




For those who are watching all the
indicators, things are lining up for a paradigm shift in our
transportation system. For the past several years, there has been a new
emphasis on natural gas; not for home use, but for powering the
automobile industry. It began with the manufacturing of natural gas
buses. We now see these natural gas vehicles in most of our larger
cities. Ford Motor Company is now in the market. They too have jumped
onto the bandwagon. There are already several
Ford natural gas vehicles.
The number of Ford CNG vehicles
for sale should considerably increase in the coming years.
President Dwight D. Eisenhower signed
into law the Federal-Aid Highway Act of 1956 on June 29th of that year.
The U.S. Interstate System began to develop shortly thereafter. As a
result, America began to build thousands of miles of high-speed roads
which ended up transforming our nation. The advantage of having such a
transportation system slashed the time it took to travel between major
cities. This created what may be called an addiction to gasoline and
diesel fuel. If you will notice as you travel across the country, there
are hundreds of truck stops scattered along our current interstate
system. Currently, the average consumption of oil in the United States
alone is more than 19 million barrels per day.
A fundamental change is starting to line
up. That fundamental change is a transition to natural gas vehicles.
There are three factors that are affecting this shift. The first is the
rising price of fuel. There is speculation that fuel prices will top
$5.00 per gallon by the end of 2012. The second reason to switch to
natural gas is environmentally driven. There is a big push by the EPA
and other environmental groups to cut down on air pollution. Natural gas
vehicles are much cleaner burning than conventional diesel and gasoline
engines. The third factor driving the market in the direction of natural
gas is the discovery that the United States is now the “New Saudi
Arabia” of energy. The future fuel of America is now in focus. Just like
it took vision and time to get the interstate system in place, it will
take some time for this new
CNG fueling infrastructure to mature, but it
is coming. The new focus is switching from diesel and gasoline to
liquefied natural gas (LNG) and compressed natural gas (CNG). Since the
fueling infrastructure was put into place in the 1960s, outside of
converting pumps to electronic devices, there has been little done to
change this system. A major transition is lining up and will take place.
By using more energy produced here in the U.S. we will become less
dependent on foreign oil and will experience more of an economic boost
within the United States.
Natural gas is the cleanest burning fuel
known to man. As you see a transit natural gas bus drive by, on the side
will be written “clean air vehicle.” The use of
natural gas vehicles is
already helping us keep our environment clean. The trucking industry is
quickly following the lead of the transit bus systems. Many trucking
companies have already switched to the use of natural gas. Even some
larger trucking companies have made the switch.
Westport Innovations
Inc. is the largest natural gas engine manufacturer. They recently
struck a deal with Ford Motor Co. to manufacturer the new natural gas
engine for the 2013 Ford F-250 and F-350 Super Duty natural gas trucks.
Due to gas prices rising, Ford is
answering with compressed natural gas powered commercial vehicles. In
conjunction with the rising cost of fuel, there are now government
incentives for companies to move in the direction of CNG vehicles for
commercial use. Another factor in the increased emphasis on natural gas
vehicles is the increasing number of fuel stations across the nation.
Ford is now offering CNG options for
their Transit Connect, E-Series vans and F-Series Super Duty trucks.
What this allows Ford to do is to offer a much cleaner burning engine;
thus reducing greenhouse gas emissions by 30 to 40 percent. One reason
Ford is expanding their production of natural gas vehicles is that CNG
is a nontoxic clean burning fuel that significantly reduces CO, CO2 and
NOx in comparison to regular gasoline.
Metro Taxi of West Haven, Connecticut has
made the switch to natural gas by ordering twenty Transit Connect Taxis
that are powered by natural gas. Their owner cited the reasons for
buying the Ford natural gas vehicles to be threefold. Those reasons
include the rising cost of fuel, government incentives, and the fact
that additional CNG fueling stations will be coming to the state of
Connecticut shortly. Metro Taxi is also installing their own fueling
station. These CNG Transit Connect Taxis will soon be arriving in other
large cities as well, including Chicago, Boston, Las Vegas, and St.
Louis. Many taxis that currently use regular gasoline are being
converted to natural gas.
With the cost of gasoline flirting with
$4.00 per gallon and boasting of a potential $5 plus, natural gas looks
very attractive in comparison to natural gas at close to $2 per gallon
equivalent. For companies that put on a lot of miles, that pays for any
upgrade or extra purchase amount very quickly.
The Ford fleet operations marketing
manager recently said that even during economically challenging times,
Ford was anticipating fueling stations to evolve, and that Ford
would remain committed to its
plans to bring CNG-powered commercial vehicles to marketplace. He said,
“We took the chance that infrastructure would expand when we introduced
our Transit Connect Taxi CNG capability in advance of any incentives for
infrastructure or
CNG conversions. It turns out our timing couldn’t have
been better.”
A federally funded program called Clean
Cities Petroleum Reductions Program is offering $300 million to various
regional projects around the U.S. They partially cover the cost of
converting a vehicle to CNG. It was due to this government program that
Metro Taxi of West Haven, Connecticut was able to purchase as many of
the CNG Transit Connect Taxis at one time. Their owner said, “I like the
Transit Connect Taxi for its spacious passenger area and cargo capacity,
so the government assistance was timely.” These government incentives
are also helping in the funding of the construction of CNG fueling
stations. Currently there are about 1,000 of these stations nationwide.
Natural gas isn’t new to the United
States. In fact it has been the primary form of home energy heating for
decades. What is new is the application of natural gas. There have been
CNG cars for sale for more than ten years with the Honda GX.
Europe caught on much faster than the United States when it comes to
natural gas vehicles. They already have dozens of natural gas cars for
sale to choose from.
Trucking companies see a huge benefit of
natural gas trucks. Say that if the average heavy-duty truck travels an
average of 100,000 miles per year, and they average 5 miles per gallon,
that equates to 20,000 gallons of fuel per year. If they pay $2 per
gallon less for natural gas verses diesel fuel, they save $40,000 a year
on fuel alone. For a company that has 20 trucks, that is a savings of
$800,000 per year. Can you imagine if a super large company such as
Wal-Mart ware to switch their 7,000 trucks over to natural gas? Their
savings would be closer to $280 million.
As you can see, the commercial bus and
truck markets are quickly catching on to natural gas vehicles. Westport
has even announced an agreement with Electro-Motive Diesel (EMD) to join
with the Sustainable Development Technology Canada (SDTC) Program and
develop natural gas fuel system for rail locomotives. Ford Motor Company
has bought into this new technology. Next year we should see the
production of pickup trucks. Ford
natural gas vehicles are a reality and we will soon see more and
more Ford CNG vehicles for sale.
Maybe they will even join Honda in the production of compressed natural
gas cars.