A Shift Toward Natural Gas Vehicleshttp://www.fool.com/investing/general/2013/05/15/a-shift-toward-natural-gas-vehicles.aspx Arjun Sreekumar
May 15, 2013
Natural gas vehicles, or NGVs, hold tremendous promise for both the U.S. and the world's future. Not only is natural gas significantly cheaper than oil on an energy-equivalent basis right now, vehicles running on liquefied natural gas (LNG) or compressed natural gas (CNG) release about 25% less carbon dioxide on average than their gasoline and diesel-powered counterparts.
While the nation as a whole seems energetic about the concept of using alternative fuels to power their vehicles, one state is expected to be a clear standout in facilitating the shift toward NGVs over the next year and a half – Texas.
Texas to lead the way in NGV fueling stations
Of the planned new stations, 23 will supply LNG, while the remaining 39 will be equipped to meet the refueling needs of CNG-powered vehicles. According to Lyons, Texas is poised to lead the way due to a combination of factors, including strong support from the state government and enthusiasm among transportation fleet owners.
However, while Texas plans on adding more stations than any other state over the next year and a half, its current refueling infrastructure pales in comparison to California, which boasts the most refueling stations of any state by far. Of the approximately 70 LNG fueling facilities currently dotting the country, nearly two-thirds are located in the Golden State, as are more than a fifth of the nation's roughly 1200 CNG stations.
According to data from the Alternative Fuels & Advanced Vehicles Data Center, a U.S. Department of Energy program initiative, California had 257 CNG stations and 42 LNG stations as of April 25, whereas Texas had 57 CNG stations and nine LNG stations. In fact, Texas currently lags even New York, Oklahoma, and Utah in terms of the number of CNG stations.
Growth in natural gas as transport fuel
Another study, by the National Petroleum Council, determined that natural gas vehicles could capture half of the light- and heavy-duty truck market and 35% of the medium-duty market by the year 2050. Already, there has been significant progress in this market, with several companies having invested aggressively in nat-gas-powered trucks.
Natural gas making inroads in trucking