TW: Rapier hits a concept I have always wondered has not been more aggressively pursued- local fleet conversion to alternative fuel sources. Any non-gasoline fuel source faces huge infrastructure build out challenges. It took decades and billions of $ to create the national network of gasoline stations. Any alternative electric, hydrogen, nat gas etc. would require a similar build out. Except for those users like delivery fleets whose energy use is high but localized. For these users the build out becomes a much more manageable proposition.
As you likely know, we have huge nat gas reserves domestically, readily accessible, not offshore or in pristine forests etc. Furthermore, were cities to build out a cng infrastructure the notion of a national network would become more viable as well.
From Robert Rapier's blog:
Quoting Dow Jones-
'Beer distributors are among a growing vanguard of private trucking fleets encouraged by cheap natural gas and new government funding to adopt compressed natural gas, known as CNG, as a cleaner alternative to diesel.'
I [Rapier] think it makes a lot of sense for fleet vehicles to migrate to compressed natural gas (CNG). Natural gas is historically a lot cheaper fuel than liquid fuels such as diesel or gasoline. A quick check of prices today shows natural gas for October delivery at $3.78 per million BTUs (MMBTU). By contrast, gasoline is currently trading at $1.62/gallon (spot market, no taxes included) which works out to be $14 per MMBTU...But more importantly than where prices are today is where prices are going. Natural gas will have a lot of resistance trying to sustainbly break through the $7-$8/MMBTU range because shale gas starts to become economical in that range - and we have a lot of shale gas resources. So if you are planning for the future, the odds are with you over the next few years if you are betting on moderate natural gas prices. Oil prices, on the other hand, are far more uncertain in my opinion.The caveat of course is that the conversion can be quite
Paying for CNG conversions is still a problem. Federal funds are available to cover up to $32,000, or roughly two-thirds, of the additional costs associated with purchasing a CNG truck as opposed to a diesel one.A company that gets the full $32,000 in federal funds should be able to make back its investment in less than three years, according to Natural Gas Vehicles for America.
Lawmakers in Congress are trying to shorten the time it takes to recoup costs on a CNG vehicle. Senate Majority Leader Harry Reid, D-Nev., is among legislators backing a bill, dubbed the NAT GAS Act, that would cover 80% of the incremental cost of a natural gas vehicle and give a $100,000 property tax credit to any company that builds a CNG fueling station.
...fleet conversions are one more way to reduce our dependence on imported petroleum.."
http://i-r-squared.blogspot.com/2009/09/cng-in-your-beer.html
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