12 Business Case Analysis for a Natural Gas Program. Fleet operations or is a new CNG station being planned nearby?). Assess facility property (Is the fleet. A Sample Gas Station Business Plan Template Industry Overview. A gas station which also called a petrol station, filling station, fueling station, or service station is a business facility which retails gasoline (petrol), diesel and lubricants for motor vehicles.
![]()
Very Important CNG Station design and development tips as well as information on CNG Fill station service and preventive maintenance.
Get Your 2018 – 2020 CNG Tax Credit![]()
CNG Tax Credit aka 50-Cent Fuel Credit aka Alternative Fuel Excise Tax Credit aka Excise Tax Credit now available for all sales 2018-2020. We have been getting some calls from people asking to assist with the proper way to file for the CNG tax credit. We thought sharing this insight would help to bring some clarity and help many to understand the process. ACT NOW, as this important development will add a significant amount to your CNG Station bottom-line performance for the last 2 years. So recently the Public Law 116-94 retroactively...
read more
CNG Station Business Models![]()
CNG Station Business Models Compressed natural gas (CNG) station business models traditionally fall into three distinct paradigms of ownership and business strategy. The business models discussed in this section are Fleet or End-User Ownership, Local Distribution Company (LDC) Ownership, and Third-Party Ownership. These business models arise out a number of key variables: KEY VARIABLES Who owns the station Fuel delivery service: time-fill, fast-fill, or combination Who maintains and operates the station Station accessibility: public, private,...
read more
CNG Station Financing
Finding CNG station financing is challenging due to: 1) Relatively new Natural Gas Fueling Station industry development stage 2) Difficulties in finding enough CNG commitments (load) on monthly basis to cover debt service 3) Determining the true cash flow of the business 4) Most lenders are looking for borrowers with prior experience operating CNG gas stations. It is important to seek assistance from a lender who is experienced in funding CNG gas stations, understands the specifics of this business and has a strong track record. It is also...
read more
CNG Fueling Station Maintenance
CNG Fueling Station Maintenance Overview & Commonly Overlooked Items Effective CNG fueling station maintenance can determine the success or failure of both a CNG station and the overall NGV program. Yet main tenance is perhaps the most critical but often overlooked issue affecting most CNG fueling stations. In many areas, there is a severe lack of experienced and qualified maintenance and repair technicians. In this technical paper, NGVi outlines the why, what, who, when and how of having a proactive CNG fueling stations maintenance plan...
read more
Total Cost Converting to CNG with CNG Station
Many fleets and municipalities are not making a commitment to use natural gas as a transportation fuel because the fleet managers do not have enough information to accurately estimate the total cost converting to CNG including CNG vehicle conversion, CNG fueling station development and all other tasks and costs associated with the process. An article below does a great job painting a big picture and we are glad to share it with you, our customers and subscribers. Please do not hesitate to contact us for a feasibility study applicable for your...
read more
Dehydration of Natural Gas, water in CNG
Natural Gas usually contains significant quantities of water vapor. Changes in temperature and pressure condense this vapor altering the physical state from gas to liquid to solid. This water must be removed in order to protect the system from corrosion and hydrate formation. In 1810, an English scientist by the name of John Dalton stated that the total pressure of a gaseous mixture is equal to the sum of the partial pressures of the components. This statement, now known as Dalton’s Law of Partial Pressures, allows us to compute the...
read more
First step to build reliable CNG station
When our customers ask us about the most important tip to build a solid and reliable CNG station we tell them that it all starts with properly securing your compressor and other equipment to the base. We encourage them to bolt any of the CNG fueling equipment purchased to any substantial, relatively level foundation or base ! The foundation bolts must be of sufficient length to project at least 1/2″ through the nuts to allow for proper leveling. We also suggest that our customers use MJ #1295, a vibration isolation material between the...
read more
What can help your CNG facility maintenance program
Here is a list of three tools that could help you with your station maintenance. Maybe you don’t need all of them but maybe one of these would prove helpful. Vibration Analysis – All rotating and reciprocating compressors have a normal vibration pattern that can be analyzed. But sampling the vibration of a piece of equipment we can compare and trend the results. Vibration analysis can detect many problems long before equipment fails. Thermographic Analysis – infrared images of mechanical or electrical equipment will often...
read more
CNG Station operation and repairs – keep that final stage loaded!
If added to the order for CNG fast fill-slow fill, CNGCenter provides a priority valve on the discharge of the compressor skid.This priority valve is really a back-pressure regulator, designed to maintain a minimum discharge pressure from the compressor package. The purpose of this is to assure that the final stage of the compressor is loaded. It is important to keep this final stage loaded in order to prevent oil carryover. Most of the Valves recommends 2500 psi as the minimum pressure to be maintained on the CNG packages and, of course,...
read more
How do I determine how much oil my CNG compressor is consuming?
As a general rule of thumb, lubricant consumption at or above 50 brake horsepower (bhp) hours per once is considered an acceptable rate. To apply this principle, you have to know three basic things. Motor Horsepower Quantity of lubricant consumed. (see tip #2) Number of operating hours. For example: we are running an Ingersoll Rand Model 05H25NGSX, a simplex 25 horsepower compressor package. Through our log sheets we know that we have added 5 ounces of lubricant for every 20 hours of operation. The formula looks like this: 25bhp X 20 hours /...
read more
Related Articles
The classic tale of scouring the earth in search of treasure that lies beneath your own backyard is a theme that resonates with the natural gas industry. High oil prices and U.S. energy-security risks prompted the industry to look closer to home. The demand for compressed natural gas, or CNG, is driven by the need for a cleaner and domestically abundant alternative fuel; 98 percent of U.S. natural gas consumption comes from North America. This catalyst is creating startup opportunities for new businesses and existing enterprises with large commercial fleets.
The Business Case for CNG
As a domestic commodity, CNG reduces U.S. dependency and spending on foreign oil with the added benefit of lower operating costs. Secondly, many cities and municipalities today are adopting stringent air-quality standards to minimize environmental harm caused by airborne vehicle pollutants. According to the University of Houston, CNG-powered vehicles can significantly reduce greenhouse gas emissions of carbon monoxide (90 percent), nitrogen oxide (50 percent) and carbon dioxide (25 percent). The U.S. Department of Energy's Vehicle Technologies Program estimated that CNG vehicles decreased U.S. petroleum consumption by 38.8 percent in 2009. Nevertheless, construction costs for CNG fueling stations and purchase of new vehicle fleets can be financially staggering without government grants.
Clean Cities Program
Under the auspices of the American Recovery and Reinvestment Act (ARRA) and the U.S. Department of Energy, $300 million was allocated to the Clean Cities program for projects aimed at accelerating America's transition to alternative fuels in the transportation and fleet sector. Qualifying projects include those promoting advanced vehicles and alternative fuels, refueling infrastructure and educational outreach. Clean City coalitions bring together stakeholders in government and private sectors to collaborate on mutual interests, strategies and goals. State and local governments serve as project lead applicants for Clean Cities grant monies and partner with private industry on a cost-share basis. Interested parties should contact a Clean Cities coordinator in their area by visiting the agency's website.
California CNG Infrastructure Grant
Clean Energy, a leading supplier of natural gas, won a $2.1 million contract from the city of Montebello, California, to construct a new CNG fueling station for its bus transit facility. This effort is part of a broader plan to also replace older buses with newer low-emission CNG models to meet California's air quality standards. Aurora Jackson, Director of Transportation for Montebello Bus Lines, said the new facility allows her company to become more environmentally friendly and further reduce annual operating costs. The $2.4 million ARRA grant funded 100 percent of the CNG-facility construction cost as well as maintenance expenses for the first year. The cost of CNG fueling stations depends on whether a 'fast-fill' or 'time-fill' dispensing is chosen and other factors.
Michigan CNG Infrastructure and Vehicle Grant
On behalf of the ARRA and Clean Energy Coalition, DTE Energy received a $5.4 million grant for construction of two new CNG refueling stations and the retrofit of 11 others across Michigan. Additionally, the funds will cover the conversion of more than 170 gasoline-powered fleet vehicles to operate on CNG. The Clean Energy Coalition, an Ann Arbor, Michigan-based nonprofit organization, facilitates partnerships between public and private sectors to develop and promote clean energy technologies.
Utah CNG Vehicle Retrofit
Alternative Vehicles Solution is a Utah-based startup that assembles CNG vehicle-conversion kits. The company got its start when General Motors recognized a niche market that was more profitable to outsource. AVS performs CNG retrofits for Express and Savana vans ordered by GM customers. Scott Brandeberry, AVS vice president, stated that although the operation may be considered small to GM, it represented a significant opportunity for his company. He also expressed hope that the corporate fleet market will expand his business. Representatives from Utah's Clean Cities program were on hand for the grand opening and recognized the company for its work to put 'cleaner' cars on Utah's roads, thus meeting the grant criteria.
References (3)Resources (3)About the Author
Gerritt Lee began writing in 2007. His work has appeared in the trade publications “Photovoltaic World,” “Utility Automation and Engineering T&D” and “Electrical Business.” He is a registered professional engineer and has over 28 years of combined utility experience in telecom and electric power revenue metering. Lee holds a bachelor's degree in electrical engineering from the University of Hawaii.
Photo Credits
Choose Citation Style
Lee, Gerritt. 'Grants for a Startup Company in the CNG Industry.' Small Business - Chron.com, http://smallbusiness.chron.com/grants-startup-company-cng-industry-14293.html. Accessed 26 January 2020.
Lee, Gerritt. (n.d.). Grants for a Startup Company in the CNG Industry. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/grants-startup-company-cng-industry-14293.html
Lee, Gerritt. 'Grants for a Startup Company in the CNG Industry' accessed January 26, 2020. http://smallbusiness.chron.com/grants-startup-company-cng-industry-14293.html
Note: Depending on which text editor you're pasting into, you might have to add the italics to the site name.
![]() Comments are closed.
|
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
December 2022
Categories |