GE Capital and Clean Energy Expand Natural Gas Availability
GE Capital’s Transportation Finance business and Clean Energy Fuels Corp. have entered into an alliance to accelerate the conversion of heavy-duty trucking fleets from diesel to cleaner-burning, less-expensive natural gas.
by Staff
October 24, 2013
2 min to read
Truck fleet operators can work with Clean Energy to develop natural gas fueling contracts. Photo courtesy Clean Energy Fuels.
GE Capital’s Transportation Finance business and Clean Energy Fuels Corp. have entered into an alliance to accelerate the conversion of heavy-duty trucking fleets from diesel to cleaner-burning, less-expensive natural gas.
To take advantage of this opportunity, truck fleet operators will first work with Clean Energy to develop natural gas fueling contracts and will then apply for loans and leases — including fair market value leases — from GE Capital to acquire trucks from manufacturers that produce commercial natural gas vehicles (NGVs).
Ad Loading...
Then Clean Energy will help offset the monthly cost of newly-acquired NGVs to make it consistent with the cost of a diesel truck, if the customer makes a fuel commitment, says the company.
“We think this alliance will help to open up the natural gas market for long-haul operators,” said Dan Clark, president and general manager of GE Capital Transportation Finance. “The alliance will support the parties’ mutual goal of reducing the financial impact of transitioning to natural gas and lowering the industry’s environmental footprint.”
Class 8, or heavy-duty, trucks can use both compressed natural gas (CNG) and liquefied natural gas (LNG). Both CNG and LNG cost less than diesel — a key factor considering that fuel comprises nearly 40% of a typical over-the-road carrier’s operational costs.
Two of the factors that had delayed the transition to natural gas in the over-the-road trucking industry were related to technology and infrastructure. With the ongoing refinement and expanded availability of natural gas engines by commercial vehicle manufacturers and the 400-plus natural gas fueling stations owned, operated, maintained and/or supplied by Clean Energy throughout the U.S. and Canada, those issues are being addressed.
“Together with GE Capital, we’re breaking down the barriers to entry that may have prevented some fleet owners from making the transition to natural gas,” said Andrew J. Littlefair, president and CEO of Clean Energy. “Our goal is to work with fleet operators to achieve a one-year payback on the incremental cost of natural gas heavy-duty trucks — and our alliance with GE Capital is another tool in achieving this important goal.”
Fleet managers are done with the debate—and focused on execution. Learn how to build a practical electrification strategy that aligns infrastructure, operations, and financing while keeping costs controlled and deployment scalable with support from Blink Charging. Discover how smart planning today positions fleets for long-term performance and ROI.
New industry group data revealed that light-duty electric vehicle sales are hitting record market share and volumes, while commercial EV volume dipped. What’s driving the fluctuations?
For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.
With the expiration of federal incentives, EV success now hinges less on government policy and more on discounts, battery tech progress, increased range, and broader infrastructure.
Fleet operators shared their challenges during an annual conference that embraced the latest advances across all aspects of running private- and public-sector vehicles.
