Alternative fuel vehicle demand grows

Demand for alternative fuel vehicles has continued to grow despite low gasoline prices, but could receive a boost as gasoline prices climb, industry leaders said Wednesday.

Much of the increase in compressed natural gas vehicles in recent years has been for corporate or government fleets, including sanitation trucks and other heavy duty vehicles.

“People do it for price, maintenance benefits and environmental benefits,” said Norman Herrera, CEO of Sparq Natural Gas. “Governments continue to buy natural gas vehicles even in the downturn. The private side will buy CNG when the gasoline price is $3, but the public side is more methodological and consistent.”

Demand for electric vehicles has grown as battery technology has improved, lowering cost and increasing vehicle range.

“In the early 2000s, we would have dreamed of having 100-mile electric vehicles when the range typically was 30 to 60 miles,” said Mike Newcombe, products and services portfolio manager at Oklahoma Gas and Electric Co. “Today, it’s common to have electric vehicles with a range of over 200 miles that cost in the mid-$30,000s.”

Industry leaders promote the financial benefits of alternative fuel vehicles in that they typically have much more stable fuel prices than gasoline or diesel.

“They can plan their fuel costs long-term,” said Eric Pollard, Central Oklahoma Clean Cities coordinator. “It’s a question of return on investment. Even with prices where they have been, growth is encouraging. With higher diesel and gasoline prices, the benefit is even stronger.”

Gasoline prices have surged nearly 60 cents a gallon over the past year and more than 20 cents a gallon since January, largely because of climbing oil prices.

Representatives from the state’s alternative fuel industry met Wednesday for the Clean Cities Vision Awards, which recognize Oklahoma Clean Cities Coalition stakeholders’ efforts in promoting alternative fuels and advanced vehicle technologies.

Two of the award winners collaborated on one project. Sparq and the city of Moore in January opened a CNG refueling station for the city’s sanitation trucks. The facility has pumps for 12 trucks and is designed to expand to 15 slow-fill, overnight pumps if needed.

“We’re grateful that the government and private business can come together and do good things for people in the community,” Moore City Councilman Mark Hamm said. “When you look at the problem of pollution and environmental concerns, if each city can do a little bit, we can do a lot together.”

Rep. Leslie Osborn, R-Mustang, received the group’s legislative advocate award.