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US Department of Energy Allocates $300M for Alternative Fuel Projects

August 26, 2009 | USA

2400+ CNG vehicles, 600+ LNG Vehicles, 150+ NG fuelling stations
Industry stocks rise on news

Natural gas vehicle projects feature in 19 of 25 cost-share projects under the Clean Cities program that will be funded with nearly $300 million from the American Recovery and Reinvestment Act. The projects accounced by Energy Secretary Steven Chu, will speed the transformation of the nation’s vehicle fleet, putting more than 9,000 alternative fuel and energy efficient vehicles on the road, and establishing 542 refueling locations across the country. The U.S. Department of Energy (DOE) also estimates they will help displace approximately 38 million gallons of petroleum per year.

“We’re very gratified to see NGVs receive so much of the funding,” said Richard Kolodziej, president of NGVAmerica.  “The stimulus legislation was intended to fund clean, petroleum-displacing projects with technologies that are here today.  The fact that NGVs were included in 19 of the 25 selected projects just shows that the marketplace recognizes that of all the alternative transportation technologies out there, NGVs are the best positioned to have an impact right now.”

NGVAmerica was still analysing the contents of the program as this report was published but so far has identified more than 2400 CNG vehicles and more than 600 LNG Vehicles to be put on the road as an outcome. More than 135 CNG stations will be built, along with at least 9 LNG stations and 3 biomethane stations.

Industry stocks reacted strongly to the news with Canadian based Westport Innovations (WPRT) posting an increase on the Nasdaq from a Tuesday close of $7.67 to $10.44 by Thursday’s close. Westport is expected to benefit through engine sales of their 15-litre GX engine and Cummins-Westport’s 8.9 litre ISL G engine.

Clean Energy Fuels Corp. (CLNE) shares also jumped on the Nasdaq from $10.73 to $12.78 over the same period. Clean Energy estimates 11% of total funding by the DOE will go to customers and government agency partners of the company, offsetting the incremental cost of more than 800 new clean-burning natural gas-powered taxis, shuttle buses, refuse trucks and heavy-duty trucks.

Compressed natural gas and liquified natural gas projects figure significantly in this edited list from the DOE website, where more detail is available including a map identifying recipient locations:

North Central Texas Council of Governments’ North Central Texas Alternative Fuel and Advanced Technology: deploy refueling stations and alternative fuel vehicles in the Dallas-Fort Worth area; includes three compressed natural gas stations and 97 CNG vehicles.

South Coast Air Quality Management District’s UPS Ontario-Las Vegas LNG Corridor Expansion Project: complete a long-planned 700-mile regional liquid natural gas (LNG) fueling corridor across the southwestern U.S., along one of the nation’s most heavily traveled truck routes for the movement of various goods. A new LNG station will support 48 heavy-duty LNG vehicles, an additional 161 LNG trucks in UPS’ fleet, and other LNG fleet operators in the region.

South Coast Air Quality Management District’s (SCAQMD) Heavy-Duty Natural Gas Drayage Truck Replacement Initiative: replace 180 diesel drayage trucks at the Ports of Los Angeles and Long Beach with LNG trucks.

San Bernardino Associated Governments’ J.B. Hunt LNG Truck Project: Made in America Initiative: deploy 262 heavy-duty LNG trucks in Southern California and construct two LNG refueling stations with capacity to spare.

New York State Energy Research and Development Authority (NYSERDA)’s Statewide Alternative Fuel Vehicle Program for CNG, LPG, EV, and HEV Vehicles and Fueling Stations Initiative: utilize multiple alternative fuels and technologies in multiple sectors across the state. Alternative fuel and/or hybrid school buses, municipal vehicles, urban delivery, and utility vehicles will be deployed throughout the state.

Clean Fuels Ohio’s Ohio Advanced Transportation Partnership (OATP): includes purchase and conversion of 283 alternative fuel vehicles (including natural gas) for numerous fleets including taxis, cities, schools, and delivery vehicles. 15 alternative fueling and service stations will also be constructed.

Utah Clean Cities Coalition’s Clean Cities Transportation Sector Petroleum Reduction Technologies Program: includes 16 new compressed natural gas (CNG) public fueling facilities, upgrades to 24 CNG public fueling facilities, three new liquid/compressed natural gas facilities, three new biodiesel public refueling stations, and increases the number of natural gas vehicles operating in Utah by 678.

Clean Energy Coalition’s CEC Michigan Green Fleets Initiative: increase the use of natural gas, electric and hybrid electric vehicles in 13 sites throughout Michigan. A total of 271 alternative fuel vehicles and 19 alternative fueling sites will be added throughout the state.

City of Chicago, Department of Environment’s Chicago Area Alternative Fuels Deployment Project: deploy 554 alternative fuel and hybrid electric vehicles and install 153 alternative fueling and electric vehicle charging stations throughout the Chicago region. The project will include 17 new CNG fueling stations.

Puget Sound Clean Air Agency’s Puget Sound Clean Cities Petroleum Reduction Project: included in this project funding will be a biomethane project using gas from a Whatcom County dairy farm which will be harvested and converted into fuel to be used by commercial tour buses shuttling passengers to and from Seattle to Vancouver, B.C., during the 2010 Winter Olympic games and beyond.

New Jersey Clean Cities Coalition’s New Jersey Compressed Natural Gas Refuse Trucks, Shuttle Buses and Infrastructure: deploy 277 heavy-duty natural gas garbage trucks and shuttle buses and four new CNG fueling stations.

Greater Long Island Clean Cities Coalition’s Long Island Regional Energy Collaborative Promoting a Green Economy through Clean Alternatives: deploy five CNG stations and 87 heavy-duty trucks including 44 CNG refuse trucks, 40 heavy-duty CNG dump trucks, and three heavy-duty CNG trucks.

DeKalb County’s DeKalb County/Metropolitan Atlanta Alternative Fuel and Advanced Technology Vehicle Project: convert local landfill gas (LFG), a renewable fuel source, to compressed natural gas and develop five CNG fueling stations throughout the metro-Atlanta area.

State of Wisconsin’s Wisconsin Clean Transportation Program: deploy 502 alternative fuel and advanced technology vehicles through 119 public and private fleets throughout the state. The program includes the installation of 10 alternative fuel refueling sites (including seven CNG sites).

The Treasure Valley Clean Cities Coalition’s Idaho Petroleum Reduction Leadership Project: replace 28 heavy-duty diesel refuse trucks with CNG trucks. Two CNG fueling stations will be constructed.

Metropolitan Energy Information Center’s Midwest Region Alternative Fuels Project: includes 27 alternative fuel stations (including 16 CNG) and will deploy 373 alternative fuel and advance technology vehicles (including 235 CNG).

Greater New Haven Clean Cities Coalition, Inc.’s Connecticut Clean Cities Future Fuels Project: vehicles to be deployed include 163 CNG, the vast majority for high mileage taxis and 18 heavy-duty LNG refuse trucks. Infrastructure to be deployed includes three CNG stations, one combined B20/CNG/Electric station, one L/CNG station and one hydrogen station.

State of Indiana’s: Central Indiana Clean Cities Alliance Comprehensive Alternative Fuels Implementation Plan: implement propane, compressed natural gas, and hybrid vehicles from light- to heavy-duty and includes infrastructure for CNG and E85 vehicles.

Triangle J Council of Governments’ Carolinas Blue Skies & Green Jobs Initiative. The project will include vehicles and fueling infrastructure, including deployment 55 CNG vehicles.

Some of the above projects also incorporate a public education component. Clean Cities is a government-industry partnership sponsored by the U.S. Department of Energy’s (DOE) Vehicle Technologies Program.

“We’re very gratified to see NGVs receive so much of the funding,” said Richard Kolodziej, president of NGVAmerica.  “The stimulus legislation was intended to fund clean, petroleum-displacing projects with technologies that are here today.  The fact that NGVs were included in 19 of the 25 selected projects just shows that the marketplace recognizes that of all the alternative transportation technologies out there, NGVs are the best positioned to have an impact right now.”

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Categories: Fleets, Infrastructure, Market Developments, Policy | Tags: Compressed Natural Gas, Fleets, fueling stations, HD Vehicles, Liquefied natural gas, LNG | 3981Comments (6)http://www.ngvglobal.com/us-department-of-energy-allocates-300m-for-alternative-fuel-projects-0826US+Department+of+Energy+Allocates+%24300M+for+Alternative+Fuel+Projects2009-08-25+15%3A49%3A52NGV+Global
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6 Trackbacks

  1. Peterbilt Taking Immediate Orders for CNG and LNG Vehicles | NGV Global says:
    September 1, 2009 at 5:19 pm

    [...] Motors Company appears set to respond to the recent government funding made available in the US, for ARRA projects, announcing immediate availability of its vocational [...]

    Reply
  2. Daimler’s Freightliner M2 112 NG Included in DOE-Approved Projects | NGV Global says:
    September 3, 2009 at 9:37 am

    [...] U.S. Department of Energy’s Clean Cities program funding, announced last week, is to include vehicles manufactured by Daimler Trucks North America. Of the [...]

    Reply
  3. Freightliner M2 112 NG de Daimler incluido en los proyectos aprovados por el Departamento de Energia | NGV Global Espanol says:
    September 20, 2009 at 11:04 pm

    [...] programa de financiamiento de Ciudades Limpias del Departamento de Energía de los Estados Unidos, anunciado la semana pasada, incluira vechiculos manufacturados por Camiones [...]

    Reply
  4. NGVAmerica Comments on US DOE $300M Funding | NGV Global says:
    September 22, 2009 at 4:59 am

    [...] the announcement by the U.S Department of Energy’s Clean Cities’ Program on the selection of alternative fuel projects to be funded as part of the $300 million provided in the American Recovery and Reinvestment Act [...]

    Reply
  5. 2009 Provides Plenty of Highlights for NGV Industry | NGV Global says:
    December 18, 2009 at 1:01 pm

    [...] that NGVs are a solution to many economic, environmental and energy related problems – US Department [...]

    Reply
  6. Ohio Alternative Fuel Program ($29M) Cleared to Go | NGV Global says:
    February 25, 2010 at 8:33 pm

    [...] awarded $11 million in ARRA funding to Clean Fuels Ohio through the its Clean Cities Grant program in August of 2009. This $11 million [...]

    Reply

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