Friday, February 6, 2015

The Benefits And Challenges Of Natural Gas Conversion

Here's an interview with Erik Neandross who "has constructed conversion programs for some of the nation's largest private fleets, as well as for the city of Los Angeles."
Q: What do private fleets need to understand about the economics of conversion before exploring such a move? Are there metrics or benchmarks they need to meet before determining this is right for them?

A: Regardless of which fuel you choose, NGVs (natural gas vehicles) have a significant capital cost compared with diesel-powered vehicles. The incremental cost needs to be paid back through lower fuel costs. Each fleet must look at how much fuel it burns per vehicle to determine if the savings will cover the incremental cost of the vehicles in an acceptable timeframe. Some heavy-duty fleets simply don't use enough fuel per vehicle to meet their own investment hurdle rates. They will have a difficult time making the switch.

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