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Page added on May 18, 2013
Are Natural-Gas Cars Next?
A consortium of North American energy producers plans to showcase half a dozen natural-gas-powered vehicles, including a BMW X3 SUV and a Ford Mustang coupe, in an effort to drum up interest in use of the fuel in passenger cars.
America’s Natural Gas Alliance, a trade group representing more than two dozen North American oil and gas companies, is planning to demonstrate “bi-fuel” versions of popular vehicles retrofitted to run on compressed natural gas, or CNG, and use a conventional gasoline tank to extend their range, according to officials. The group declined to provide further details ahead of its marketing campaign.
The trade group will preview those test vehicles on Tuesday at a Southern California Gas Co. facility in Los Angeles and then launch a broader public-awareness campaign next month, officials said. Converted vehicles from Ford Motor Co., Chrysler Group LLC and four other manufacturers are expected to be part of the Alliance’s lineup.
Chrysler, which now offers a natural-gas-powered pickup inspired by the shale-gas boom, said it has no plans to make a passenger-car conversion available. Auto makers have been focusing on battery- and diesel-powered passenger vehicles and have been reluctant to add another energy source. A BMW spokesman said, “We are not currently involved in natural-gas vehicles,” and Ford said it isn’t involved in the Alliance’s project, nor does it plan to produce a conversion kit for Mustang.
These “bi-fuel” vehicles cost thousands of dollars more than gasoline-powered vehicles. Advocates say low natural-gas prices can make up the difference over time. CNG costs between $2.20 and $2.50 a gallon-equivalent, below the average pump price for unleaded gasoline. But conversions aren’t cheap: General Motors Co., which began selling a pair of bi-fuel CNG pickups in December, prices them at about $11,000 more than gasoline versions.
The gas-industry group says the demonstration is designed to spur consumer and auto makers’ interest in CNG-powered cars at a time when surging gas production has dramatically lowered prices. That has spurred a renewed drive by gas producers and auto makers to make the fuel a more attractive substitute for gasoline.
“We hope the excitement created by these vehicles encourages policy makers to take notice,” said Anne Shen Smith, CEO of Southern California Gas.
Some commercial vehicles, including corporate fleets and heavy trucks, are already using or experimenting with natural gas. One advantage for these large-scale users over retail buyers is that they can afford to build and maintain their own refueling stations. While more than 100,000 CNG vehicles are being driven in the U.S., just under 600 stations are open to the public.
Gas producers hope that by showcasing the CNG-retrofitted vehicles they can spark fresh interest. Auto-industry analysts remain skeptical manufacturers will rush into the market, no matter how low natural-gas prices fall.
“You can’t dedicate a vehicle to this fuel until you’ve got natural-gas pumps almost as ubiquitous as gasoline pumps,” said Phil Gott, senior director at IHS Automotive.
To help resolve that dearth in natural-gas fueling stations, two leading gas producers have joined forces with home-appliance manufacturers in separate bids to develop affordable refueling equipment that plugs into household gas lines. In December, Encana Corp., North America’s third largest natural-gas producer, linked up with Whirlpool Corp. and four U.S. utilities. Similarly, Chesapeake Energy Corp. is working with General Electric Co.
Gas company officials say major auto makers are paying close attention to these efforts and are readying conceptual models that may serve as trial balloons for future mass-market vehicles. “You will see over the next year or two, probably less than a year, some concepts of natural-gas [passenger] cars,” Eric Marsh, executive president at Encana, said in an interview.
5 Comments on "Are Natural-Gas Cars Next?"
Beery on Sat, 18th May 2013 8:43 pm
Note the term “gallon equivalent”. they say that because you need about 20 times the volume of compressed gas to match the energy capacity of a gasoline tank. So if you have a 4 seater hatchback, gas conversion will turn it into a 2 seater. If you have a sedan with a full-sized trunk, prepare for using the back seats as cargo space after the conversion – and even then, prepare for your car having half its old range.
shortonoil on Sat, 18th May 2013 9:11 pm
It takes 3.9 lbs of methane to deliver the same amount of energy as 1.0 lb of conventional crude. Once conventional crude is no longer affordable, individual transportation equipment will only be available to a select few.
Dmyers on Sat, 18th May 2013 11:42 pm
The assumption, present here, that natural gas is going to remain cheap, is a bad one to make. The conversion does not appear to be economically viable.
“To help resolve that dearth in natural-gas fueling stations, two leading gas producers have joined forces with home-appliance manufacturers in separate bids to develop affordable refueling equipment that plugs into household gas lines. In December, Encana Corp., North America’s third largest natural-gas producer, linked up with Whirlpool Corp. and four U.S. utilities. Similarly, Chesapeake Energy Corp. is working with General Electric Co.”
Something that just “plugs into” something else always makes for an attractive solution, but I think it’s going to turn out a lot more complicated than that. Who’s going to decide, for example, whether you lose your heat or your transportation if your gas bill gets out of control? A heat and transportation penal advisory committee made up of officers from the dominant gas company?
A more sensible conversion would be the SUV to moped conversion. Most people can afford it, and the home fuel dispensary is that red two gallon gas can that you already own.
BillT on Sun, 19th May 2013 3:24 am
Wow! Insurance companies are going to love this!
You have a natgas car? Double/triple your insurance rates!
House with a natgas refueling option? Double/tripple your insurance rates.
What? Natgas demand has doubled along with it’s price? Too F—ing bad!
LMAO
DC on Sun, 19th May 2013 6:35 am
Even if normal demand curves did not kick in to drive the price of Automotive NG upwards(an unlikely event), the oil companies would do it for us. As soon as any ‘alternative fuel’ that they control becomes too popular, they will simply raise the price to make whatever marginal economic benefits one might squeeze out of NG, propane whatever basically null and void. Why so many in the media-sphere continue to promote the fantasy that NG fueled vehicles will be magically ‘cheaper’ to run is a mystery to me.
Diesel, for example, is easier to refine than gas, and almost anything can be used as a feedstock.
Is diesel cheaper than gas? No, it used to be, but diesel vehicles were too efficient for the oily cartels to tolerate, so they simply raised the price to the point it was no longer a threat there preferred drug of choice,leaded gaz-o-line. And to close the door on the other end, the auto-maker component of the oil cartels made diesel vehicles grossly expensive and heavy. So much so, the weight of the (mostly trucks) alone pretty much eliminated any of diesels benefits. Small fuel-efficient diesel cars all but vanished from N.A. dealerships. Replaced by heavy, hugely expensive trucks. The ‘efficeny’ option were replaced by so-called ‘hybrids’, which are also, heavy, over-complex, no more efficient, and feature mainly useless tiny batteries incapable or moving the ‘car’ more than few kms at best. Hey, want to convert your ‘hybrid’ to a NG hybrid? Didn’t think so…
The take home lesson is, the exact same thing will happen to ‘NG’ if it were ever to become remotely popular.