About the White Paper
The White Paper is developed by WIH Resource Group (WIH) and was created from industry research and analysis of the current use of Compressed Natural Gas (CNG) in refuse (municipal solid waste – MSW) collection vehicles by both public sector agencies and private sector service providers throughout the United States. The waste management industry’s interest in this information is to assess the potential for utilizing CNG fueled refuse collection vehicles in their own organizations or subcontracted solid waste and recycling collection vehicles and operations.
The surveys and interviews conducted by WIH’s Staff with various cities and other private sector companies that currently utilize and operate CNG fleets, centered on securing industry experience, data and knowledge on the following key items of interest to the waste management industry, both public and private sectors:
- CNG Engine reliability;
- Optimal CNG engine type (manufacturer)
- Average age of CNG fueled fleets & life expectancy of CNG fueled fleets;
- Average R&M and operational costs of CNG fueled fleets;
- Determination of the overall reliability of CNG fueling systems;
- Assessment of the legal payload impacts, i.e. contrasting standard diesel collection vehicle payloads to that of CNG fueled trucks (CNG fueled vehicles have heavier tare weights due to the need for larger fuel tanks), including transportation routing cost impacts to and from disposal sites;
- Review of the available grant funding from the State, EPA and Federal agencies to assist in capital costs of fleet acquisition and ongoing operating costs;
- Assessment of the effects of CNG fuels and fueling in cold winter climates and elevation changes which require full trucks to transport up inclines.
Summary of Table of Contents
The White Paper is organized into five sections, plus Appendices. The sections of the White Paper are listed below.
n Section 1 – Introduction and Project Approach
n Section 2 – Refuse Collection Vehicles
n Section 3 – Industry Research and Interviews
n Section 4 – Natural Gas and Compressed Natural Gas
n Section 5 – Evaluation of Key Issues and Recommendations
White Paper Highlights by Section
In August 2008, a U.S. City’s Public Works Department, Solid Waste Programs Division, retained the services of WIH Resource Group (WIH) to assist their jurisdiction in researching the use of Compressed Natural Gas (CNG) fuel as an alternative to traditional diesel fuel in its contracted residential refuse and recycling collection vehicles currently operated under contract by private third party solid waste and recycling collections service provider.
In the United States approximately 155,000 refuse trucks operate and burn approximately 1.2 billion gallons of diesel fuel a year, releasing almost 27 billion pounds of the greenhouse gas, CO2. Every gallon of diesel fuel burnt emits more than 22 pounds of CO2. In addition to contributing to global climate change, diesel-fueled trash trucks are one of the most concentrated sources of health-threatening air pollution in virtually all cities.
CNG is natural gas that has been compressed into a high-pressure container for transportation. Since the 1960s, CNG has become a vehicle fuel alternative to oil-based gasoline and diesel fuel. The International Association for Natural Gas Vehicles estimates that more than one million vehicles worldwide operate on CNG.
In the United States more than 1,300 CNG refueling stations are available. The total includes public service stations and private depot-based refueling stations intended to serve fleets. Several companies provide CNG/LNG refueling infrastructure to fleets on a component or turnkey basis.
The WIH Resource Group project team conducted a series of interviews and meetings with individuals that are subject matter experts (SMEs) from public agencies, private sector solid waste collection companies and CNG industry suppliers of both fuel and engines.
The average price of natural gas is up to $1.00 less per diesel gallon equivalent (DGE) and refuse truck operators can get fixed-price, multi-year natural gas fueling contracts from CNG and NG fuel suppliers like Clean Energy.
The use of natural gas as a vehicle fuel helps reduce U.S. dependence on foreign crude oil. In 2005, 64% of the crude oil used in the United States was imported from foreign sources other than Canada. By comparison, in 2005, an estimated 97% of the natural gas used in the United States was supplied from the United States and Canada, making it less vulnerable to foreign supply disruption and price volatility.
Prior to the interviews, each organization was provided a list of the issues that it would be asked about in its interview. A list of the issues that were discussed during these interviews is provided in Table 1.
Table 1 – Private Sector Companies and Public Agencies Interview Questions
|1. CNG Engine Reliability Compared to Diesel Engines|
|2. Optimal Engine Manufacturer|
|3. Average Age of CNG & Life Expectancy|
|4. Average R&M and operational costs of CNG fueled fleets|
|5. Overall Reliability of CNG Fueling Systems|
|6. Legal Payload Impacts – CNG verses Diesel-powered vehicles|
|7. Grant Funding and Tax incentives|
|8. Effects of CNG fuels and fueling in cold weather climates and elevation changes|
The CNG market is more stable than the gasoline market. CNG generally costs 15 to 40 percent less than gasoline or diesel. CNG requires more frequent refueling, however, because it contains only about a quarter of the energy by volume of gasoline. In addition, CNG vehicles cost between $1,500 and $3,500 annually more than their diesel-powered counterparts. This is primarily due to the higher cost of the fuel cylinders. As the popularity and production of CNG fuel refuse collection vehicles continues to increases, CNG vehicle costs are decreasing.
Once new natural gas trucks are in service, their operators stand to save money. Not only has the price of natural gas been significantly lower than that of diesel fuel for many years (approximately $.50 per diesel gallon equivalent (DGE) cheaper), but an excise tax credit available under the Energy Policy Act (2005) has made this fuel an even better bargain. Estimated savings for new 20 compressed natural gas trucks for the City’s Solid Waste Division is contemplating purchasing, may produce fuel savings of more than $157,894 per year over diesel fuel.
Appendix A – Public and Private Sector Interviews
Appendix B – Federal Tax Credit Fact Sheet
Appendix C – Cummins Westport, Inc. ISL-G Engine Specifications
Appendix D – Natural Gas Vehicles in the World 2007
Appendix E – U.S. Natural Gas Distribution Pipeline Network
Appendix F – Alternative Fuel Resources
Appendix G – Cummins Westport Press Release – Tax Credits
About The Author: Bob Wallace, Principal and Vice President of Client Solutions, WIH Resource Group, Inc. (WIH) and Waste Savings, Inc. (WSI), former Boardmember SWANA ~ State of Arizona Chapter (Solid Waste Association of North America), APWA (American Public Works) ~ National Solid Waste Rate Setting Advisory Committee and Member of WASTEC (Waste Equipment Technology Association) NSWMA ~ Phoenix, Arizona USA. (firstname.lastname@example.org).
|Compressed Natural Gas (CNG) Fuel Use in Refuse Collection Vehicles Industry White Paper|
|Available for Purchasing: Entire 50-plus page report and Appendices:
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Source: WIH Resource Group
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