OTA Dispatch Issue 4 2019

28 Oregon Trucking Associations, Inc. Oregon Truck Dispatch Natural Gas as an Alternative Fuel Lower your operating costs while meeting your sustainability goals By Chris Kroeker, NGV product manager at NW Natural “I CAN GET paid to use renewable natural gas in my trucks?” Fleet managers are often surprised when I tell them this news. Compressed natural gas (CNG) trucks aren’t new, but the opportunity to earn cash by signing up for renewable natural gas (RNG) is. Federal and state agencies have created credit programs to encourage alternative fuel use—including RNG. Brokers sell the credits and share proceeds between the fuel producers and participating fleets. What’s the difference between renewable natural gas and regular natural gas? Just where it comes from. While natural gas has been stored underground for millions of years, RNG is produced daily. RNG is produced from organic materials like wood waste, food and agricultural waste, and even human waste. As these materials decompose, they produce methane. We can capture that methane and then condition it to pipeline quality. This captured methane becomes RNG. It can be injected into natural gas pipelines, just as solar or wind power is added to the electric grid. Since natural gas and RNG are identical and blended in the pipelines; vehicles and fueling equipment don’t know the difference. LOWER FUEL COSTS PLUS CREDITS MAKE NATURAL GAS A GREAT OPTION Even without the credits, natural gas reduces fuel costs. Here’s an example: Waste Pro is a waste and recycling business serving nine southern states. More than 20 percent of its Class 8 trucks are fueled by natural gas. Waste Pro was first attracted to natural gas to support its sustainability goals. Harland Chadbourne, Waste Pro’s director of purchasing, said, “The quickest way to help the environment is to take old diesel trucks off the road and replace them with natural gas.” But fuel cost savings are the most immediate benefits. Chadbourne said, “It’s a very cost-effective fuel that has held stable for us since we started using it in 2012.” With savings between $1 and $1.40 per diesel gallon equivalent, it doesn’t take long to make up the additional costs for natural gas trucks and fueling infrastructure. SHOW ME THE MONEY— AND OTHER BENEFITS Here are some reasons firms like UPS, Frito-Lay and others are using RNG/CNG trucks: ` Natural gas saves fleets at least $1 a diesel gallon equivalent. ` There is no diesel particulate filter (DPF) to maintain. ` Renewable fuel credits for Oregon trucks can earn fleets from 30 to 50 cents a gallon depending on credit market prices. ` RNG providers can handle the credit accounting and can help with on-site fueling costs. ` Federal grants can offset the up-front costs associated with natural gas vehicles. ` Natural gas engines can haul loads up to 80,000 pounds. ` RNG can reduce a truck’s greenhouse gas footprint by 40 to 100 percent. ` Natural gas vehicles are half as loud as diesels. Interested in trying out a natural gas-fueled truck? Contact Penske at 503.283.2586. Or, contact Chris if you’d like more information about natural gas trucks or RNG credits: chris.kroeker@nwnatural. com, 503.721.2552.