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Sunday, December 22, 2024
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Truckload carrier Paper Transport sees greater adoption for renewable natural gas as fuel

In Truck Tech’s sixth and final special episode highlighting fleets making the switch to natural gas, host Alan Adler spoke with Green Bay, Wisconsin-based Paper Transport Inc. (PTI) about its journey.

PTI was an early adopter of natural gas-powered trucks, with approximately 10% of its total fleet made up of compressed natural gas (CNG) trucks. The company sees a step change in natural gas adoption rates due to an increase in net-zero-carbon renewable natural gas (RNG) sources and the release of a 15-liter natural gas engine developed by Cummins, X15N. 

Dan Deppeler, vice president of maintenance at PTI, told Adler that during the first weeks of taking on his role at PTI, the company had just announced the switch to natural gas trucks. Compared to speccing diesel trucks, deciding on new CNG/RNG trucks was not too different a process. “What we’re solving for anytime we’re speccing is ‘What’s the use case for the truck?’” said Deppeler. 

He added what becomes important with CNG/RNG is range. PTI’s day cab tractors equipped with Hexagon Agility’s 175-diesel-gallon-equivalent (DGE) fuel system achieve about 800-mile range. This allows drivers to fuel once a day, similar to an all-diesel unit. With the release of the Cummins X15N natural gas engine, Deppeler observed a resurgence in customer demand due to the larger engine and greater availability of RNG*.

When running CNG/RNG trucks, PTI relies on dedicated routes to take the most advantage of public access fuel infrastructure. In the past, the carrier was able to run semi-random over-the-road applications in the Midwest utilizing existing CNG/RNG infrastructure. Deppeler adds that currently PTI uses its natural gas trucks mostly for dedicated routes in St. Louis, Southern California, Green Bay, Wisconsin, and in the Northeast.

“It’s become much easier. You do have to be deliberate and be mindful about where the station infrastructure is and where your freight is, but in the dedicated environment, that works really well,” said Deppeler.

Load weight concerns are not an issue, with Deppeler noting they’re able to gross out 80,000 pounds for a fully laden tractor and trailer. Compared with the smaller 12-liter natural gas engine, Deppeler is excited that the larger 15-liter engine brings increased hauling capacity especially when operating in areas with mountainous terrain, something the 12-liter engine struggled with.

On the financial front, Deppeler notes that while CNG/RNG tractors have a higher upfront investment, they offer reduced fuel expenses, and he estimates that CNG/RNG tractors can get upwards of 600,000 miles over their working life. Diesel prices significantly affect the total cost of ownership (TCO), with natural gas offering approximately $2 per gallon in savings.

An added benefit with the addition of RNG is carbon credits, which can help customers offset emissions and improve their sustainability scorecards. Compared to battery-electric, which struggles with infrastructure, Deppeler notes that CNG/RNG trucks can fill the gap for customers looking to immediately reduce their emissions and negate the impact of their existing carbon footprint.

Adler also spoke with Lee Polcin, a veteran PTI driver with over 10 years on the road, who shared his experiences operating both diesel and CNG/RNG trucks. Polcin highlighted the improvements in CNG technology over time. “With the newer [CNG] trucks, I don’t see a difference whatsoever. … Now the technology is there, and to me it’s the same.”

Polcin echoed Deppeler’s observations that the new Cummins 15-liter natural gas engine will help fleets, especially those that operate in hilly and mountainous terrain and are hauling heavy loads. Polcin recommended that drivers try out a natural gas truck and form their own opinion, as the technology and capabilities have vastly improved from when the trucks were first introduced. An added benefit with the CNG/RNG engine is noticeably less noise compared to the loud droning of an idling diesel engine.

For Jared Stedl, chief commercial officer at PTI, the natural gas tractors presented more opportunities but had some operational constraints. Dedicated applications with specific routes and established fueling locations are the primary focus, allowing the tractors to fuel at least once a day, similar to a diesel day cab.

Regarding total cost of ownership, Stedl said most customers seek a five-year commitment to bring the TCO to breakeven while adding the sustainability benefits. But for many of the largest shippers, TCO remains the first priority, which requires that the natural gas trucks run enough miles to reach that breakeven point. “The bigger investment in the truck requires a lot more miles to save more money on the variable costs,” added Stedl. To some shippers, the sustainability side more than compensates for the added requirements to reach breakeven TCO.

Another way fleets are able to realize the benefits is by using day cab trucks in slip seat operations, with multiple drivers utilizing the same truck at different times. By pairing slip seating with local and regional operations, PTI is able to get more utilization compared to traditional one-way OTR applications for its CNG/RNG trucks.

While CNG/RNG tractors are only 10% of PTI’s total fleet, Stedl hinted that more fleet growth is possible based on recent agreements with customers that they hope to move forward with.

For PTI, this transition to CNG/RNG trucks has been over a decade in the making. “You don’t just flip the switch,” said Stedl. He added that PTI was one of the first trucking companies outside California to implement the technology. 

“You have to have a willingness to see it through. You can’t just give up after one poor experience. And make sure you have customers and partners that will do the same. … As a result of that, we’re seeing new technology now,” said Stedl.

To learn more about Hexagon Agility, visit www.hexagonagility.com.
* RNG can be used as a transportation fuel in the form of CNG.

The post Truckload carrier Paper Transport sees greater adoption for renewable natural gas as fuel appeared first on FreightWaves.

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