LP Gas, March 2014

Sustained demand UPS interest in propane fueled fleet vehicles continues to grow T he propane industrys reputation has been bruised and battered in the publics eye this winter due to well documented supply and distribution challenges throughout much of the country As industry leaders strategize and prepare for future winters another development is taking shape at quite possibly the perfect time Atlanta based UPS one of the most recognized U S corporate brands was preparing earlier this month to announce an agreement with Freightliner Custom Chassis Corp to purchase 1000 propane fueled package delivery vans and deploy them initially in California Louisiana and Oklahoma UPS announcement which was scheduled for early March at The Work Truck Show in Indianapolis would represent a 68 million investment and its first large scale movement toward propane in the United States The company has been running about 900 propane fueled vehicles worldwide mostly in Canada and about 3100 globally on alternative fuels but few domestically on propane UPS interest in propane autogas has grown following a successful pilot program it completed in Georgia late last year says Tucker Perkins chief business development officer for the Propane Education Research Council PERC The program tested 20 vehicles that covered 173000 miles and burned 3400 gallons of propane Perkins calls the test nearly flawless and it motivated UPS to continue talks with Freightliner on a larger purchase The vehicles feature a Freightliner chassis with a General Motors EDITOR IN CHIEF BRIAN RICHESSON With PERCs help UPS will install 40 refueling stations in three states 60 liter engine which uses a CleanFuel USA system and is sold and modified through Powertrain Integration UPS typifies the perfect fleet for propane autogas Perkins says because it has a good density of vehicles at one location and employs its own maintenance staff Freightliner is also prepared to handle warranty work This is a tremendous validation of what weve been saying for years propane autogas is quite possibly the most cost efficient alternative fuel that exists today Perkins says PERC is contributing 780000 to help the delivery company install refueling infrastructure at 30 locations in the three states with UPS funding station development at 10 additional sites Part of the councils investment in infrastructure involves testing a new refueling nozzles low emissions characteristics and ease of use This gives us about 150000 uses of this nozzle over the next year Perkins says From that data we hope to go to authorities having jurisdiction show them this new lower emissions nozzle and work to remove the training requirements for public dispensers This will eliminate a barrier to more rapid deployment of infrastructure The project funding issue was not without dissension at PERCs advisory committee level Perkins detailed during the councils February conference call Some members opposed investing in the infrastructure while others were concerned about a prearranged supply contract Perkins says UPS plans to bid supply individually by location We feel strongly this is the best opportunity for marketers in general to have easy access and be on a level playing field for gas supply says Perkins noting how PERC can work with state executives to facilitate UPS location information to propane marketers UPS project partners should have much of the work and vehicle deployments ready by Oct 1 Perkins says It is worth noting the same partners have worked to overcome nuisance problems on a well documented propane fueled bobtail and bus project forcing them to push back production deadlines We hope this project finds smoother ground The winter of 2013 14 and the accompanying supply constraints have left some doubts as to whether the industry can reliably support new customers The opposite view is creating enough year round demand not just in the winter will only help the industry sustain itself over the long haul This is clearly part of the solution because its base load customers like UPS that are going to create enough demand to allow us all to make the investments we need in infrastructure Perkins says LPG brichesson@ northcoastmedia net 6 LPGas March 2014 www LPGasmagazine com