It is no secret that much of the gasoline that we purchase comes from the Middle East. If you have been watching the news recently, you may also be aware that the region is more unstable than ever before. As the conflicts intensify overseas, this can directly impact how much we pay for petroleum which concerns me since countless families rely on this resource to get to work every day or take their children to school. Often, when we think of natural resources and energy policy, that is something associated with the federal government and not necessarily Indiana. However, the number of alternative fuel vehicles in Indiana would probably surprise you. In fact, our state is leading the way on this initiative. Now you might be wondering, what are alternative fuels and why should I be interested in them? For the purposes of this column, I will be focusing on compressed natural gas (CNG) and liquefied natural gas (LNG) - both of which not only reduce our carbon footprint, but are also produced domestically, can save Hoosiers money and support countless Hoosier jobs. For instance, right in our backyard, the Greensburg Honda facility employs 2,000 associates and produces the only factory-built CNG car in the country that is available to non-fleet customers. The 2014 Civic GX gets about 27 mpg for city driving and about 38 mpg on the highway. As I write this, CNG in Greensburg is available for almost $1 less per gallon compared to typical 87 octane. Columbus based Cummins Inc. has also been developing a full line of natural gas engines, both through their engine business and also through their joint venture with Westport Innovations Inc., a partnership which is the leading North American provider of natural gas engines for on-highway commercial vehicles. Another Indiana company, Autocar, LLC in Hagerstown, became the first refuse truck maker to adopt the revolutionary Cummins Westport CNG engine. Cummins projects that by the year 2020, nearly 30 percent of their high horsepower engine production will be natural gas. I mentioned before that natural gas is less expensive for the individual consumer, but it is even cheaper for businesses and their truck fleets because they can lock in their natural gas cost for several years. For example, it was announced in 2013 that Monarch Beverages had locked in their price at $1.70 per gasoline gallon equivalent, minus a 50-cent-per-gallon federal tax credit. If you think about how much the price of gasoline has fluctuated just in the past five years, you can imagine how much they save by locking into a price - savings that can then be passed on to the customers of these businesses! As the Crossroads of America, I feel it is only fitting that Indiana is on the cutting edge of alternative fuel technology. While natural gas stations continue to arise throughout the state and more companies are switching over their fleets, I understand that for some it may take time to embrace these advancements. However, from my research, this is a technology which I see as a win-win, and I am confident that the more people know about alternative fuels, the more natural gas powered vehicles will grow in popularity. I hope this information was useful, and if you ever want to discuss this more in-depth, please do not hesitate to contact me at 317-232-9509. -30- |
