A compressed natural gas (:CNG) station, designed by Trillium CNG – a unit of Integrys Energy Group Inc. (TEG) – came online on Aug 30, 2013 at the GreenTeam of the San Jose facility in California. This is the second CNG station serviced by Integrys Energy to come into operation after the one in Casa Grande, Ariz. where the company collaborated with Golden Eagle Distributors, Inc.
GreenTeam of San Jose, a business wing of Waste Connections, Inc. (WCN), collaborated with Integrys Energy to construct the station in a phased approach. A single compressor was installed to meet the fueling needs of the existing CNG vehicles with an option for a second compressor as GreenTeam transforms its fleet entirely. GreenTeam presently is utilizing the station to service its 18 new trash hauling CNG-fired trucks.
GreenTeam plans to shell out about $15 million for the full conversion of its existing fleet to curb carbon emission and anticipates doubling its CNG truck convoys by next year. Long-term prospects for CNG look promising especially with the shale boom in the U.S.
Despite the moderate use of natural gas as a transportation fuel in the U.S., its cost-effective and clean burning nature will ultimately take precedence over the use of diesel. Integrys Energy is committed to expand CNG infrastructure to popularize the benefits of natural gas. The company’s goal of adding 101 Class 8 accessible CNG stations by 2016 across 29 states will likely boost its growth trajectory.
However, the company has to be patient as the transition to CNG fuel will take time. Natural gas consumption by car, trucks and trains will witness gradual demand growth by 2020.
More From Zacks.com
- Utility Industry
- Commodity Markets