Continuing to pave the way in transitioning trucking fleets from diesel to compressed natural gas (CNG), AMP Americas announced 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.
Under the agreement, AMP-Trillium, the joint venture between AMP Americas and Trillium CNG, will build seven public fueling stations between August 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 forty 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. 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," according to Nathan Laurell, CEO of AMP Americas.
"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, " said Mary Boettcher, President of Trillium CNG.
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-l Liter commercial CNG fleets in the US.
CNG is domestic, abundant and about 40% less expensive than diesel. 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.
Initially, AMP Trillium will construct stations along the I-65 and I-75 trucking corridors and major routes in Texas, with the first station breaking ground by fall 2012.
Trillium CNG and Golden Eagle Distributors bringing Compressed Natural Gas (CNG) fueling stations to Arizona in 2012
The stations will fuel Golden Eagle's fleet and provide public CNG fueling in Tucson and Casa Grande.