GE Capital’s Transportation Finance business and Clean Energy Fuels Corp. have entered into a strategic alliance to accelerate the conversion of heavy duty trucking fleets to natural gas.
Truck fleet operators will work with Clean Energy to develop natural gas fuelling 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).
If the customers make a commitment, Clean Energy will then help offset the monthly cost of newly-acquired NGVs to make it consistent with the cost of a diesel truck.
Heavy duty trucks can use both compressed natural gas (CNG) and liquefied natural gas (LNG). Both CNG and LNG cost significantly less than diesel, and are cleaner burning.
Clean Energy is addressing the technology and infrastructure issues that have delayed the transition to natural gas in the over-the-road trucking industry through the ongoing refinement and expanded availability of natural gas engines by commercial vehicle manufacturers, as well as through the increased number of natural gas fuelling stations throughout North America.
“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.”
Andrew J. Littlefair, President and CEO of Clean Energy, said of the announcement: “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.”
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/22102013/ge_capital_and_clean_energy_fuels_form_strategic_alliance_336/