Market for HD Natural Gas Trucks Stalls
While truckers are ordering new equipment in record numbers, the latest research shows that they are not turning to natural gas fueled trucks as fast as had been projected two years ago, according to ACT Research.
The disparity can be attributed to the rapidly declining cost of diesel, thus making the return on investment for adoption of natural gas less attractive.
Original projections were that 2015 would see a 5% penetration of NG heavy duty trucks, but based on 2014 actual results and the sharp drop in oil prices starting in Q4’14, the group’s report calls that “optimistic.”
“With the price differential between diesel and natural gas narrowing, the ROI to convert from diesel to natural gas is moving in the wrong direction: payback periods are lengthening,” said Ken Vieth, ACT’s Sr. Partner and General Manager. Vieth added that ACT has developed an NG equipment payback index as a quick reference tool for fleets evaluating a switch from diesel to natural gas.
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