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Renewable Natural Gas Benefits Private Fleets

US Gain - April 12, 2019

It’s no secret that alternative fuel is a proven strategy to reduce transportation-related emissions. But have you also considered what other benefits a change in fuel can bring to the table? In this post, we’ll cover 3 reasons that fleets are converting to renewable natural gas as their alternative fuel solution – and why you should too.

Reason #1: Economics Pencil Out

Leading heavy-duty trucking fleets made the initial switch to natural gas when diesel prices were at record highs, as an effort to remain economically competitive. Even with today’s lower diesel pricing, economics can still support a change to natural gas, indicated by the points below.

  1. Natural gas has a lower pump price with far less price volatility
  2. Tax rates for natural gas are far less than diesel taxation rates and typically feature an annual $0.50/gallon tax credit.
  3. If you’re using Renewable Natural Gas, you can qualify for additional financial incentives as part of the RFS and LCFS programs.
  4. Depending on your fueling needs, time-fill fueling may be applicable. In this case, vehicles fuel overnight (or when idle), saving considerable driver downtime costs associated with fueling.

 

Reason #2: Boost in Sustainability / Brand Image

Consumers expect brands to be environmentally conscious. And, it’s not just the “millennial” consumer group. Nielsen indicates that approximately 81% of global consumers expect corporations to care about the environment.

Transportation continues to rival energy as the largest contributor to greenhouse gas (GHG) emissions that drive non-attainment air quality zones across the nation. A conversion to clean, and renewable natural gas can reduce your GHG emissions by up to 125% – resulting in negative emissions! This – is something absolutely worth promoting to your current and prospective customers. Private fleets have a unique opportunity to use their vehicles as branding – actively promoting sustainability in action for the communities they serve, which, according to Nielsen, will support your differentiated market position.

 

Reason #3: Established, Easy Change

Some fleets are challenged by the “what’s right for me” dilemma as they evaluate alternative fuel solutions. So – why natural gas? Why not electric vehicles or even hydrogen? The choice is clear: Natural gas vehicles are the now solution for environmental issues that can’t wait.

Natural gas vehicles are capable, proven and established across vehicle classes – with improved and better emission benefits than initial NGVs. Fueling infrastructure is developed, accessible and growing. Emission benefits are unbeatable and financial assistance is available to support a transition from diesel as well as financial credits associated with ongoing renewable natural gas usage, as a fuel.

EV and Hydrogen technologies may become a great solution for transportation-related emission, but simply aren’t a commercialized option today, especially for heavy-duty vehicles. And – when these vehicle technologies are available, they won’t be without initial “bugs”, just as initial versions of natural gas vehicles experienced. The other variable is infrastructure – it will take time and investment for EV and Hydrogen stations to develop, especially those that can accommodate class 8 vehicles.

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It’s evident that renewable natural gas presents a strong business case for change. To learn more about financial and sustainability benefits your fleet could be missing, contact us today.


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