State of the Union Addresses Natural Gas Vehicles

The natural gas vehicle (NGV) industry was in the spotlight last week, making headlines after U.S. President Barak Obama’s remarks in his annual State of the Union address in support of switching more cars and trucks from oil to natural gas:

…natural gas – if extracted safely, it’s the bridge fuel that can power our economy with less of the carbon pollution that causes climate change...I’ll cut red tape to help states get those factories built, and this Congress can help by putting people to work building fueling stations that shift more cars and trucks from foreign oil to American natural gas.

In addition, three bills were proposed last week by U.S. Representatives Lee Terry and Sam Graves, both Republican Congressmen, geared at increasing the number of natural gas trucks. The bills propose multiple measures to increase the adoption rate of natural gas including: designated natural gas fueling corridors for long haul traffic, truck weight exemptions for the additional weight of natural gas tanks, and a task force to evaluate duel adoption transition barriers.

While these bills have to go through multiple stages before they can be voted on in Congress, Paul Kerkhoven, Director, Government Relations of NGVAmerica, says the initiatives may end up being incorporated into more comprehensive legislation, such as the Highway Bill.

“Anytime the President says natural gas three times, it’s a good thing for the industry,” Paul says. “These developments indicate a heightened interest in increasing the discussion at the national level around how to encourage a switch from gasoline or diesel, to natural gas.”

Paul adds both Congressmen Terry and Graves are strong NGV supporters and his organization is working with them to further their ideas and efforts towards the increasing use of NGVs.

Some industry supporters are eager for immediate action. T. Boone Pickens, Founder of BP Capital and the Pickens Fuel Corp. – the predecessor company to Clean Energy – told Pickens Plan Facebook page followers that the President should “Sign an executive order mandating government vehicles use natural gas, and that those who contract with the federal government for goods and services do, too.”

Paul says national-level attention puts the cause in the spotlight:

“The industry has done a good job of education and increasing awareness. People are concentrating on it and looking at it – it’s always a good thing.”

More DOE Support for NGVs in Our Future

On July 12, the U.S. Department of Energy (DOE) announced 13 new projects to advance natural gas vehicle (NGV) technologies, all in light-duty applications, through its Advanced Research Projects Agency – Energy (ARPA-E).

Aimed specifically at new developments for natural gas tanks and potential home-fueling, the natural gas industry can only be pleased that Deputy Secretary of Energy Daniel Poneman has said:

“These projects could transform America’s energy infrastructure and economy by utilizing domestic energy sources to power our vehicles…”

While the rationale behind funding many of the early-stage projects is their risk level for private investment, the DOE sees real potential for NGVs in America’s future and is prepared to invest in them.

Clearly demand for NGVs is increasing. And now, not only the DOE, but others are encouraged to tackle the passenger vehicle market.

The projects follow others that ARPA-E, launched by President Barack Obama in 2009, has proven successful by supporting. Many of its projects secured private capital after initial funding from ARPA-E.

Westport Innovations has benefit from DOE support over the years, and the success of its technology in all markets is proof positive that research support can ultimately translate into commercial application. Initially focused on the heavy-duty markets, Westport has expanded in a big way into light-duty, targeting fleets initially, but also the average consumer.

In passenger vehicles alone, Westport LD has acquired global NGV system and component operations in Australia, Italy and Sweden, launched its new Westport WiNG Power System this spring for Ford F-250 and F-350 pickup trucks, and secured a relationship with General Motors to develop two different combustion, controls and emissions approaches to natural gas engines.

The DOE also sponsored early research that helped in the development of many new natural gas resources in the U.S. The NGV technology projects support its efforts to act on President Obama’s call for “the safe, responsible development of the near 100-year supply of U.S. natural gas resources, which has the potential to support more than 600,000 American jobs,” according to the DOE.

Not likely that any NGV enthusiast will argue these are all great steps forward to a more energy independent future. Natural gas for transportation is here today – and here to stay for a good, long while.

Yes We Can ... Shift North America to Natural Gas

In last night’s State of The Union address, U.S. President Barack Obama outlined his plans for national economic stimulation, underpinned by a focus on job skills, domestic energy - particularly natural gas - and manufacturing.

“The development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving that we don't have to choose between our environment and our economy,” said President Obama.

Energy and manufacturing are critical for economic recovery, and by focusing on natural gas as an energy source for transportation and industry, President Obama estimated that 600,000 new jobs will be created by 2020.  

While the U.S. administration is also looking at how to best use domestic oil supply, it recognizes that alternative energy sources are going to play a critical role in the country’s manufacturing and transportation success.

There are limited alternatives to petroleum based fuels, giving great promise to liquified natural gas (LNG) for the long-haul heavy-duty vehicle sector, which consumes 15 percent of on-highway transportation oil in the U.S. 

To transition long-haul trucking fleets, Westport, Clean Energy Fuels, and Chesapeake are tackling this head on by developing the technologies, infrastructure and resources that will support this critical stimulus.  For example, on January 12, Clean Energy Fuels announced its route plan for the first 150 liquid natural gas (LNG) fueling stations for heavy-duty, on-road trucking. The company anticipates having 70 stations open by the end of 2012 in 33 states.

According to the U.S. Department of Energy, there are 5,000 truck stops selling diesel across the country, but only 45 stations that sell LNG, and most of those are in California. What has been needed to spur more investment and interest in building infrastructure is the political will…and last night’s SOTU was evidence of that. 

A shift to natural gas will not only spur activity in this energy market, it will create significant savings for long-haul truck operators and fleets that can in turn be re-invested in the economy. The U.S. Energy Information Agency says that natural gas, on average, costs 42 percent less than diesel fuel on an energy equivalent basis and is expected to cost 50 percent less by 2035.

There are also, as the President alluded, environmental benefits in a shift to natural gas for transportation. Natural gas has the lowest carbon content of all fossil fuels when sourced from domestic reserves.  A Westport HD truck powered by LNG will generate 18-25% fewer greenhouse gas (GHG) emissions than a comparable diesel truck. 

Reliance on foreign oil is a security issue for the United States.  With access to high volumes of inexpensive, domestic natural gas, policies that will shift industries to this resource will enhance energy security and provide a critical boost to the American economy.  More than 50 percent of the oil used every day in the U.S. is imported, while 89 percent of the natural gas used is domestic according to the Energy Information Administration report on Natural Gas Imports and Exports. By promoting greater use of natural gas in industry and transportation, the potential costs savings and implications for re-investment in the American economy are huge

This address signals an important new focus of support for natural gas in the trucking industry across the U.S., as part of an overall solution for reducing dependence on foreign oil, invigorating the American economy and transitioning to a lower-carbon fuel in the transport sector.