Sam Anderson, CEO of 500-truck Bay & Bay Transportation of Rosemount, has placed his initial bet on natural gas-fueled tractors.
Anderson, 40, said the cost of compressed natural gas (CNG) is about $2 per gallon equivalent, while diesel fuel is about $4. So, it's a no-brainer on a fuel-cost basis for rigs that run 2,500 miles a week, sometimes seven days a week.
However, the two new Freightliner tractors from Cummins Westport cost $250,000 apiece, nearly double that of diesel-fueled trucks, and the mileage is not quite as good, and the servicing tends to be a little more expensive and route planning must be exact to ensure the CNG-fueled transport is always within range of a Kwik Trip, Clean Energy Fuels or other fueling station.
"We'll know the economics by the end of the first year," said Anderson, who indicated that he may gradually move up to 20 percent of his fleet to natural gas vehicles. "We know the 'green' aspects of the truck, reducing our carbon footprint, and that's a component of our decision. If the return-on-investment payback is within three years, it will prove a good deal, but if it's more than four, it may not be such a smart economic decision. But some of our clients, who are concerned, want the environmental component because it meets their sustainability values.''
Anderson said business is so brisk, now back to 2005-06 demand levels, that Bay & Bay has had to turn some away. The company hauls for a number of Minnesota retailers, manufacturers and food companies.
Minnesota Trucking Association CEO John Hausladen has predicted fast growth of natural-gas rigs because of fuel costs and the build out of the fueling network.
Wisconsin-based Kwik Trip, which is gradually converting its fleet of 350 light-duty and semitrailer trucks to CNG and liquefied natural gas (LNG), has about 25 natural gas fueling stations and expects to open about 10 more this year in Minnesota, Wisconsin and Iowa.
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