Sales of Natural Gas Trucks and Buses to Hit 400,000 by 2022
Driven by the lower cost of natural gas and the lower emissions from natural gas engines, sales of natural gas trucks and buses is, according to one recent study, projected to reach 400,000 units by 2022.
The report, issued by Navigant Research, notes that new markets for natural gas vehicles, such as the United States and China, tend to focus on fleet markets, particularly trucks and buses, because they require fewer refueling stations and fuel costs have become the highest or second highest cost for fleets.
“Demand for natural gas trucks and buses remains uneven on a regional basis,” says Dave Hurst, principal research analyst with Navigant Research. “In North America, where natural gas costs remain low, the number of vehicles is outstripping the development of refueling stations. In Asia Pacific, China and other developing markets are looking to natural gas to help address environmental woes in large cities. As a result, the total number of natural gas trucks and buses on the road by 2022 is anticipated to reach nearly 4 million.”
On average, the price of compressed natural gas (CNG) is about 42 percent that of diesel, according to the report. Liquefied natural gas (LNG) tends to be a bit higher, but sees significantly more variability than CNG. Given the difference, the payback period for heavy duty trucks can be as short as 1.5 years in North America. The incremental costs are largely driven by storage tanks for the CNG or LNG, which account for between 53 percent and 76 percent of the total incremental costs.
The report, “Natural Gas Trucks and Buses”, analyzes the global market for trucks and buses that are in the medium duty (10,000 to 26,000 pounds) and heavy duty (26,000 pounds or more) gross vehicle weight classes. More info at: www.navigantresearch.com.
Category: Featured, Fuel & Oil, General Update, Green
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