Continuing to pave the way in transitioning trucking fleets from diesel to compressed natural gas (CNG), AMP Americas announced October 8 that it has signed a deal with Dairy Farmers of America (DFA) and Select Milk Producers, both national dairy cooperatives, to convert a portion of their diesel needs to CNG by working with haulers to convert their fleets to CNG-powered trucks. The initial focus will be on milk haulers in Texas.
Under the agreement, AMP-Trillium, the joint venture between AMP Americas and Trillium CNG, will build seven public fueling stations between October 2013 and early 2014 and lease new CNG trucks that will travel more than 13.2 million miles per year, servicing routes throughout Texas. The stations, which will be built in Waco, Amarillo, Harrold, Sweetwater, Weatherford, Kerrville, and Midland, will initially fuel 40 new Class-8 Kenworth and Peterbilt CNG sleeper trucks, a number that will double over the course of the agreement.
“It is estimated that the culmination of this deal will displace carbon emissions equal to removing 2,400 cars per year from the road and will save the supply chain $1.50 to $2.00 in fuel savings on every gallon sold,” says Nathan Laurell, chief executive officer of AMP Americas. “It lets us build a network of public, fast-fill CNG stations across all of the major Texas corridors that can be used by any fleet running trucks across the state.”
Mary Boettcher, president of Trillium CNG, says: “This new network of CNG stations will allow AMP-Trillium to meet the rapidly increasing demand for CNG cars and trucks. The low cost, low-carbon emissions, and reliability of CNG has made it the ideal alternative to gasoline and diesel fuels.”
The deal structured by AMP Americas features beneficial contract terms for fleets operated by Western Dairy Transport and Reynolds Transport, establishing the two as “first-movers” by operating two of the largest 12-liter Cummins Westport commercial CNG fleets in the US.
CNG is domestic, abundant, and about 40% less expensive than diesel, according to recent industry reports. It reduces dependence on foreign oil and has significant environmental benefits. Because it is the cleanest burning fossil fuel, CNG cars and trucks require less vehicle maintenance and enjoy a longer engine life. Given these benefits, the long-term savings far outweigh the incremental costs associated with converting to CNG.
