Issue link: http://read.dmtmag.com/i/221076
Fuel This Elgin Broom Bear mechanical sweeper is powered by a Cummins Westport ISL compressed natural gas engine. The City of Kansas City, Mo., has this sweeper as part of more than 300 natural gas vehicles in its fleet. CNG Eventually? There's a lot of buzz about alternative fuels right now – and for some municipal vehicles and fleets it makes sense. But CNG's future with the mainstream heavy CE industry will be largely hinged on the growth of its fueling infrastructure. BY TINA GRADY BARBACCIA Although CNG might not quite be progressing at a rapid pace for "yellow iron" construction equipment, many dealers are embracing the alternative fuel for lighter equipment for municipalities as well as smaller equipment and work trucks – but there are still several barriers to easily and quickly converting fleets to CNG. Sam Swearngin, fleet administrator for the City of Kansas City, Mo., says his city has about 300 natural gas vehicles in its fleet from heavy-duty dump trucks to forklifts, sedans, full-size and pick-up trucks, making up about 10 percent of the fleet. "Going forward, we are really targeting more of the heavy trucks than the light-duty vehicles because the heavy trucks use a lot more fuel," Swearngin said. "Fuel itself is considerably cheaper than diesel. From an economic standpoint it makes more sense to replace heavy-duty equipment – anything over one ton where you aren't talking about bed Sam Swearngin, fleet administrator for the City of Kansas City, Mo., shows off one the city's first heavy-duty CNG-powered utility trucks at the Water Services Department facility. 52 | www.cedmag.com | Construction Equipment Distribution | December 2013 space or trunk space – over light-duty equipment." How quickly fleets will convert to CNG will all depend on the economics and fuel availability, Swearngin says. "The price differential is such that if you use it, you'll get a return on investment if the vehicle is driven often," he said. "But if you put low miles on a truck or it's used for a seasonal type application and sits for a while, it wouldn't make economic sense to move to CNG." The capital upfront can be daunting; a Class 8 costs about $50,000. "It's a lot of money, but if you consider the price differential in fuel if you drive the truck regularly, you'll get the $50,000 back in short order." Swearngin says his city is unique in that it has been using CNG since 1997. "To us, it's old hat. It's just a different fuel. What has held us back are fundamental issues with the city's generic vehicle replacement policies and practices and availability of product." It's a "chicken and egg" issue. Demand will drive investors, Swearngin says. "If the trend continues with heavyduty trucks, there will be more natural gas stations," he said. "As those increase, the network will grow. But until it grows enough for some customers to make the plunge, they will be at a disadvantage. If your competitor is paying 60 cents per gallon and you're paying close to $4, how long can you compete without even more government subsidies?" This is significant, Swearngin says, because the cost for natural gas is less than $1 per gallon, after the 50-centsper-gallon tax credit is incorporated. In mid-November, the Department of Energy (DOE) reported that diesel's national average price fell 1.3 cents to $3.857 a gallon. This is the second straight drop and the lowest price in four months. (continued on page 54)