20 truck fleet sees full return on investment in less than one year

PROJECT OVERVIEW

Regional Trucking Operator based in Pennsylvania. The tank and dispensing system can be set at no cost to end user with a long-term supply contract. Let’s look at a 20 truck test program.

This fleet cycles trucks every 5 years. Each Truck travels on average 125,000 miles per year. Trucks are getting 6 MPG. Each Truck burns approx. 20,850 gallons of diesel fuel per year.

Average Price of Diesel in PA. $3.459

Delivered in LNG: $1.459* includes a $.50 tax credit for alt fuels*

The incremental cost of a LNG engine is $40,000 more expensive than diesel.

Annual savings of per 1 LNG truck is $41,700. Payback is than 1 year.

Over life of the proposed pilot program, the regional carrier can truck fuel savings are estimated at $208,500 per truck. Therefore, the fuel savings for entire pilot program of 20 trucks is $4,170,000

The price of LNG can be hedged out 5 years, taking all risk of price movements away from company.

In a tight margin business of freight hauling, these savings can truly be a game changer for regional carriers.

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PROJECT DETAILS

  • Client Regional Trucking Operator
  • Location Pennsylvania
  • Number of gallons 20,850 gallons of diesel fuel per year per truck
  • Year converted not provided
  • Annual savings $41,700