Waste Advantage Magazine

How Waste Fleets Can Maximize Fuel Savings While Adopting CNG

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Courtesy of Waste Advantage Magazine

Natural gas and, specifically, compressed natural gas (CNG) fueling stations and vehicles running on CNG were all over the industry news in 2012. Organizations such as Republic and Veolia added CNG collection vehicles to their fleet makeup in Pennsylvania, Texas and Wisconsin, while Waste Management opened more than a dozen CNG fueling stations to support its
growing fleet of CNG vehicles. While the adoption of CNG and other alternative fuels in select markets makes a great deal of sense and can lead to savings, the fuel portfolio for these organizations and others like them is becoming more complex and difficult to manage. A number of factors make managing this expanding portfolio a unique challenge including regional availability and pricing differentials for each fuel. Other factors such as managing supply agreements with a larger number of suppliers in each region, monitoring inventory levels for each fuel and reconciling all of these transactions with pricing agreements will increase the administrative workload. To manage this complex mix of fueling activity and components, fleets need to use technology to help streamline the transactions and activities associated with these fuel purchases. In addition to these considerations, fuel price volatility increases the difficulty of managing these fuels and creates the need to make these decisions at the proper time.

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