Tuesday, April 24, 2018

Growth of Natural Gas Use in Vehicles Expected

Due to "a prolonged period of stable diesel fuel prices and new competition emerging from electric vehicles", some of the excitement about natural gas as a transportation fuel has subsided in recent years. But there are some developments that could bring back that excitement. One is the new Cummins Westport ISX 12N engine which will provide natural gas users with unprecedented performance and efficiency. That, plus extended engine oil intervals and a growing fueling infrastructure will bring renewed interest in natural gas.

The 2017 income tax measure approved retroactive tax credits for vehicles and refueling infrastructure.

The refuse industry has been adding natural gas vehicles in "significant volume." Sales of natural gas vehicles are expected to increase 10% annually. "Clean Energy Fuels reported demand for its Redeem RNG product grew 32% during 2017."

"UPS announced an agreement with Big Ox Energy to purchase 10 million gallon equivalents of RNG a year. During 2017, the Atlanta-based parcel giant announced a planned investment of more than $90 million for six additional CNG stations, 390 new CNG tractors and terminal trucks, and 250 LNG vehicles."

Clean Energy won a four-year fueling contract from Ryder for a fleet of LNG heavy duty trucks used by Toyota Motor Corporation in Kentucky. They expect to supply 380,000 GGE of LNG annually to Toyota.

Last year, Nestlé Waters North America added 155 Ford F-650 delivery trucks that run on propane autogas, bringing its total to 600, or 30% of its total North American fleet.

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