Factors to consider in making the switch
Determining if natural gas is the right fuel for a particular fleet comes down to a number of cost calculations, according to experts. Those factors include weighing the extra upfront price of natural gas-equipped vehicles against the expected fuel cost savings between natural gas and diesel over the ownership life of a vehicle. Others factors, such as the cost of building the refueling infrastructure, which can be lowered by grants and other government assistance.
Grand Junction’s experience also provides some insight here as well. Valentine says that establishing a refueling depot – one equipped with 10 refueling slots that can be used by trucks, buses, light vehicles, etc. – solves the chicken-or-egg dilemma that has impeded growth in CNG use. And, though investment in refueling infrastructure can be risky without any guarantee of a market for the fuel, by including a publicly accessible fast-fill fueling station in its station design, Grand Junction made CNG vehicle ownership more feasible for consumers and other fleets.
The station is operated by Monument Clean Fuels, a private company selected to be the retail arm of the city’s CNG project. Monument leases the land where the fast-fill station is located, and the public refueling station is available at a reduced cost to the private partner, who pays for natural gas, compressor electricity use and land rental costs while selling CNG to the public.
Grand Junction also developed a partnership with Grand Valley Transit, a county transit agency serving Mesa County, Colo., which now fuels two CNG buses at Grand Junction’s CNG refueling station.
Yet Grand Junction stresses that obtaining a grant to help fund construction of the CNG refueling site proved to be a critical factor in moving ahead with this project, particularly to help offset the initial capital outlays. The project was completed with the anticipation of growing the CNG fleet size to improve the return on investment, so without grants to defray the fueling infrastructure costs, it is unlikely the city would have pursued the project using the same approach, Valentine says.
Tim Barker, Grand Junction’s fleet supervisor, says that attention needs to be paid to the areas where preventative maintenance procedures change when switching to CNG vehicles, especially concerning oil and other filter changes, specialized spark plug replacement and changes in equipment diagnostics systems.
Many local and state government officials have been using alternative-fueled vehicles for years, but the decision to invest in them remains financial. Ultimately, saving money is a main reason why Oklahoma Governor Mary Fallen is leading a coalition of 22 states that seeks to use more CNG vehicles in their fleets.
In Oklahoma, CNG prices vary from $1.07 to $2.49 per GGE, compared to the average statewide price for regular gas of $3.43 per gallon – meaning fleet fuel bills in the Sooner State could be reduced as much as 67 percent with CNG-fired vehicles.
“Ultimately,” she says, “converting our state fleets to CNG will save millions in taxpayer dollars.”
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