Presentation on theme: "NATURAL GAS in the TRUCKING INDUSTRY A Wave? Or Just Ripples?"— Presentation transcript:
NATURAL GAS in the TRUCKING INDUSTRY A Wave? Or Just Ripples?
OBJECTIVES Not embarrass myself Point you to the real experts Compare diesel to natural gas Discuss pros and cons of CNG and LNG for trucking Make some safe predictions
ON THE LEADING EDGE… Saddle Creek Ryder UPS Others Dillon PepsiCo JJ Taylor
DIESEL vs. NATURAL GAS Availability ROI (Cost-benefit) Disruptability Business Model – Return to Base vs. Long Haul Diversification
DIESEL vs. NATURAL GAS (continued) Government Incentives http://www.freshfromflorida.com/Divisions- Offices/Energy/Natural-Gas-Fuel-Fleet-Vehicle-Rebate Experimentation (Self-Protection) Serviceability Intangibles Environmental Traditional vs. Modern
CNG vs. LNG CNG Fueling Structure Building Faster CNG Direct Connect vs. LNG Transport LNG Largely Dependent on Utility Company (unless contracting for your own supply) LNG Trending toward Rail and Ship LNG Tanks Hold More, Cost Less, Must Be Used Sooner
SAFE PREDICTIONS Economies of Scale Will Continue to Shorten Payback Period and Increase Availability Familiarity Will NOT Breed Contempt Self-Sufficiency Favors CNG, Especially in Florida Adoption Will Be Directly Proportional to Company Size Market Pressure Will Build (for a while) on Utility Companies to Meet LNG Demand (until decision point reached) Nobody Knows!
Kenneth S. Armstrong, Ph.D. President and CEO Florida Trucking Association (850) 459-1256 Ken@FLTrucking.org