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CNG for Transportation Fuel


Comparison of CNG and Diesel emissionsCamco has a long history of work in the US farming community and gas markets that gives us a unique view into both of those value chains. A large number of heavy-duty truck operators are clustered near Camco’s agricultural clients providing both inbound and outbound commodity and animal transportation services. Fuel is one of the largest cost components for HDV truck operators and even a small percentage reduction can have a significant effect on their operating income. For this reason, fleet owners are anxious to have CNG station developments in their regions of operation.

There is approximately $1.50/gal savings between the cost of diesel fuel and CNG in today’s market.
 

This difference is forecast to grow because of anticipated increases in the cost of refining and the growing abundance of America’s natural gas supply. The cost of converting heavy-duty trucks is dropping with the introduction of new technologies and the evolution of various dual and dedicated CNG engine options. Recent trucking industry experience demonstrates an estimated 2-4 year return on investment for a converting a truck fleet from diesel fuel to CNG. Up to now, most natural gas fuel station development has been focused in urban areas that are home to large return-to-base fleets or long-haul truck lines which require LNG. The regional CNG trucking markets outside of urban areas have been largely overlooked and are underserved with natural gas fuelling stations.

Camco develops biogas facilities that can produce pipeline quality renewable natural gas which qualifies for D5 Advanced Biofuel RINs under the US EPA’s Renewable Fuel Standard which regulates how much renewable fuel is contained in the nation’s transportation fuel supply. A growing opportunity exists to convert operating dairy-based biogas facilities producing electric power into renewable gas facilities to supply the growing CNG market.

Camco’s CNG station development initiative is designed to expand the utilization of clean gas for trucking. Our projects enable our customers to dramatically cut their fleet emissions of NOx, PM10, and Greenhouse Gases compared to diesel fuel and offer the potential reduce Greenhouse Gas emissions even more by contracting with Camco to supply a portion of their CNG from a biogas facilities producing renewable gas. Camco’s base CNG station returns are satisfied with clean conventional gas which can be enhanced with the utilization of renewable gas from biogas sources.

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