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Exploring Natural Gas as an Alternative Fuel for Heavy-Duty Trucks: Current Trends and Future Outlook

This update examines the role of natural gas (N/G) in the heavy-duty trucking industry, highlighting its pros and cons, current usage, and future prospects. We delve into cost comparisons, maintenance, and efficiency alongside the importance of government incentives. The transition to N/G is influenced by factors such as fuel supply, availability, and tax administration. Additionally, we discuss DME (Dimethyl Ether) as a potential future fuel. Finally, we address the significant balance between operating costs and performance metrics for trucking applications.

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Exploring Natural Gas as an Alternative Fuel for Heavy-Duty Trucks: Current Trends and Future Outlook

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Presentation Transcript

  1. Alternative Fuels:An Update

  2. TOPICS • Natural Gas for Heavy-Duty Trucks • Pros and Cons • Current Use of N/G • Future Scope • Considerations for Government • Incentives • Tax Administration • DME

  3. Deciding on N/G • Greenness • Fuel Supply & Availability • Equipment • Cost • Weight • Efficiency • Maintenance • Durability

  4. It’s the Costs • It’s All a Balance: • CNG Costs $1.50 Less per Gallon than Diesel • LNG Costs $1.00 Less per Gallon than Diesel • The Price Differentials Will Grow Over Time • Fuel Makes Up c. 40% of Operating Costs • N/G Trucks May Cost More, Weigh More, and Be Less Efficient, and Still Come Out Ahead

  5. Current Use of N/G • Transit • Waste Hauling • California • Lots of Experimentation • P&D • Long-Haul

  6. Future Scope • Predictions Vary Widely • EIA: N/G Share of Transp’n Fuel Still Low a Decade From Now • Perhaps 6-8% of New Class 8s by 2016 • Mostly Transit Buses, Garbage Trucks • But Some Over-the-Road Interstate Tractors

  7. Incentives • Tax Rates • Purchase of Rolling Stock • Fueling Facilities • Requirements for Government Use • Miscellaneous

  8. Tax Administration • Tax Rate • Tax Structure • Tax Incidence • Fuel Deliveries • Refunds • Audit & Enforcement • IFTA Reporting

  9. DME • Dimethyl Ether – The Fuel of the Future ? • Availability • Equipment • Costs • Taxation

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