. Ford has expanded CNG offerings with four QVMs now. Large truck makers, including Kenworth, Navistar and Mack, are adding options for CNG and LNG (liquefied natural gas). Navistar head Dan Ustian has called natural gas “the most realistic alternative fuel option to the trucking industry.”
The premium on CNG conversions is shrinking. Materials costs for tanks are coming down and economies of scale are being realized. A few years ago, light-duty conversions retailed for more than $11,000; today, Venchurs’ conversion for Ford’s F-250 and F-350 models with a 24-gallon tank costs $8,350.
At Green Fleet, when the conversation centered on fleet implementation and measurable return on investment, fleet managers were talking about CNG more than anything else.
Propane is still a part of the conversation and is expected to grow, especially in vocational applications such as school transportation and shuttle buses. Though per-gallon pricing is generally higher than CNG and pricing is subjected to more fluctuation, propane is particularly attractive because the costs to install a fueling station are significantly less than one for CNG.
The EV market has stalled (at least with fleets).
Again, when truck manufacturers either expand or abandon their alt-fuel or power product portfolios, it’s a good way to gauge how the trade winds are blowing. Last year, Ford ditched its Transit Connect Electric upon the bankruptcy of electric components maker Azure Dynamics. Navistar is no longer making its eStar electric truck, while Eaton has quietly dropped its Hydraulic Launch Assist system for diesel-electric hybrids.
At a Green Fleet seminar, Andrew Douglas of Kenworth reported “a dramatic drop off in sales of diesel-electric hybrids in favor of CNG.” In general, fleets report that they are staying on the sidelines when it comes to electric because the technology still relies on government subsidies, and no one thinks that existing subsidies will remain for much longer. Read more here.
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