Page 88 - BizVoice May/June 2013

88 BizVoice/Indiana Chamber – May/June 2013
Sometimes technology moves ahead, leaving
many of us to play catch up.
In the case of alternative fuels, this
couldn’t be more accurate. Compressed and
liquefied natural gas-powered fleet trucks,
bi-fuel engines (starting on gasoline and
switching over to natural gas), and electric and plug-in
hybrid vehicles are now real solutions for rising fuel costs.
However, upgrades – particularly in infrastructure –
are necessary before these fuels are viable options for every
business and city, and potentially the public.
The Indiana Chamber of Commerce’s Indiana Vision
2025 long-range economic development plan points to a
superior infrastructure as a major driver of economic
growth and success. To remain competitive, Indiana needs
to (among other things) create and implement a plan to
become a net exporter of energy, diversify the energy mix,
implement energy conservation strategies and develop new
fiscal systems to support infrastructure projects and
continued economic growth.
“Having superior infrastructure will continue to
leverage our competitive edge with a great portion of the
United States’ marketplace,” offers Cam Carter, Chamber
vice president of economic development and federal affairs.
Cheaper, cleaner
Around the state: Cummins Westport is building
compressed natural gas (CNG) engines. Honda Manufacturing
of Indiana in Greensburg is manufacturing Civic hybrid models.
General Motors in Fort Wayne is producing Chevrolet
Silverado HD and GMC Sierra bi-fuel pickup trucks.
Monarch Beverage in Indianapolis – the largest beer
and wine distributor in the state – began converting 85%
of its fleet to CNG last year. It partnered with Cummins,
Citizens Energy and Proliance Energy on the project.
Vice President of Operations Fred Dufour listed several
reasons for the company’s switch.
“It’s cleaner burning; there is a lot less particulate matter
and general emissions waste. It’s domestic; it’s cheaper,” he
notes. “There is a difference in fuel prices: diesel is $3.85 a
gallon; natural gas is $1 a gallon.
“When we first started looking at it, our annual spend
on importing fuel (as a nation) was $460 billion a year. We
took the approach that if we could off-set our portion of
that as close as we can – if everybody does that – it would
make a big impact,” he recalls.
“All the data lined up that between 2015 and 2018,
we were at a high risk of our diesel and gasoline prices
being $5 to $7 a gallon.”
He says the company looked at every option available,
but that CNG kept “staring him in the eye” as the direction
in which to invest.
Monarch tested out three trucks with Cummins Westport’s
CNG engines and quickly made up the incremental costs
on all three tractors. Dufour shares that between equipment
costs and the price of building an on-site CNG fueling
station, Monarch will end up investing about
$20 million in the changeover, and company
officials anticipate a two-and-a-half-year
payback.
Clayton-based Ray’s Trash Services has
also introduced three CNG-powered trucks.
“We’re responding to our customer base
and are interested in being greener, having
better fuel efficiency and savings, and being a
good steward,” says Calvin Davidson, Ray’s
trash project manager. “It’s the right thing to do.”
Davidson notes that the company doesn’t
have “the luxury of swapping out the equipment”
altogether, but plans to change more trucks in
the future as older models are decommissioned.
‘No silver bullet’
While Monarch has built its own fueling
station on-site, Ray’s Trash purchases fuel from
a private source.
Alternatives Abound
Technology, Fuel Sources Open Possibilities
By Charlee Beasor
Monarch Beverage, Indiana’s largest beer and wine distributor, is in the process
of converting 85% of its fleet to compressed natural gas (CNG) and has built an
on-site fueling station – a total investment of about $20 million.