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PHH Arval Alternative Fuel Vehicle (AFV) Study Part 3: Natural gas vehicles

By Sarah Mallonga, Project Manager, Strategic Consulting for PHH Arval

This is the third part of a series of articles from PHH’s Strategic Consulting group on alternative fuel vehicles. Here we examine natural gas vehicles (NGVs), including the ideal fleet scenarios and the pros and cons of including them in your fleet.

Natural gas vehicles (NGVs)

Natural gas is an odorless, non-toxic, gaseous mixture of hydrocarbons – predominantly methane. Two forms of natural gas are used as transportation fuel: compressed natural gas (CNG) and liquefied natural gas (LNG).

CNG is stored onboard a vehicle in tanks at high pressure. Dedicated CNG vehicles are designed to run on CNG only, while bi-fuel vehicles can also run on gasoline or diesel. In heavy duty vehicles, bi-fuel, compression-ignited engines are slightly more efficient then spark-ignited dedicated natural gas engines. However, a bi-fuel engine increases the complexity of the fuel-storage system by requiring storage of both types of fuel.

NGVs are best suited for fleets that operate in these scenarios:

  • Light to heavy duty commercial vehicles, with fueling locations on regularly scheduled routes, or a return to base required for fueling
  • Partnership with local gas utility
  • Centrally garaged vehicles usually provide the best return on a natural gas infrastructure investment
  • Higher volume of vehicles to achieve scalable return

To store more energy onboard a vehicle in a smaller volume, natural gas can be liquefied. LNG must be kept at very cold temperatures and stored in double-wall, vacuum-insulated pressure vessels. LNG fuel systems are typically used only in heavy duty vehicles.

The following are pros and cons of these vehicles:

Natural Gas (CNG/LNG) Vehicles

Pros

Cons

Additional considerations

  • Lower fuel price per gallon or liter equivalent; prices more stable than gasoline or diesel
  • Clean-burning fuel reduces exhaust emissions of CO, NMOG, NOx, and CO2
  • Potentially extended intervals between required maintenance
  • Extended engine life due in part to natural gas’ high octane rating and clean-burning properties
  • Greater vehicle efficiency extends its service life
  • Abundant North American natural resource that reduces our dependence on imported products

 

  • High up-front investment
  • CNG system costs start at $9,000 in U.S. and Canada
  • Limited OEM vehicle options
  • Lag in EPA/CARB certifications can restrict vehicle replacement cycles
  • Publicly available refueling infrastructure still needs further development; onsite fueling infrastructure is a significant cost
  • Some CNG tank packages can reduce payload and storage capacities
  • Fueling time may vary depending on filling systems
  • Depending on fuel tank capacity, a reduction in range is likely
  • LNG fuel transportation, storage and distribution are limited
  • Complex LNG fuel storage systems on vehicles to maintain fuel temperature
  • High pressure tanks require inspection and certification
  • Limited maintenance infrastructure for fuel system repairs
  • Non-renewable energy resource

 

For a more detailed analysis of the AFVs that would be best suited for your specific fleet, please contact your PHH Account Team.

For our previous articles offering qualitative analyses of alternative fuel vehicles, please go to:

Also stay tuned for our next analysis, which will focus on propane or liquefied petroleum gas (LPG) vehicles.

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