As utility fleets continue to search for cleaner-burning vehicles that operate more efficiently and use lower-cost fuel, the business case for natural gas vehicles (NGVs) is becoming clearer thanks to advancements in vehicle technologies and evolving infrastructure.
And yet, the recent decrease in oil prices – which is being driven, in particular, by a slowing global economy and increased supplies of shale gas in the U.S. – has left some people wondering about the future of NGVs. Do they still offer an economically viable solution for utility fleets? How will the decrease in oil prices impact initiatives to switch to clean-energy vehicles?
“Despite the current low cost of oil, natural gas still enjoys substantial cost savings compared to gasoline and diesel,” said Matthew Godlewski, president of NGVAmerica (www.ngvamerica.org), an organization dedicated to the development of a sustainable market for vehicles powered by natural gas or biomethane. “Utility fleets that have already begun to make the switch to natural gas and have seen its economic and other benefits firsthand are continuing to stay the course.”
Managing a fleet can be a challenging task. In addition to the day-to-day procedures and duties, it is essential to think long term as well. Whether a seasoned professional or a new arrival to fleet management, it is necessary to utilize new strategies and technologies to find efficiencies, cut costs and lower the total cost of ownership (TCO). How this is achieved can be a different strategy for each fleet.
Fleet fueling today is primarily done using gasoline and diesel fuels, which are derived from crude oil and emit carbon dioxide as a byproduct of combustion. For every gallon of gasoline burned, 20 pounds of carbon dioxide are emitted into the air. Diesel emits 22 pounds of carbon dioxide, and propane, the third-most popular world fuel, generates 13 pounds of carbon dioxide. Methane – the primary component of compressed natural gas (CNG) and liquefied natural gas (LNG) – generates a little less than propane, approximately 12 pounds per gallon equivalent.