Several business are switching to natural gas vehicles - ABC 12 – WJRT – Flint, MI

Several business are switching to natural gas vehicles

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(05/03/12) - In recent years, some businesses have converted their trucks and vans to burn compressed natural gas. Proponents say it's not just a cost-cutting move. Those retro-fitted vehicles emit less pollution than gasoline or diesel fuel-powered ones.

"You can pretty much cut your fuel costs in half," said John Lapetz of Westport LD, a company that installs CNG equipment in vehicles. 

Across the state, hundreds of commercial vehicles are burning compressed natural gas or CNG, including all 16 semis at UBCR in Wixom.

"We're the first full fleet in the state of Michigan that has converted to natural gas," said Jeff Schram, general manager of UBCR.

The trucks are distinctive because the tanks are stacked behind the cab.

UBCR collects and recycles soft drink and beer containers from around lower Michigan. The CNG-powered trucks have a range of 400 miles.

"It's a domestic fuel. 85 percent of natural gas is from the United States. There's no reliance on foreign fuel, foreign oil," Schram said.

"I believe it's the future of trucking. I really believe that," said Lorenzo Wood, a UBCR driver.

Because of changes in drilling processes, natural gas prices have dropped considerably and reserves are high. Ford is betting on this trend. They offer six vehicles that can burn CNG. A F-250 can travel 250 miles on a fill-up.

"When it runs out of natural gas, it switches to gasoline. You have about a 650 mile range on the vehicle," said Dick Cupka, of Ford commercial vehicles division.

The pickups are converted to CNG-use by Ford-selected vendors, like Westport LD. The option adds about $10,000 to the sticker price. Customers tend to be commercial operations that put more than 30,000 miles on their vehicles annually.

"Within a couple of years, you've paid back that initial investment and from that point on you are saving a significant amount of money," Cupka said.

To find how it performs, we drove the F-250 around metro Detroit. Acceleration in this CNG-powered pickup was lacking but other than that it handled just like any other pickup. 

At General Motors, the Chevrolet Express and GMC Savana vans now come with a natural gas option.

"We started producing this particular van back at the end of 2010," said Mike Jones, General Motors product manager of fleet and commercial operations.

AT&T has ordered 1,200 CNG vans from GM. The company likes the lower fuel costs.

"And they're also looking to burn cleaner fuels," Jones added.

"You can reduce greenhouse gasses by 20, 25, even 30 percent in some cases," Lapetz said.

GM is expanding its CNG offerings. Toward the end of this year, production will start on Chevy Silverado and GMC Sierra pickups that will use both CNG and gasoline. The option will cost an additional $11,000. Most of those trucks are also expected to be used commercially.

"It gives them a lot of flexibility in their operations and at the same time allows them to enjoy the cost savings associated with CNG," Jones said.

If there's a drawback to using CNG, it's the lack of places to fill up.

"There are only about $1,000 natural gas fuel stations in the U.S. right now," Cupka said.

But as more CNG vehicles take to the roads, it's probably only a matter of time before market pressures address that problem.     

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