Those in the natural gas business are feeling a
bit heady nowadays. But those with links to the
automotive sector are saying that American roads are
wide open.
Increasing demand for the now inexpensive and
relatively abundant natural resource is not just
breathing new life into the power industry but it is
also doing the same in the vehicle sector as well.
Estimates are that the cost of compressed natural
gas used in cars, buses and light trucks is about a
third that of gasoline.
A recent
Navigant Consulting report says that, globally,
natural gas vehicles could hit 35 million by 2020.
That is up from 18 million today. To be clear, two
types of natural gas vehicles are prevalent:
compressed natural gas (CNG) and liquefied natural
gas (LNG), which is used in long-haul, heavy-duty
trucks. Many of the auto manufacturers are in the
hunt, as well as the major natural gas producers
such as Chesapeake Energy, ExxonMobil and
RoyalDutchShell.
"We believe consumers deserve more choices in the
vehicles they drive and the fuel they use to power
their vehicles," Kathryn Clay, executive director of
the Drive Natural Gas Initiative, the
membership-based, collaborative effort of
America’s Natural Gas Alliance and the American Gas
Association. "Natural gas is a clean, abundant,
and domestic fuel that allows drivers to reduce
their fuel costs without sacrificing style or
performance."
During a webinar last Thursday,
Wesport Innovations spoke of the practical
matters involved with fleet owners shifting over to
natural gas vehicles. The firm, which engineers
engines and other related products, said that both
LNG and CNG are delivered to the engine, and thus it
is a matter of how the fuel is stored on the
vehicle. LNG is stored at super-cold temperatures
and is perishable after a week whereas CNG is a warm
gas that can be indefinitely stored.
Westport, for example, is working with Shell and
Wartsila North America to co-market LNG-fueled
trucks. The vehicles, generally, could be run on
both diesel and LNG, which is luxury given that the
fueling stations are few-and-far-between.
“We have a huge natural gas resource base right here
at home and we should capitalize on it to displace
foreign oil,” said Richard Kolodziej, president of
NGVAmerica. “Natural gas vehicles are the best
way to do that. They are a here- and-now technology,
but, through more research and development, natural
gas vehicles will get even more efficient, more cost
effective and cleaner.”
One-Way Signs
The association is backing a bill before Congress
called the Natural Gas Act, which would
provide significant subsidies to heavy truck fleets
as well as commercial vehicles if they convert from
a traditional combustion engine to one that could
also burn natural gas. The measure has bipartisan
support in both chambers.
The natural gas vehicle group says that the benefits
would outweigh the costs, noting that trucks could
run 650 miles before they would have to re-fill,
which would reduce the level of harmful emissions as
well as displace gasoline usage -- petroleum that is
more-than-likely coming from abroad.
Opponents of the measure, conversely, are arguing
that Congress has no special talent when it comes to
deciding winners and losers. The market should
decide: Currently, hybrid vehicles that run on both
electricity and gasoline are popular while
all-electric vehicles are trying to make headway.
The trend, though, has roadblocks: For starters,
the infrastructure to support those natural
gas-fired vehicles is not pervasive. Only
1,000-1,500 filling stations exist across the
country, which makes driving long distances
impractical. Beyond that, the tanks hold less fuel
while consumers, right now, don’t have a lot of
product choices. For those who want such a car, they
will pay a premium of a few thousand dollars,
although this money can be recouped in reduced fuel
charges.
But those in the natural gas biz say the signs still
point one way. Consider: Fed Ex and UPS as well as
Waste Management, which are all filling up with CNG.
It also means more LNG export approvals and
additional rights to “frack” the shale gas from deep
beneath the earth’s surface, neither of which will
be political easy.
The shift toward natural gas vehicles is now moving
mostly toward fleets and heavy-duty trucks. But the
scale of the technology will expand, enabling more
consumer-oriented progression. As that occurs,
America’s streets will be paved with
alternatively-fueled vehicles.
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