Economic benefits of natural gas engines

Blue and white Freightliner next to construction equipment

Compared to diesel and gasoline vehicles, natural gas engine vehicles pollute less, have a smaller carbon footprint, and use a fuel that doesn't present any risk of soil or water contamination. Surely, these environmental benefits of natural gas engines must come at a cost premium, right?

For many applications, the opposite is true. Switching to natural gas vehicles offers fleet operators long-term economic benefits and enhances the sustainability profile of their business, despite the higher upfront cost compared to diesel trucks.

Cost savings through low, stable natural gas fuel prices

The first source of savings is the fuel itself. In the United States, natural gas retail prices are, on average, significantly lower than the retail price of both gasoline and diesel. This has been true for the past 20 years. The price of natural gas is also stable and disconnected from the price of petroleum fuels. For companies operating who do not have the option to adjust the price of their services to reflect rising fuel prices, the stability of natural gas prices is a major benefit. Public transit authorities, for example, cannot easily increase the price of bus tickets. Operating natural gas buses helps them avoid experiencing financial hardships every time the price of diesel or gasoline goes up.

As of late 2021, diesel averaged $3.10 per gallon gasoline equivalent, while CNG (compressed natural gas) was priced at $2.33 per gallon gasoline equivalent, making CNG a more cost-effective option. At these prices, a truck that uses 10,000 gallons of fuel per year would save $7,700 each year by running on CNG.

Reduced maintenance costs with natural gas engines

Fuel cost savings are only one part of the equation. Natural gas vehicles also require less maintenance than diesel vehicles equipped with aftertreatment systems. This is significant due to the complexity of the aftertreatment systems required to meet current emissions standards, particularly in the United States. These systems require a lot of preventative maintenance, such as changing filters. Adding up the cost of repairs, consumables, maintenance and downtime for maintenance, maintaining a modern aftertreatment system can cost several thousand dollars per year. With natural gas vehicles, which have much simpler aftertreatment systems, these costs are almost entirely eliminated.

These maintenance aspects are important considerations while evaluating when to switch to natural gas engines.

Incentives could also offer economic benefits for natural gas engines

Abundant government incentives are also available for businesses who want to invest in natural gas vehicles. In the United States, most states provide incentives such as high occupancy vehicle (HOV) lane access, parking privileges, infrastructure grants, and discounted natural gas purchases for CNG vehicles. At the federal level, substantial tax credits are available. For example, a tax credit of $0.50 per gallon gasoline equivalent has been available throughout 2021 for CNG and liquified natural gas (LNG) use. This amounts to an effective reduction of more than 20%, or $5,000 per year for a vehicle which uses 10,000 gallons of fuel per year. (The credit expired in 2021, but extension bills for 2022 are in the legislative pipeline.)

Driver and operational savings associated with natural gas engines

There are other soft savings associated with operating natural gas vehicles. For example, operators of CNG vehicles who choose to install a "time-fill" fueling system on their premises can save labor hours. "Time-fill" systems slowly fill CNG tanks overnight. At the end of the day, drivers park their vehicle at a fueling point, connect a fuel nozzle to the vehicle and go home. Compared to waiting for their turn at the gas pump, and then waiting several minutes to fill their tank, drivers save time, and their company saves money. Drivers and mechanics also report they enjoy working with natural gas engines compared to diesel engines. They are quieter, cleaner, and don't cause anyone to leave work smelling of diesel fuel. In some cases, these quality-of-life improvements can lead to lower staff turnover, and thus lower costs associated with training and recruitment.

Businesses whose operations allow them to see savings across these cost categories can quickly recoup the initial investment in natural gas vehicles. Switching to natural gas vehicles may not be for everyone, but for many businesses, investing in natural gas vehicles is a smart financial move.

If these benefits sound interesting to you, don't forget to also check our answers to frequently asked questions about natural gas engines. These answers cover topics such as cost, practicality, and feasibility of integrating natural gas into commercial fleets.

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Puneet Singh Jhawar

Puneet Singh Jhawar

Puneet Singh Jhawar is the General Manager of the global natural gas business for Cummins Inc. In this role, he is responsible for the product vision, financial management and overall performance of the natural gas business. Over his 14-year career at Cummins, Jhawar has cultivated successful relationships with a number of Cummins' largest customers. Jhawar has extensive global experience, with roles based in the Middle East, India, Europe and the US.

STEM Project Unites Children in the UK and Uzbekistan

Zoom call with West Park School and the Children's Home

If you ever doubted the ability of young minds to grasp what many adults would consider complex concepts, then you'll be amazed by the achievements of two groups of young children - one in a school in northern England, and the other 4,000 miles away in an orphanage in Uzbekistan.

With the support of Cummins, children ranging from six to twelve years of age have managed to bridge the language, culture, and time divide. They are collaborating with great success on building a basic electric racing car.

The story begins with a visit by Cummins to Rudmash Export Service, which has been representing Cummins in Tashkent, the capital of Uzbekistan, since 2018.

Rudmash has an impressive list of clients in mining, construction, gas, and power generation.

It is also a highly respected supporter of community initiatives, a key focus for Cummins.

During the visit, Amit Kumar, Cummins' Technical Territory Manager for the Commonwealth of Independent States (CIS) region, mentioned the work he was doing with local schools involving the Greenpower Education Trust in the UK.

Amit suggested that Rudmash might consider introducing local children to the fantastic learning opportunity that comes from building an electric car.

The Rudmash executive team loved the idea and reached out to their friends at the local orphanage (Children’s Home 22), about the proposed connection with children from West Park Academy – a primary school near Cummins' manufacturing plant in Darlington, England.

Students at the Children's Home working on the car
The children from Children's Home 22 building the car

Speaking through a translator, Rudmash Sales Manager Mr. Mavlonberdi Akhmedov said there was no hesitation from the orphanage. "Everyone was excited about it," he said. "When we showed them pictures of the car, the children's eyes lit up with interest.

"The only issue we encountered was not being able to involve the older children, but I think Amit has something in his mind for them. It will involve a similar collaboration with a UK school on a larger electric car that they can fit in!"

Over in Darlington, teacher Mr. David Fraser and his group of 9 to 11-year-olds were thrilled at the prospect of working with children from another country.

Students from West Park Academy
The children from West Park Academy

"Before our first session, I showed the children a map of Uzbekistan and explained how the time zones worked," Mr. Fraser said. "Tashkent is four hours ahead of us."

"When they started hearing a different language, they were a little hesitant although still excited. However, towards the end, once they got used to the translation pauses, lots of questions were being asked."

"They adapted very quickly, and every session with the orphanage has become more engaging. The children have greatly benefited from the relationship. It's been a great learning experience."

The car involved in the project is called the Greenpower Goblin G2. It comes as a flat-pack kit including chassis, wheels, steering, disc brakes, a 24V electric motor, and two 12V batteries.

Students at West Park Academy working on the car
The children from West Park Academy building the car

"The project is all about inspiring young children to take an interest in engineering in a fun and innovative way," said Amit Kumar, who earlier this year received special recognition at the North-East England STEM (Science, Technology, Engineering, and Mathematics) Awards for his years of dedication to STEM Education.

"The build introduces children to basic mechanics and electronics and might be the first step on the pathway to a career in engineering or another STEM field.

Mr. Fraser said the children soon started discussing aspects of the car such as frames, brakes, and steering geometry. There was a lively question-and-answer session on different materials that could be used to design and make the car's body. Their last session was about controls and driving.

"There are also other general discussions, as the children are eager to learn more about each other's countries," said Amit, who leads the sessions.

Students at the Children's Home looking at the car drawing
The children from Children's Home 22 talking about a drawing while on a zoom call

Rudmash service engineer Mr. Abdullayev Shakhzod said the children were enjoying the experience of working in teams.

"It's a fantastic new chapter in the history of a place that has a storied past. It was established in 1942 during the Second World War to care for evacuees from all over Eastern Europe. Children of over 40 different nationalities have been cared for by this children's home.

"The home is named Antonina Pavlovna Khlebushkina after the woman who ran it in the early days. She would be so proud of what is happening there today.

"As the summer vacation times differ in the two countries, the West Park school children have already finished building their cars, while the Uzbekistan car is about 40% complete.

"When the children return from their summer camp in September, they will start the rear axle, motor, and electrical components. Then they can take it for a drive," Amit said.

"Just before their summer term ended, the West Park children conducted a demonstration for their new friends in Tashkent. They set up a track and showcased driving the car on it. It was a great success."

Mr. Akhmedov, speaking through a translator, mentioned that the management team at Rudmash was considering how the project could expand beyond the children's home and into schools and youth organizations throughout Uzbekistan.

Mr. Akhmedov praised Cummins for their support of the project. "They have shown great responsibility at every stage and been very proactive, always striving to ensure things are done right.

"This is just the beginning for these children. It's already motivating them to learn more and develop their skills in broader technical applications.

"I would say that this project is not only important for the children's home but also for our city of Tashkent and the Republic of Uzbekistan, as it is nurturing an educational culture that is highly valuable. I can't thank Amit and Cummins enough."

Amit expressed that it's a privilege to help Cummins inspire young people about engineering and science from an early age.

How is the United States investing in clean energy?

GR hero

Our planet is facing a dire crisis: carbon dioxide concentrations in the atmosphere continue to soar above record highs. If gone unaddressed, the collective stress of climate change will produce an irreparable impact. Our health, energy, water, and food ecosystems are at risk. 

As it stands, there are many long-term effects of climate change. In North America, climate change is forecasted to cause decreasing snowpack in the western mountains. It will also lead to a 5–20% increase in yields of rain-fed agriculture and great intensity of heat waves. In fact, over the last five years, the United States has incurred roughly $120 billion a year in damages as a result of natural disasters caused by extreme weather and climate events.

Beyond natural catastrophes, climatic risks to the United States will have a cascading effect on the country's interconnected ecosystems. Reduced labor and overall economic productivity, and altered crop yields, will disproportionately harm lower-income and marginalized populations. These groups lack the resources to prepare or cope with extreme weather and climate events.

The world is investing in clean energy innovation

Combating the intensifying climate crisis requires a strategic combination of research and development (R&D), innovation, technology — and bold attempts.

Around the globe, countries are investing in clean energy to contribute to a livable planet now and for generations to come. In 2022, the US passed the Inflation Reduction Act, which includes a historic $370 billion investment to address the climate crisis. The Inflation Reduction Act provides tax credits and incentives to power homes, businesses, and communities with clean energy by 2030. The Act will increase investments in the fastest-growing power generation technologies, solar and wind. It will also advance cost-saving clean energy projects and protect two million acres of national forests. These initiatives are in addition to substantial tax credits and rebates offered to families and businesses in the United States.
Consequently, a stronger clean energy economy will contribute to overall economic growth and competition. As a result, there will be millions of new well-paying jobs for Americans to make clean energy.

It is possible to start decarbonizing now

Governmental policy strategies and investments in decarbonization technologies are part of the solution to produce increasingly cheap, dependable, and clean energy.

Strong communities and vibrant economies depend on a healthier planet. As a global power technology leader, Cummins is in a unique position to power customer success by leading during this energy transition. We intent to do so by providing customers with the right technology at the right time, understanding of their needs and applications.

We think of this journey to carbon neutrality in two distinct and complementary ways. First, by innovating zero-emission solutions and introducing them in markets and applications where the infrastructure, development and deployment are ready. Secondly, by advancing internal combustion engines through efficiency improvement and by running them on cleaner alternative fuels for a well-to-wheels solution.

Through Destination Zero, we are advancing low- and no-carbon platforms. This includes diesel and natural gas engines, hybrid, and electric platforms, as well as powertrain components, controls, and related technologies.

Join Cummins in powering a better tomorrow

Cummins environmental sustainability strategy includes goals timed for 2030. Progress toward the reduction of carbon emissions from company plants and facilities — in addition to our products — is in full swing. For more than one hundred years, we have brought technological solutions to market. As a power solutions leader, we will continue to power a more prosperous world for today and tomorrow. Are you ready to consider investing in new power solutions?

Traci Kraus headshot

Traci Kraus

Traci Kraus is a Director of Government Relations where she leads US federal advocacy for Cummins. She focuses on energy, climate, hydrogen, transportation and budget legislative and regulatory issues. 

Prior to joining Cummins, Traci worked for former U.S. Senator Russ Feingold.  She has a Master's in Public Administration from the George Washington University and B.A.s in Government and Politics and Communication from the University of Maryland in College Park. She is originally from Chicago, and now lives outside of Washington, D.C. with her husband, Aaron and two children Liam (8) and Sloane (5).

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