Honda Looks to U.S. Dealers to Boost Natural Gas Station Network

Honda Motor Co. (7267), the only automaker selling compressed natural gas-powered cars to U.S. drivers, wants some of its dealers to also install pumps to sell the fuel as its seeks to double sales of CNG vehicles.

Boosting sales of Indiana-built Civic Natural Gas sedans requires more fuel stations, Steve Center, U.S. vice president for environmental business development, said in an interview. Honda is negotiating with regulators in California, the biggest U.S. market for CNG vehicles, seeking to have pumps placed at two or more Honda dealerships this year, he said yesterday.

“If the dealer had a fueling station, it would really reduce some of that concern for the customer,” Center said at Honda’s U.S. headquarters in Torrance, California. “It’s not our place to create infrastructure, but it’s a chicken-and-egg situation and we’re going to have to nurse that egg along.”

Honda’s strategy of marketing autos powered by natural gas, a domestically sourced fuel that’s cheaper than gasoline and emits less tailpipe exhaust, comes as U.S.-based competitors plan their own CNG models. General Motors Co. (GM) and Chrysler Group LLC this week both said they’re readying pickups that will run on the fuel.

The U.S. yesterday raised its forecast for natural gas output in 2012 by 0.4 percent and lowered its outlook for prices. Marketed gas production will average 67.91 billion cubic feet a day in 2012, up from 67.64 billion estimated in February, the Energy Department said in its monthly Short-Term Energy Outlook, released in Washington.

Unanswered Questions
The equivalent of a gallon of compressed natural gas cost an average of $2.13 in January, compared with $3.37 for regular gasoline, according to the Energy Department.

The International Association for Natural Gas Vehicles says on its website there were 1,000 stations and 112,000 natural gas vehicles in the U.S. as of December 2010.

“We’re adding stations rapidly,” said Richard Kolodziej, president of NGV America, a Washington-based trade group that lobbies for natural gas vehicles. “ If you are in an area where there aren’t any fueling stations, this is a great option,” he said of Honda’s plan.

Currently, 270 U.S. Honda dealers plan to sell the Civic Natural Gas, a revamped version of the Civic GX compact sold since the 1990s. The Tokyo-based carmaker’s initial goal is to sell “4,000 to 5,000” CNG vehicles annually, double the previous rate, Center said. Honda builds the model at its Greensburg, Indiana, plant.

‘Fill in Holes’
Details such as the cost of a CNG station at a dealership, how many vehicles it could serve a day and how many such facilities may be established are still being studied, Center said. Honda can work with dealers to obtain needed permits, apply for public incentives and provide financing, he said.

“Something like this helps fill in holes,” Center said. “We want to select a couple of test cases and walk through it.”

Honda hasn’t determined how many such dealer fuel stations may be opened in California and other states, he said. Center, whose previous assignments at Honda included managing U.S. advertising and Acura sales, said part of his new job includes finding uses for environmentally friendly technologies developed by the company.

The Civic Natural Gas sedan costs $26,155, or $2,100 more than a hybrid version of the compact model. The car was named 2012 Green Car of the Year at the Los Angeles auto show in November.

The car averages 31 miles per gallon equivalent of fuel, and holds the equivalent of 8 gallons of compressed gas. Incentives for owners in California include a permit allowing a driver without passengers to use highway carpool lanes.

Source;
http://www.bloomberg.com/news/print/2012-03-07/honda-looks-to-u-s-dealers-to-boost-natural-gas-station-network.html

Plan to add pumps may boost natural gas autos

This is great news for people that own Natural Gas Civic's!
By Alan Sayre
New Orleans —The United States has record supplies of natural gas and plenty of reasons to promote natural-gas powered cars. But so far, consumers, manufacturers and fuel suppliers haven't shown much interest.

Now, a major natural gas developer's plans to vastly increase the number of truck stops that offer liquid natural gas could help boost its use in the vehicles that burn the most fuel, while promoting its availability to a wider market.

Lots of natural gas is available, if U.S. drivers decide to use it. In just a few years, domestic natural gas supplies have increased by trillions of cubic feet through shale finds, boosting the supply to the point where plans are in place to export part of the overflow.

The growth of natural gas vehicles in the United States so far has been dominated by fleets of buses, taxis and garbage haulers. Only one natural gas car is commercially produced in the country: the Honda Civic GX, recently renamed the NG. It has sold a grand total of about 13,000 in 13 years of production.

The reasons for the lackluster sales of natural gas cars are many: The fuel is only available at a handful of public stations, tethering the vehicles within a certain distance of a fuel source. And even though the pump price of natural gas can run $1 to $2 less per gallon equivalent than gasoline, natural gas vehicles carry a higher sticker price.

The focus for the natural gas vehicle industry in the United States has been the fuel-guzzlers: commercial vehicles, especially tractor-trailer rigs.

Rich Kolodziej, president of the trade association NGV America, says that makes sense in terms of overall fuel usage. He said a driver who puts 12,000 miles a year on a car at 25 miles to the gallon will use about 500 gallons of gasoline annually. But a diesel-driven 18-wheeler can easily go 120,000 miles a year. At six miles per gallon, that comes to 20,000 gallons.

"If you're trying to reduce foreign imports of oil, you're trying to reduce greenhouse gases and emissions in urban areas, where do you put your effort? You put it on the big vehicles," Kolodziej said.

For reasons of tank space, liquid natural gas is used by commercial trucks, while compressed natural gas is the fuel of choice for cars.

According to the international trade association NGV Global, there are 12.7 million natural gas vehicles in the world, including 6.8 million in the Asia-Pacific rim, 4.2 million in Latin America, 1.4 million in Europe, and 122,000 in Africa.

The U.S. has just 112,000 of them — less than 1 percent of the global total, and less than a tenth of 1 percent of the 253.7 million vehicles in the U.S.

Most of them are in fleets.

"The big reason that they work well for fleets and not the average person on the street is that most fleet vehicles are used for relatively short trips," said John O'Dell, senior editor of Edmunds.com, which follows the vehicle industry. "They go back to the barn in the evening where they have a refueling station that can handle them.

"There is not a really good fueling system in this country," O'Dell added. "You have to have the infrastructure out there to convince people to buy natural gas cars."

Kolodziej said that there are about 180,000 gasoline stations — and only about 1,000 locations to fill up with natural gas.

But that may be changing.

The T. Boone Pickens-backed Clean Energy Fuels Corp. is embarking on a major expansion of natural gas fueling and plans to add liquefied natural gas pumps at 150 truck stops nationwide over the next 24 to 36 months.

"We've mapped out a strategy to cover every major interstate in the domestic United States," said Clean Energy Fuels chief marketing officer James Harger.

Harger and other natural gas proponents are putting stock in pending congressional legislation that would provide tax credits to cover 80 percent of the cost difference between a liquid natural gas tractor-trailer and a diesel. Harger said the five-year bill probably would cost about $1 billion a year. The U.S. spends over $1 billion a day on foreign oil.

"This will help jump-start this industry," he said.

Source;
http://www.detroitnews.com/article/20111229/AUTO01/112290345/Plan-add-pumps-may-boost-natural-gas-autos