Considering compressed natural gas (CNG) for your transportation fleet?

Many transportation fleets are finding that CNG makes sense for their operation. Due to the limited CNG refueling infrastructure that currently exists across the United States, the use of CNG may not be right for everyone. What are some characteristics that could make a transition to CNG work? The most common factors for CNG operations to be cost-effective are:

Fleets of heavy duty vehicles (HDV)

Vehicles can now travel 500+ miles a day from home base with new larger CNG fuel tank capacity. This greatly increases the number of companies that may benefit from CNG. A new dedicated fueling station could be warranted with a minimum of 15 HDVs each driving more than 100,000 miles and/or using 300,000 gallons per year.

Routine routes on a consistent and frequent basis

To make CNG cost-effective, there needs to be consistent use on a frequent basis. For example, milk trucks that have the same route each day of the year would be ideal candidates for CNG. Snow plows, while having consistent routes, are only in service for a portion of the year and have widely variable year over year use. This overall inconsistency and gap in use make them much less viable for a cost-effective implementation of CNG.

How to determine if your organization is a fit for CNG

Each organization’s determining factors will be different based on your business model. First steps in determining whether to pursue a conversion to CNG are:

Establish your business case

Analyze your company’s overall business model to determine whether it makes sense for you to pursue further analysis of a CNG conversion.

Perform financial analysis and modelling

Analysis of the financial impacts and drivers of various scenarios your organization can implement now for CNG conversion and future use.

Review the ideal candidates for your fleet

CNG is available for more than just HDV. If your fleet includes a mixture of HDV, sedans, light weight trucks, and more you may still have a solid business case for pursuit of CNG. A deep fleet analysis can ascertain your fleet’s CNG viability.

Determine ownership or partnership

Some organizations may benefit from private sector partnership, or public/private infrastructure sharing either directly, from a single site/pump, or from contractual volumes within a fueling

Baker Tilly can help

There are a multitude of variables in determining if CNG is a good fit for your organization. Our energy specialists have experience in analysis and modeling of the variables, and can assist you with financial assessments and modeling.

Connect with us renew@bakertilly.com.