GE Capital Fleet Services, a part of General Electric Company (GE), recently announced an agreement with VNG.co - a national Compressed Natural Gas (CNG.V) fueling facility provider, for the expansion of CNG refueling infrastructure in the U.S.
Aimed at light-duty fleet vehicles, the agreement will help fleet owners to increase the use of Natural Gas Vehicles (NGVs). General Electric’s decision to expand the CNG fueling business is consistent with its ambition of providing customers with the best value in energy and related services.
VNG.co offers fast-fill CNG fueling within existing retail gasoline stations, thus eliminating the need for fleets to maintain their own refueling stations. With this agreement, GE Capital Fleet Services’ customers are likely to take advantage of the ease of access of CNG fueling stations in key markets and minimize their overall fuel costs.
CNG is yet to catch on in the market as liquid fuels such as petrol and diesel still capture a major share of the transportation fuel market. The lack of public access to fueling infrastructure is acting as a deterrent for commercial fleet owners. Meanwhile, the low-cost and clean burning nature of the CNG fuel seems to have caught the attention of fleet owners. This collaboration is likely to make NGVs a preferred choice for fleet owners.
General Electric is one of the most diversified technologies and financial service corporations in the world. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital. GE Capital Fleet Services is a global fleet management company and forms a part of the Oil & Gas segmet.
General Electric currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include Macquarie Infrastructure Company LLC (MIC), ITT Corp. (ITT) and Federal Signal Corp. (FSS), each carrying a Zacks Rank #2 (Buy).