The New Economics of Natural Gas

Natural gas might not be the perfect replacement fuel for all types of commercial vehicles, but its economics are becoming extremely favorable in several key segments – and the waste industry in particular. And that, say experts, should spark wider adoption of natural gas-powered trucks in the near future.

In a recent Waste Age article, Contributing Writer Sean Kilcarr looks at the feasibility of natural-gas powered heavy trucks. He cites a Frost and Sullivan report that predicts the number of medium- and heavy-duty natural gas-powered trucks will grow from 1,950 units today to more than 29,483 units in 2017, which is roughly 8 percent of total Class 6-8 production six years from now.

Kilcarr also brings up examples of waste collection companies that are using CNG and LNG vehicles and the costs associated with them.

Refuse fleets that use converted landfill gas (LFG) to power their trucks see an even bigger fuel cost differential, according to the article. For example, one Utah-based waste hauler studied by Frost & Sullivan is paying 86 cents for its natural gas fuel per equivalent gallon because it’s making its own fuel from methane gas captured from its own landfills.

The article also features two sidebars: "Fueling Growth in Refueling Infrastructure" and "Tweaks Needed for Trucks Operating on Alternative Fuels."