Natural gas reality check

Natural gas reality check

ACT Research has released the results of its updated research on U.S. natural gas transportation fuel trends in the heavy-duty market. According to the research firm, the natural gas-powered vehicle market is moving from infancy to adolescence. The report details the impact of today’s trucker-favored market, in which focus is placed more on acquiring capacity than on lowest total cost.

The report finds that in 2014 natural gas powered trucks continue to grow in unit sales and production, though at a rate proportional to the outsized growth of the overall heavy truck market. This inline growth falls below earlier expectations of a more rapid adoption. Nevertheless, sales for 2014 are now expected to total 11,000 units, up 27% from 2013, noted ACT.

As part of the ACT study, trucking industry leaders looked to the longer term future of natural gas as a vehicle fuel. With that research, ACT developed a 50-plus page report detailing what has happened and where the industry is headed over the next 20 years.

“Expectations have fallen from our initial analysis. Factors contributing to the shifting ROI results include the price of diesel and meaningful improvements in overall fuel economy. Additionally, the stubbornly high price gap between natural gas and diesel powered vehicles and the still early stage infrastructure build out remain impediments.” said Ken Vieth, ACT Research’s senior partner and general manager.

“There must be a cooperative investment strategy developed between shippers and truckers to overcome some of the natural gas adoption roadblocks. The chicken-and-egg issue of infrastructure is being solved, albeit slowly, but the price of natural gas powered equipment still needs to be addressed, and this won’t be solved overnight. That’s why we call it an evolution and not a revolution,” Vieth added.

ACT’s study is now in the rebuttal phase and participants are being asked to comment on the preliminary findings, with the full report scheduled for release on Sept. 30.

You May Also Like

How fleet management tools can help increase fuel efficiency

From fleet cards to EVs and data, all work together to help save on costs.

generic-fuel-efficiency-fleet

The cost of doing business in the fleet industry is high, but one often overlooked way to help increase savings is through fuel efficiency.

Supply chain issues, lingering effects of inflation, cost of vehicles – all are reasons why fleet operators are seeking ways to tighten budgets. In a recent survey of Shell Fleet Solutions fleet account managers, reducing overall costs and finding new solutions for efficiency were among the most important trends they have heard directly from fleets.

Orders open for new Volvo VNL

Production will start later this summer, and Volvo expects customer deliveries to begin later this year.

Volvo-VA-facility-VNL-order-books-open
Trade Show Talk: Trends kicking off 2024

Alternative fuels, connectivity, efficiency—there’s been plenty to report on from trucking trade shows, but which topics stuck out most?

trade-show-Talk-work-truck-week-tmc-geotab-connect-hdaw
Kenworth names 2024 Dealer, Parts Council members

Kenworth selected executives representing 480 dealerships for its Dealer Council, and named eight members for its Parts Council.

Kenworth-Names-2024-Dealer-Council-Supports-Worlds-Best-Customer-Experience
ACT Research data shows Class 8 order surge paused

At a seasonally adjusted 17,100 units, March marks the first month since May 2023 for seasonally adjusted activity below 20,000 units.

ACT-March-24-Class-8-order-surge-pauses

Other Posts

Volvo Group to build new heavy-duty truck manufacturing plant in Mexico

Volvo expects the plant to be operational in 2026.

Volvo-name-logo-north-american-heavy-duty-truck-production-mexico-mack-plant
J&R Schugel wraps Kenworth T680s to support driver causes

After a driver beat breast cancer, the company wrapped her truck in pink and white to support her goal of raising awareness.

JR-Schugel-breast-cancer-awareness-truck
FTR: Class 8 orders down more than 30% month-over-month

Despite the substantial drop from February, FTR says the market is performing well, as March orders are on track with 2023.

FTR-March-24-Preliminary-Class-8-Net-Orders
A ‘Toward Zero’ emissions Q&A with Volvo Trucks’s Roger Alm

Talking through the challenges, the technological advances, and the strategies for a sustainable future.

Volvo-Trucks-roger-alm-world-volvo-sustainability-1400