When President Obama visited UPS’ liquid natural gas (LNG) fueling depot in Las Vegas late in January, he said he favors tax credits for carriers who purchase LNG-fueled trucks.

The President’s visit, just days after his State of the Union Address to the nation, furthered his discussion of using the nation’s own resources he brought up during his speech.

Noting that the use of natural gas would provide for cleaner and less costly energy, and that the nation has nearly 100 years’ worth of natural gas, he added he would favor incentives to help build the LNG fueling infrastructure on major interstates.

As reported in the February issue of Driving to Success, Navistar is already committed to building LNG-fueled trucks, and many other manufacturers say they are developing LNG trucks as well, including Peterbilt, Cummins-Westport, Freightliner and Kenworth.

In our January (2012) newsletter, Driving to Success, we told you about the “Natural Gas Highway” being put in place by Clean Energy Fuels Corp.  The company has unveiled plans for the first 150 locations for liquid natural gas (LNG) fueling stations, and said there should be 70 stations opened by the end of the year in 33 states with the rest opening in 2013.   

On Feb. 1, Clean Energy Fuels Corp. once again made headlines when it announced, along with Navistar Inc., a program to provide natural gas-powered trucks for the same cost as diesel trucks for those customers who commit to purchasing their fuel through Clean Energy.  

Initially, Navistar will roll out medium-duty trucks for the program, but says it will expand the program to heavy-duty trucks by next year.  Navistar said it will build the vehicles while Clean Energy supplies the infrastructure so drivers can fuel them up across the country. 

Without the program, LNG-fueled vehicles typically would cost about $35,000 more than their diesel counterparts.  Once on the road, the LNG vehicles should prove less costly to operate than diesel rigs.

Clean Energy says the LNG fuel will sell for less than diesel – at least 50 cents to 60 less per gallon. LNG today is about $1.50 per gallon lower than diesel or gasoline (depending upon local markets).  Importantly, the use of natural gas fuel reduces costs significantly for vehicle and fleet owners, and reduces greenhouse gas emissions approximately 23% in medium to heavy-duty vehicles.   Also, nearly 100 percent of the LNG used here comes from North America.

By the end of  the year, America may have in place many stops along a “Natural Gas Highway,” according to Clean Energy Fuels Corp., of Seal Beach, Calif., which earlier this month unveiled the route plan for the first phase of 150 new liquid natural gas (LNG) fueling stations.

Clean Energy, which provides natural gas fuel for transportation in North America, has identified 98 locations and anticipates having 70 stations open by the end of this calendar year in 33 states.

            Many of the fueling stations will be co-located at Pilot-Flying J Travel Centers already serving goods movement trucking through an exclusive agreement with Pilot to build, own and operate natural gas fueling facilities at agreed-upon travel center.  Pilot-Flying J has more than 550 locations in 47 states.

            The initial segments of “America’s Natural Gas Highway,” or ANGH, include those linking San Diego-Los Angeles-Riverside-Las Vegas; the Texas Triangle (Houston-San Antonio-Dallas/Ft. Worth); Los Angeles-Dallas; Houston-Chicago; Chicago-Atlanta; and a network of stations along major highways in the mid-west region (IL, IN, OH, MO, KY, TN, KS, OK, AL) to serve the heavy trucking traffic in the area.

Scheduled for completion during 2012 and 2013, the 150 first-phase stations coincide with the expected arrival of new natural gas truck engines well suited for heavy-duty, over-the-road trucking. Engine manufacturers and original equipment truck manufacturers such as Cummins-Westport, Kenworth, Peterbilt, Navistar, Freightliner and Caterpillar are expected to have Class-8 trucks available in engine sizes allowing for varied road and driving requirements.

“We are moving quickly to build this important network in order to support the new trucks,” said Andrew J. Littlefair, Clean Energy’s President and CEO. “Already, Clean Energy has engaged over 100 shippers, private fleets and for-hire carriers that have shared their operations to qualify the economic opportunity of operating natural gas trucks, which has helped us, in turn, plan the first phase of the natural gas fueling highway.”

Littlefair noted that the ANGH stations are in addition to the station building planned for the company’s traditional markets in transit, refuse, airport/taxi/shuttle and local/regional trucking, which activity accounted for 63 station projects in 2011.

Currently priced up to $1.50 per gallon lower than diesel or gasoline (depending upon local markets), the use of natural gas fuel reduces costs significantly for vehicle and fleet owners, and reduces greenhouse gas emissions approximately 23% in medium to heavy-duty vehicles. Additionally, natural gas is a secure North American energy source with 98% of the natural gas consumed produced in the U.S. and Canada.

In Canada, commercial truckers are being incentivized for cutting their fuel usage and greenhouse gas emissions.

Owner/operators and trucking companies there that are working toward greener highways can earn rebates of as much as $2,500 per tractor or trailer.  Improvements that help reduce fuel consumption and greenhouse gasses include technologies and add-ons that help with tire issues, engine idling and drag resistance. For instance, some of the allowable improvements include low-rolling-resistance tires, automatic tire-inflation devices, side skirts, front fairings, and anti-idling technologies, according to the Manitoba GrEEn (Economically and Environmentally Efficient) Trucking Program.

Manitoba GrEEn Trucking is a four-year-old program created as a joint initiative by Manitoba Infrastructure and Transportation, The Manitoba Trucking Association and the University of Manitoba’s Transport Institute.

Participants can earn rebates of up to 25% of their improvements, with a $2,500 cap per tractor or trailer, the group said. Last year’s payout was nearly a quarter million dollars, based on improvements and upgrades worth about $13 million, according to the MTA.

What do you think about the program? Would it work here in the US?