General Electric (NYSE:GE) and Peake Fuel Solutions — an affiliate of Chesapeake Energy (NYSE:CHK) — announced a plug-and-play “Compressed Natural Gas Box System” that will allow for easier and cheaper refueling of CNG vehicles. The news coincides with a summit hosted in Columbus, Ohio, by America’s Natural Gas Alliance, which is aimed at furthering natural gas vehicle adoption.
There are a variety of initiates in place aimed at increasing the use of natural gas vehicles. At least 20 states are already beginning to convert their vehicle fleets, or are seriously interested in beginning. The CNG In A Box system can save fleets about 40 percent in fuel costs, according to GE’s Ecomagination website.
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“Natural gas is produced at a relatively lower cost and is cleaner burning than gasoline or diesel fuel — natural gas vehicles can show an emissions reduction of up to 80 percent compared to gasoline vehicles,” said GE Ecomagination VP Mark Vachon in a statement about the CNG Box.
On October 2, Quantum Fuel Systems Technologies Worldwide (NASDAQ:QTWW) unveiled a new natural gas tank for vehicles at an event related to the ANGA’s summit. “Quantum’s high capacity tanks are 30-70 percent lighter than any other tank on the market today, providing remarkable advantages in installation, vehicle handling and fuel economy,” said CEO Brian Olsen at the event.
One of the biggest problems with CNG vehicles is that the United States lacks the infrastructure necessary to support them. In order to help tackle this problem, GE and Chesapeake Energy will deploy 250 of the systems across the U.S. through 2015.
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