Author: U.S. Gain
U.S. Gain

Renewable Natural Gas Benefits Private Fleets

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


Reason #1: the 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 prices, economics can still support a change to natural gas, as 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 state or federal clean fuel incentive 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: a 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 renewable natural gas can reduce your GHG emissions by up to 125%—resulting in negative emissions. 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, supports a differentiated market position.


Reason #3: an Established, easy change

Some private fleets are challenged by the “what’s right for me” dilemma as they evaluate alternative fuel solutions. So why natural gas? 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. There are also financial credits available that are associated with ongoing renewable natural gas usage as a fuel.


What’s next?

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

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